NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when 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:

Altamirano

 

DATE TYPED:

01/31/03

 

HB

 

 

SHORT TITLE:

Cumbres & Toltec Appropriation

 

SB

32

 

 

ANALYST:

Martinez

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$1,600.0

 

 

Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates a Capital Request

 

SOURCES OF INFORMATION

LFC Files

Executive Recommendation

 

No Responses Received From

Department of Finance and Administration

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 32 appropriates $1.6 million from the general fund to the Cumbres and Toltec scenic railroad commission for repairs and maintenance.

 

FISCAL IMPLICATIONS

 

The appropriation of $1,600.0 contained in this bill is a non-recurring expense to the general fund and is contingent upon an equal sum from the state of Colorado. Any unexpended or unencumbered balance remaining at the end of FY04 shall revert to the general fund.

 

After operating the C&TSR 75-year-old locomotives up 4% grades, around sharp curves and hauling heavy loads, the costs of rehabilitating, operating and maintaining the steam-powered railroad is taking its toll.  A 1995 study by an independent operator indicated that it could cost $15 million to bring the railroad up to its potential and standard working order. 

Recent information submitted to LFC indicates that at least three of six locomotives are needed to start the 2003 Season.  Upgrades are also necessary to comply with Federal Railroad Administration regulations.  The Commission needs approximately $1.3 million to upgrade three locomotives for the upcoming season.  This appropriation in this bill also covers maintenance costs of   $100.0 and $180.0 for an assessment study. 

 

OTHER SUBSTANTIVE ISSUES

 

The Cumbres and Toltec Scenic Railroad (C&TSR) generates $45 million annually in economic activity for two of the poorest counties in the nation.  The railroad attracts 55,000 to 70,000 tourists annually and employs 20 full-time and 50 part-time employees with a payroll of more than $1.5 million.   The C&TSR is a prime source of tourism revenue to northern New Mexicans, particularly in the community of Chama.  However, compounding financial, operational and unforeseen problems and a backlog of deferred maintenance and serious infrastructure needs are threatening the successful operation of the C&TSR.

 

TECHNICAL ISSUES

 

Recent information provided to the LFC as it relates to the new commission may require language changes to this legislation.

 

POSSIBLE QUESTIONS

 

  1. Why does this duplicate a standing capital request?

 

  1. Will Colorado have the resources to for the contingent matching funds?

 

 

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