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

SPONSOR Gutierrez

DATE TYPED 2/23/05

HB 790

SHORT TITLE Dona Ana Self-Help Cultural Activity

SB

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$150.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB703.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department (EDD)

Cultural Affairs Department (CAD)

SUMMARY

Synopsis of Bill

House Bill 790 appropriates $150,000 from the general fund to the Cultural Affairs Department

for expenditure in fiscal years 2005 and 2006 for the purpose of supporting a community weav-

ing program providing work and income for weavers living in Dona Ana County. The bill in-

cludes an emergency clause.

Significant Issues

DCA provided the following information by means of background: The New Mexico Arts divi-

sion of DCA had a contract in place with a weaving cooperative in Doña Ana County in the

amount of $19,633 with funds from the Department of Labor, which expired at the end of De-

cember 2003. The weaving cooperative did not use $14,476.34 of this grant, stating that it could

not meet the requirement set forth by the Department of Labor. It is unknown, based on the lan-

guage in the bill, if support for this specific weaving program is the legislation’s intent.

House Bill 790 -- Page 2

PERFORMANCE IMPLICATIONS

The Department of Cultural Affairs measures the amount of funding distributed through grants.

Enactment of this bill would increase this performance measure and should be made clear when

reporting performance data.

FISCAL IMPLICATIONS

The appropriation of $150,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 would revert to the

general fund.

ADMINISTRATIVE IMPLICATIONS

The passage of the bill would require a request for proposals process to be conducted by DCA to

accommodate the sate procurement process. This process would require staff to develop an RFP,

review and select eligible applicants and to process contracts.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicates SB703.

POSSIBLE QUESTIONS

1.

How many jobs are provided by the community weaving program.

2.

Does the community weaving program reduce state costs by providing jobs for individu-

als who might otherwise need other sources of state support.

DH/lg