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

SPONSOR:	Sandoval		DATE TYPED:	2/11/03		HB	599
SHORT TITLE:		Temporary Housing for Outpatient Veterans				SB
					ANALYST:		Chabot

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
	$600.0			Recurring	General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in the General Appropriation Act that provides $600.0 from the tobacco revenue settlement program fund for assistance to Veterans with lung disease.

Duplicates SB 402

Related to SB 538

SOURCES OF INFORMATION

LFC Files

Responses Not Received From

New Mexico Veterans’ Service Commission (VSC)

SUMMARY

Synopsis of Bill

House Bill 599 appropriates $600.0 from the general fund to VSC for the purpose of providing temporary housing for veterans with debilitating diseases being treated as outpatients in medical facilities.

Significant Issues

The 2002 General Appropriation Act has a $600.0 appropriation from the Tobacco Settlement Revenue Fund to VCS for assistance to veterans with lung disease. The appropriation is to provide temporary housing, transportation and out-reach. VSC signed a contract for these services in January 2003, six months into the fiscal year. It will not be able to spend all of the appropriation in fiscal year 2003 and no data is available about the effectiveness of this program.

The Executive in the FY04 operating budget request did not support continuing the appropriation of the program for veterans with lung disease.

FISCAL IMPLICATIONS

The appropriation of $600.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund.

POSSIBLE QUESTIONS

1. Can the appropriation in the 2002 General Appropriation Act for services to Veterans with lung disease be extended through 2004 to determine whether the service provided is effective versus the costs of the program?
2. Should general fund be used to replace the appropriation from the Tobacco Settlement Revenue Fund?

GAC/yr