NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Local Government Division (LGD), Department of Finance and Administration (DFA)

Corrections Department

SUMMARY

Synopsis of Bill

House Bill 19 provides a general fund appropriation to LGD for expenditure in fiscal year 2000 to temporarily house Valencia county's detainees and prisoners until the Valencia county detention facility is completed.

Significant Issues

According to LGD, "this is a one-time solution to a problem that is recurring in many counties due to the substantial increase in the number of prisoner-days in county jails in recent years. Valencia county imposed a new increment of gross receipts tax to fund the construction and operation of the detention facility; the new tax was effective on 1/1/99."

The Corrections Department states "over the past several years, the Department has housed a number of Valencia county inmates and Valencia county has failed to reimburse the Department for its costs as required by Section 33-3-15 NMSA 1978."

FISCAL IMPLICATIONS

The bill makes a general fund of $250.0 to LGD for the purpose stated above. Any unexpended or unencumbered balance remaining at the end of FY2001 reverts to the general fund. (See technical issues.)

TECHNICAL ISSUES

Line 18 specifies the appropriation is for expenditure in fiscal year 2000; however, the reversion language on line 22 states the reversion date as the end of fiscal year 2001.

OTHER SUBSTANTIVE ISSUES

LGD notes the following issues: "Many county jails are experiencing dramatic increases in the number of prisoner-days of incarceration time and the associated increase in operating costs for the facilities." They also indicate that many of the prisoners are out-of-county or out-of-state residents. LGD further notes "the county has statutory authority to impose an additional 1/4% in gross receipts tax rates subject to voter approval; the additional revenue raised would be about $260.0 for general purposes. However, due to the need for holding special elections to obtain voter approval and the statutory timing of the effective dates for increases in gross receipts tax rates, the additional revenue would not be available in fiscal year 2000."

JMG/njw