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

SPONSOR Snyder

ORIGINAL DATE

LAST UPDATED

1-24-07

3/9/07 HB

SHORT TITLE Legislative Approval for Some NMFA Projects

SB 202/aHTPWC

ANALYST Kehoe

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

NFI

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

(See Fiscal Narrative)

NA*

Recurring

Local

Transportation

Infrastructure

Fund

(Parenthesis ( ) Indicate Revenue Decreases)

*Not applicable at this time.

SOURCES OF INFORMATION

LFC Files

New Mexico Finance Authority

SUMMARY

Synopsis of HTPWC Amendment

The House Transportation and Public Works Committee amendment inserts a new section

making September 1, 2007 the effective date for the provisions of this bill.

Synopsis of Original Bill

Senate Bill 202 amends the New Mexico Finance Authority Act to require legislative approval of

projects funded from the local transportation infrastructure fund.

Senate Bill 20/aHTPWC 2 – Page

2

FISCAL IMPLICATIONS

Sources of funding to the Local Transportation Infrastructure Fund include:

1.

One-half of the fee received by NMFA in issuing the state transportation bonds.

2.

Loan principal in interest repayments and principal and interest repayments from

securities held by NMFA for local transportation projects.

3.

An indeterminate appropriation from the Legislature to implement the provisions in the

bill.

4.

Other public or private money appropriated, dedicated or allocated to the fund for the

purpose of financing local transportation projects.

Currently the Department of Transportation (DOT) pays NMFA 25 basis points on each series of

bonds sold for GRIP I bonds. According to NMFA, as of December 30, 2006, the authority has

received approximately $4.5 million from administrative fees from the sale of series 2004A DOT

bonds and has transferred approximately $1.3 million to the local transportation infrastructure

fund.

During the interim, members of the NMFA Oversight Committee expressed concern about the

authority the Legislature has delegated to NMFA staff and other entities for approving projects.

Of particular concern was legislation giving the Transportation Department secretary and

metropolitan and regional planning organizations the authorization to prioritize local road

projects. The concern delayed the oversight committee’s approval of NMFA proposed rules and

regulations for administration and implementation of the local road project program.

SIGNIFICANT ISSUES

Laws of 2005 (Chapter 262) created the Local Transportation Infrastructure Fund within the

New Mexico Finance Authority for the purpose of providing local governments, not eligible for

federal funding, and whose needs have not been met by the existing Local Government road

Fund, with assistance for transportation projects. NMFA is authorized to issue and sell local

transportation project revenue bonds in compliance with the New Mexico Finance Act and rules

developed by NMFA and approved by the New Mexico Legislative Oversight Committee. The

authority may make grants from the fund to qualified entities for local transportation projects

when a grant is not more than 25 percent of the total project cost and when the qualified entity

demonstrates it has available or a binding commitment from another person to make available for

a project the portion of the total project cost not provided by the grant. The entity may enter into

a loan agreement or an agreement to sell the qualified entity’s securities with the authority, or the

may use another source of money available for the project to cover the costs not provided by the

grant.

ADMINISTRATIVE IMPLICATIONS

NMFA is responsible for the implementation, management and accountability of the local

transportation infrastructure fund.

Senate Bill 20/aHTPWC 2 – Page

3

OTHER SUBSTANTIVE ISSUES

The following table lists the financial programs and types of financial assistance that require

legislative authority and those program projects that require certification by other entities.

LMK/mt

Program

Type

Legislative

Authorization

Public Project Revolving Fund

Loan

Yes Projects under $1 million exempted

Water Project Fund

Loan

Yes Project authorized, not funding type

Drinking Water Revolving Loan Fund

Loan/Grant No Projects must appear on State’s Priority List as determined by NMED

Water and Wastewater Grant Fund

Grant

Yes Program nearing completion

Local Government Planning Fund

Loan/Grant No Loan if project funded from outside sources

Local Transportation Infrastructure Fund Loan/Grant No Projects prioritized by Metropolitan & Regional Planning Orgs & DOT

Smart Money Economic Development Fund Loan

Yes Projects Certified by NMEDD

Primary Care Capital Fund

Loan

No Projects Recommended by DoH

Behavioral Health Capital Fund

Loan

No Projects Recommended by DoH

Child Care Revolving Loan Fund

Loan

No Projects Recommended by CYFD

Energy Efficiency & Renewable Bond Act Bonds

No Projects Recommended by EMNRD

GRIP

Bonds

Yes

Stand Alone Bonds

Bonds

Yes

New Market Tax Credits

Tax Credits No

Smart Money Conduit Bonds

Bonds

No

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