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

SPONSOR Wirth, P.

ORIGINAL DATE

LAST UPDATED

1/26/06

HB 262

SHORT TITLE Small Business Creation, Event and Website

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

$200.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY06

FY07

FY08 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

NFI

($0.1)

($0.1)

($0.1) Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

HB 262 appropriates $200 thousand ($200,000) from the general fund to the Economic Devel-

opment Department for a project, event and website dedicated to uncovering the opportunities

and impediments to small business creation in North America.

House Bill 262– Page 2

FISCAL IMPLICATIONS

The appropriation of $200 thousand ($200,000) contained in this bill is a recurring expense to the

general fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall re-

vert to the general fund.

Although difficult to estimate, the Economic Development Department would bear additional

operating expenses to carry out the project.

PERFORMANCE IMPLICATIONS

EDD indicates that the offices of Mexican Affairs and International Trade could be used to sup-

port this initiative. The appropriation for this project would expand the scope of work currently

performed by these divisions.

This appropriation would establish a new project in the Economic Development Department that

might prove helpful to new or expanding small business in New Mexico.

ADMINISTRATIVE IMPLICATIONS

According to EDD, the project would require additional personnel and budget to manage this

effort. There would be significant costs incurred after FY08 if the initiative is continued.

Execution of this legislation may require a contractual agreement with an entity outside of the

Economic Development Department.

BE/mt