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

SPONSOR Park

ORIGINAL DATE

LAST UPDATED

1/26/2007

1/29/2007 HB 499

SHORT TITLE Public School Capital Outlay

SB

ANALYST Aguilar

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$500,000.0

Non-recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to continuing appropriations contained in Section 7-27-12 through 7-27-12.3 NMSA

1978.

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

$500,000.0

Non-recurring Capital Outlay

Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Taxation and Revenue Department (TRD)

SUMMARY

Synopsis of Bill

House Bill 499 appropriates $500 million from the general fund to the Public School Capital

Outlay fund to carry out the purposes of the fund.

House Bill 499 – Page

2

FISCAL IMPLICATIONS

The appropriation of $500 million contained in this bill is a nonrecurring expense to the general

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

not revert to the general fund.

This bill provides for continuing appropriations. The LFC has concerns with including

continuing appropriation language in statutory provisions, as earmarking reduces the ability of

the legislature to establish spending priorities.

SIGNIFICANT ISSUES

In addition to funding the construction and renovation of public school buildings, balances in the

Public School Capital Outlay fund are also used to pay the SB-9 state match, operating expenses

of the Public School Facilities Authority (PSFA), lease payments to charter schools, and the cost

of technology systems that support PSFA construction and maintenance programs. The fund is

also used to pay for the standards based roof program, the district cost of developing facilities

master plans, the cost of portable buildings for schools, paying for emergency building needs,

reimbursing the Construction Industries Division for inspection costs, and covering the district

share of projects under waiver provisions.

It is important to note that all of the expenditures listed above reduce the amount of funding

available for school construction needs.

The Public School Facilities Authority notes the New Mexico Condition Index estimate to meet

all school construction and repair needs statewide as adopted is greater than $3 billion.

PA/sb:csd