HOUSE BILL 643

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Daniel R. Foley

AN ACT

RELATING TO PUBLIC MONEY; USING NONRECURRING REVENUE FOR RECURRING EXPENSES PROHIBITED IN BUDGET AND APPROPRIATION RECOMMENDATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. USE OF NONRECURRING REVENUE FOR RECURRING EXPENSES PROHIBITED IN BUDGET RECOMMENDATIONS.--

          A. The executive budget recommendations and the legislative finance committee appropriation recommendations for state government shall not include recommendations to use nonrecurring revenue for recurring expenses.

          B. As used in this section:

                (1) "nonrecurring revenue" means one-time revenue that cannot be relied on in future budget periods, including revenue that may be available for more than one year but that cannot be expected to occur again or is so periodic as to not be recurring, including:

                     (a) infrequent sales of government assets;

                     (b) bond refunding savings;

                     (c) infrequent revenues from development;

                     (d) grants;

                     (e) revenue due to fluctuation in the price of natural resources, calculated as revenue in excess of ten percent of the last five-year average; and

                     (f) legal settlements and other windfalls; and

                (2) "recurring expenses" means expenses associated with the operation of state government or with carrying out the law that occur more frequently than once.

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