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

SPONSOR HCPAC

ORIGINAL DATE

LAST UPDATED

2-14-2007

2-22-2007 HB 634/HCPACS

SHORT TITLE Hispanic Cultural Center Family Passes

SB

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$500.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

($65.0)

($65.0) ($130.0)

*Other

(Parenthesis ( ) Indicate Revenue Decreases)

Figure 1. *Admissions revenue for Cultural Affairs facilities is deposited into a special revenue fund.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Cultural Affairs Department (CAD)

SUMMARY

Synopsis of Bill

House Bill 634/HCPACS appropriates $500 thousand from the general fund for expenditure in

FY08 to the local government division of the department of Finance and Administration for the

purpose of providing family passes for admission to the Hispanic Cultural Center.

House Bill 634/HCPACS – Page

2

FISCAL IMPLICATIONS

The appropriation of $500 thousand contained in House Bill 634/HCPACS is a recurring

expense to the General Fund. Any unexpended or unencumbered balance remaining at the end

of FY08 shall revert to the General Fund.

It is unclear how the Bernalillo county family pass program would reimburse the National

Hispanic Cultural Center. Admissions revenue for the National Hispanic Cultural center in

FY06 was approximately $65 thousand. Neither the proposed legislation nor the agency

response provides estimates of the number of individuals that would be served by this proposal,

nor those families eligible. However, if family admission passes were issued, the impact would

be instead to the centers’ admissions revenue.

SIGNIFICANT ISSUES

The department’s National Hispanic Cultural center mission includes service to children and

families. Many of the center’s literary, visual and performing arts programs are geared to

children and families. In 2006, the center’s attendance approached some 94,795

people.

Museum and Monument

Fa cilities Atte nda nce

Re venu e, 2005 & 2006

$0

$100

$200

$300

$400

$500

$600

$700

Source: Depart ment of Cult ural A f f airs: Signif i cant Change in

count ing proc edure at NHC C in 2 006

2005

2006

Museum a nd Monume nt

Facilitie s Attendance, 2005 &

2006

0

50

100

150

200

250

300

So urce: D epart ment of Cult ur al Af f airs; LFC Files

2005

2006

House Bill 634/HCPACS – Page

3

The Center's current admission fee schedule for museum exhibitions is $3 for adults, and $2 each

for children and seniors. School groups are free. Sundays are free. Ticket prices for performing

arts events vary.

PERFORMANCE IMPLICATIONS

Free admission at the center would most likely increase the facility’s attendance figures, which

are a component of a Museums and Monuments program performance measure.

ADMINISTRATIVE IMPLICATIONS

The mechanics of these family passes are not spelled out in the legislation. Enactment of the bill

will require some collaboration between Bernalillo County and the NHCC. As the appropriation

is directed to DFA, it is not stated if DFA will reimburse the NHCC for admissions

services/revenue waived on a per-unit basis (cash-basis), or whether it will be a lump-sum

waiver (accrual) of foregone revenue in the amount of the appropriation.

The department states current staff at the NHCC could administer this program. Some level of

printing costs would be incurred with the family passes, as well as some additional marketing

and promotion efforts. Lastly, accounting and reporting procedures would need to be altered at

the center’s business office to incorporate this program.

ALTERNATIVES

The intended outcome could be provided through allowing free admissions for the intended

program recipients at the admissions office at the center. The appropriation of $500 thousand

should not be necessary to accomplish the intention of free admissions for families.

PD/csd