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

SPONSOR Altamirano

ORIGINAL DATE

LAST UPDATED

2/3/06

HB

SHORT TITLE Mainstreet Programs

SB 166

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$200.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SB 166 is similar to HB 445 and its duplicate, SB 168.

SB 166 relates to SB 265, SB 366, HB 689, and HB 311.

Duplicates Appropriation in the General Appropriation Act

HB2 includes $300 thousand in new money for the MainStreet program, bringing total Main-

Street funding to $650 thousand.

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY06

FY07

FY08 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

($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

Senate Bill 166 appropriates $200 thousand from the general fund to the Economic Development

Department to support MainStreet programs.

Senate Bill 166 – Page 2

FISCAL IMPLICATIONS

The appropriation of $200 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall

revert to the general fund.

The MainStreet Program may need additional administrative assistance with expansion of the

program, causing some impact on the operating budget.

SIGNIFICANT ISSUES

Adding communities and activities to the MainStreet program might stimulate local reinvestment

and increase revitalization activity. New economic activity could increase tax revenue.

ADMINISTRATIVE IMPLICATIONS

According to EDD, MainStreet staff, covered by the MainStreet base budget, would be assigned

to design and coordinate expanded program services, but additional staff would be needed to

handle the expansion in program services.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

SB 166 relates to:

•

SB 265 and HB 689, which appropriate money for arts programs in MainStreet communities

•

SB 366, SB 168 and HB 445, which appropriate money for the UNM-MainStreet collabora-

tion

•

HB 311, which appropriates $1 million to DFA, Local Government Division to establish a

MainStreet revolving loan account.

BE/yr