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

SPONSOR Campos

DATE TYPED 2/24/05

HB

SHORT TITLE Hubbard Museum of the American West

SB 454

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$800.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB198.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Cultural Affairs (DCA)

SUMMARY

Synopsis of Bill

Senate Bill 454 creates the Museum of the American West (currently a privately operated mu-

seum in Ruidoso Downs, New Mexico) as a division of the Cultural Affairs Department (DCA).

The museum includes the buildings, real estate and collections that are being donated to the State

of New Mexico by the Hubbard family. SB454 appropriates $800 thousand from the general

fund to DCA to carry out the purposes of the Museum of the American West Act.

Significant Issues

Governor Bill Richardson and the DCA recently retracted the offer to operate the Hubbard Mu-

seum (or Museum of the American West). There were concerns that, when the original agree-

ment was negotiated, certain artifacts and/or artworks were anticipated to be included in the do-

nation from the Hubbard family. Subsequent to this agreement, these items were deacquisitioned

to remain in the private ownership of the Hubbards. DCA and the administration supported

SB454 prior to this action but now indicate that the agreement has been terminated.

Senate Bill 454 -- Page 2

FISCAL IMPLICATIONS

The appropriation of $800 thousand 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

general fund. The comments submitted by DCA estimate that the museum would generate an

additional $500 thousand in admissions and other enterprise revenues that are not budgeted in

SB454 but would be required to support museum operations. If the Hubbard Museum proposal

is to move forward, the sponsor may wish to amend the bill to appropriate these funds in FY06.

ADMINISTRATIVE IMPLICATIONS

According to DCA, staff for the Hubbard Museum is estimated to include 26.5 FTE’s that repre-

sent the bulk of the appropriation. The department will accommodate the additional overall ad-

ministrative duties.

DH/yr:lg