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

SPONSOR Rodriquez

DATE TYPED 2/14/05

HB

SHORT TITLE Santa Fe Junior Wrestling Team

SB 402

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$25.0

Non-Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 402 appropriates $25,000 from the general fund to the Department of Finance and

Administration (DFA) to pay for expenses for the Santa Fe Junior Wrestling Team to assist with

the grand national tournament.

Significant Issues

SB402 would provide economic development and educational benefits to the state of New Mex-

ico. According to the Public Education Department, the Santa Fe Junior Wrestling Team is a

private 501(c)3 entity affiliated with the Amateur Athletic Union (AAU). The Grand National

Tournament is a national tournament that will be hosted in New Mexico in the summer of 2005.

Anticipated registration is 1,000 participants. The requested funds will cover expenses related to

hosting the Grand National Wrestling Tournament, including marketing and promotion, transpor-

tation, housing, meal allowance, awards, stipends and timing equipment (clocks). DFA noted

that New Mexico hosted the event once before in 2001and the tournament produced an estimated

economic impact of $750,000. DFA noted that about $600,000 in in-kind services will be do-

nated to the tournament.

Senate Bill 402 -- Page 2

FISCAL IMPLICATIONS

The appropriation of $25,000 contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 would revert to

the general fund.

ADMINISTRATIVE IMPLICATIONS

DFA indicated that this appropriation would be assigned to a project manager in the Community

Development Bureau. Previously, the Local Government Division administered a contract with

Santa Fe Junior Wrestling. The payment was made to the Santa Fe Junior Wrestling on a cost

reimbursement basis, with approved expenditures specified in the contract.

TECHNICAL ISSUES

If the anti-donation question below can be resolved, the sponsor might still want to amend the

bill to allow expenditure of these funds in FY06 and FY05, in order to provide greater flexibility

to pay for costs prior to the event itself.

OTHER SUBSTANTIVE ISSUES

Both PED and DFA were concerned that SB402 raises issues under the anti-donation clause of

the Constitution. DFA indicated it will have to seek assistance from legal counsel to determine

its eligibility of entering into a contract.

POSSIBLE QUESTIONS

1.

Has the Attorney General been consulted with regard to the possible violation of the anti-

donation clause.

DH/yr