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SPONSOR: |
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DATE TYPED: |
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HB |
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SHORT TITLE: |
NMFA Loans for Public Projects |
SB |
292/aSCONC/aSFC/aHFl #1 |
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ANALYST: |
Kehoe |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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See Fiscal Narrative |
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(Parenthesis
( ) Indicate Expenditure Decreases)
LFC
Files
SUMMARY
Synopsis of House Floor Amendments
Synopsis of SFC Amendment
Senate
Finance Committee amendments to SB 292a/SCONC strike SCONC Item 7 that would
have expanded the scope of a Santa Fe County project to include equipment. The amendments also request legislative
authority to allow NMFA to make loans from PPRF to two additional eligible
entities, specifically, to the City of
Synopsis of SCONC Amendment
Senate Conservation Committee amendments to SB 292, Items 1 through 12, clarify the description and purpose of the projects; Item 13 requests legislative authority to allow NMFA to make loans from PPRF to an additional 43 eligible entities. The value of the additional projects is approximately $275 million.
Synopsis
of Original Bill
Senate Bill 292
authorizes the New Mexico Finance Authority (NMFA) to make loans for statewide
infrastructure projects from the Public Project Revolving Fund (PPRF), and
requires eligible entities to certify to the Authority by the end of fiscal
year 2006 if they are going to pursue a loan from the PPRF.
Significant
Issues
Section 1, Items 1 through 224,
describes the projects and identifies the state and local entities requiring
legislative authority to make loans from the PPRF. The approximate value of all the projects
contained in Senate Bill 292 totals approximately $500 million in needs
statewide. Loans from the PPRF benefit eligible entities by allowing them to
borrow for infrastructure projects at below market costs, based on terms and
conditions established by NMFA. The
authorization provided in Senate Bill 292 does not guarantee that those
projects will receive an NMFA loan.
Loans will be made to entities that can identify a sufficient revenue
source for repayment of a loan, and are able to meet other financial criteria
established by the Authority.
Section 2, voids legislative
authorization if a qualified entity does not notify the Authority by the end of
fiscal year 2006 of its desire to continue to pursue a loan from NMFA.
Section 3, contains an
emergency clause.
FISCAL IMPLICATIONS
Senate Bill 292 does
not appropriate funds. However, loans
made in interim as a result of passage of Senate Bill 292 would result in
reducing the loan capacity of the Public Project Revolving Loan Fund. The PPRF capacity for direct cash loans as
of December 2002 was approximately $14.9 million. The total value of projects contained in
Senate Bill 292 total approximately $775 million.
Senate Bill 292 relates to Senate Bill 294. Senate Bill 294 provides legislative
authority to NMFA to make grants for public projects from the Water and
Wastewater Project Grant Fund. If
entities do not meet eligibility requirements established by NMFA to qualify
for a grant, the entity may be eligible to apply for a loan from PPRF as
provided in Senate Bill 292.