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).

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

SPONSOR Rawson

ORIGINAL DATE

LAST UPDATED

02-06-08

HB

SHORT TITLE Dona Ana Veterans Museum

SB 346

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$250.0 Recurring

General Fund

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY08

FY09 FY10 3 Year

Total Cost

Recurring or

Non-Rec

Fund

Affected

Total

*$.01

*$.01 Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to House Bill 313, 243, Senate Bill 349

SOURCES OF INFORMATION

LFC Files

Responses Received From

Cultural Affairs Department (DCA)

SUMMARY

Synopsis of Bill

Senate Bill 346 appropriates $250 thousand from the general fund to Cultural Affairs department

for the purpose of developing a veteran’s museum in Dona Ana County.

FISCAL IMPLICATIONS

The appropriation of $250 thousand contained in Senate Bill 346 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. The establishment of an additional museum within the Cultural

Affairs department system will increase annual operating costs independent of any capital costs

associated with construction.

Senate Bill 346 – Page

2

This fiscal impact report does not estimate construction and other capital (land) costs. The

additional operating costs are estimated using the average costs of other museums in this system

as proxy for recurring operating costs for a new museum.

*Additional annual operating costs for the proposed veterans’ museum in Senate Bill 346 are

unknown. Other museums within the Cultural Affairs department system have a range of annual

operating costs from a low of $1.7 million to a high of $2.8 million with an average of $2.2

million.

SIGNIFICANT ISSUES

While recognizing the economic value of museums at the local level, LFC staff remains

concerned over the department’s ability to address deferred maintenance and the funds needed to

restore or enhance extremely valuable existing collections and exhibits. National data shows

significant returns to the state’s appropriations with increased attendance when facilities and

exhibits are properly maintained and rotated.

The LFC remains concerned with the department’s ability to cover additional operating

expenses, both when new state-owned facilities are brought on line as well as operating

commitments to private and local government facilities. In many instances, acceptances of

additional facilities incur additional operating costs to the department, placing strain on the

facilities maintenance budget the department receives to address the buildings’ conditions.

Because the DCA properties are not under the jurisdiction of the Property Control Division of

the General Services Department, the DCA is responsible for maintenance and renovation of its

own facilities and exhibits, including restoration of art collections.

PERFORMANCE IMPLICATIONS

Upon legislative enactment and completion of this museum, the LFC recommends that the

Cultural Affairs department submit a plan for program evaluation with specific program goals

and criteria for assessing the effectiveness and provide suggested outputs, outcomes and

performance measures to evaluate the performance of state government programs as prescribed

in the Accountability in Government Act.

RELATIONSHIP

Senate Bill 346 relates to House Bill 313, 243, Senate Bill 349. Senate Bill 349 relates to House

Bill 313, and Senate Bill 247. All four bills include recurring appropriations for a veterans’

museum in Las Cruces or Dona Ana County; whereas Senate Bill 349 and House Bill 243 create

a Veterans’ Museum Division within the Department of Cultural Affairs and a Veterans’

Museum Board of Directors

PD/jp