Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Reps. Sariñana and Martinez, A/Sen. Pope
LAST UPDATED
ORIGINAL DATE 2/5/2025
SHORT TITLE Military Base Planning & Impact Act
BILL
NUMBER House Bill 158
ANALYST Lobaugh
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected $0.0 $12,000.0 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
OMBPS $0.0 $250.0 $250.0 $500.0 Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Office of Military Base Planning and Support (OMBPS) New Mexico Attorney General (NMAG) Agency Analysis was Solicited but Not Received From
Public Regulation Commission (PRC) Energy, Minerals and Natural Resources Department (EMNRD)
SUMMARY
Synopsis of House Bill 158
House Bill 158 (HB158) creates a new nonreverting fund in the state treasury called the military
base impact fund. HB158 also authorizes the state Office of Military Base Planning and Support
(OMBPS) to award grants from the military base impact fund to communities impacted by the
realignment (or potential realignment) of U.S. military facilities or defense jobs. The military
base impact fund would be administered by the state Economic Development Department and
grants from the fund would be awarded to communities by the state OMBPS.
House Bill 158 – Page 2
HB158 appropriates $12 million from the general fund to the military base impact fund for
expenditure in FY26 and subsequent fiscal years for the purpose of supporting infrastructure
projects for communities impacted by the potential expansion or reduction of defense worker
jobs or U.S. military facilities. HB158 specifies that total annual grants from the military base
impact fund cannot exceed $4 million and that no single recipient shall receive more than $2
million in any given year. HB158 requires OMBPS, when approving grants, to give
consideration to factors such as the community’s job market, available local resources, and how
the infrastructure project will impact the expansion of a military facility.
HB158 requires OMBPS to annually report to the governor and the interim legislative committee
tasked with examining economic development issues on the status of the military base impact
fund, the projects that received grant funds, and success of those projects. The first annual report
would be due by November 30, 2025, and reports for subsequent years would be due by
November 30 of each year.
HB158 repeals existing provisions in statute that sunset OMBPS and the state Military Base
Planning Commission on July 1, 2028.
HB158 does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
The appropriation of $12 million contained in this bill is a nonrecurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not
revert to the general fund. Although HB158 does not specify future appropriations, establishing
a new grant program could create an expectation the program will continue in future fiscal years;
therefore, this cost could become recurring.
OMBPS reports that conducting economic analyses to support the approval of grants would cost
the office an additional $250 thousand annually, an 81 percent increase over its current FY25
operating budget of $309.4 thousand.
SIGNIFICANT ISSUES
HB158 requires OMBPS to vet, appropriate, and monitor grants for infrastructure projects from
the military base impact fund. Multiple LFC reports have identified unspent capital outlay funds
because of a lack of centralized infrastructure planning, inconsistent vetting of infrastructure
projects, small appropriations diffused across multiple projects, and local capacity limitations. At
the end of FY24, statewide unspent capital outlay balances reached an all-time high, totaling an
estimated $5.9 billion, a 15 percent increase over the prior year and a 58 percent increase over
FY22. Roughly 45 percent of the infrastructure projects in the 2024 capital bill received 50
percent or less of the funding requested for those projects. OMBPS reports the agency will need
an 81 percent increase over its current operating budget to implement the provisions of HB158;
this suggests the agency does not have the operational capacity to vet requests for infrastructure
projects and assist local communities with capital project grant management. OMBPS reverted
$158 thousand in unspent funds to the general fund at the end of FY24 (a 52 percent reversion),
indicating a lack of operational capacity to vet and manage $4 million in annual grants over three House Bill 158 – Page 3
years.
In 2024, the Legislature created an Infrastructure Planning and Development Division within the
state Department of Finance and Administration (DFA) to provide assistance to local
governments in accessing funding for infrastructure development and administering funding to
complete infrastructure projects (Laws 2024; Chapter 10). DFA’s Infrastructure Planning and
Development Division also helps local communities develop their infrastructure capital
improvement plans to prioritize their local infrastructure needs when requesting state capital
funding.
CSL/SL2/sgs