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

SPONSOR Robinson

ORIGINAL DATE

LAST UPDATED

1/30/06

HB

SHORT TITLE Indian Gaming Revenue to Tourism Department

SB 492

ANALYST Schardin

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

2,195.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Gaming Control Board (GCB)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

Senate Bill 492 would appropriate 5 percent of revenue from tribal revenue sharing agreements

to the tourism department for marketing tourism in New Mexico. Any unencumbered balance at

the end of a fiscal year would revert to the general fund.

The effective date of these provisions is July 1, 2006.

FISCAL IMPLICATIONS

The January 2006 consensus revenue estimate projects that tribal revenue sharing will total $43.9

million in FY07 and grow by 2 percent each year thereafter. Five percent of this total, or $2.2

million in FY07, would be appropriated to the tourism department.

SIGNIFICANT ISSUES

The Tourism Department reports that the earmarked funds would be used to promote tribal ac-

tivities including gaming, hospitality, sports, and other activities. The department believes that

Senate Bill 492 – Page

2

economic activity resulting from their marketing efforts could offset the $2.2 million appropria-

tion.

ADMINISTRATIVE IMPLICATIONS

The distribution to the Tourism Department created by this bill would be administered by the

Gaming Control Board. GCB reports no administrative implications.

ALTERNATIVES

It is unclear whether earmarking a portion of this revenue stream to the Tourism Department is

warranted, since the department could alternatively request an increase in its operating budget

through the normal appropriations process.

SS/mt