Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

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attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR HAFC

ORIGINAL DATE

LAST UPDATED

2/3/06

3/17/06 HB

2,3,4,5,6 &

78/HAFCS/aSFC/aCC

SHORT TITLE General Appropriation Act of 2006

SB

ANALYST Fernandez

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

5,096,217.5

Recurring

General Fund

2,180,449.9

Recurring

Other State Funds

1,052,342.4

Recurring

Internal Ser-

vice/Interagency

Transfers

4,304,371.7

Recurring

Federal Funds

214,141.3

Nonrecurring

General Fund

20,000.0 Nonrecurring

General Fund

16,870.3

Nonrecurring

Other State Funds

4,132.1

Nonrecurring

Internal Ser-

vice/Interagency

Transfers

1,181.1

Recurring

General Fund

40,923.7

Recurring

General Fund

22,822.5

Nonrecurring

General Fund Re-

serve*

12,000.0

Recurring

General Fund Re-

serve*

(Parenthesis ( ) Indicate Expenditure Decreases)

* From the Education Lock Box

Relates to House Bill 1

SOURCES OF INFORMATION

LFC Files

House Bill 2,3,4,5,6 & 78/HAFCS/aSFC/aCC – Page

2

SUMMARY

Synopsis of CC Amendments

The Conference Committee increased FY07 recurring appropriations $37.5 million and de-

creased appropriations $17.7 million for a net increase of $20 million. A 0.5 percent reduction in

pay increases for all public employees was restored at a cost of $15.5 million. The Conference

Committee added $15 million to address executive initiatives including $4.3 million for ex-

panded Medicaid coverage for children, $1.4 million more for statewide trauma services, $1 mil-

lion to expand juvenile justice community services, $2.4 million to Department of Health and

General Services Department to reach the executive funding request and $4 million to convert

the New Mexico Boys School to a prison camp by January 1. This bill and Senate Bill 415 to-

gether include $64 million of a total $85 million in FY07 funding requested for executive initia-

tives.

Other additions to FY07 appropriations include $1.25 million for inspectors at the Construction

Industries Division, $562 thousand to boost child care provider rates and $500 thousand to ex-

pand public school advance placement programs.

The Conference Committee reduced the increase in Medicaid provider rates from $20 million to

$16 million, reduced Medicaid $3 million to reflect a lower cost for the federal “clawback” pro-

vision related to the prescription drug benefit, reduced public school insurance $3 million to re-

flect a smaller request from the Albuquerque public school district, and “sanded” all general fund

appropriations in Section 4 by 0.105 percent to reduce spending by $5 million.

The Conference Committee increased non-recurring appropriations by a net amount of $29 mil-

lion including $10 million for executive requests such as $1.5 million for pre-K startup, $1.5 mil-

lion for a new drivers’ license system to enhance security, $1 million for a proposed transmission

authority, $1 million more for job training and $2.5 million for Corrections Department. The

Conference Committee also added $20 million to the higher education building repair initiative.

The Conference Committee eliminated a $40 million FY07 transfer from the general fund to the

Severance Tax Permanent Fund. Also, the Conference Committee restored FY07 Budget Ad-

justment Authority for all state agencies.

The appropriations contained in the Conference Committee report can be summarized as follows:

House Bill 2,3,4,5,6 & 78/HAFCS/aSFC/aCC – Page

3

Agency

General Fund

Other State

Funds

Internal

Service

Funds/InterAg

ency Trnsfrs

Federal

Funds

Total

SECTION 4 FY07 Operating

Recurring:

Legislative

3,576.0

-

-

-

3,576.0

Judicial

170,291.1

15,312.2

9,492.5

4,655.7

199,751.5

General Control

158,132.3

304,894.0

689,184.3

20,721.5

1,172,932.1

Commerce & Industry

49,865.1

41,682.8

12,194.6

795.6

104,538.1

Agric., Enrgy & Ntrl Res

72,663.8

49,478.6

46,240.1

33,503.2

201,885.7

Health, Hospitals & Human Svcs 1,217,379.3

183,884.1

280,186.8

2,884,261.3

4,565,711.5

Public Safety

322,493.5

24,377.2

14,121.1

53,032.0

414,023.8

Transportation

-

412,914.4

600.0

392,928.6

806,443.0

Other Education

40,423.3

14,910.2

-

41,277.4

96,610.9

Higher Education

725,194.9

1,132,146.4

323.0

504,872.9

2,362,537.2

Public School Support

2,268,043.4

850.0

-

368,323.5

2,637,216.9

Total Sec 4 Recurring

5,028,062.7

$

2,180,449.9

$

1,052,342.4

$

4,304,371.7

$

12,565,226.7

$

Recurring:

Section 8

Higher Education Compensation

39,956.7

-

-

-

39,956.7

Compensation

35,741.7

-

-

-

35,741.7

Subtotal Compensation 75,698.4

$

-

$

-

$

-

$

75,698.4

$

GSD Reductions

(2,000.0)

$

-

$

-

$

-

$

(2,000.0)

$

Rent Savings

(400.0)

-

-

-

(400.0)

Agency Sanding

(5,143.6)

(5,143.6)

Subtotal Reductions (7,543.6)

$

-

$

-

$

-

$

(7,543.6)

$

TOTAL RECURRING

5,096,217.5

$

2,180,449.9

$

1,052,342.4

$

4,304,371.7

$

12,633,381.5

$

Recurring: Section 5&6

Specials

24,002.4

$

-

$

-

$

-

$

24,002.4

$

Specials - Education Lock Box

12,000.0

12,000.0

Supplemental & Deficiency

18,102.4

-

-

-

18,102.4

Total Recurring

54,104.8

$

-

$

-

$

-

$

54,104.8

$

Nonrecurring:

Sections 5, 6, and 7

Specials

228,486.1

2,920.0

-

-

231,406.1

Specials - Education Lock Box

22,822.5

22,822.5

Supplemental & Deficiency

5,655.2

52.3

4,132.1

-

9,839.6

Data Processing

-

13,898.0

-

-

13,898.0

Total Nonrecurring

256,963.8

$

16,870.3

4,132.1

-

277,966.2

$

Synopsis of SFC Amendments

The Senate Finance Committee Amendments strike Sections 4 through 11 in their entirety and

replaces with new sections and inserts a new section “Transfer Authority” allowing the governor

with state board of finance approval to transfer at the end of fiscal year 2006, up to $40 million if

revenues and transfers to the general fund are not sufficient. The Senate Finance Committee

amendments increased FY07 recurring general fund appropriations by $27.5 million and de-

creased items in the substitute by $21.7 million for a net increase of $5.7 million. Significant

increases were $15 million to increase Medicaid reimbursement rates for doctors and dentists, $3

million to maintain services for the state’s aging network, $2 million to expand mental health

services, and $1.4 million for public health school math, science and advanced placement pro-

grams. The major decreases were a 0.5 percent reduction in public employee compensation to

House Bill 2,3,4,5,6 & 78/HAFCS/aSFC/aCC – Page

4

reduce spending $15.5 million and a 1 percent increase in the tuition credit to save $2 million.

The net increase in SFC amendments for special and supplemental appropriations is $11.5 mil-

lion. Significant increases included $1 million for the Secretary of State, $3.7 million for the

state engineer, $1 million fore for individual development accounts, $2 million for lambda rail (a

university advanced technology consortium), a $4 million salt cedar removal and river restora-

tion.

In addition, Senate Finance Committee Amendments eliminated FY07 Budget Adjustment Au-

thority for all state agencies.

The appropriations contained in the amendment can be summarized as follows:

Agency

General Fund

Other State

Funds

Internal Service

Funds/InterAge

ncy Trnsfrs

Federal

Funds

Total

SECTION 4 FY07 Operating

Recurring:

Legislative

3,576.0

-

-

-

3,576.0

Judicial

169,974.1

15,312.2

9,492.5

4,655.7

199,434.5

General Control

156,877.3

304,894.0

689,184.3

20,721.5

1,171,677.1

Commerce & Industry

48,515.1

41,682.8

12,194.6

795.6

103,188.1

Agric., Enrgy & Ntrl Res

72,338.8

49,478.6

46,157.8

33,503.2

201,478.4

Health, Hospitals & Human Svcs 1,216,240.5

183,954.1

280,186.8

2,884,261.3

4,564,642.7

Public Safety

317,462.7

24,377.2

14,121.1

53,032.0

408,993.0

Transportation

-

412,914.4

600.0

392,928.6

806,443.0

Other Education

39,338.3

14,910.2

-

41,277.4

95,525.9

Higher Education

723,371.9

1,132,146.4

323.0

504,872.9

2,360,714.2

Public School Support

2,262,655.2

850.0

-

368,323.5

2,631,828.7

Total Sec 4 Recurring

5,010,349.9

$

2,180,519.9

$

1,052,260.1

$

4,304,371.7

$

12,547,501.6

$

Recurring:

Section 8

Higher Education Compensation

36,151.3

-

-

-

36,151.3

Compensation

32,423.6

-

-

-

32,423.6

Subtotal Compensation 68,574.9

$

-

$

-

$

-

$

68,574.9

$

GSD Reductions

(2,000.0)

$

-

$

-

$

-

$

(2,000.0)

$

GSD PERA Bldg Purchase

(400.0)

-

-

-

(400.0)

Subtotal Reductions (2,400.0)

$

-

$

-

$

-

$

(2,400.0)

$

TOTAL RECURRING

5,076,524.8

$

2,180,519.9

$

1,052,260.1

$

4,304,371.7

$

12,613,676.5

$

Recurring: Section 5

Specials

35,452.4

$

-

$

-

$

-

$

35,452.4

$

Supplemental & Deficiency

15,220.2

-

-

-

15,220.2

Total Recurring

50,672.6

$

-

$

-

$

-

$

50,672.6

$

Nonrecurring:

Sections 5, 6, and 7

Specials

224,344.3

2,920.0

-

-

227,264.3

Supplemental & Deficiency

5,316.2

52.3

4,132.1

-

9,500.6

Data Processing

-

13,898.0

-

-

13,898.0

Total Nonrecurring

229,660.5

$

16,870.3

4,132.1

-

250,662.9

$

Nonrecurring:

Sections 5

Education Lock Box

2,000.0

$

-

-

-

2,000.0

$

House Bill 2,3,4,5,6 & 78/HAFCS/aSFC/aCC – Page

5

Synopsis of Original Bill

House Appropriations and Finance Committee Substitute for House Bills 2,3,4,5,6, and 78 ap-

propriates money from the general fund, other revenue, internal services funds/interagency trans-

fers, and federal funds for the FY07 operation of state agencies, higher education and public

schools.

Section 4, Fiscal Year 2007 Appropriations (pages 6 through 216); Section 5 Special Ap-

propriations (pages 217 through 230); Section 6, Supplemental and Deficiency Appropria-

tions (pages 230 through 233); Section 7, Data Processing Appropriations (pages 233

through 244); Section 8, Compensation Appropriations (pages 244 through 247) Section 9

Additional Fiscal Year 2006 Budget Adjustment Authority (pages 247 through 250); Sec-

tion 10 Certain Fiscal Year 2007 Budget Adjustments Authorized (pages 250 through 258);

Section 11 Appropriation Reduction (page 258); Section 12 Fund Transfers (page 258); and

Section 13 Severability (page 258).

FISCAL IMPLICATIONS

The appropriations contained in this bill can be summarized as follows:

House Bill 2,3,4,5,6 & 78/HAFCS/aSFC/aCC – Page

6

Agency

General Fund

Other State

Funds

Internal Service

Funds/InterAge

ncy Trnsfrs

Federal

Funds

Total

SECTION 4 FY07 Operating

Recurring:

Legislative

3,576.0

-

-

-

3,576.0

Judicial

169,824.1

15,312.2

9,492.5

4,655.7

199,284.5

General Control

156,377.3

304,894.0

689,184.3

20,721.5

1,171,177.1

Commerce & Industry

48,315.1

41,648.8

11,844.6

795.6

102,604.1

Agric., Enrgy & Ntrl Res

71,988.8

49,828.6

46,157.8

33,503.2

201,478.4

Health, Hospitals & Human Svcs 1,193,925.8

183,854.1

280,086.8

2,884,261.3

4,542,128.0

Public Safety

317,332.7

24,377.2

13,701.0

53,032.0

408,442.9

Transportation

-

412,914.4

600.0

392,928.6

806,443.0

Other Education

37,938.3

14,910.2

-

41,277.4

94,125.9

Higher Education

726,829.0

1,132,146.4

323.0

504,872.9

2,364,171.3

Public School Support

2,271,043.4

850.0

-

368,323.5

2,640,216.9

Total Sec 4 Recurring

4,997,150.5

$

2,180,735.9

$

1,051,390.0

$

4,304,371.7

$

12,533,648.1

$

Recurring:

Section 8

Higher Education Compensation

39,956.7

-

-

-

39,956.7

Compensation

35,686.6

-

-

-

35,686.6

75,643.3

$

-

$

-

$

-

$

75,643.3

$

GSD Reductions

(2,000.0)

$

-

$

-

$

-

$

(2,000.0)

$

TOTAL RECURRING

5,070,793.8

$

2,180,735.9

$

1,051,390.0

$

4,304,371.7

$

12,607,291.4

$

Recurring: Section 5

Specials

27,365.1

$

-

$

-

$

-

$

27,365.1

Supplemental & Deficiency

15,595.2

-

-

-

15,595.2

Total Recurring

42,960.3

$

-

$

-

$

-

$

42,960.3

$

Nonrecurring:

Sections 5, 6, and 7

Specials

220,446.3

3,050.0

-

-

223,496.3

Supplemental & Deficiency

5,338.5

4,132.1

-

9,470.6

Data Processing

-

13,898.0

-

-

13,898.0

Total Nonrecurring

225,784.8

$

16,948.0

4,132.1

-

246,864.9

$

Nonrecurring:

Sections 5

Education Lock Box

2,000.0

$

-

-

-

2,000.0

$

Unless otherwise indicated, appropriations from the general fund revert to the general fund at the

end of FY07 unless otherwise indicated or provided by law. Exceptions include higher educa-

tion institutions and public schools.

RELATIONSHIP

General fund operating appropriations for most legislative agencies are contained in House Bill

1, the Feed Bill.

CTF/mt:yr

Attachment

House Bill 2,3,4,5,6 & 78/HAFCS/aSFC/aCC – Page

7

ATTACHMENT 1

1%

General

Fund Cost

HAFC

Proposed

Increase

HAFC

General Fund

Impact

SFC

Proposed

Increase

SFC General

Fund Impact

Conf Com

Proposed

Increase

Conference

Committee

SB 415

General Fund

Impact

STATE AGENCIES

Legislative:

Legislative employees

100.4 5.0

502.1

4. 5

451.9

5.00

502.1

Judicial:

Justices and judges

140.1 5.0

700.7

4. 5

630.6

5.00

700.7

Judicial employees

631.2 5.0

3,155.9

4. 5

2,840.3

5.00

3,155.9

Magistrate judges

50.4 5.0

252.1

4. 5

226.9

5.00

252.1

District attorneys

16.4 5.0

82.0

4. 5

73.8

5.00

82.0

District attorney employees

427.3 5.0

2,136.4

4.5

1,922.8

5.00

2,136.4

Total Judicial

1,265.4

6,327.1

5,694.4

6,327.1

Executive:

E xecutive classified:

Union technical occupation groups

2,761.8 5.0

13,808.8

4. 5

12,427.9

5.00

13,808.8

Nonunion technical occupation groups

1,070.2 5.0

5,351.2

4. 5

4,816.1

5.00

5,351.2

Managers

725.0 5.0

3,625.0

4. 5

3,262.5

5.00

3,625.0

Motor transportation officers

13.0

Special investigation officers

18.3

Subtotal executive classified

4,588.2

22,784.9

20,506.4

22,784.9

Executive nonclassified:

Executive exempt

328.5 5.0

1,642.6

4. 5

1,478.3

5.00

1,642.6

Executive Exempt Teachers:

Children, Youth and Families

23.7 4.5

106.7

4. 5

106.7

5.00

118.6

Commission for the Blind

4.8

19.0

5.00

23.8

Department of Health

3.5 4.5

15.6

4. 5

15.6

5.00

17.3

Corrections Department

35.4 4.5

159.1

4. 5

159.1

5.00

176.8

3rd tier raise to 45k

9.2

9.2

9.2

Executive exempt teachers

67.3

290.6

309.7

345.7

State police

281.6

Subtotal executive nonclassified

677.4

1,933.2

1,788.0

1,988.3

-

Total Executive

5,265.6

24,718.1

22,294.4

24,773.2

-

Total State Agencies

6,631.4

31,547.3

28,440.7

31,602.4

PUBLIC SCHOOLS

Teachers

11,169.5 5.0

55,847.7

4. 5

50,262.9

5.00

55,847.7

Other instructional staff

1,929.7 5.0

9,648.5

4. 5

8,683.6

5.00

9,648.5

EA's in classroom

749.8 5.0

3,749.1

4. 5

3,374.2

5.00

3,749.1

Principals

832.9 5.0

4,164.3

4. 5

3,747.9

5.00

4,164.3

All other school employees

2,976.1 5.0

14,880.5

4. 5

13,392.5

5.00

14,880.5

Transportation employees

415.3 5.0

2,076.4

4. 5

1,868.8

5.00

2,076.4

Total Direct Compensation Public Schools

18,073.3

90,366.6

81,329.9

90,366.6

HIGHER EDUCATION

Faculty

3,166.8 4.5

14,250.6

4. 0

12,667.2

4.50

14,250.6

Staff (includes ABE)

4,444.0 4.5

19,998.0

4. 0

17,776.0

4.50

19,998.0

Total Higher Educa tion

7,610.8

34,248.6

30,443.2

34,248.6

TOTAL DIRECT COMPENSATION ALL PUBLIC

EMPLOYEES

32,315.5

156,162.5

140,213.8

156,217.6

Public Employee Compensation FY07

July, 2006 and 1.5 to 4.5% January 2007.

#2 footnote: Full annual impact in FY08 is $22.8 million.

House Bill 2,3,4,5,6 & 78/HAFCS/aSFC/aCC – Page

8

ADDITIONAL SPECIAL DIRECT COMPENSATION

RECOMMENDATIONS (SECTION 8 )

Judges and Justices

2.4

336.3

2. 4

336.3

2.40

336.3

Magistrates

2.4

121.0

2. 4

121.0

2.40

121.0

Motor Transportation Officers (DPS)

10.0

129.6

9. 5

123.2

10.00

129.6 82.9

Special Investigation Officers (DPS)

10.0

182.6

9. 5

173.5

10.00

182.6 116.8

State Police Officers (DPS)

10.0

2,815.6

9. 5

2,674.8

10.00

2,815.6 1,800.3

Probation and Parole Officers (Corrections)

3.0

423.1

3. 0

423.1

3.00

423.1

Librarians, Librarian Assts, Librarian Techs (Cultural Affiars)

3.0

56.7

3. 0

56.7

3.00

56.7

Dispatchers (DPS)

3.0

74.2

3. 0

74.2

3.00

74.2

Total Special Compensation Recommendation

4,139.2

3,982.8

4,139.2 2,000

$

ADDITIONAL SPECIAL EDUCATION

COMPENSATION RECOMMENDATIONS (SECTION 4

)

Teacher 3rd tier raise to 45k (Public Ed)

6,848.5

7,496.9

6,848.5

EA (Public Ed)

4.5

3,374.2

4. 5

3,374.2

4.50

3,374.2

Total Special Education Compensation Recommendation

10,222.7

10,871.1

10,222.7

ADDITIONAL SPECIAL BENEFITS

RECOMMENDATIONS (SECTION 4 )

Executive Exempt Teachers

ERB (% of direct pay) 2007

0.75

50.5

0.75

50.5

0.75

50.5

ERB (% of direct pay) 2008 advance

0.75

50.5

0.75

50.5

0.75

50.5

100.9

100.9

100.9

Public Education Benefit Adjustment

ERB (% of direct pay) 2007

0.75

13,555.0

0.75

13,555.0

0.75

13,555.0

ERB (% of direct pay) 2008 advance

0.75

13,555.0

0.75

13,555.0

0.75

13,555.0

Subtotal Public Schools benefits

27,110.0

27,110.0

27,110.0

Higher Education Benefit Adjustment

ERB (% of direct pay) 2007

0.75

5,708.1

0.75

5,708.1

0.75

5,708.1

ERB (% of direct pay) 2008 accelerated

0.75

5,708.1

0.75

5,708.1

0.75

5,708.1

Subtotal higher Education Benefits

11,416.2

11,416.2

11,416.2

Total Special Benefits Recommedation

38,627.1

38,627.1

38,627.1

TOTAL COMPENSATION RECOMMENDATION (direct

and indirect)

209,151.5

193,694.8

209,206.6 2,000