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

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

SPONSOR HTRC

ORIGINAL DATE

LAST UPDATED

2/15/07

3/1/07 HB 1137/HTRCS

SHORT TITLE Capitol Buildings Repair Fund

SB

ANALYST Kehoe

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$1,000.0

$2,500.0 Non-Recurring Capitol Buildings

Repair Fund

$1,000.0

Non-Recurring

Legislative Cash

Balances

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Property Control Division (PCD)

Synopsis of HTRC Substitute

The House Taxation & Revenue Committee Substitute for House Bill 1137 appropriates $4.5

million to the Legislative Council Service for the purpose of planning, designing, constructing

and renovating the capitol north complex and for limited renovations at the capitol.

FISCAL IMPLICATIONS

The House Taxation & Revenue Committee Substitute for House Bill 1137 appropriates $1

million from the fiscal year 2007 distributions made to the capitol buildings repair fund, $2.5

million from the 2008 fiscal year distributions to the same fund, and appropriates $1 million

from legislative cash balances to the Legislative Council Service for expenditure in fiscal years

2007 through 2011. Any unexpended or unencumbered balances remaining at the end of fiscal

year 2011 shall revert to the capitol buildings repair fund.

Distributions to the capital buildings repair fund are derived from the land grant permanent fund

derived from lands granted to the state by the United States Congress for legislative, executive

and judicial public buildings. Two percent of the fund is transferred annually to a “state capitol

maintenance fund" as a perpetual fund for the upkeep and maintenance of the capitol renovation

and capitol grounds. The fund may be used to repair, remodel and equip capitol buildings and

adjacent lands, to repair or replace building machinery and building equipment located in capitol

House Bill 1137/HTRC – Page

2

buildings and to contract for options to purchase real estate. No money shall be expended from

the capitol buildings repair fund without authorization of the State Board of Finance.

The fiscal year 2007 royalty distribution from the land grant permanent fund to the public

building repair fund is $5,318.0 million and is projected to be $5,620.0 million in fiscal year

2008.

In 1999, the New Mexico Finance Authority issued Private Placement Bonds totaling $9,315.0

million with a 15-year term for the purposes of repairing, remodeling, constructing and

equipping the state library now known as the north capitol annex. The source of funding to

repay the bonds is income and distributions from the Land Grant Permanent Fund. Inasmuch as

the bonds were distributed from the Permanent Fund, the bonds were taxable. The NMFA

receives the full appropriation of the distribution on a monthly basis, and retains the needed

amount to pay the debt service (approximately $1 million annually), and returns the remaining

amount to the Capitol Building Repair Fund administered by the Property Control Division of

the General Services Department.

SIGNIFICANT ISSUES

The appropriation and purposes of this bill will address much needed space needs of the

legislative staff and allow for the development of long-range space plans to address space needs

of all other occupants at the Capitol north. Current occupants include the staffs of the

Legislative Finance Committee, Legislative Education Study Committee, the Secretary of State,

and legislative offices. The funding will also allow for developing long-range space plans to

address long-term space needs of all the agencies located at the capitol.

OTHER SUBSTANTIVE ISSUES

The PCD and Building Services Division of the General Services Department conduct an annual

survey of facility conditions to identify priority projects. The capital building repair fund is the

primary resource available for major repairs and equipment replacement in the Santa Fe building

complexes.

According to PCD, scheduled projects approved by the State Board of Finance for January to

June 2007 include $2.9 million of major roof repairs, electrical upgrades, flooring and life-cycle

replacements at the Central, South and West Capitol campuses, along with continuation of

significant upgrades at the Simms building computer room that is required to accommodate

informational technology efforts. The PCD indicates the reduction of $3.5 million in revenue to

the capital building repair fund over a two-year period will require reprioritization of planned

projects so that sufficient money is available for emergencies, critical repairs, and other

replacements to avoid mechanical breakdowns at the 47 buildings under their jurisdiction in the

Santa Fe locale. The PCD indicates major improvements and upgrades to facilities such as the

Bataan Memorial, runnels, and Lujan buildings, as well as previously approved projects that are

not yet under construction, will be reprioritized to fit within available revenue.

LMK/mt