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





SPONSOR: Sanchez DATE TYPED: 2-19-99 HB
SHORT TITLE: Legislative Success Scholarship SB 13
ANALYST: Taylor


REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY99 FY2000
N.A. $ (9.9) $ (10.4) Recurring School Capital
N.A. $ (6.6) $ (6.9) Recurring Lottery Tuition
N.A. $ 16.5 $ 17.3 Recurring Leg. Success Scholarship



(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates/Conflicts with/Companion to/Relates to HB-9,HB-81, HB-258, SB14, SB126, SB-252



SOURCE OF INFORMATION



Synopsis of Bill



Senate Bill 13 proposes to change the distribution of lottery net revenues. It would create a new fund called the Legislative Scholarship Fund and distribute 100 percent of net lottery revenue to this fund.



Under current law, 60 percent of lottery revenues are distributed to the public school capital outlay fund and 40 percent to the lottery tuition fund. The distributions to these funds are eliminated.



The proposed changes would become effective in FY 2000.



FISCAL IMPLICATIONS



The New Mexico Lottery Authority's FY 2000 revenue estimate is $93.5 million, with $16.5 million in net revenue available for distribution to the state. The proposed distributional changes are shown in the table on the next page. While the tables show a loss to the lottery tuition fund, the loss simply represents the change in the name of the scholarship fund. There is a real increase in money for scholarships equal to the lost distribution to public school capital outlay.



The estimated revenues in future years simply assumes that lottery revenues grow by 5 percent. A five percent growth rate is consistent with the growth rate projections of other goods and services.





FUND
FY 2000

CURRENT LAW
FY 2000

BILL PROPOSAL
FY 2000

DIFFERENCE

School Capital $9.9 $ 0.0 (-$9.9)
Lottery Tuition $6.6 $0.0 (-$6.6)
Legislative Success Scholarship $0.0 $16.5 $16.5
Total $16.5 $16.5 $16.5





OTHER SUBSTANTIVE ISSUES