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

SPONSOR:	Rawson		DATE TYPED:	2/09/03		HB
SHORT TITLE:		Promote Las Cruces				SB	37
					ANALYST:		Padilla

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
	$50.0			Recurring	General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB 24.

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department

Department of Tourism

SUMMARY

Synopsis of Bill

Senate Bill 37 appropriates $50.0 from the general fund to the Economic Development Department for the purpose of promoting the potential of Las Cruces as a location for economic development and retirement.

Significant Issues

Both the Economic Development Department and the Department of Tourism currently operate “cooperative advertising” programs that provide matching funds for communities to market themselves. In FY03, EDD’s program was funded at $200.0; Tourism’s program was funded at $1,000.0. The Mesilla Valley Economic Development Alliance was awarded $10.0 by EDD’s program in FY03. Seven Dona Ana County organizations, including the City of Las Cruces and the Las Cruces Convention and Visitors’ Bureau, were awarded a total of $46.9 by Tourism’s program.

FISCAL IMPLICATIONS

The appropriation of $50.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 04 shall revert to the general fund.

RELATIONSHIP

This bill relates to HB 24, which appropriates $1,000.0 to EDD for cooperative advertising.

The General Appropriation Act includes $100.0 for EDD’s cooperative advertising program.

OTHER SUBSTANTIVE ISSUES

The Economic Development Department notes that Las Cruces has targeted a number of industries including aerospace, maquila suppliers, logistics companies, food processing and high-tech.

POSSIBLE QUESTIONS

Can the goals of this bill be met through the cooperative advertising programs of the Economic Development Department and the Department of Tourism?

LP/yr