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

SPONSOR:	Hamilton		DATE TYPED:	2/20/03		HB	763
SHORT TITLE:		Grant County Economic Development				SB
					ANALYST:		Collard

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
$250.0				Recurring	General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Responses Received From

Economic Development Department

SUMMARY

Synopsis of Bill

House Bill 763 appropriates $250,000 from the general fund to the Economic Development Department for the purpose of funding the Silver City-Grant County economic development corporation for economic development initiatives made necessary by the dire circumstances in Grant County. This bill also contains an emergency clause.

FISCAL IMPLICATIONS

The appropriation of $250.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY04 shall revert to the general fund.

OTHER SUBSTANTIVE ISSUES

The Economic Development Department notes Grant County and its surrounding communities have suffered tremendous losses in layoffs with the closing of Phelps Dodge. The unemployment in Grant County is 13.5 percent (Dec. 2002) as compared to 6.7 percent (Dec 2001). Unemployment will continue to rise unless funding for economic development initiatives are made available to Grant County.

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