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 Gonzales
LAST UPDATED
ORIGINAL DATE 2/25/25
SHORT TITLE Taos Medical Complex
BILL
NUMBER Senate Bill 414
ANALYST Hilla
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected
$25,000.0 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to an appropriation in the General Appropriation Act
Sources of Information
LFC Files
Agency Analysis Received From
Department of Finance and Administration (DFA)
Health Care Authority (HCA)
Agency Declined to Respond
Department of Health (DOH)
SUMMARY
Synopsis of Senate Bill 414
Senate Bill 414 (SB414) appropriates $25 million from the general fund to the Department of
Finance and Administration (DFA) for construction of a medical complex in Taos, Taos County,
which shall include services for women and children and an infusion clinic for chemotherapy.
Any unexpended or unencumbered balance shall not revert to the general fund at the end of a
fiscal year.
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 $25 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. Senate Bill 414 – Page 2
SIGNIFICANT ISSUES
The bill relates to an extension of a $15 million appropriation in House Bill 2 (HB2). The Health
Care Authority (HCA) was appropriated $15 million last year for a primary care building in Taos
County; the HAFC substitute for the current HB2 reappropriates this funding to DFA for
expenditure through FY26. At the time of analysis, the full $15 million has been pre-encumbered
for the primary care building in Taos, however, nothing has been encumbered or expended. Pre-
encumbrance indicates that a grant agreement has been set in place. Expenditures and
encumbrances for capital appropriations tend to be slower, and another appropriation for a
separate medical complex could be slow to realize given the status of Taos’s primary care center.
The Health Care Authority (HCA) states that the bill’s success requires equal efforts to staff the
facility. Without recruitment and retention of medical professionals, including specialists, the
facility may struggle to provide the intended services. HCA adds workforce shortages in rural
areas, like Taos, necessitate targeted salaries, loan repayment incentives, and pipeline programs
to staff current and new facilities. HCA adds that a fully staffed facility is essential to
maximizing the impact of SB414. DFA notes that the bill does not provide for long-term funding
of operational costs, which could add additional burdens to Taos. DFA cites comments from the
Taos Deputy County Manager, noting that Taos has been medically underserved and cannot
recruit needed physicians due to lack of proper space. The county manager adds that women’s
and children’s services are needed to provide a higher level of primary care in the county.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Relates to an extension of a nonrecurring special appropriation in the General Appropriation Act.
EH/hj/SL2