The city of Artesia (New Mexico) was considering the issuance of $210 million in industrial revenue bonds (IRB) for construction of a new poultry processing plant 5 miles west of Artesia in Eddy County. Since property financed with IRB is exempt from all state and local property taxes for the life of the bonds, the city of Artesia requested an independent analysis of the economic, demographic, and fiscal impact of the plant on Artesia and its public schools, as well as a critique of a similar analysis conducted by a Texas consultant. The Texas report was found to be unreliable because it had too many unjustified assumptions and inaccurate data, it revealed a lack of knowledge of state and local finance issues in New Mexico, and its projected demographic impacts were unreasonable in light of the region's experience. The present analysis projected the creation of 1,596 new direct jobs and 1,946 new secondary jobs, with a total new payroll of $62.2 million. Area population was expected to increase by 4,716 to 6,079 persons. An increase of 763-984 new students was projected for Artesia public schools, which would require one new elementary school, one-half of a new middle school, and one-quarter of a new high school. The local school district would be responsible for financing the new classrooms, equipment, and other capital facilities out of the local property tax base. Depending on the population increase, the Artesia general fund could expect an annual net fiscal deficit of between $248,021 and $583,848, assuming that the current level of per capita general fund spending is maintained. A brief review outlines other studies of impacts of similar plants on small rural communities. (TD)