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

LFC Files

No comments were received from the Economic Development Department or from the Border Authority.

SUMMARY

Synopsis of Bill

The bill would repeal sections of statute which authorize the operations of the Border Authority. On July 1, 1999 all appropriations, money, records, equipment, furnishings and other property belonging to the Border Authority would be transferred to the Economic Development Department (EDD).

Significant Issues

The Border Authority was created pursuant to the Border Development Act (Sections 58-27-1 through 58-27-26 NMSA 1978) in 1991. The immediate goal of the Authority was the opening of the Santa Teresa border crossing and connection of that crossing to major interstate highways. More generally, the Authority's mission includes promotion of development of New Mexico's border region with Mexico. With the opening of the Santa Teresa border crossing last year, the focus of the Authority has expanded considerably to include a variety of activities related to the more general goal of border economic development. However, with only two professional staff, the ability of the Authority to substantially impact border development is limited. Indeed, the Authority has been criticized for concentrating its efforts on the area around Santa Teresa and ignoring development of other counties along the border.

This bill would integrate the Authority's mission into the broader goals of EDD. Proponents believe the bill would facilitate cooperation on development of the entire border area and help apply all of the state's economic tools (in-plant training, recruitment, advertising) to promote economic development in the region.

FISCAL IMPLICATIONS

The bill transfers all appropriations of the Authority to the EDD, so the net fiscal impact might be negligible. If, as a result of this bill, the Authority's FY2000 appropriation were deleted, it is possible that general fund expenditures would be reduced by about $234.5.

ADMINISTRATIVE IMPLICATIONS

As no comments were received from the Authority or EDD, it is not possible to gauge the administrative impact of this bill.

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