Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR SFC
ORIGINAL DATE
LAST UPDATED
2/19/07
3/12/07 HB
SHORT TITLE Unexpended Capital Outlay Projects
SB CS/826/aSFL/aHTRC/aHAFC
ANALYST Kehoe
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
NFI
N/A
(See Fiscal Impact
Implications)
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of HAFC Amendment
The House Appropriations and Finance Committee amendment adds three more reauthorizations
for projects funded in previous years.
Synopsis of HTRC Amendment
The House Taxation and Revenue Committee amendments for Senate Finance Committee
Substitute for Senate Bill 826, as amended, adds 12 more reauthorizations for projects funded in
previous years sponsored by House members.
Synopsis of SFL Amendment
The Senate Floor Amendment to Senate Finance Committee Substitute for Senate Bill 826 adds
two more reauthorizations for projects funded in previous years sponsored by Senate members.
The bill contains an emergency clause.
Synopsis of Original Bill
Senate Finance Committee Substitute for Senate Bill 826 reauthorizes projects funded in
previous years. The bill contains 337 reauthorizations—20 sponsored by the Legislature on
pg_0002
CS/Senate Bill 826/aSFL/aHTRC/aHAFC
– Page
2
behalf of the executive, 165 sponsored by House members and 152 sponsored by Senate
members.
SIGNIFICANT ISSUES
The purpose of reauthorization of projects may vary from project to project. A reauthorization of
a previously funded capital outlay project may change the administering agency, change the
purpose of the project, extend the period of expiration of the project, or expand the purpose of
the original project.
FISCAL IMPLICATIONS
The Department of Finance and Administration (DFA), Local Government Division (LGD), is
responsible for the administration, distribution and monitoring of special and capital outlay funds
appropriated by the legislature. The reports generated by LGD are made available to the
Legislature on a quarterly basis, therefore, the exact uncommitted balance for projects or the
reversion dates being reauthorized in this bill is not always known at the time of developing the
reauthorization bill. However, if the funding for projects contained in this bill have been
obligated or reverted, the reauthorizations contained within this bill become null and void.
SIGNIFICANT ISSUES
The LGD supervises capital projects for all state agencies, public schools and higher education
on an electronic capital projects monitoring system. The system provides reports dependent
upon data provided by the state and local government entities. This data is not audited, and is
only reviewed by LGD for “reasonableness". Reports generated by the system provide a control
number, project description, funding source, appropriation amount, expenditures, encumbrances,
uncommitted balances and the percent of the project completed.
The State Board of Finance (BOF) maintains a report by agency reflecting sold, expended and
balances for each project authorized for funding from general obligation and severance tax
bonds. A separate report provides the amount, in aggregate, of unexpended bond proceeds for
each series of bonds.
A direct correlation between the LGD and BOF reports is not practical
due to a number of factors. Bond sales are issued in multiple series and may contain partial
amounts sold in separate issues. The Budget Division monitoring system relies on agency
reported data that is not audited. Also, bond expenditures are made on a reimbursement basis of
actual expenditures, but expenditures reported in the monitoring system may include payments
from other funds that have not been submitted for reimbursement.
The necessity for reauthorizations may include the following:
·
Inadequate funding levels: scope of project exceeds available funding
·
Grantees unable to meet match contingencies
·
Expenditure period is not sufficient for property acquisition such as a right of way
purchase or condemnation proceedings
·
Projects funded for nonprofit or private entities do not meet the state’s anti-donation
requirements
·
Project may not be a priority for the receiving governmental entity or operational funds or
staffing may not be available for the project
pg_0003
CS/Senate Bill 826/aSFL/aHTRC/aHAFC
– Page
3
·
Lack of planning, communication and oversight among between sponsor of project and
administering agency and receiving entity
·
Grantees lack proper documentation to draw reimbursement for completed projects or do
not draw down reimbursements on a timely basis.
LMK/nt:csd