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

SPONSOR Papen

ORIGINAL DATE

LAST UPDATED

2/09/06

2/21/06 HB

SHORT TITLE Increase Border Authority Base Budget

SB 471

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 471 relates to the appropriation in the General Appropriation Act.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Border Authority (NMBA)

SUMMARY

Synopsis of Bill

Senate Bill 471 appropriates $200 thousand from the general fund to the Border Authority to in-

crease their base budget and expand operations.

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.

SIGNIFICANT ISSUES

As directed by the executive, the Border Authority requested an FY07 budget of about $430

thousand, equal to the FY06 operating budget. The flat budget will likely restrict their activities

in the coming year. NMBA will move into a new building in fiscal year 2007. The agency notes

that this funding will pay for the purchase and installation for new equipment, such as com-

Senate Bill 471 – Page 2

puters, furniture, phone system, and the on-going costs for upkeep, maintenance, utilities and

other services. In addition, NMBA reports that it has a progressive media campaign to increase

commercial and private traffic between the two countries and the additional funding would allow

the project to continue.

NMBA has statutory authority to raise revenue for the “border development fund” to be appro-

priated for operations. NMBA has not raised revenue through enterprise activity or bonding au-

thority, and remains fully funded by appropriations from the general fund.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

NMBA might be restricted in its capabilities to advance New Mexico border development and

growth.

BE/mt