NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

Varela

 

DATE TYPED:

2/18/03

 

HB

534

 

SHORT TITLE:

Expenditure Cap on SHTD Funds

 

SB

 

 

 

ANALYST:

Reynolds-Forte

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

See Narrative

Recurring

Road Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

 

See Narrative

Recurring

Federal

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

State Highway and Transportation Department

Energy Minerals and Natural Resources Department

 

SUMMARY

 

House Bill 534 removes the $50.0 per fiscal year expenditure cap on state highway and transportation funds that can be expended for purposes of the Public Mass Transportation Act.

 

HB 534 has a July1, 2003 effective date.

 

FISCAL IMPLICATIONS

 

HB534 removes the $50.0 cap that limits the funds State Highway and Transportation Department may spend on the Public Mass Transportation Act.  Such funds could be used to leverage additional federal dollars if such funds are available. 

 

The Appropriations Act for FY04 has appropriated funds based on the current $50.0 cap.  If HB534 were implemented, and the Department wanted to increase funds for this purpose for FY04, funds would need to be transferred from other areas/programs within the Department budget.   

 

RELATIONSHIP

 

Relates to the Appropriation Act for FY04 as noted above.

 

OTHER SUBSTANTIVE ISSUES

 

The Energy Minerals and Natural Resources Department notes that enactment of HB534 would indirectly assist and support the Energy, Minerals and Natural Resources Department’s Energy Conservation and Management Division’s Transportation Program and its goals of promoting ridesharing and reducing dependence on foreign oil.   Reducing the number of vehicles on New Mexico roads will promote traffic safety and energy efficiency.  An added benefit of this legislation is that ride sharing, with the possibility of using alternative fuels, would significantly reduce air pollution and provide support for alternative fuel infrastructure development.

 

PRF/prr