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F I S C A L I M P A C T R E P O R T
SPONSOR Arnold-Jones
ORIGINAL DATE
LAST UPDATED
1-28-2008
HB 499
SHORT TITLE Rural Public Libraries
SB
ANALYST Dearing
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$3,750.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
FY10
$3,750.0
$0.1 Recurring
Rural Library
Development
Fund
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
House Bill 499 appropriates $3.75 million from the general fund to the Rural Library
Development fund in FY09 and subsequent fiscal years for distribution in equal amounts to each
of the existing rural libraries as a grant-in-aid.
FISCAL IMPLICATIONS
The appropriation of $3.75 million contained in this House Bill 499 is a recurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of FY09 shall not
revert to the general fund.
pg_0002
House Bill 499 – Page
2
House Bill 499 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
Laws 2007, ch. 83, § 4. created the Rural library development fund; Section 18-15-4. NMSA
1978
The "rural library development fund" is created as a non-reverting fund in the state treasury. The
fund consists of appropriations; other revenue credited to the fund; gifts, grants and donations to
the fund; and income from investment of the fund. The fund shall be administered by the
division, and money in the fund is subject to appropriation by the legislature to carry out the
provisions of the Rural Library Development Act [18-15-1 NMSA 1978]. No more than five
percent of the fund each year may be used for administration. Disbursements from the fund shall
be by warrant of the secretary of finance and administration pursuant to vouchers signed by the
state librarian or the state librarian's authorized representative.
The State Library division of the Department of Cultural Affairs, may provide grants-in-aid to
existing rural libraries for collections and services, to provide resources to plan and establish new
rural libraries, and improve access to library materials and technology for rural citizens through
funding from the rural library development fund.
PERFORMANCE IMPLICATIONS
If enacted, the LFC recommends that the Cultural Affairs department submit a plan for
enhanced/adjusted program evaluation measurement targets to incorporate increased outcome
commensurate with larger appropriation levels.
The increased appropriation for grants-in-aid for rural libraries will allow statewide rural
libraries to increase funding for new library materials, staff training and library equipment. This
will strengthen rural libraries as they support the educational, informational and computing needs
of their communities and contribute to the economic growth of these communities. Current
measurements tracking outreach participation numbers for the division could be impacted
through this increased appropriation.
PD/mt