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

SPONSOR Carraro

ORIGINAL DATE

LAST UPDATED

01/28/2006

HB

SHORT TITLE

Dept. Of Transportation Expenditures Cap

SB 242

ANALYST Moser

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

($320,259.03) Recurring and Non-

recurring

State Road Fund

($77,740.0) Recurring and Non-

recurring

Federal Funds

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Transportation (DOT)

SUMMARY

Synopsis of Bill

SB 242 sets a $50 thousand annual limit on the Department of Transportation expenditure of ap-

propriated funds that are not eligible for federal reimbursement for public transit purposes. The

provisions of the Bill would take effect immediately if enacted.

FISCAL IMPLICATIONS

SB 242 sets a $50,000 annual limit on the Department of Transportation expenditure of appro-

priated funds that are not eligible for federal reimbursement for public transit purposes. Such

action would result in termination of:

•

the current New Mexico Park and Ride bus service,

•

suspension of work on the Rail Runner commuter rail service and

•

elimination of committed DOT funding for the Job Access Reverse Commute (JARC)

transit program, which would reduce existing transit service provide to transport low in-

come clients to jobs and job training facilities.

Senate Bill 242 – Page 2

The financial impact to the State resulting from the cancellation of these transit services and pro-

jects can not be determined at this time. The following table illustrates the amount of federal

and state founds associated with each of these programs:

Federal State

FY 2006 Funding of New Mexico Park and Ride Service: $940,000 $2.02 million

Current funding of Rail Runner Commuter Rail Service: $75 million $318.038 million

FY 2006 Funding of JARC Service: $1.8 million $200,000

SB 242 sets a $50 thousand annual limit on the Department of Transportation expenditure of ap-

propriated funds that are not eligible for federal reimbursement for public transit purposes.

SIGNIFICANT ISSUES

NMDOT indicates that this bill would result in termination of the current New Mexico Park and

Ride bus service, suspension of work on the Rail Runner commuter rail service and elimination

of committed DOT funding for the Job Access Reverse Commute transit program, which would

reduce existing transit service provide to transport low income clients to jobs and job training

facilities. The Park and Ride and Job Access Reverse Commute transit programs deliver services

to citizens throughout the state. These programs are subsidized by the department through exist-

ing appropriations of state monies in excess of $50 thousand.

As written this fund would impact those funds that are used as match against federal funds and

funds that may have been appropriated previously.

PERFORMANCE IMPLICATIONS

The NMDOT states that the cancellation of transit services and projects that would result from

enactment of SB 242 would be in conflict with NMDOT Guiding Principles, found in the de-

partment’s strategic plan, that commit the NMODT to the development of a multi-modal trans-

portation system for all citizens, which allows travel choices making the most efficient use of the

State’s transportation infrastructure.

ALTERNATIVES

The language could be modified to exclude those funds appropriated under separate legislation

and those funds that are being used for federal match.

GM/mt