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

SPONSOR Robinson

ORIGINAL DATE

LAST UPDATED

2/26/07

HB

SHORT TITLE National and International Sporting Events

SB 376

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$250.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

NM Tourism Department (NMTD)

SUMMARY

Synopsis of Bill

Senate Bill 376 appropriates $250 thousand from the general fund to the NM Sports Authority to

host and promote national and international sporting events in New Mexico.

FISCAL IMPLICATIONS

The appropriation of $250 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 2008 shall

revert to the general fund.

SIGNIFICANT ISSUES

NMTD reports that SB 376 would give the NM Sports Authority (NMSA) the resources to

achieve its goals. The agency was able to help create the New Mexico Bowl, the Great Santa Fe

Trail Horse Race and a long list of other events without any real funding of its own, relying

instead on funding from the New Mexico Tourism Department. Some of the proposed events this

appropriation would help fund include:

Senate Bill 376 – Page

2

•

State college basketball doubleheader with Eastern, Western and Highlands involved,

•

Statewide cycling organization to attract better biking events,

•

Triple-A All-Star Baseball at Isotopes Park with national TV coverage,

•

Statewide amateur baseball league in towns and cities around the state,

•

NBA and NHL exhibition games at Isotopes Park and in Rio Rancho,

•

Playing lead role in moving dragstrip from Mesa del Sol to new site on Albuquerque’s far

Westside,

•

World Cup Mountain Biking at Angel Fire,

•

Statewide sports marketing organization,

•

Governor’s Cup auto racing series at tracks around the state,

•

Working with Velodrome committee to attract national and international cycling, and

•

WAC men’s and women’s basketball tournament in Las Cruces.

For example, in the 2006 session, NMSA received a capital outlay appropriation of $150

thousand to host and promote sporting events in New Mexico. NMSA spent $70 thousand to

promote rugby at the University of New Mexico and used the remainder in smaller allocations to

promote sporting events, such as the Coleman Vision tennis tournament and an endurance horse

race.

New Mexico Tourism Department (NMTD) supports SB 376 and all activities and events that

result in increasing the number of tourists to New Mexico

PERFORMANCE IMPLICATIONS

NMTD reports that without additional funding, NMSA will almost ineffective. The agency will

have no real resources at go after new events and support existing events. NMSA believes it has

been under funded from the offset, which has handcuffed it severely. NMSA has had to rely on

other agencies, such as the Tourism Department, for financial support.

Moreover, NMTD states that without SB 376, the hope for using sports to create tourism, have

an economic impact or gain national media attention will be drastically cut back.

This funding will enable the Sports Authority to meet two performance measures in FY08:

•

Number of new major sporting events attracted to New Mexico, with a target of one in

FY08, and

•

Number of new minor sporting events attracted to New Mexico – with a target of seven

in FY08.

POSSIBLE QUESTIONS

What is the return on investment for the state in supporting and promoting the sporting events

listed above by the agency.

BE/mt