SENATE BILL 242

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO PUBLIC FINANCE; PROVIDING FOR TEMPORARY REDUCTIONS TO GENERAL FUND APPROPRIATIONS DURING A GENERAL FUND REVENUE SHORTFALL.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of Chapter 6, Article 3 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] REVENUE SHORTFALL--TEMPORARY REDUCTION IN GENERAL FUND ALLOTMENTS AND DISTRIBUTIONS.--When the director of the legislative finance committee certifies to the secretary of finance and administration that actual revenues to the general fund are less than the estimates of general fund revenues used as the basis for general fund appropriations and that the balances of the general fund operating reserve and the appropriation contingency fund are insufficient to fully fund that shortfall:

          A. the state budget division of the department of finance and administration shall, for up to sixty days or the remainder of the fiscal year, whichever of those periods is shorter, adjust allotments to all agencies and institutions to which those general fund appropriations are made:

                (1) in a total amount that does not exceed the amount necessary to fully fund the shortfall; and

                (2) for each of those agencies and institutions, in an amount equal to the proportion of that total that represents the agency's or institution's share of those general fund appropriations; and

          B. an agency or institution that, in accordance with Subsection B of Section 6-3-6 NMSA 1978, does not receive general fund appropriations by periodic allotment shall remit to the department of finance and administration the portion of the agency's or institution's general fund distributions according to the same terms of adjustment that the division applies to agencies and institutions that receive allotments."

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