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

SPONSOR T. Garcia

ORIGINAL DATE

LAST UPDATED

2/19/07

HB 1211

SHORT TITLE Mora County Loan Payment

SB

ANALYST Propst

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$250.0

Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

House Bill 1211 appropriates $250.0 from the General Fund to the Local Government Division

(LGD), Department of Finance and Administration to pay off a 1982 delinquent loan for Mora

County.

FISCAL IMPLICATIONS

The appropriation of $250.0 contained in this bill is a non-recurring expense to the General

Fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to

the General Fund.

SIGNIFICANT ISSUES

DFA reports that Mora County has been delinquent for more than 20 years on a loan made from

the property valuation fund. In order to clear this delinquent loan with the Property Tax Division

(PTD), Taxation and Revenue Department and in order for Mora County to maintain its

creditworthiness under the one percent loan fund, such an appropriation is necessary. The PTD

reports that state law precludes Taxation and Revenue Department from proceeding against the

House Bill 1211 – Page

2

County to collect the debt and from forgiving the debt.

The appropriation contained in HB 1211 would allow the County to repay this debt without

dipping into County coffers. Currently, the County is in a precarious financial situation. All NM

counties are required by (LGD) to maintain a reserve requirement for the General Fund. At this

time, the County has not met this requirement. The County, furthermore, is operating on a

reduced work week schedule in order to reduce expenses.

TECHNICAL ISSUES

DFA notes that it may be more expeditious to direct the appropriation to the Taxation and

Revenue Department.

WEP/csd