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

SPONSOR Heaton

DATE TYPED 2/7/05

HB 607

SHORT TITLE New Mexico Mainstreet Program

SB

ANALYST Rosen

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$500.0

Indeterminate Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department (EDD)

Tourism Department (TD)

No Responses Received From

Governor’s Office

Association of Counties

SUMMARY

Synopsis of Bill

House Bill 607 appropriates $500.0 from the general fund to EDD for expenditure in FY06 to

pay for operating expenses of the Mainstreet program.

FISCAL IMPLICATIONS

The appropriation of $500.0 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.

House Bill 607 -- Page 2

EDD’s FY06 operating budget request includes $325,000 for operating expenses of the Main-

street program in FY06.

ADMINISTRATIVE IMPLICATIONS

EDD reports additional funds for the Mainstreet program could create requirements for addi-

tional staff to administer on-going program activity and contractors.

OTHER SUBSTANTIVE ISSUES

EDD indicates the McCune Foundation has offered to match 50 cents of each dollar added to the

base budget of the Mainstreet program up to a maximum match of $100.0.

ALTERNATIVES

EDD suggests “Stick with the base budget proposed by the Department.”

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

According to EDD, the Mainstreet program may not be able to admit new “satellite” or “start-

up” communities.

JR/njw