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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
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F I S C A L I M P A C T R E P O R T
SPONSOR Sanchez, M.
ORIGINAL DATE
LAST UPDATED
2/01/07
2/28/07 HB
SHORT TITLE 2007 Capital Expenditures
SB
710/aSFC/aHTRC/
aHFl #1/aHFl #2
ANALYST Kehoe
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$82,521.1
Nonrecurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Public Education Department
Higher Education Department
SUMMARY
Synopsis of HFl #1 and #2 to HTRC Committee Report
House Floor Amendment #1 to the House Taxation & Revenue Committee report amends a $3
million appropriation within the bill to allow for $1.5 million of the appropriation to be used to
purchase land adjacent to the Espanola campus to accommodate expansion of Northern New
Mexico State School in Rio Arriba County; and the remaining $1.5 million to be used to
purchase equipment and materials for the library of the same campus.
House Floor Amendment #2 to the House Taxation & Revenue Committee report increases the
appropriation for renovation of state armories statewide from $3,025,200 to $3,198,800.
Synopsis of HTRC Amendment
House Taxation and Revenue Committee amendments to Senate Bill 710 strike all Senate
Finance Committee amendments, and authorize $82,521.1 million in expenditures for capital
projects statewide from the general fund in fiscal year 2007
Synopsis of SFC Amendment
Senate Finance Committee amendments to Senate Bill 710 incorporates $26,862.0 million worth
of capital projects statewide into the bill and appropriates the expenditures from the general fund
pg_0002
Senate Bill 710/aSFC/
aHTRC/aHFl #1/aHFl #2
– Page
2
in fiscal year 2007.
Synopsis of Original Bill
Senate Bill 710, with an emergency clause, appropriates $52,356.0 from the general fund to
various state agencies for various capital outlay expenditures statewide for expenditure in FY07.
FISCAL IMPLICATIONS
The appropriation of $79,218.0 million contained in this bill is a nonrecurring expense to the
general fund.
SIGNIFICANT ISSUES
Senate Bill 710 appropriates funding for all House and Senate capital outlay within Laws of
2006, Chapter 111, excluding a $75,000.0 appropriation in Section 77 for the Indian water rights
settlement fund. Laws of 2006, Chapter 111 authorized $718.1 million for 3,040 projects
providing a significant impact on the state’s economy and the public health and safety of the
state’s citizens. The authorized expenditures in the bill included $215.8 million from severance
tax bond proceeds (STB); $487.7 million from the general fund (GF); $9 million from the
appropriation contingency fund (ACF) for the Pecos River Compact settlement (contingent on at
least 95 percent of existing appropriations to implement settlement is expended or encumbered
by end of fiscal year 2007) and $5.6 million from other state funds (Miners’ trust fund, state road
fund, and educational retirement funds).
Following passage of the General Appropriation Act, Chapter 109 and State Agency
Expenditures Act, Chapter 110, $410.9 million remained available for one-time capital outlay
expenditures, while still leaving the reserve levels at 10 percent. The House and Senate
combined expended $192.7 million from general fund balances, while the governor expended
$335.9 million, thus dropping the reserve levels to 7.5 percent. The House authorized
“contingent" appropriations to the Indian Water Rights Settlement Fund totaling $75 million
which may have dropped the reserve levels to 5.5 percent if the contingencies were met.
Citing the need to raise the reserve levels, the governor line-item vetoed 812 projects totaling
approximately $127.4 million from the capital bill. The vetoed items totaled $117.3 million
from the general fund and approximately $10.1 million from STB capacity. It should be noted
that vetoed projects authorized from severance tax bond capacity do not impact the general fund
reserve levels. Of the 112 legislators, only two House members were spared from the governor’s
veto pen. The governor vetoed 10 of his own projects totaling $2.1 million. According to
Executive Message 140, the vetoes targeted those projects the governor indicated were “local
community responsibilities, those that lacked full funding or sound planning or those that
conflicted with strategic priorities." The majority of the vetoed projects in Bernalillo, Chaves,
Lincoln, Otero, Roosevelt, San Juan, San Miguel, Sandoval and Valencia Counties were for
public school educational technology, books, and athletic fields; higher education facilities and
equipment; and public facility renovations. Curry County lost funding to purchase an
ambulance, while Dona Ana County lost funding for several public safety vehicles.
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Senate Bill 710/aSFC/
aHTRC/aHFl #1/aHFl #2
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3
Governor
House Senate
Legislative
Statewide* Local Statewide
State
Agencies
Other
State
Funds
Veto
Amounts Total
General Fund 92.3
92.4 9.3
118.3 155.7 62.0 - (42.3)
487.6
Severance Tax
Bond
75.7
75.6 -
31.6 43.0 - - (10.0)
215.8
Other Funds - - 0.1 - - -
5.5
-
5.6
Total
168.0
168.0 9.4
149.9 198.7 62.0
5.5
(52.4)
709.1
* General Fund includes $9 million for Pecos Settlement
SENATE/HOUSE/GOVERNOR VETOES
Senate Vetoes
$27.4
House Vetoes
$22.9
Governor Vetoes
$2.1
TOTAL VETOES
$ 52.4
LMK/nt