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

SPONSOR Lundstrom

ORIGINAL DATE

LAST UPDATED

1/28/08

HB 383

SHORT TITLE McKinley County Tourism & Outdoor Recreation

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$25.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

House Bill 383 duplicates House Bill 29.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department (EDD)

Indian Affairs Department (IAD)

SUMMARY

Synopsis of Bill

House Bill 383 appropriates $25,000 from the general fund to the Tourism Department to

promote outdoor adventure recreation and tourism in McKinley County.

The bill has an emergency clause.

FISCAL IMPLICATIONS

The appropriation of $25,000 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 states that the adventure travel tourism market is a rapidly growing segment within the

tourism industry. For several years, McKinley County and the City of Gallup have taken the

House Bill 383– Page

2

initiative to promote the “community’s outdoor potential," as well as to promote more of a

“cultural adventure" experience. The 2003 McKinley County Comprehensive Plan supports

prospects for adventure opportunities in lands surrounding Gallup and rural Native American

communities. Through a Community Development Block Grant (“CDBG"), feasibility studies

have addressed the potential of “a Moab-style" adventure sport tourism program, as well as,

facilities and activities in the Gallup area.

Since 2003, McKinley County and the City of Gallup have continued to take the initiative to

promote the community’s outdoor potential. An example is the City of Gallup’s development of

trail systems around its city limits, as well as, the promotion of a more “cultural adventure

experience that would lead visitors on a tour of the area’s museums and trading posts."

Adventure Gallup and Beyond, a community funded agency to promote adventure travel and

recreation has been

promoting adventure outdoor recreation targeting Moab-destination cyclists,

hikers, and campers. The Economic Development Department (EDD) has provided initial

funding through its Administrative Services Division for data and economic impact analysis

while Tourism Department has managed the advertising and promotion.

According to EDD, the inaugural tour of Nations Bike race this past summer attracted more than

150 participants and had positive economic impact on sponsors: Isleta Pueblo, Laguna Pueblo,

Acoma Pueblo, Zuni Pueblo and other businesses located in Bernalillo, Cibola, and McKinley

counties. This Regional, Public and Tribal event brought together Tribal leaders in cooperative

participation.

ADMINISTRATIVE IMPLICATIONS

The Tourism Department can handle the provisions of this bill as part of their ongoing

responsibilities.

BE/bb