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

SPONSOR Harrison

DATE TYPED 02/21/05 HB 883

SHORT TITLE Tourism Education Project

SB

ANALYST Weber

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$2,000.0

Recurring

General

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Tourism Department (NMTD)

Indian Affairs Department (DIA)

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

House Bill 883 appropriates $2 million from the general fund to the Department of Indian Af-

fairs for an economic development undertaking centered around a tourism education project.

Significant Issues

The Department of Indian Affairs notes.

As reported by the New Mexico Department of Tourism, one of the top three most important

reasons people visit New Mexico is Indian Culture. A related need exists in tribal communities

to educate and train tribal members about the hospitality industry and marketing tribal enter-

prises such as casinos, hotels, gas stations, gift shops, etc. To this end, the New Mexico Indian

Tourism Association (NMITA) in partnership with the New Mexico Tourism Department has

already developed educational programs relating to tourism in tribal communities that promotes

Indian tourism in a culturally sensitive manner.

House Bill 883 -- Page 2

FISCAL IMPLICATIONS

The appropriation of $2 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

TECHNICAL ISSUES

The Indian Affairs Department continues.

Because funds are appropriated to DIA, it can be inferred that tribal governments, tribal commu-

nities and urban Indian organizations are the beneficiaries of the tourism education project.

However, the question as to the specific target population (e.g. tribal youth, tribal leaders, tribal

education or tourism departments, etc.) remains unclear.

The proposed legislation does not indicate whether the DIA will be responsible for providing the

tourism education project as a means to encourage economic development or whether DIA

would need to negotiate a contract for this particular project.

Thirdly, because the appropriation is for a tourism education project, it might better serve the

intent of HB 883 to have the appropriation go to the Tourism Department. The Tourism De-

partment has experience and expertise in providing tourism education programs and the project

appears to fit within this scope of work.

POSSIBLE QUESTIONS

Is this a one time project or a continuing effort. This determination will clear up whether these

should be recurring or non-recurring funds.

Is this an economic development project or an educational project. Design of the curriculum

will be dependent on the precise outcome desired.

MW/lg