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

SPONSOR Robinson

DATE TYPED 2/6/05

HB

SHORT TITLE New Mexico Film Museum

SB 460

ANALYST Rosen

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$100.0

Indeterminate Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Tourism Department (TD)

Department of Cultural Affairs (DCA)

No Responses Received From

Governor’s Office

SUMMARY

Synopsis of Bill

Senate Bill 460 appropriates $100.0 from the general fund to TD for expenditure in FY06 to pay

for the operation of the New Mexico film museum.

Significant Issues

The New Mexico film museum was created and funded in 2003 with a $100.0 appropriation to

TD to pay for one FTE and initial organizational and promotional efforts, duplicated in 2004

with another $100.0 appropriation to TD for the same purpose. TD indicates the museum may

not occupy its proposed site, the Halpin building, until 2007. The Halpin building is currently

being used by DCA for museum and artifact collections storage.

Senate Bill 460 -- Page 2

The state’s $200.0 investment to date in this project appears to be only part of what may be at

least $500.0 in start-up costs just for FTE and promotional fundraising efforts prior to any mu-

seum actually opening.

DCA may be able to implement a more timely, cost-effective launch of the proposed film mu-

seum and is certainly more capable of operating and managing a state museum than TD. DCA is

an umbrella agency which oversees the Museum of New Mexico system (Palace of the Gover-

nors, Museum of Fine Arts, Museum of International Folk Art, Museum of Indian Arts & Cul-

ture), New Mexico Museum of Space History in Alamogordo, New Mexico Museum of Natural

History and Science in Albuquerque, New Mexico Farm & Ranch Heritage Museum in Las Cru-

ces, National Hispanic Cultural Center, State Library, and New Mexico Arts and Historic Preser-

vation Division.

DCA, in overseeing the states’ museums, has some 550 employees spread throughout its nine

divisions, another 1,000 or so volunteers putting in more than 70,000 hours annually, and an an-

nual operating budget of approximately $35 million. TD, in marketing the state as an enchanting

destination, has 75 employees and an annual operating budget of $13.5 million.

PERFORMANCE IMPLICATIONS

DCA indicates it assists developing museums and cultural institutions in New Mexico whenever

possible

.

TD has no performance measures related to the film museum.

FISCAL IMPLICATIONS

The appropriation of $100.0 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.

DCA indicates this appropriation will pay compensation for the museum’s executive director and

expenses of the museum’s board of trustees, including mileage and per diem.

ALTERNATIVES

Amend the New Mexico Film Museum Act (18-14-1 to 18-14-6 NMSA 1978) to attach the film

museum administratively to DCA and then make this appropriation to DCA.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

TD indicates completion of the museum will not be possible without either outside funding or a

strong commitment by the state to financially support the museum.

JR/njw