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



SPONSOR: Begaye DATE TYPED: 01/24/00 HB 36
SHORT TITLE: Home Weatherization for Indigent SB
ANALYST: Kehoe


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
$ 500.0 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates SB7



SOURCES OF INFORMATION



New Mexico Mortgage Finance Authority (MFA)

Office of Indian Affairs (OIA)



SUMMARY



Synopsis of Bill



House Bill 36 appropriates $500.0 from the general fund to the Department of Finance and Administration (DFA) to contract for weatherization services for the homes of elderly, indigent people living in tribal communities within New Mexico.



Significant Issues



According to a 1997 survey provided by the University of New Mexico Bureau of Business and Economic Research, 21 percent of the state's population lives below the poverty line, many of whom live on tribal lands. The appropriation in House Bill 36 would allow weatherization services to be provided to the elderly, indigent population living in tribal communities. According to the Office of Indian Affairs, the elderly population is currently under served.



FISCAL IMPLICATIONS



House Bill 36 appropriates $500.0 from the general fund for FY01. Any unexpended or unencumbered balance remaining at the end of fiscal year 2001 shall revert to the general fund.



ADMINISTRATIVE IMPLICATIONS



Weatherization services are currently administered by the New Mexico Mortgage Finance Authority (MFA). Under the current contract between DFA and MFA, weatherization services are available to the indigent population on tribal lands proportional to the eligible state population.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



Duplicates Senate Bill 7. The Department of Finance & Administration is requesting a special appropriation of $1 million for FY01 for home weatherization services statewide.



POSSIBLE QUESTIONS



1. Does the Navajo Nation, other tribal governments, or the federal government currently provide funding for weatherization services in tribal communities?



2. What is the estimated number of homes that can be weatherized with the current available funds? With the requested appropriation? Is the number of homes needing weatherization services known?



3. Would the need to re-roof be considered in the cost of weatherizing a single home?



4. Will there be a cap on the cost to be expended on each home?



LMK/gm:prr