Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

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

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Tripp

ORIGINAL DATE

LAST UPDATED

1/23/2008

HB 232

SHORT TITLE Socorro Belen Commuter Bus

SB

ANALYST Moser

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$600.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Transportation (NMDOT)

SUMMARY

Synopsis of Bill

House Bill 232 appropriates $600 thousand from the general fund to the New Mexico

Department of Transportation (NMDOT) for expenditure in fiscal year 2009 to operate

commuter bus service between Socorro and the RailRunner station in Belen.

FISCAL IMPLICATIONS

The appropriation of $600 thousand contained in this bill is a recurring expense to the general

fund. The bill indicates that this appropriation would be nonrecurring. However, the

establishment of a commuter bus service and route would imply an on-going activity and

expenditure. Any unexpended or unencumbered balance remaining at the end of fiscal year 2009

shall revert to the General Fund.

SIGNIFICANT ISSUES

The NMDOT offers the following cost estimates, which are based on similar service being

contracted out for Park and Ride, takes a 5% inflation rate into account, and does not include

estimated farebox revenues. It is estimated that costs would be $800 thousand per year to make

House Bill 232 – Page

2

connections between the Belen RailRunner station and Socorro including a Friday late night

connection for a 33-passenger bus or $1.025 million for a 57-passenger motorcoach, not

including gross receipts tax. On Park and Ride routes with similar trip lengths and at speeds

traveled on the interstate, passengers have acknowledged their preference for the $57 passenger

motorcoach. The service would require three vehicles to make all connections.

NMDOT reports that Park and Ride routes are reevaluated every six months, so service would be

evaluated and could be reduced to meet the trains with the most demand.

NMDOT indicates that, according to most current available data (2000 Census Journey–to-

Work), there are 981 residents of Socorro County who commute to Valencia and Bernalillo

Counties for work. A reasonable estimate of mode shift to the bus/train from a rural area, such

as Socorro County, to a rural/suburban/urban landscape with densities such as Belen, Los Lunas

and Albuquerque, would be 5%. This equals about 50 people who would shift to the bus/train

mode. The estimated rider ship for a full year would be 12,500, and would likely result in an

estimated 7.3% to 9.4% fare box recovery ratio at $3 fare per one way trip.

OTHER SUBSTANTIVE ISSUES

NMDOT can not implement this route under its current contract for Park and Ride services. The

estimated date of start-up would be December 2008 due to having to initiate a request for

proposals for a contractor and establishing a lot in Socorro (estimated yearly cost of $20,000 for

maintenance and lease).

ALTERNATIVES

The NMDOT will be evaluating its Park and Ride service to Santa Fe once the railrunner begins

service in December 2008. Plans are to curtail Santa Fe service and to redeploy Park and Ride

services into other areas warranting service. This route, Socorro to Belen, should be considered

under that evaluation.

GM/jp