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

SPONSOR Lujan, B.

ORIGINAL DATE

LAST UPDATED

01/31/08

HB 478

SHORT TITLE State High School Basketball Tournament

SB

ANALYST Cox

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$100.00

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Bill 478 requests one hundred thousand dollars ($100,000) from the General Fund to the

Public Education Department for expenditure in fiscal year 2009 for the annual state high school

basketball tournament, including personnel, management, security, custodial, utility and rental

costs.

FISCAL IMPLICATIONS

The appropriation of one hundred thousand dollars ($100,000) contained in this bill is a recurring

expense to the General Fund. Any unexpended or unencumbered balance remaining at the end of

fiscal year 2009 shall revert to the general fund.

PED would be the fiscal agent for HB 478. It is estimated that it would take approximately 40

hours of time by an Education Administrator O ($22.74 x 40 + 30% Benefits = $1.2) to develop,

administer and monitor the distribution of the funding by the PED.

House Bill 478 – Page 2

SIGNIFICANT ISSUES

Traditionally the state high school basketball tournament is held at the PIT area at the University of

New Mexico in Albuquerque. Operational costs for holding a state high school basketball tournament

at the PIT are $30.0 per day. The tournament is five days in March and includes both the boys’ and

girls’ state tournament, making the total rental cost $150.0. Alternative venues could possibly reduce

costs.

The state tournaments for basketball, football and cheerleading are managed by the New Mexico Ac-

tivities Association, a non-profit organization (NMAA). The annual state high school basketball tour-

nament is the main profit-making tournament for the NMAA. Non-profits rely on fund-raising efforts

to cover costs associated with organizational projects and activities. In addition, the NMAA advertises

an impressive list of corporate sponsors.

The NMAA needs to make a $300.0 profit from the annual state high school basketball tournament to

help pay for the other state tournaments. Other sports (i.e. swimming and diving, wrestling, soccer,

tennis) do not provide revenue for the NMAA.

Physical activity programs, such as basketball, may serve as an incentive to improve attendance, con-

sequently positively impacting public school performance measures and benchmarks regarding reading,

language arts, math and graduation rates.

TECHNICAL ISSUES

HB 478 under-funds the estimated operational costs for 5 days’ rental ($150.0) of the PIT by

$50.0.

PRC/nt