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

SPONSOR Tsosie

DATE TYPED 2/2/05

HB

SHORT TITLE McKinley County Food Distribution

SB 479

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

100.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Indian Affairs (DIA)

Human Services Department (HSD)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

Senate Bill 479 appropriates $100,000 from the general fund to the Local Government Division

of the Department of Finance and Administration (DFA) to contract for a program that will pro-

vide collection and distribution of free or reduced-cost food and necessities to low-income resi-

dents of McKinley County.

Significant Issues

According to the Department of Indian Affairs (DIA), the need for this appropriation originates

from a high level of poverty and loss of jobs in McKinley County. In particular, DIA noted that

McKinley County is a mostly rural county with the highest poverty rate in the State. McKinley

Senate Bill 479 -- Page 2

County also ranks third in the Nation for having the highest population of Native Americans.

Native Americans, however, are not the only residents in the county that live in poverty-stricken

conditions. In McKinley County, one of the largest employers, P & M Mine, is scheduled to

close in 2008 resulting in the loss of approximately 315 high paying jobs for the county. The

closure phasing will begin this year and one-third (approximately 100) of their workforce will be

laid-off. The closure of this company is not only going to affect the individuals and their fami-

lies employed by it, but also the local economy and community.

The Department of Finance and Administration indicated the funding will go toward operating

expenses of the Community Pantry in Gallup. The Community Pantry operates in three counties:

McKinley, Catron, and Cibola. With the additional $100,000 in operating funds for the main

office in Gallup, this will free up funds for the two branch offices in Catron and Cibola Counties.

So all three counties will benefit, either directly or indirectly, from SB 479. DFA also noted that

the Community Pantry has been operating for six years and feeds over 4,500 people per month in

McKinley County alone. Community Pantry operates primarily through donations but does re-

ceive some federal funding through the New Mexico Human Services Department. HSD staff

praise Community Pantry and indicate that, due to decreasing federal funding, Community Pan-

try has had a tougher time making ends meet.

The Human Services Department indicated that McKinley County has the highest Food Stamp

participation rate in NM at over 25%.

FISCAL IMPLICATIONS

The appropriation of $100,000 contained in this bill is a 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 indicates that this program could be administered with existing staff and resources.

DH/lg