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

SPONSOR Martinez

ORIGINAL DATE

LAST UPDATED

1/23/08

1/29/08 HB

SHORT TITLE Rural Public Libraries

SB 223

ANALYST Propst

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$1,400.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

Senate Bill 223 Making an Appropriation for Rural Public Libraries, appropriates $1.4 million

from the general fund to DFA for purposes of funding public libraries.

FISCAL IMPLICATIONS

The appropriation of $1.4 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY09 shall revert to the

general fund.

SIGNIFICANT ISSUES

DFA notes that, according to the State Library the funds will directly benefit 28 public libraries

not under direct control of the state. Most are non profit organizations or run by a library board.

These libraries are part of the normal library fund distribution.

The fiscal agent will need to provide to DFA a lease and operating agreement to satisfy the anti-

donation clause as state funds cannot directly benefit a non-profit or for profit organization under

Article IX, Section 14 of the NM Constitution.

WEP/nt