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.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR:

Maes

 

DATE TYPED:

02/03/03

 

HB

 

 

SHORT TITLE:

Encourage Business Development in Northern NM

 

SB

271

 

 

ANALYST:

Collard

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$500.0

 

$50.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to HB 133, HB 134, and SB 270

 

SOURCES OF INFORMATION

 

Responses Received From

Economic Development Department

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 133 appropriates $500.0 from the general fund to the Economic Development Department for the purpose of contracting for support and expansion of business incubation services in northern New Mexico from FY04 through FY06.

 

     Significant Issues

 

Support and expansion of business incubation services include:

·       Program development,

·       Operating costs,

·       Outreach to diverse clientele,

·       Development of evaluation tools, and

·       Methods to ensure accountability.

 

FISCAL IMPLICATIONS

 

The appropriation of $500.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the general fund.

 

The Economic Development Department is concerned that there are not monies attached to the bill for administration, evaluation, and auditing costs.  The administration of this work would require additional FTE at a cost of $50.0.

 

ADMINISTRATIVE IMPLICATIONS

 

The Economic Development Department indicates it does not currently have the staff to administer this program.  An additional FTE would be needed for the administration and evaluation of the contracts.

 

RELATIONSHIP

 

Senate Bill 271 relates to House Bill 134 and Senate Bill 270 because the bills all promote business incubators in the state.  Senate Bill 271 relates to House Bill 133 because the bills offer the same amount of money for business incubators in the state.  However, House Bill 133 allots the appropriation for FY04 only.

 

KBC/sb:yr