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

SPONSOR Altamirano

ORIGINAL DATE

LAST UPDATED

2/13/07

HB

SHORT TITLE Gila Cancer Treatment Center Revenue Bonds

SB 640

ANALYST Kehoe

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

NFI

N/A

(See Fiscal Impact

Narrative)

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Finance Authority (NMFA)

SUMMARY

Senate Bill 640 increases from $2.5 million to $3 million the amount of revenue bonds the New

Mexico Finance authority is authorized to issue for the Gila Regional Center for the purpose of

designing, constructing, equipping and furnishing additions and improvements to the center

located in Grant County.

FISCAL IMPLICATIONS

The revenue bonds authorized in Senate Bill 640 are payable from a 1% distribution of the net

receipts, exclusive of penalties and interest, of the cigarette tax to the New Mexico Finance

Authority for the purpose of issuing the bonds. The cigarette tax revenue collection is

approximately $60 million annually, of which 55 percent is transferred to the general fund. The

Authority issued the first $2.5 million of bonds for the Gila Regional Medical Center in July

2006. According to an analysis by the New Mexico Finance Authority, based on current market

conditions, the 1% distribution of cigarette tax to the Authority of approximately $600 thousand

annually is sufficient capacity for the issuance of the additional $500 thousand in revenue bonds

proposed in this bill.

The NMFA, upon a certification of need by the chair of the Board of County Commissioners of

Senate Bill 640 – Page

2

Grant County, may issue and sell the revenue bonds in an amount not to exceed $500 thousand

for a term of no more than 20 years for the purpose of designing, constructing, equipping and

furnishing additions and improvements to the Regional Cancer Treatment Center at the Gila

Regional Medical Center in Grant County. The bond proceeds are to be appropriated to the

Local Government Division of the Department of Finance and Administration for the

infrastructure described in this bill.

SIGNIFICANT ISSUES

Laws 2006, Chapter 89 created a rural county cancer treatment fund within NMFA comprised of

appropriations, donations, distributions of the cigarette tax, and money earned from investment

of the fund and otherwise accruing to the fund. The money in the fund provides NMFA with a

revenue stream to finance the construction of caner treatment facilities in Class B counties.

Balances in the fund at the end of a fiscal year shall not revert.

LMK/mt