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A MEMORIAL

REQUESTING A COMPREHENSIVE ASSESSMENT OF THE FISCAL IMPACTS ON

CITIES AND COUNTIES IN THE LOS ALAMOS NATIONAL LABORATORY'S

EMPLOYMENT BASE AREA RESULTING FROM THE CHANGED TAX STATUS OF

THE LABORATORY'S NEW CONTRACT AND REQUESTING THAT A

COMPREHENSIVE ECONOMIC DEVELOPMENT PLAN BE DEVELOPED FOR THE

LOS ALAMOS NATIONAL LABORATORY'S EMPLOYMENT BASE AREA.

WHEREAS, Los Alamos national laboratory was established

over sixty-three years ago; and

WHEREAS, Los Alamos national laboratory's budget of more

than two billion dollars ($2,000,000,000) creates a

significant, regional economic engine; and

WHEREAS, Los Alamos national laboratory's total work

force of approximately fifteen thousand makes it the largest

employer in northern New Mexico; and

WHEREAS, Los Alamos national laboratory provides

employment for New Mexicans from many counties, including Los

Alamos, Rio Arriba, Sandoval, Bernalillo and Taos; and

WHEREAS, the United States, through its agencies, has

"recompeted" the contract for operation of Los Alamos national

laboratory, and the new contract took effect on June 1, 2006;

and

WHEREAS, the new contract caused a change in the taxable

status of Los Alamos national laboratory's operations; and

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WHEREAS, the change in tax status has had an enormous

fiscal impact on Los Alamos national laboratory, including a

budget deficit, reductions in work force and other changes

that adversely impact the people and economy of north central

New Mexico; and

WHEREAS, the new taxable status requires that Los Alamos

national laboratory pay gross receipts taxes in an amount

equal to approximately forty million dollars ($40,000,000) to

Los Alamos county and fifty million dollars ($50,000,000) to

the state of New Mexico; and

WHEREAS, the state of New Mexico has not assessed the

fiscal impact on cities and counties within Los Alamos

national laboratory's employment base area; and

WHEREAS, the regional economy in the Los Alamos national

laboratory's employment base area continues to experience

extreme dependency on laboratory funding, remains vulnerable

to past, present and future laboratory job cuts and lacks

significant investment needed to build a new, sustainable

economy;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF

REPRESENTATIVES OF THE STATE OF NEW MEXICO that the state of

New Mexico, through its appropriate agencies, immediately

conduct a comprehensive assessment of fiscal impacts on cities

and counties in Los Alamos national laboratory's employment

base area resulting from the changed tax status of the

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laboratory's new contract and that the state conduct a

comprehensive economic development plan for that area.