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

SPONSOR Wirth

ORIGINAL DATE

LAST UPDATED

1-18-2007

HB 17

SHORT TITLE Santa Fe International Folk Art Market

SB

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$200.0 Nonrecurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB369

SOURCES OF INFORMATION

LFC Files

Responses Received From

Cultural Affairs Department (CAD)

Attorney General’s Office (AGO)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

House Bill 17 appropriates $200 thousand from the general fund to department of Cultural Af-

fairs for expenditure in FY07 and FY08 for the purpose of planning and implementing the Santa

Fe International Folk Art Market.

FISCAL IMPLICATIONS

The appropriation of $200 thousand contained in this bill is a nonrecurring expense to the Gen-

eral Fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall revert

to the General Fund.

SIGNIFICANT ISSUES

The FY08 executive budget recommendation includes $36.9 for an International Folk Art Market

House Bill 17 – Page

2

coordinator and a First Lady initiative to provide $100.0 to promote the Folk Art Market.

The Museum of International Folk Art has coordinated use of Milner Plaza for the annual Market

as well as security needed during the Market. Museum staff members participate in the evalua-

tion and selection of participating artists, and assist with logistical and financial aspects.

PERFORMANCE IMPLICATIONS

If enacted, the LFC recommends that the Cultural Affairs department submit a plan for program

evaluation with specific program goals and criteria for assessing the effectiveness and provide

suggested outputs, outcomes and performance measures to evaluate the performance of state

government programs as prescribed in the Accountability in Government Act. Visitation to the

Museum of International Folk Art during Market weekend increases appreciably. Possible sug-

gestions for performance measures include an attendance or attendance revenue measure.

ADMINISTRATIVE IMPLICATIONS

Implementation would be a combined effort of Cultural Affairs department staff and Market

staff.

DUPLICATION

House Bill 17 duplicates Senate Bill 369.

OTHER SUBSTANTIVE ISSUES

The financial arrangements among members of the consortium comprising the Santa Fe Interna-

tional Folk Art Market were previously negotiated. A 3-year memorandum of understanding be-

tween the Market and the Department of Cultural Affairs will expire in July 2007 and a new one

will be negotiated prior to that date, specifying relationships, use of facilities, mutual responsi-

bilities.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

If this legislation is not enacted, the Santa Fe International Folk Art Market would

not have access

to state funding.

POSSIBLE QUESTIONS

Would passage of this act possibility violate the anti-donation clause of the New Mexico Consti-

tution, Article IV., Section 31, Appropriations for Charitable, Educational, and etc. purposes.

PD/nt