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

SPONSOR Jennings

DATE TYPED 10/7/05

HB

SHORT TITLE Volunteer Fire Departments & Sheriffs Funding

SB 4

ANALYST Peery

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

2,000.0

Non-recurring General Fund

1,650.0

Non-recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

No Responses

Department Finance Administration (DFA)

Public Regulation Commission (PRC)

Municipal League

Association of Counties

SUMMARY

Synopsis of Bill

Senate Bill 4 appropriates $2,000,000 from the general fund to the State Fire Marshal and

$1,650,000 from the general fund to the Department of Finance Administration for the purpose

of offsetting increased public safety expenses because of increased gasoline prices.

The proposed legislation states the $2,000,000 to the state fire marshal is to be divided among

the volunteer and predominantly volunteer fire departments. This is providing the distribution be

based on 10 percent of each department’s current year distribution from the fire protection fund.

The proposed legislation state the $1,650,000 to DFA is to be divided equally among all county

sheriff offices.

Senate Bill 4. -- Page 2

PERFORMANCE IMPLICATIONS

Existing deficient funding for gasoline purchases for the volunteer fire departments and county

sheriff offices could negatively impact the services they provide to the citizens of New Mexico.

The Appropriation proposed will ensure that needed services are provided.

FISCAL IMPLICATIONS

The appropriation of $3,650,000 contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall

revert to the general fund.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

The consequence of not enacting the proposed legislation is that volunteer fire departments and

county sheriff offices will have budget deficits regarding gasoline. This will require them to cut

their budget in other areas which will affect the services the volunteer fire departments and

county sheriff offices provide to the citizens of New Mexico.

RLP/lg