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

SPONSOR Martinez

DATE TYPED 2/24/05

HB

SHORT TITLE Cumbres & Toltec Railroad Commission Funding

SB 518

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Finance Authority (NMFA)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

Senate Bill 518 would provide that the expenses of the Cumbres and Toltec Scenic Railroad

Commission may be paid from legislative appropriations and from other revenue and user fees

collected by the railroad. It would appropriate these revenues to the Commission. The bill also

gives the Commission discretion over whether to deposit user fees in the Railroad Loan Retire-

ment Fund.

Significant Issues

Cumbres & Toltec Railroad operations are supported by passenger fares and, when necessary,

byoperating subsidies from the State of Colorado and State of New Mexico. Existing statute is

outdated, requiring these revenues to be pledged to retire indebtedness. In recent years, the leg-

islature has included language in the general appropriations acts that specified that the Cumbres

& Toltec could retain their fare revenues to pay for railroad operations.

Senate Bill 518 -- Page 2

FISCAL IMPLICATIONS

The bill does not change the allocation of revenues from Cumbres & Toltec operations. It alters

statute to conform to current practice.

Continuing Appropriations

This bill creates a new fund and provides for continuing appropriations. The LFC generally ob-

jects to including continuing appropriation language in the statutory provisions for newly created

funds. Earmarking reduces the ability of the legislature to establish spending priorities.

OTHER SUBSTANTIVE ISSUES

The Commission requested a general fund appropriation of $120.0 for operating costs in FY06,

down from $800.0 in general fund in FY05. The railroad may become self-sustaining once more

in FY07, after a decline in ridership in the aftermath of the September 11 attacks and a temporary

closure in 2002 due to extreme fire danger. In the 2004 season, the railroad was able to operate

the entire season, although not at full capacity due to lack of four operating engines. For the

2004 season (lasting May - October and including the Christmas run) there were 30,216 riders

for a total ticket revenue of $1,746.8 which was over the $1,500.0 that was projected.

DH/lg:yr