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 Silva
LAST UPDATED
ORIGINAL DATE 2/11/25
SHORT TITLE Chaparral Local Governance Study
BILL
NUMBER House Bill 288
ANALYST Hilla
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected
$0 $100.0 Nonrecurring General fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Department of Finance and Administration (DFA)
Agency Analysis was Solicited but Not Received From
New Mexico Council of Governments (COGs) Municipal League (ML)
SUMMARY
Synopsis of House Bill 288
House Bill 288 (HB288) appropriates $100 thousand from the general fund to the Department of
Finance and Administration (DFA) for the purpose of providing a grant-in-aid to the
southeastern council of governments to conduct a study on the feasibility and costs of
governments for local governance in Chaparral. The study must include the following options: 1)
incorporating Chaparral as a municipality of the state, 2) creating a new county, or 3) moving the
line between Otero and Doña Ana counties.
This bill 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 $100 thousand contained in this bill is a nonrecurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of FY26 shall
revert to the general fund.
House Bill 288 – Page 2
SIGNIFICANT ISSUES
DFA states that Chaparral currently is divided between Otero and Doña Ana counties.
Previously, Chaparral received capital outlay funding via Doña Ana County as its fiscal agent,
but Otero County was the entity responsible for the project, which caused confusion over the
project. Because of this confusion, the southeastern council of governments, whose service area
spans both Otero and Doña Ana counties, is a logical agent to assist in this feasibility study. A
feasibility study could offer local governance options for Chaparral to avoid issues like the
capital outlay project DFA mentions in its analysis.
ADMINISTRATIVE IMPLICATIONS
DFA would enter into a grant agreement with the southeastern council of governments to
obligate funds and issue payment reimbursements for valid feasibility expenditures.
EH/rl/SR