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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

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F I S C A L I M P A C T R E P O R T

SPONSOR Foley

DATE TYPED 2/10/05

HB 643

SHORT TITLE Nonrecurring Revenue for Recurring Expenses

SB

ANALYST Fernandez

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Bill 643 would prohibit the executive and the Legislative Finance Committee from in-

cluding recommendations to use nonrecurring revenue for recurring expenses in their annual ap-

propriation recommendations.

Significant Issues

House Bill 643 defines nonrecurring revenue as one-time funds that cannot be relied on in future

budget periods and includes revenue that may be available for more than one year but is not ex-

pected to occur again. Examples include: infrequent sales of government assets, bond refunding

savings, infrequent revenues from development, grants, revenue due to fluctuation in the price of

natural resources that is in excess of 10 percent of the last five-year average, and legal settle-

ments and other windfalls.

FISCAL IMPLICATIONS

House Bill 643 may help improve current budgeting trends of using one-time revenue sources to

create new programs; however, this bill does not prohibit the Legislature from using nonrecur-

ring revenue for recurring expenses.

CTF/yr