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

SPONSOR:	Altamirano		DATE TYPED:	02/05/02		HB
SHORT TITLE:		State Government Organizational Study				SJM	5/aSRC/aHAFC
					ANALYST:		Belmares

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

NFI

Duplicates HJM8

SOURCES OF INFORMATION

LFC Files

Economic Development Department (EDD)

Division of Vocational Rehabilitation (DVR)

Workers’ Compensation Administration

New Mexico State Fair

SUMMARY

Synopsis of HAFC Amendment

House Appropriations and Finance Committee amends SJM 5/aSRC by adding the phrase “and effective” following the term “cost-efficient” when describing the state’s ability to operate under its current organizational structure.

Synopsis of SRC Amendment

Senate Rules Committee amends SJM 5 by adding “the health and human services department and the highway department” to the organizations asked to cooperate with and assist the interim committee in carrying out its duties to study and evaluate New Mexico State government’s organizational structure.

Synopsis of Original Joint Memorial

Senate Joint Memorial 5 (SJM5) requests that the New Mexico Legislative Council create an interim committee to study and evaluate New Mexico State government’s ability to operate in a cost-efficient manner under its current organizational structure and to report its findings and any recommendations for changes in that structure to the First Session of the Forty-sixth Legislature and the Governor.

SJM5 indicates “the Legislative Finance Committee has identified the following problem areas in which inappropriate government organizational structure appears to be a substantial contributing factor:

the provision of services of the Medicaid program;
lack of coordination in the state’s efforts to finance debt through the issuance of bonds; and
proliferation of workforce development programs.”

SJM5 also directs the LFC and the Department of Finance and Administration to cooperate with and assist the interim committee in carrying out its duties.

Significant Issues

SJM5 is LFC-Sponsored legislation.

ADMINISTRATIVE IMPLICATIONS

SJM5 anticipates the identification and implementation of needed organizational changes would result in substantial savings in expenditures and in increased efficiency in state government operations.

DUPLICATION

Duplicates House Joint Memorial 8.

EB/ar