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

SPONSOR Arnold-Jones

ORIGINAL DATE

LAST UPDATED

1-28-2008

HB 499

SHORT TITLE Rural Public Libraries

SB

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$3,750.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

$3,750.0

$0.1 Recurring

Rural Library

Development

Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Bill 499 appropriates $3.75 million from the general fund to the Rural Library

Development fund in FY09 and subsequent fiscal years for distribution in equal amounts to each

of the existing rural libraries as a grant-in-aid.

FISCAL IMPLICATIONS

The appropriation of $3.75 million contained in this House Bill 499 is a recurring expense to the

general fund. Any unexpended or unencumbered balance remaining at the end of FY09 shall not

revert to the general fund.

House Bill 499 – Page

2

House Bill 499 provides for continuing appropriations. The LFC has concerns with including

continuing appropriation language in the statutory provisions for newly created funds, as

earmarking reduces the ability of the legislature to establish spending priorities.

SIGNIFICANT ISSUES

Laws 2007, ch. 83, § 4. created the Rural library development fund; Section 18-15-4. NMSA

1978

The "rural library development fund" is created as a non-reverting fund in the state treasury. The

fund consists of appropriations; other revenue credited to the fund; gifts, grants and donations to

the fund; and income from investment of the fund. The fund shall be administered by the

division, and money in the fund is subject to appropriation by the legislature to carry out the

provisions of the Rural Library Development Act [18-15-1 NMSA 1978]. No more than five

percent of the fund each year may be used for administration. Disbursements from the fund shall

be by warrant of the secretary of finance and administration pursuant to vouchers signed by the

state librarian or the state librarian's authorized representative.

The State Library division of the Department of Cultural Affairs, may provide grants-in-aid to

existing rural libraries for collections and services, to provide resources to plan and establish new

rural libraries, and improve access to library materials and technology for rural citizens through

funding from the rural library development fund.

PERFORMANCE IMPLICATIONS

If enacted, the LFC recommends that the Cultural Affairs department submit a plan for

enhanced/adjusted program evaluation measurement targets to incorporate increased outcome

commensurate with larger appropriation levels.

The increased appropriation for grants-in-aid for rural libraries will allow statewide rural

libraries to increase funding for new library materials, staff training and library equipment. This

will strengthen rural libraries as they support the educational, informational and computing needs

of their communities and contribute to the economic growth of these communities. Current

measurements tracking outreach participation numbers for the division could be impacted

through this increased appropriation.

PD/mt