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

SPONSOR Madalena

ORIGINAL DATE

LAST UPDATED

2/4/08

HB 272

SHORT TITLE Native American Economic Development

SB

ANALYST Cox

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$100.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Indian Affairs – IAD

Economic Development Department - EDD

SUMMARY

Synopsis of Bill

House Bill 272 appropriates one hundred thousand dollars ($100,000) from the General Fund to

the Indian Affairs Department for the purpose of increasing Native American economic

development activities

FISCAL IMPLICATIONS

The appropriation of one hundred thousand dollars ($100,000) contained in this bill is a recurring

expense to the General Fund. Any unexpended or unencumbered balance remaining at the end of

Fiscal Year 2009 shall revert to the General Fund.

SIGNIFICANT ISSUES

IAD notes:

HB 272 could support an initiative led by the New Mexico Economic Development Department

(“NMEDD") and the American Indian Chamber of Commerce of New Mexico (“AICCNM").

Together, these entities are working to implement a number of economic development projects in

tribal communities pursuant to the tribal consultation pilot plan as submitted to Governor Bill

House Bill 272 – Page

2

Richardson by the NMEDD. Specifically, the funding would support AICCNM and NMEDD’s

Native American economic development activities and increase access to development programs

and services for Native Americans.

Additionally, NMEDD and AICCNM’s initiative includes the hosting of a tribal economic

development summit in New Mexico and, among others issues, a comprehensive assessment of

tribal infrastructure and economic development needs of the twenty-two Indian Tribes, Nations

and Pueblos in New Mexico.

According the 2000 Census, there are more than 197,300 Native owned businesses employing

nearly 300,000 people across the country. In New Mexico, there are over 6,800 Native

American owned businesses. The economic benefits to the State of contributions made by Native

American businesses are enormous. On average, Native owned businesses in the State bring in

nearly $300,000,000 annually

But, according to Native American business owner and chairman of the American Indian

Chamber of Commerce of New Mexico, David Melton, “New Mexico tribes struggle with

diversifying and developing their economies…because there is a lack of business sites on Indian

reservations."

It should be noted that the average unemployment rate for Native Americans is 22% for non-

gaming tribes and 15% for gaming tribes in the United States.

ADMINISTRATIVE IMPLICATIONS

Funds would be administered by the New Mexico Economic Development Department

(NMEDD).

PRC/mt