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

Youngberg

DATE TYPED

2/4/04

HB

HJR 11

 

SHORT TITLE

State Spending Limits

SB

 

 

 

ANALYST

Wilson

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

 

 

See Narrative

 

 

 

Relates to Appropriation in the General Appropriation Act

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Department of Labor (DOL)

 

SUMMARY

 

Synopsis of Bill

 

House Joint Resolution 11 proposes to amend the Constitution of New Mexico by adding a limit on State spending. The resolution will require the maximum annual percentage change in the general appropriation act to not exceed inflation plus the percentage change in state population in the prior calendar year.

 

Inflation shall be determined by the annual percent change in the United States city average for all items of the consumer price index for all urban consumers as reported by the United States Bureau of Labor Statistics. Population shall be determined by annual federal census estimates and shall be adjusted every decade to match the federal decennial census. If revenue exceeds these limits, the excess shall be refunded in the next fiscal year.

 

The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the November general election.

 

 

 

 

Significant Issues

 

There is considerable debate over placing a limit on State spending. One side believes it is prudent to place limitations on the State Legislature. Others believe constraints should not be placed and spending problems should be left to our publicly elected officials.

 

FISCAL IMPLICATIONS

 

This amendment to the New Mexico Constitution could potentially slow down the rate of growth for New Mexico State government.

 

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