Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also 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

Silva

DATE TYPED

02/08/04

HB

124/aHFl#1

 

SHORT TITLE

NMFA Public Project Revolving Fund Loans

SB

 

 

 

ANALYST

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

 

See Narrative

See Narrative

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates Senate Bill 202.

 

SOURCES OF INFORMATION

 

LFC Files

New Mexico Finance Authority (NMFA)

 

SUMMARY

 

      Synopsis of HFl Amendment #1

 

House Floor Amendment #1, items 1 through 11, make technical adjustments to the bill and authorizes NMFA to make loans for public projects from the Public Project Revolving Fund for an additional 9 projects.  The additional projects are in Santa Fe, Bernalillo, Lincoln, Union, Sandoval, Curry, Torrance and San Miguel counties.

 

Item 11 authorizes loans to the Department of Transportation for road and refinancing projects.

 

Synopsis of Original Bill

 

House Bill 124 authorizes NMFA to provide loans from the Public Project Revolving Fund (PPRF) to 125 statewide qualified entities for infrastructure projects

 

Significant Issues

 

Section 1 describes the 125 projects and identifies the state and local entities requesting legislative authority to make loans from PPRF.  According to NMFA, the approximate value of all the projects contained in this section totals approximately $300 million in needs statewide. 

 

Loans from 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 the bill 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 2007 of its desire to continue to pursue a loan from NMFA.

 

Section 3  contains an emergency clause.

 

FISCAL IMPLICATIONS

 

House Bill 124 does not appropriate funds.  However, loans made in the interim as a result of passage of the bill would result in reducing the loan capacity of the Public Project Revolving Fund.  PPRF capacity for direct cash loans as of December 2003 was approximately $15 million.

 

DUPLICATION

 

This bill duplicates Senate Bill 202 in its entirety.

 

OTHER SUBSTANTIVE ISSUES

 

Some of the eligible state entities listed within the bill seeking authorization include: Expo New Mexico for infrastructure and refinancing; New Mexico Highlands University for refinancing projects; New Mexico State University for building and refinancing projects; for Northern New Mexico Community College for infrastructure; and for the University of New Mexico-Gallup campus for land purchase projects.

 

LMK/njw:dm