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 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	Cisneros		DATE TYPED	2/18/04		HB
SHORT TITLE		Cumbres and Toltec Railroad Funds				SB	575
					ANALYST		CJJ

APPROPRIATION

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

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration

Cumbres and Toltec Scenic Railroad Commission

Department of Tourism

SUMMARY

Synopsis of Bill

Senate Bill 575 appropriates user fees and other revenue collected by the Cumbres and Toltec Scenic Railroad Commission. The application of ticket sales revenue towards railroad operating expenses is necessary to sustain the railroad financially.

Significant Issues

Currently all "user fee's" collected by the railroad must be deposited into the Railroad Loan Retirement Fund. With these limitations the railroad does not have the ability to utilize the user fees for operational costs. This severely limits the Commission's flexibility.

FISCAL IMPLICATIONS

The Cumbres and Toltec Scenic Railroad Commission estimated ticket sales revenues for FY04 to be around $1.5 million. Ticket sales revenue for FY05 are anticipated to exceed FY04 levels as more trains will be operational yielding additional runs.

ADMINISTRATIVE IMPLICATIONS

The agency needs to work with LFC and DFA to develop meaningful performance measures and a strategic plan. The C&TSRC must focus on improving accounting, budgeting, and cash management functions. Further, the C&TSRC should develop a long-term capital needs assessment so that the legislature can evaluate the most effective manner to address the true needs of the railroad.

CJJ/dm