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

SPONSOR Arnold-Jones

ORIGINAL DATE

LAST UPDATED

2-10-06

HB 647

SHORT TITLE Rural Library Development Fund

SB

ANALYST Segura

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$2,000.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

FY08

$2,000.0

Recurring

Rural Library

Development

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Responses Received From

Cultural Affairs Department (DCA)

SUMMARY

House Bill 647 established a “Rural Library Development Fund” in the state treasury.

FISCAL IMPLICATIONS

House Bill 647 appropriates $2,000.0 from the general fund in fiscal year 2006 to the rural li-

brary development fund and is recurring. Any unexpended or unencumbered balance remaining

at the end of a fiscal year shall not revert to the general fund.

This bill creates a new fund and provides for continuing appropriations. The LFC has concerns

with including continuing appropriation language in the statutory provisions for newly created

funds, as earmarking reduces the ability of the legislature to establish spending priorities.

House Bill 647 – Page 2

SIGNIFICANT ISSUES

House Bill 647 establishes a fund for rural library development, including expenses for library

planning, and the purchase of library materials, equipment, and furniture. The Library division of

DCA will promulgate rules on how the funds will be allocated and what development expenses

qualify for funding.

PERFORMANCE IMPLICATIONS

According to DCA, the State Library measures its service to libraries in New Mexico. This pro-

gram would significantly enhance service to small community and rural libraries.

ADMINISTRATIVE IMPLICATIONS

According to DCA, the Library division is not currently staffed to administer a new program.

Allowing the addition of a “rural library development program coordinator” to the Library divi-

sion’s full-time staff would assure the successful implementation of this program.

RS/mt