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:

Rawson

 

DATE TYPED:

2/09/03

 

HB

 

 

SHORT TITLE:

Promote Las Cruces

 

SB

37

 

 

ANALYST:

Padilla

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$50.0

 

 

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to HB 24.

 

Relates to Appropriation in the General Appropriation Act

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

Economic Development Department

Department of Tourism

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 37 appropriates $50.0 from the general fund to the Economic Development Department for the purpose of promoting the potential of Las Cruces as a location for economic development and retirement.

 

     Significant Issues

 

Both the Economic Development Department and the Department of Tourism currently operate “cooperative advertising” programs that provide matching funds for communities to market themselves.  In FY03, EDD’s program was funded at $200.0; Tourism’s program was funded at $1,000.0.  The Mesilla Valley Economic Development Alliance was awarded $10.0 by EDD’s program in FY03.  Seven Dona Ana County organizations, including the City of Las Cruces and the Las Cruces Convention and Visitors’ Bureau, were awarded a total of $46.9 by Tourism’s program.

 

FISCAL IMPLICATIONS

 

The appropriation of $50.0 contained in this bill is a recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of fiscal year 04 shall revert to the general fund.

 

RELATIONSHIP

 

This bill relates to HB 24, which appropriates $1,000.0 to EDD for cooperative advertising.

 

The General Appropriation Act includes $100.0 for EDD’s cooperative advertising program.

 

OTHER SUBSTANTIVE ISSUES

 

The Economic Development Department notes that Las Cruces has targeted a number of industries including aerospace, maquila suppliers, logistics companies, food processing and high-tech.

 

POSSIBLE QUESTIONS

 

Can the goals of this bill be met through the cooperative advertising programs of the Economic Development Department and the Department of Tourism?

 

LP/yr