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F I S C A L I M P A C T R E P O R T
SPONSOR Smith
ORIGINAL DATE
LAST UPDATED
2/19/07
HB
SHORT TITLE Southwest NM Economic Development Fund
SB 1115
ANALYST Francis
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
FY09
($20,000.0)
($20,000.0) Recurring General Fund
$20,000.0
$20,000.0 Recurring
Southwest and
South Central
Economic
Development
Fund
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
Senate Bill 1115 creates an economic development grant fund called the “Southwest and South
Central Economic Development Fund" to be administered by the Local Government Division of
the Department of Finance and Administration. A new distribution from the tax suspense fund
of $20,000,000 per year from FY08 to FY14 will fund the fund. The fund will be used for:
•
Infrastructure projects to communities that are members of the Southwest NM Council of
Governments or South Central Council of Governments for
o
Water and wastewater projects
o
Airport construction/expansion
o
Solid waste facilities
o
Public transportation equipment and vehicles
o
Telecommunications systems
o
Other economic development projects
The effective date is July 1, 2007.
pg_0002
Senate Bill 1115 – Page
2
FISCAL IMPLICATIONS
The distribution of $20,000,000 contained in this bill is a RECURRING distribution from the
GENERAL FUND. Balances at the end of each fiscal year shall not revert to the general fund.
The funds are to be distributed to the Southwest and South Central economic development fund
in monthly increments of $1,666,667.
This bill creates a new fund and provides for continuing distributions. The LFC has concerns
with including continuing distribution language in the statutory provisions for newly created
funds, as earmarking reduces the ability of the legislature to establish spending priorities.
The funds distributed to the Southwest and South Central economic development fund are funds
that are currently remaining in the tax administration suspense fund at months end. These funds
would otherwise be distributed to the general fund.
DFA notes that the Local Government Division of the Department of Finance and
Administration will administer the Southwest and South Central economic development fund
and all distributions.
NF/nt