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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 2/21/05

HB

SHORT TITLE Espanola Valley Economic Development Plan

SB 753

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)

Relates to HB881.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

Senate Bill 753 appropriates $25,000 from the general fund to the Department of Finance and

Administration (DFA) in FY06 to contract for services to develop an economic development

master plan for the Espanola Valley in Rio Arriba and Santa Fe Counties, including San Juan

Pueblo and Santa Clara Pueblo.

Significant Issues

The city of Espanola is experiencing an increase in growth. This bill would provide assistance in

developing a master plan to accommodate the anticipated expansion. According to DFA, Espa-

nola City Counselor Joe M. Maestas states that the funding will address the current and future

economic development issues and help establish a marketing, tourism and business growth stra-

tegic plan.

Senate Bill 753 -- Page 2

DFA notes that each community is categorized into three different groups. Espanola meets the

criteria for Tier 1, the most critical, which indicates that the communities do not have the com-

plete physical infrastructure they need to adequately support business development.

The strategic plan is a four step process in which each issue is addressed:

Strategy I: Invest innovation - prepare NM communities to try new ideas and venture into areas

that have not been part of traditional economy

Strategy II: Invest in people - enhance job skills with education, training, and workforce devel-

opment

Strategy III: Invest in infrastructure - communities ability to support new business and sustain

existing industry

Strategy IV: Responsive Government - support the efforts of the local communities to improve

the economy

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.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

HB881 almost duplicates SB753—both bills include the same appropriation amount and general

purpose.

DH/lg