Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are 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
ORIGINAL DATE
LAST UPDATED
1-27-2008
2/5/08 HB
SHORT TITLE Veterans Museum Act
SB 349/aSPAC
ANALYST Dearing
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)
FY08
FY09
FY10 *3 Year
Total Cost
Recurring
or Non-Rec
Fund
Affected
Total
$.01
$.01 Recurring General
Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to HB313, SB247
Duplicates HB243
SOURCES OF INFORMATION
LFC Files
Responses Received From
Cultural Affairs Department (DCA)
Veterans’ Services Department (VSD)
Higher Education Department (HED)
SUMMARY
Synopsis of SPAC Amendments
Senate Public Affairs Committee amends Senate Bill 349 such that the appropriation is stricken
from the bill.
pg_0002
Senate Bill 349/aSPAC – Page
2
Synopsis of Original Bill
Senate Bill 349 appropriates $250 thousand from the general fund to Cultural Affairs department
for the purpose of establishing a Veterans’ Museum division and board of directors within the
agency.
FISCAL IMPLICATIONS
The appropriation of $250 thousand contained in Senate Bill 349 is a recurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of FY09 shall
revert to the general fund.
Senate Bill 349 creates a Veterans Museum Division within the Department of Cultural Affairs.
It creates the New Mexico Veterans Museum, located in Las Cruces. It creates a Veterans
Museum Board of Directors, consisting of thirteen members, ten of whom would be appointed
by the Governor, and three of whom would be ex-officio. The bill assigns duties and powers to
the Board. The bill creates a museum director position with certain qualifications, and assigns
duties to the director. The bill appropriates $250.0 from the General Fund to the DCA during
FY09 for purposes of carrying out the act.
According to the department, the recurring appropriation would be utilized as follows:
Museum Director salary and benefits: $125.0
Administrative Assistant salary and benefits: $ 40.0
Basic Operating Costs: $ 10.0
IT equipment: $ 10.0
Board Meeting Costs (13 members @ 4 mtgs): $ 15.0
Master plan Development: $ 50.0
$250.0
The establishment of an additional museum within the Cultural Affairs department system will
increase annual operating costs independent of any capital costs associated with construction.
This fiscal impact report does not estimate construction and other capital (land) costs.
1
The
department response roughly estimates design/build costs of $10-12 million. The additional
operating costs could be estimated using the average costs of other museums in this system as
proxy for recurring operating costs for a new museum.
*Additional annual operating costs for the proposed veterans’ museum in Senate Bill 349 are
unknown. Other museums within the Cultural Affairs department system have a range of annual
operating costs from a low of $1.7 million to a high of $2.8 million with an average of $2.2
million.
SIGNIFICANT ISSUES
While recognizing the economic value of museums at the local level, LFC staff remains
concerned over the department’s ability to address deferred maintenance and the funds needed to
1
$1.2 million in capital outlay funds were appropriated to the City of Las Cruces for this new museum during the 2007 Legislative Session.
pg_0003
Senate Bill 349/aSPAC – Page
3
restore or enhance extremely valuable existing collections and exhibits. National data shows
significant returns to the state’s appropriations with increased attendance when facilities and
exhibits are properly maintained and rotated.
The LFC remains concerned with the department’s ability to cover additional operating
expenses, both when new state-owned facilities are brought on line as well as operating
commitments to private and local government facilities. In many instances, acceptances of
additional facilities incur additional operating costs to the department, placing strain on the
facilities maintenance budget the department receives to address the buildings’ conditions.
Because the DCA properties are not under the jurisdiction of the Property Control Division of
the General Services Department, the DCA is responsible for maintenance and renovation of its
own facilities and exhibits, including restoration of art collections.
PERFORMANCE IMPLICATIONS
If enacted, the LFC recommends that the Cultural Affairs department submit a plan for program
evaluation with specific program goals and criteria for assessing the effectiveness and provide
suggested outputs, outcomes and performance measures to evaluate the performance of state
government programs as prescribed in the Accountability in Government Act. Existing
performance measures for attendance and outreach events would be positively affected by the
creation of a new museum.
TECHNICAL ISSUES
Senate Bill 349 has been drafted to set up the same structures and utilizing the same provisions
as other museum divisions currently in statute.
RELATIONSHIP/DUPLICATION
Senate Bill 349 duplicates House Bill 243. Senate Bill 349 relates to House Bill 313, and Senate
Bill 247. All four bills include recurring appropriations for a veterans’ museum in Las Cruces;
whereas Senate Bill 349 and House Bill 243 create a Veterans’ Museum Division within the
Department of Cultural Affairs and a Veterans’ Museum Board of Directors
PD/mt