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

SPONSOR Harrison

ORIGINAL DATE

LAST UPDATED

02/19/07

HB 1201

SHORT TITLE Rural Northwest NM Quality of Life Projects

SB

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$225.0

Recurring

General

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Indian Affairs Department (IAD)

Department of Tourism (DOT)

No Responses Received From

Office of Workforce Training and Development

SUMMARY

Synopsis of Bill

House Bill 1201 appropriates $225 thousand from the general fund to the Indian Affairs Depart-

ment to support two projects: (1) $125 thousand for the tour of nation’s five-day bicycle ride;

and (2) $100 thousand for a hospitality program that trains entry-level workers in the hospitality

industry and provides management skills for new supervisors, managers and owners

FISCAL IMPLICATIONS

The appropriation of $225 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of Fiscal Year 2008 shall

revert to the general fund.

House Bill 1201 – Page

2

SIGNIFICANT ISSUES

IAD reports the bike ride is set to take place for the first time in August 2007. It combines two

central elements of New Mexico tourism: outdoor recreation and cultural exploration. Partici-

pants will start in Isleta Pueblo and ride between 32 and 61 miles per day, traveling through 4

Pueblos and the Navajo Nation. Riders will visit these Tribal communities and attend traditional

performances and consume traditional meals. The ride finishes in Gallup, where participants

will be provided with tickets to the Inter-Tribal Indian Ceremonial powwow. Each cyclist pays

$600 to participate in the event and participation is capped at 200 entrants.

The event is being organized by the non- profit Adventure Gallup and Beyond (“Adventure

Gallup.") Adventure Gallup is involved in promoting and organizing events in the

Gallup/McKinley County area which combine outdoor recreation with tourism. Its Board is

composed of 15 members, including Gallup Mayor Bob Rosebrough and State Representative

Patricia A. Lundstrom.

Funding is needed to help with expenses associated with this event and other related projects of

Adventure Gallup. Event organizers anticipate utilizing funds for personnel and other expenses.

In the past, the organization has received funding from the State of New Mexico, the City of

Gallup and McKinley County. It no longer has access to City or County money and seeks sup-

port from the State once again. Based upon current sponsorship and participation levels for the

2007 event, Adventure Gallup anticipates that the cycling event and other initiatives will be self-

sustaining economically after fiscal year 2008.

The Tourism Department notes similar information regarding the event and adds that the de-

partment has agreed to provide support to the Tour of Nations event with existing resources in

the areas of: press release creation and distribution; video services- capture and post-production

editing; and media and tourism industry related contacts.

IAD notes the hospitality program referenced is likely ProActive Host based in Gallup. It is an

affiliate of Adventure Gallup but is governed by its own Board of Directors, called the Business

Advisory Council. Its purpose is twofold. First, it endeavors to meet the personnel needs of

hospitality employers in the area by providing training to potential and current employees. Sec-

ond, it provides local residents with the opportunity to access careers in the hospitality industry

through training. Both of these objectives are in harmony with the larger objectives of utilizing

tourism as an economic development tool in the Gallup/McKinley County region. It is hoped

that by expanding and improving the pool of qualified hospitality workers, that tourists will re-

ceive better service and be more likely to select the area as a destination.

To date, more than 300 employees of hospitality concerns in the Gallup area have attended the

ProActive Host program. The program emphasizes the improvement of interpersonal skills

through hands-on skill development. Program curricula have been molded to meet the unique

needs of the Gallup area’s multicultural population. Local employers have been pleased with the

outcomes of the program – as employees have demonstrated improved interpersonal skills and

employers lower turnover rates. Funding for the program comes primarily from participating

employers.

MW/nt