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

SPONSOR:	Garcia		DATE TYPED:	01/22/02		HB
SHORT TITLE:		Border Development Trade Offices				SB	13
					ANALYST:		Woodlee

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

$150.0

Recurring

General Fund

Relates to Appropriation in The General Appropriation Act

SOURCES OF INFORMATION

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

Senate Bill 13 appropriates $150.0 from the general fund to the Economic Development Department to support border development trade offices in Ciudad Chihuahua and Mexico City. The bill proposes $75.0 to be appropriated to each office.

Significant Issues

Currently, the Economic Development Department has border development trade offices in these two municipalities. The appropriation would increase the support for both these offices. The department currently expends $11.8 for the Mexico City office and $88.0 for the Chihuahua office. The department receives additional support from the Public Service Company of New Mexico (PNM) and the Department of Tourism for the Mexico City office. Both partners have indicated that there will not be sufficient funds available for continued support of the Mexico City office. If additional funding is not secured, this office will close at the end of fiscal year 2002.

The offices in Mexico are in place to promote and develop trade opportunities between New Mexican and Mexican companies by increasing awareness of New Mexico products, services and tourism. Ultimately, the goal is to increase exports to Mexico and create more export related jobs within the state. In 1999, $55.3 million of products were exported to Mexico from New Mexico.

This increased by 147.5 percent by 2000 when $136.9 million of products were exported to Mexico.

Mexico is New Mexico’s 7^th largest export market, primarily driven by high technology goods, manufacturing goods and processed goods. Loss of these offices could affect the existing and future trade opportunities for New Mexican companies with Mexico.

FISCAL IMPLICATIONS

The appropriation of $150.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall revert to the general fund.

RELATIONSHIP

The appropriations contained within this bill relate to appropriations within the General Appropriations Act where some funding for these offices are contained within the Economic Development Department’s operating budget.

MW/ar