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.

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

SPONSOR SCORC

ORIGINAL DATE

LAST UPDATED

02/14/2007

3/05/2007 HB

SHORT TITLE

Create State Transit Fund

SB CS/854/aSFC

ANALYST Moser

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates to HB 901

SOURCES OF INFORMATION

LFC Files

Responses Received From

NM Department of Transportation (NMDOT)

SUMMARY

Synopsis of SFC amendment

Senate Finance Committee amendment to Senate Corporations and Transportation Committee

Substitute for Senate Bill 854 makes the following changes to the Bill:

1.

Places the administration of the State Transit Fund to be by the NMDOT rather

than the Secretary of the department;

2.

Establishes criteria for the use of the fund. Specifically, the fund is for “…public

transit agencies in rural areas and public transit agencies in New Mexico

municipalities…"

3.

Provides “The fund shall not provide more than 50 percent of the required local

match needed by a public transit agency."

4.

Clarifies that “No money in the fund shall be used for expenses associated with

commuter rail."

Synopsis of Original Bill

Senate Corporations and Transportation Committee Substitute for Senate Bill 854 creates the

CS/Senate Bill 854/aSFC – Page

2

State Transit Fund in the State Treasury, to be administered by the Secretary of the NMDOT.

Money in the Fund shall be used by the NMDOT for public transit purposes. Any unexpended

or unencumbered balance remaining at the end of a fiscal year shall remain in the Fund.

FISCAL IMPLICATIONS

This bill creates a new fund and appears based upon its purpose to be reliant upon continuing

appropriations.

This bill creates a new fund and provides for continuing appropriations. The LFC has concerns

with including continuing appropriation language in the statutory provisions for newly created

funds, as earmarking reduces the ability of the legislature to establish spending priorities.

SIGNIFICANT ISSUES

This bill provides for the disbursement of funds for public transit purposes. There is no

clarification of what this means. It is assumed that this would allow for the provision of

assistance to local governments and transit services with matching funds required to obtain

federal funding. Additionally, commuter rail also falls within the definition of public transit.

It is recommended that clarification be given as to the intent behind this bill in that

appropriations may be required to sustain fund viability in other fiscal years.

GM/nt