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:

Maes

 

DATE TYPED:

02/07/03

 

HB

 

 

SHORT TITLE:

Promote Economic Development in NM

 

SB

322

 

 

ANALYST:

Padilla

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$10,000.0

 

 

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to Appropriation in the General Appropriation Act

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

 

Economic Development Department

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 322 appropriates $10,000.0 from the general fund to the Economic Development Department for the purpose of paying for advertising costs and travel expenses related to promoting New Mexico for economic development.

 

     Significant Issues

 

EDD’s FY03 general fund budget was $6,001.0.  The agency request and LFC recommendation for FY04 is $5,820.7.  This budget supports four programs, six divisions and 64 FTEs. The appropriation of $10,000.0 in this bill is therefore more than one-and-a-half times EDD’s current budget.  

 

FISCAL IMPLICATIONS

 

The appropriation of $10,000.0 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.

 

EDD did not provide any specific information about how it would use the funds provided by this bill.  It did state, however, that the cost of administering the appropriation could be absorbed with existing agency resources.

 

ADMINISTRATIVE IMPLICATIONS

 

Because this bill would provide such a significant increase to EDD’s budget and appears limited to advertising costs and travel expenses, it is doubtful whether EDD has the capacity to absorb or manage the funds.

 

EDD believes this bill would significantly enhance its ability to reach a wider audience and would enable it to increase the current level of its cooperative advertising program.

 

EDD notes that it has performance measures in place to track the impact of this appropriation.  For example, the department measures the following:

 

  • Trade show leads and attendance.
  • Number of direct inquiries and exposures.
  • Amount of earned media.
  • Amount of web traffic.
  • Number of community profiles on EDD’s website.

 

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

 

As noted above, this bill relates to an appropriation of $5,820.7 to EDD in the General Appropriation Act of FY04.

 

OTHER SUBSTANTIVE ISSUES

 

EDD notes that the U.S. Census Bureau projects that New Mexico will have the fifth-fastest growing population in the U.S. by 2005.  EDD therefore believes the state must try to achieve corresponding levels of job growth. 

 

LP/prr