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

SPONSOR Cisneros

ORIGINAL DATE

LAST UPDATED

2/19/07

HB

SHORT TITLE

NORTHERN NM PERFORMING ARTS

EDUCATION

SB 1009

ANALYST Propst

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$100.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 1009 proposes $100.0 from the General Fund to the Local Government Division of

the Department of Finance and Administration (DFA/LGD) for expenditure in FY08 to contract

with a nonprofit organization to provide performing arts education after school and during

summer session.

FISCAL IMPLICATIONS

The appropriation of $100.0 contained in this bill is a recurring expense to the General Fund.

Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to the

General Fund.

SIGNIFICANT ISSUES

The funding contained in SB 1009 will alleviate the costs associated with running the program,

i.e.; staffing, traveling, related material, and operational expenses. Any equipment purchased

will be owned by Rio Arriba County and utilized by the non-profit via a user’s agreement. Rio

Senate Bill 1009 – Page

2

Arriba will need to maintain the equipment on its asset inventory list until such time the

equipment is of no value.

ADMINISTRATIVE IMPLICATIONS

DFA/LGD will enter into a grant agreement with Rio Arriba County as a fiscal agent on behalf

of the non-profit organization. The division will ensure that any operating agreement is in place

prior to the expenditure of the funds. DFA/LGD will ensure that all expenditures are in

accordance with the legislative intent.

TECHNICAL ISSUES

DFA reports that the County of Rio Arriba will need to draft an operating and user agreement to

ensure equal consideration is provided in return via in-kind services in lieu of the funding.

WEP/nt