Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR HAFC

ORIGINAL DATE

LAST UPDATED

2/19/07

3/12/07 HB

CS/2,3,4,5,6 and 9

/aHFL#1/aSFC/aCC

SHORT TITLE General Appropriation Act of 2007

SB

ANALYST Fernandez

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

5,652,994.5

Recurring

General Fund

2,274,309.2

Recurring

Other State Funds

1,206,124.6

Recurring Internal Services/Inter

Agency Transfers

4,554,262.1

Recurring

Federal Funds

23,926.1

Recurring

General Fund

500.0

Recurring

Other State Funds

172,132.0

Nonrecurring

General Fund

31,432.1

Nonrecurring

Other State Funds

2,500.0

Nonrecurring

*Appropriation

Contingency Fund

728.9

Nonrecurring

Federal Funds

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

4,900.0

Recurring

General Fund

(TRD enhanced

revenues)

1,756.0

Recurring General Fund

-1,756.0

Recurring AG settlement

funds

(Parenthesis ( ) Indicate Expenditure Decreases)

CS/House Bill 2, 3, 4, 5, 6 and 9/aHFL#1/aSFC/aCC – Page

2

* From the Education Lock Box

RELATIONSHIP

Relates to House Bill 1

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of CC Amendments

The Conference Committee increased FY08 appropriations by $8 million. This includes $1.9

million for TRD with the expectation that additional auditors would boost FY08 general fund

revenue by $4.9 million. With Conference Committee amendments, total FY08 recurring

general fund appropriations are $5.65 billion.

Significant recurring changes include an additional $500.0 to expand mental health services,

$500.0 to the Higher Education Department for operational costs of the innovative digital

education and learning system (IDEAL), $500.0 for soil and water districts and $450.0 for school

breakfast programs. Significant recurring reductions include $2 million for the adult Medicaid

expansion.

The conference committee added $6.7 million nonrecurring general fund appropriations offset by

a similar amount of reductions, mostly for higher and public education. Significant increases

include $1.4 million for state police cost overruns, $500.0 for public education test development,

an additional $550.0 for the supplemental to Secretary of State and $500.0 for the technology

research collaborative. Finally, FY07 funding for low income heating assistance of $6 million

was added back.

The appropriations contained in the conference committee report can be summarized as follows:

CS/House Bill 2, 3, 4, 5, 6 and 9/aHFL#1/aSFC/aCC – Page

3

Agency

General Fund

Other State

Funds

Internal Service

Funds/InterAge

ncy Trnsfrs

Federal

Funds

Total

SECTION 4 FY08 Operating

Recurring:

Legislative

3,941.8

-

-

-

3,941.8

Judicial

193,352.8

9,109.2

14,166.9

2,571.6

219,200.5

General Control

189,706.5

337,554.9

824,671.6

17,310.0

1,369,243.0

Commerce & Industry

55,596.9

45,381.2

14,629.4

604.8

116,212.3

Agric., Enrgy & Ntrl Res

82,201.4

48,397.3

48,635.1

33,194.6

212,428.4

Health, Hospitals & Human Svcs

1,379,183.2

222,481.8

293,786.4

3,134,835.8

5,030,287.2

Public Safety

372,057.9

26,678.0

9,918.6

63,701.2

472,355.7

Transportation

-

446,905.9

-

358,129.4

805,035.3

Other Education

60,565.9

18,251.8

-

45,265.1

124,082.8

Higher Education

795,873.3

1,118,799.1

316.6

414,330.5

2,329,319.5

Public School Support

2,430,695.7

750.0

-

484,319.1

2,915,764.8

Total Sec 4 Recurring

5,563,175.4

$

2,274,309.2

$

1,206,124.6

$

4,554,262.1

$

13,597,871.3

$

Recurring:

Section 8

Higher Education Compensation

47,748.8

-

-

-

47,748.8

Compensation

42,070.3

-

-

-

42,070.3

89,819.1

$

-

$

-

$

-

$

89,819.1

$

TOTAL RECURRING

5,652,994.5

$

2,274,309.2

$

1,206,124.6

$

4,554,262.1

$

13,687,690.4

$

Recurring: Section 5&6

Specials

23,926.1

500.0

-

-

24,426.1

Total Recurring

23,926.1

500.0

-

-

24,426.1

$

Nonrecurring:

Sections 5, 6, and 7

Specials

144,414.0

4,251.7

-

728.9

149,394.6

Supplemental & Deficiency

27,718.0

480.4

-

-

28,198.4

Data Processing- ACF Education

2,500.0

-

-

2,500.0

Data Processing

-

26,700.0

-

-

26,700.0

Total Nonrecurring

172,132.0

$

33,932.1

-

728.9

206,793.0

$

* ACF - Appropriaton Contingency Fund

Synopsis of SFC Amendments

The Senate Finance Committee Amendments strike Sections 3 through 10 in their entirety and

replaces with new sections and inserts a new section “Transfer Authority" allowing the governor

with state board of finance approval to transfer at the end of fiscal year 2007, up to $270 million

if revenues and transfers to the general fund are not sufficient. The Senate Finance Committee

amendments increase FY08 recurring general fund appropriations by $5 million bringing total

FY08 recurring general fund appropriations to $5.65 billion.

Senate Finance Committee (SFC) amendments reflect significant input from the Education

Committee. The total public school support appropriation for FY08 is up slightly, $1.8 million,

to $2.490 billion, an increase of $197 million or 8.6 percent over FY07. The Senate Finance

Committee preserves the 5% salary increase for all school employees and the 1.5% combined

increase in employer contribution to retirement. SFC amendments add: 1) an additional 2.5%

average increase for instructional staff including nurses, psychologists, physical therapists and

other professionals left behind by the three-tier boosts for teachers; and 2) $1.5 million to replace

Federal funds in after school programs.

CS/House Bill 2, 3, 4, 5, 6 and 9/aHFL#1/aSFC/aCC – Page

4

SFC changes to higher education include reductions of $3 million for inflation factors and

“block-funded" special projects, a $1 million increase for athletics and other increases for the

School for the Deaf and the UNM Health Sciences Center.

The SFC amendments to the FY08 Medicaid general fund appropriation reduce the income

threshold for adult eligibility expansion from 100% to 97% but include a $3 million rate

adjustment for providers in Medicaid waiver programs.

The Medicaid general fund appropriation increases $80 million or 12.7 percent, to $709 million.

This includes $16 million to offset a reduction of federal funds, accommodates enrollment

growth of 5 percent and includes $16 million for provider rate increases. It also includes $13

million for the initiative recommended by both the executive and LFC to expand adult eligibility.

This will significantly address the problem of uncompensated care. The HSD total general fund

appropriation increases $89 million and includes $6 million for LIHEAP.

SFC amendments add $2 million to CYFD to boost provider rates to cover a minimum wage

increase. The general fund appropriation to CYFD increases $16 million with $5.7 million more

for child care, a $1 million increase to support for foster care and $1 million for additional

protective service case workers. General Fund for the Health Department increases $29 million

including $5 million for additional slots for developmental disabilities waiver and $1.9 million

for autism services.

A SFC amendment assumes a 2.5% vacancy rate in compensation funding for a reduction of $1

million.

Significant Section 5 SFC amendments include $2 million for school breakfasts, $850 thousand

for housing oversight, and $750 thousand for the X-Prize cup.

The appropriations contained in the amendment can be summarized as follows:

CS/House Bill 2, 3, 4, 5, 6 and 9/aHFL#1/aSFC/aCC – Page

5

Agency

General Fund

Other State

Funds

Internal Service

Funds/InterAge

ncy Trnsfrs

Federal

Funds

Total

SECTION 4 FY08 Operating

Recurring:

Legislative

3,941.8

-

-

-

3,941.8

Judicial

193,115.8

9,109.2

14,166.9

2,571.6

218,963.5

General Control

187,016.5

330,035.5

832,191.0

17,310.0

1,366,553.0

Commerce & Industry

55,021.9

45,381.2

14,629.4

604.8

115,637.3

Agric., Enrgy & Ntrl Res

82,201.4

48,397.3

48,635.1

33,194.6

212,428.4

Health, Hospitals & Human Svcs

1,378,593.2

222,481.8

293,786.4

3,134,835.8

5,029,697.2

Public Safety

371,812.9

26,678.0

9,918.6

63,701.2

472,110.7

Transportation

-

446,905.9

-

358,129.4

805,035.3

Other Education

60,115.9

18,251.8

-

45,265.1

123,632.8

Higher Education

794,693.3

1,118,799.1

316.6

414,330.5

2,328,139.5

Public School Support

2,430,695.7

750.0

-

484,319.1

2,915,764.8

Total Sec 4 Recurring

5,557,208.4

$

2,266,789.8

$

1,213,644.0

$

4,554,262.1

$

13,591,904.3

$

Recurring:

Section 8

Higher Education Compensation

47,748.8

-

-

-

47,748.8

Compensation

42,070.3

-

-

-

42,070.3

89,819.1

$

-

$

-

$

-

$

89,819.1

$

TOTAL RECURRING

5,647,027.5

$

2,266,789.8

$

1,213,644.0

$

4,554,262.1

$

13,681,723.4

$

Recurring: Section 5&6

Specials

14,960.1

500.0

-

-

15,460.1

Total Recurring

14,960.1

500.0

-

-

15,460.1

$

Nonrecurring:

Sections 5, 6, and 7

Specials

148,464.0

4,198.2

-

728.9

153,391.1

Supplemental & Deficiency

26,668.0

480.4

-

-

27,148.4

Data Processing- ACF Education

2,500.0

-

-

2,500.0

Data Processing

-

27,000.0

-

-

27,000.0

Total Nonrecurring

175,132.0

$

34,178.6

-

728.9

210,039.5

$

* ACF - Appropriaton Contingency Fund

Synopsis of House Floor Amendment 1

House Floor Amendment 1 removes the contingency language under the state equalization

guarantee that tied an average 1.5 percent salary increase for public school employees to the

enactment of House Bill 796 or similar legislation of the 1

st

Session of the 48

th

Legislature. The

amendment replaces the stricken language with new language that the appropriations contain

sufficient funds for five percent salary increase for public school employees.

Synopsis of Original Bill

House Appropriations and Finance Committee Substitute for House Bills 2, 3, 4, 5, 6, and 9

appropriates money from the general fund, other revenue, internal services funds/interagency

transfers, and federal funds for the FY08 operation of state agencies, higher education and public

schools.

Section 4, Fiscal Year 2008 Appropriations (pages 6 - 221);

Section 5, Special Appropriations (pages 221 - 231);

Section 6, Supplemental and Deficiency Appropriations (pages 231 - 233);

Section 7, Data Processing Appropriations (pages 233 - 244);

CS/House Bill 2, 3, 4, 5, 6 and 9/aHFL#1/aSFC/aCC – Page

6

Section 8, Compensation Appropriations (pages 244 - 247)

Section 9 Additional Fiscal Year 2007 Budget Adjustment Authority (pages 247 - 250);

Section 10 Certain Fiscal Year 2008 Budget Adjustments Authorized (pages 250 - 259);

Section 12 Fund Transfers (page 259); and

Section 13 Severability (page 259)

.

FISCAL IMPLICATIONS

The appropriations contained in this bill can be summarized as follows:

Agency

General Fund

Other State

Funds

Internal Service

Funds/InterAge

ncy Trnsfrs

Federal

Funds

Total

SECTION 4 FY08 Operating

Recurring:

Legislative

3,941.8

-

-

-

3,941.8

Judicial

192,714.8

9,459.2

13,816.9

2,571.6

218,562.5

General Control

186,831.5

330,035.5

832,191.0

17,310.0

1,366,368.0

Commerce & Industry

54,813.3

46,708.9

13,301.7

604.8

115,428.7

Agric., Enrgy & Ntrl Res

84,121.4

48,397.3

45,775.1

33,194.6

211,488.4

Health, Hospitals & Human Svcs

1,372,613.2

222,481.8

293,786.4

3,134,835.8

5,023,717.2

Public Safety

372,862.9

26,678.0

8,918.6

63,701.2

472,160.7

Transportation

-

446,905.9

-

358,129.4

805,035.3

Other Education

59,182.5

18,251.8

-

45,265.1

122,699.4

Higher Education

794,962.2

1,079,469.1

39,020.6

414,330.5

2,327,782.4

Public School Support

2,429,238.0

750.0

-

484,319.1

2,914,307.1

Total Sec 4 Recurring

5,551,281.6

$

2,229,137.5

$

1,246,810.3

$

4,554,262.1

$

13,581,491.5

$

Recurring:

Section 8

Higher Education Compensation

47,748.8

-

-

-

47,748.8

Compensation

43,149.0

-

-

-

43,149.0

90,897.8

$

-

$

-

$

-

$

90,897.8

$

TOTAL RECURRING

5,642,179.4

$

2,229,137.5

$

1,246,810.3

$

4,554,262.1

$

13,672,389.3

$

Recurring: Section 5&6

Specials

15,121.8

500.0

-

-

15,621.8

Total Recurring

15,121.8

500.0

-

-

15,621.8

$

Nonrecurring:

Sections 5, 6, and 7

Specials

152,464.0

4,098.2

-

728.9

157,291.1

Supplemental & Deficiency

26,903.0

480.4

-

-

27,383.4

Data Processing- ACF Education

2,500.0

-

-

2,500.0

Data Processing

-

28,000.0

-

-

28,000.0

Total Nonrecurring

179,367.0

$

35,078.6

-

728.9

215,174.5

$

* ACF - Appropriaton Contingency Fund

Unless otherwise indicated, appropriations from the general fund revert to the general fund at the

end of FY08 unless otherwise indicated or provided by law. Exceptions include higher

education institutions and public schools.

For several years the appropriation to the Attorney General’s Office has included $1,756.0 from

court settlement funds to support the agency’s operations. In FY08, the Attorney General’s

Office assured both Legislative Finance Committee and Department of Finance and

Administration that the agency will revert settlement funds to the general fund. The revenue

section above shows the revenue swap between settlement funds and general fund.

CS/House Bill 2, 3, 4, 5, 6 and 9/aHFL#1/aSFC/aCC – Page

7

RELATIONSHIP

General fund operating appropriations for most legislative agencies are contained in House Bill

1, the “Feed Bill."

CTF/csd