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 |
Robinson |
DATE TYPED |
|
HB |
|
||
|
SHORT
TITLE |
Low-Income Home Alternative Energy Projects |
SB |
560 |
||||
|
|
ANALYST |
|
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY04 |
FY05 |
FY04 |
FY05 |
||
|
$850.0 |
|
|
See Narrative |
Recurring |
General
Fund |
|
|
|
|
|
|
|
LFC Files
Responses
Received From
Energy,
Minerals &Natural Resources (EMNRD)
SUMMARY
Synopsis of Bill
Senate Bill 560
appropriates $850 thousand from the General Fund to EMNRD to contract for
services with three statewide energy, electric and natural gas advocacy
organizations with a track record of not less than five years to provide and
assist with basic start-up costs for low-to-moderate income homes and homes
without basic services.
Significant Issues
EMNRD has provided the following:
This bill promotes alternative energy and
renewable energy, specifically targeting lower-income New Mexicans. There are an estimated 5,000 households in
the state, mostly on Indian land and in colonias,
without basic electrical services that may benefit from the
legislation. However, this appropriation
is not included in the Governor’s priority list for funding and, therefore,
could compete with other sought-after legislative appropriations for similar
projects.
SB 560 appropriates funds for expenditure in Fiscal
Year2004. However, there is no emergency
clause attached to the bill, thereby making its effective date 90 days after
signature by the governor.
The provision for EMNRD to
contract with non-profit organizations to assist with basic start-up costs for
low to medium income homes and homes without basic electricity services already
violate the anti-donation clause in the state Constitution, Article IX,
Section 14. Paragraph E of Section 14
provides that counties or municipalities may provide or pay the costs of
infrastructure necessary to support affordable housing projects. It does not provide for the State to do
this.
In addition, the Constitution requires the
legislature to pass enabling legislation that defines affordable housing and
establishes criteria for recipients of infrastructure, and requires the county
or municipality to give prior formal approval by ordinance for a specific
affordable housing project. This bill will
give the money to the state to distribute to non-profits rather than a county
or municipality. Affordable housing is not defined, criteria
for recipients is not established, and a county or municipality has not
given prior formal approval for a specific affordable housing project.
FISCAL IMPLICATIONS
The appropriation of $850
thousand 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.
This bill allows a
reasonable percentage of the appropriation to be used for administrative costs,
but this percentage may not exceed twenty percent. Administrative costs do not
include staff costs.
ADMINISTRATIVE IMPLICATIONS
EMNRD may have to
conduct rulemaking to determine low-to-moderate eligibility requirements and
procedures for the program administration.
EMNRD would likely require at least 0.5 FTE for program administration
and management, yet the bill prohibits any of the appropriation from being used
for staff costs.
POSSIBLE QUESTIONS
Since the appropriation in this bill is for Fiscal Year 2004, should
there be an emergency clause? Can the
services be provided by the end of FY04 which is
DW/dm