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	Stewart		DATE TYPED	2/17/04		HB	HJM 96
SHORT TITLE		Industrial Revenue Bond Report Requirements				SB
					ANALYST		Collard

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY04	FY05	FY04	FY05
			See Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department

SUMMARY

Synopsis of Bill

House Joint Memorial 96 requests the Economic Development Department (EDD) to develop a study to measure the state business incentives and industrial revenue bonds (IRBs). The legislature would like the Economic Development department to measure how the state incentives affect wage levels and health care costs in New Mexico. Specifically, whether the incentives are increasing New Mexico’s per capita income and increasing the number of residents on covered on private health care plans.

FISCAL IMPLICATIONS

There are no significant fiscal implications associated with this bill.

ADMINISTRATIVE IMPLICATIONS

EDD indicates the passage of the bill would effect administration of the department. EDD would incur costs to contract the study or it would cost staff time to do this study within EDD. There are 47 incentive programs and the IRB program effects all municipalities and counties in New Mexico.

OTHER SUBSTANTIVE ISSUES

EDD notes this joint memorial will provide more accurate information for the executive and legislative branches to craft policy on New Mexico’s state incentives and IRBs. The study will answer questions of the use of clawbacks, the effectiveness of the incentives in attracting companies with health plans and their effects of reducing the State of New Mexico’s Health care costs to residents and state programs.

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