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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 SFC

ORIGINAL DATE

LAST UPDATED

2/19/07

3/12/07 HB

SHORT TITLE Capitol Buildings Planning and Facilities

SB CS/1061/aHAFC

ANALYST Kehoe/Francis

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$11,000.0

NFI Non-Recurring Severance Tax Bond

Capacity

$1,500.0

NFI Non-Recurring

Property Control

Reserve Fund

$3,500.0

NFI Non-Recurring

Public Buildings

Repair Fund

$1,000.0

NFI Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

($60.0)

($360.0)

($360.0) Recurring General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Health (DOH)

New Mexico Finance Authority (NMFA)

CS/Senate Bill 1061/aHAFC – Page

2

SUMMARY

Synopsis of HAFC Amendment

The House Appropriations and Finance Committee amendment changes the funding source for

the $11 million appropriation for the construction of the state laboratory services building from

the general fund to severance tax bond capacity and makes corresponding technical corrections

to the title of the bill.

Synopsis of Original Bill

The Senate Finance Committee amended Senate Bill 1061 in the following ways:

•

Added the state treasurer to the commission

•

Removed the NM staff architect from the commission

•

Requires the Legislative council service to staff the commission in coordination with the

staff architect and other staff of the property control division. Currently, LCS only

coordinated with the staff of the PCD.

•

Raises the gross receipts tax distribution to $530 thousand from $500 thousand

•

Allows PCD to use the funds to acquire the “Coughlin Building" which is within the

central capitol campus

•

Raises the limit for office building revenue bonds to $100 million.

•

Removes a section that allows the New Mexico Finance Authority to issue additional

state office building tax revenue bonds for purposes specified in Laws 2001, Chapter 166,

and Section 1 as amended by in 2005.

•

Appropriates:

o

$11 million from severance tax bond capacity for the state laboratory facility

o

For acquisition of property within the west capitol complex owned by the US

government:

.

$1.5 million from the property control reserve fund

.

$3.5 million from the public buildings repair fund

o

For the NM State police crime laboratory, $1 million from the general fund.

Senate Finance Committee Substitute for Senate Bill 1061, for the Capitol Buildings Planning

Commission, expands the planning authority of the Capitol Buildings Planning Commission to

include the greater metropolitan areas of Las Cruces; authorizes $350 thousand of the proceeds

of state office building tax revenue bonds to be used for master planning for state facilities and

annual updates to the state building master plan; and appropriates $16 million from the general

fund to the Property Control Division of the General Services Department for the purpose of

acquiring land and planning, designing, constructing and equipping the state laboratory facility in

Bernalillo County.

FISCAL IMPLICATIONS

The SFC substitute reduces general fund revenues by $360 thousand due to the increase in the

distribution of $30 thousand per month from gross receipts taxes. This increase should be

sufficient to cover the additional debt authorized but a more complete financial analysis is

necessary to confirm.

CS/Senate Bill 1061/aHAFC – Page

3

The State Building Bond Act authorizes the New Mexico Finance Authority to issue office

building revenue bonds in an amount not to exceed $100 million for specific projects authorized

by the Legislature. The bonds are secured by a $530,000 monthly distribution of state gross

receipt taxes.

According to the New Mexico Finance Authority, approximately $58.2 million of the authorized

bond issuance has been made for the purchase of the Public Employees Retirement Association

building, the National Education Association building, the acquisition of property on Cerrillos

Road in Santa Fe, and for construction of the west capitol complex. The remaining authorized

office revenue bond capacity is $31.8 million for the state laboratory services building in

Albuquerque and a capitol campus parking structure in Santa Fe and for the development of a

master plan for all state properties.

The appropriations of $17 million contained in this bill are non-recurring expense to the general

fund ($1 million), property control reserve fund ($1.5 million), and public buildings repair fund

($3.5 million). Any unexpended or unencumbered balance remaining at the end of fiscal year

20011 shall revert to the general fund. The authorization of $11 million is a non-recurring

expense to severance tax bond capacity. Any unexpended or unencumbered balance remaining

at the end of fiscal year 1012 shall revert to the severance tax bonding fund.

It should be noted that the general fund and severance tax bond capacity fund authorized for the

planning of the crime laboratory building and state laboratory services building in this bill are

within the non-recurring balances available for fiscal year 2007.

SIGNIFICANT ISSUES

The Capitol Buildings Planning Commission (CBPC) was created in 1997 for the purpose of

studying and planning for long-range facility needs of state government within the Santa Fe

locale and was made responsible for continue to update the master plan and report annually to

the Legislature. In 2002, the CBPC authority was extended to include the Albuquerque locale in

the overall master plan. This bill would expand the CBPC authority to include master planning

for the greater metropolitan areas of Las Cruces.

To date, the Legislature has appropriated or authorized bonds in the amount of $59.9 million for

plan, design, and construction of the laboratory services building in Albuquerque which is

expected to cost $90 million for an 185,000 square foot facility. According to the Property

Control Division, an additional $30 million is needed for the project, of which $21 million is

needed to start construction of the laboratory facility. The other $9 million is needed for taxes,

LEED certification, site and utility improvements, informational technology and security,

furniture and moving costs. The PCD indicates the cost per square foot is in line with the

experience of other public health laboratories in other states. Inasmuch as the construction phase

is expected to go to bid in September 2007, it is critical that the $21 million needed for

construction be appropriated this session. The remainder could wait until the 2008 Session.

LMK/NF/nt:csd