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 Steinborn

ORIGINAL DATE

LAST UPDATED

1-24-2008

HB 313

SHORT TITLE Las Cruces Veterans Museum

SB

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$250.0 Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY08

FY09

FY10 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

*$.01

*$.01 Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Bill 313 appropriates $250 thousand from the general fund to Cultural Affairs department

for the purpose of developing a veteran’s museum in Las Cruces.

FISCAL IMPLICATIONS

The appropriation of $250 thousand contained in House Bill 313 is a recurring expense to the

general fund. Any unexpended or unencumbered balance remaining at the end of FY09 shall

revert to the general fund.

The establishment of an additional museum within the Cultural Affairs department system will

increase annual operating costs independent of any capital costs associated with construction.

This fiscal impact report does not estimate construction and other capital (land) costs. The

additional operating costs are estimated using the average costs of other museums in this system

House Bill 313 – Page

2

as proxy for recurring operating costs for a new museum.

*Additional annual oper4ating costs for the proposed veterans’ museum in House Bill 313 are

unknown. Other museums within the Cultural Affairs department system have a range of annual

operating costs from a low of $1.7 million to a high of $2.8 million with an average of $2.2

million.

SIGNIFICANT ISSUES

While recognizing the economic value of museums at the local level, LFC staff remains

concerned over the department’s ability to address deferred maintenance and the funds needed to

restore or enhance extremely valuable existing collections and exhibits. National data shows

significant returns to the state’s appropriations with increased attendance when facilities and

exhibits are properly maintained and rotated.

The LFC remains concerned with the department’s ability to cover additional operating

expenses, both when new state-owned facilities are brought on line as well as operating

commitments to private and local government facilities. In many instances, acceptances of

additional facilities incur additional operating costs to the department, placing strain on the

facilities maintenance budget the department receives to address the buildings’ conditions.

Because the DCA properties are not under the jurisdiction of the Property Control Division of

the General Services Department, the DCA is responsible for maintenance and renovation of its

own facilities and exhibits, including restoration of art collections.

PERFORMANCE IMPLICATIONS

Upon legislative enactment and completion of this museum, the LFC recommends that the

Cultural Affairs department submit a plan for program evaluation with specific program goals

and criteria for assessing the effectiveness and provide suggested outputs, outcomes and

performance measures to evaluate the performance of state government programs as prescribed

in the Accountability in Government Act.

PD/mt