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
|
SPONSOR |
Snyder |
DATE TYPED |
|
HB |
|
||
|
SHORT
TITLE |
Capital Projects Review Act |
SB |
388 |
||||
|
|
ANALYST |
Gilbert |
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY04 |
FY05 |
FY04 |
FY05 |
||
|
$300.0 |
|
|
|
Non-Recurring |
General
Fund |
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to: SB 340
LFC Files
Responses
Received From:
Public
Education Department (PED)
Energy,
Minerals & Natural Resources Department (EMNRD)
Department
of Finance and Administration (DFA)
New
Mexico Corrections Department (NMCD)
Cultural
Affairs Department (CAD)
SUMMARY
Synopsis of Bill
Senate Bill 388 appropriates $300 thousand from
the general fund to the Legislative Council Service (LCS) for expenditure in
fiscal years 2004 and 2005 to support the Capital Projects Review Committee
(CPRC) and to pay staff and contractual costs as necessary to meet CPRC goals
and responsibilities.
This bill enacts the Capital Projects Review Act
(CPRA) and creates the CPRC. The CPRC is
a permanent interim legislative committee composed of twelve-members: six
members appointed by the Speaker of the House and six members appointed by the
Senate President Pro Tempore.
The purpose of the CPRC is to evaluate and
prioritize statewide and local capital outlay projects and to monitor and
oversee projects authorized by the Legislature to ensure that appropriations
are expended in an equitable and cost-effective manner. The CPRC must make a report of its priority
listing of capital projects and other findings and recommendations for the
legislature by December 1 of each year.
Staff for the CPRC would be provided by the LCS.
The LCS may, subject to legislative appropriation, appoint and employ, by
entering into contracts, such professional, technical and clerical assistance
as necessary to carry out the provisions of the CPRA.
Significant
Issues
The CPRC shall consider the following when
evaluating and prioritizing capital project requests:
·
Critical
needs of the state;
·
Whether
the project meets a critical need;
·
Whether
the project is needed to address a health and safety concern;
·
A
project’s priority on either a state or local capital improvement plan;
·
Consideration
of the ability to phase the project if necessary and the availability of funding
to complete at least one full, workable project phase;
·
The
ability of the ultimate governmental recipient to provide adequate staff and
funding for operations and maintenance;
·
The
expected life of the project;
·
Whether
there are alternatives to the capital project as requested;
·
Whether
a requested renovation project will forestall substantial capital outlay costs
in the future;
·
The
availability of sources other than state funding for the capital project,
including matching funds;
·
The
most appropriate funding source for types of projects; and
·
Other
considerations determined by the committee.
FISCAL IMPLICATIONS
The $300.0
appropriation contained in this bill is a nonrecurring expense to the general
fund and any unexpended or unencumbered balance remaining at the end of fiscal
year 2005 shall revert to the general fund.
ADMINISTRATIVE
IMPLICATIONS
The Energy, Minerals &
Natural Resources Department (EMNRD), State Parks Division is currently funding
most of its capital development programs through Governmental Gross Receipts
Tax (GGRT) revenues. This is a dedicated funding source authorized by NMSA
1978, Section 7-1-6.1. As such, it is exempt from the prioritization criteria
of this act but is subject to the reporting procedures. The agency is fully
capable of meeting the reporting procedure criteria and is supportive of this
process.
Any additional capital development projects that
the EMNRD State Parks Division develops beyond the GGRT revenues would be
subject to the prioritization and reporting criteria of the act. Again, the
agency is fully supportive of this proposal as a method to better coordinate and
fund state-wide capital projects and foresees no
difficulty in conforming to this act.
The CPRC appears to
duplicate, to some extent, the current planning activities of the Property
Control Division of the General Services Department, the New Mexico Finance
Authority, the Commission on Higher Education, State Agency on Aging and other
agencies with a planning process for prioritizing capital projects. The Water Trust Board also accepts applications
and prioritizes water projects as does the Environment Department. According to
DFA, the CPRC appears to duplicate work already being accomplished by several
other state agencies.
RELATIONSHIP
Senate Bill 340
relates to capital projects; enacts the capital projects act; creates the
capital projects council; and provids procedures for evaluating and
prioritizing proposed capital projects.
TECHNICAL ISSUES
In section 5, Subcommittees, the bill states that at
lease one member of the minority party shall be a member of the subcommittee,
yet minority membership is not required in the capital projects re-view committee
in section 4.
OTHER SUBSTANTIVE
ISSUES
According to the
Public Education Department (PED), this bill could result in schools not receiving
the same funding as in the past. School
district priorities will have to rank higher than other projects statewide
compete with all government capital outlay projects. Additionally, this bill does
not address capital projects authorized and appropriated through the Public
School Capital Improvements Act.
RLG/yr