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

Ingle

DATE TYPED

02/08/04

HB

 

 

SHORT TITLE

Capital Outlay Fund Expenditure Guidelines

SB

SR 1

 

 

ANALYST

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

 

 

NFI

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates HR 2

 

SOURCES OF INFORMATION

 

LFC Files

 

SUMMARY

 

Synopsis of Bill

 

Senate Resolution 1 expresses the intent of the House of Representatives to authorize the expenditure of funds for capital outlay projects important to the health, safety and well-being of New Mexicans and that equitably serve all its citizens.  The Resolution further proposes guidelines be adopted in considering the appropriation of state funds for capital outlay projects in 2004.

 

Significant Issues

 

The guidelines proposed in Senate Resolution 1 include the following:

 

1.      Funding for capital outlay projects should be distributed equally to all regions of the state to ensure that all New Mexico residents share in the economic, health, safety, educational and social benefits of improved infrastructure;

 

2.      Capital outlay projects that are important to public health, safety, education and transportation should continue to be funded before other projects are funded;

 

3.      Projects that are prepared to draw funding by January 2005 should be authorized to receive funding before other projects;

 

4.      A majority of the funds available for capital outlay projects should continue to be allocated to projects having statewide significance;

 

5.      A portion of funds available for capital outlay projects should be allocated to renovating and repairing existing infrastructure rather than initiating new projects;

 

6.      Projects that have support from other governmental units, as evidenced by matching funding, prudent and reasonable commitments for operation, projected use studies, prior review by policymaking bodies or similar evidence, should have priority for funding over other projects;

 

7.      Projects financed with the proceeds from the sale of bonds should have a projected useful life equal to or longer than the life of the bond;

 

8.      Projects that will require funding for multiple phases should be funded only with the understanding that the legislature and its financing partners will be asked to fund the subsequent phases of the project;

 

9.      Projects for which reauthorization is sought should be subject to the same guidelines as all other projects; and

 

10.  Projects should not be authorized if doing so would violate Article 9, Section 14 of the Constitution of New Mexico.

 

RELATIONSHIP

 

House Resolution 1 proposes that capital outlay funds be distributed equally among members of the House of Representatives.

 

LMK/dm:njw