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

 

 

 

SPONSOR:

Hurt

 

DATE TYPED:

01/23/03

 

HB

 

 

SHORT TITLE:

Salaried Legislature,CA

 

SB

SJR 3

 

 

ANALYST:

Chavez

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

Impact may be first realized in FY 05.  Refer to the Fiscal Implications Section.

Recurring

General Fund

 

 

 

$40.0

Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

 

SUMMARY

 

     Synopsis of Bill

 

Senate Joint Resolution 3 proposes to amend Section 2-1-8 NMSA 1978 to provide an annual salary to state legislators contingent upon the adoption by the people of an amendment to the Constitution approving legislative salaries. The proposed annual salary is to equal the amount of the federal poverty level for a family of four.  In accordance with the most recent federal poverty guidelines for 2002, the annual salary would be $18,100.  In addition to the annual salary, an administrative allowance equal to one tenth of the amount of the federal poverty level for a family of four is proposed. Any unused portion of the administrative allowance will revert to the general fund.

 

     Significant Issues

 

Because the proposed salary amount is dependant on the federal poverty level, the language of the bill should clarify which of the two slightly different versions of the federal poverty measure apply:  poverty thresholds and poverty guidelines.  The poverty thresholds are issued by the Census Bureau and are used mainly for statistical purposes.  The poverty guidelines are issued by the Department of Health and Human Services and are used for administrative purposes.  The poverty guidelines are loosely referred to as the “federal poverty level” but this is ambiguous.  A recommended language change is to delete the phrase” federal poverty level” and replace it with “poverty guidelines” for further clarification. 

 

In addition to the annual salary, an administrative allowance would be used solely for constituent services.  It is recommended that the phrase “constituent services” be defined.

 

FISCAL IMPLICATIONS

 

This bill does not contain an appropriation.  However, based on the most current federal poverty guidelines, the general fund deficit is estimated at $2.0 million.  The recurring impact on the general fund is estimated to increase annually by a conservative 2.5% since the poverty guidelines are updated annually for price changes in the Consumer Price Index for all urban consumers (CPI-U).  The attached tables show the 2001 and 2002 HHS Poverty Guidelines.  The next general election is in November 2004.  Thus, the impact on the general fund will likely be first realized in FY 05.

 

The administrative allowance also based on the most current federal poverty guidelines and is estimated to have a impact on the general fund of $200.0. Any unexpended or unencumbered balance remaining from the administrative allowance at the end of the fiscal year shall revert to the general fund.  The recurring impact on the general fund is also estimated to increase by 2.5% annually since the administrative allowance is also based on the poverty guidelines.

 

An estimated $40.0 non-recurring cost to the general fund is also expected for to the Secretary of State to place an item on the ballot.  The cost for advertising and printing varies and includes: (1) the publishing of constitutional amendments in English and Spanish for four consecutive weeks in one newspaper in each county of the state; (2) the oral translation and radio broadcast into the Native American languages of Tewa, Tiwa, Towa, Keres, Zuni, Mescalero Apache, Jicarilla Apache and Navajo; and (3) the printing of amendments booklets in English and Spanish (including Spanish language translation cost) and distribution to all county clerks.  This non-recurring cost will likely be realized in FY 05.

 

 

2002 HHS Poverty Guidelines

 

Size of
Family Unit

48 Contiguous
States and D.C.

Alaska

Hawaii

1

$ 8,860

$11,080

$10,200

2

11,940

14,930

13,740

3

15,020

18,780

17,280

4

18,100

22,630

20,820

5

21,180

26,480

24,360

6

24,260

30,330

27,900

7

27,340

34,180

31,440

8

30,420

38,030

34,980

For each additional
person, add

 3,080

 3,850

 3,540

SOURCE:  Federal Register, Vol. 67, No. 31, February 14, 2002, pp. 6931-6933.

 

                                                     2001 HHS Poverty Guidelines

 

Size of
Family Unit

48 Contiguous
States and D.C.

Alaska

Hawaii

1

$ 8,590

$10,730

$ 9,890

2

11,610

14,510

13,360

3

14,630

18,290

16,830

4

17,650

22,070

20,300

5

20,670

25,850

23,770

6

23,690

29,630

27,240

7

26,710

33,410

30,710

8

29,730

37,190

34,180

For each additional
person, add

 3,020

 3,780

 3,470

SOURCE:  Federal Register, Vol. 66, No. 33, February 16, 2001, pp. 10695-10697.

FC/njw