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





SPONSOR: Larranga DATE TYPED: 01/24/01 HB 114
SHORT TITLE: Appropriation For Regional Water Plans SB
ANALYST: Dotson


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 500.0

See Narrative

Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Relates to Appropriation in The General Appropriation Act HB 113



SOURCE OF INFORMATION



State Engineer/Interstate Stream Commission



SUMMARY



Synopsis of Bill



HB 114 appropriates $500,000 from the general fund to the Interstate Stream Commission to complete the regional water plans. The funds are to provide a maximum of 75% of the costs for implementation of the completed regional water plans approved by the Interstate Stream Commission.



Significant Issues



According to the State Engineer, New Mexico's growth and desert climate require active management of water resources. Regional water plans are needed to implement programs and alternatives to actively manage the region's water resources.



PERFORMANCE IMPLICATIONS



According to the State Engineer, active water resources management needs state funding assistance. Many regional water plan alternatives include establishing programs to collect data for appropriate management of the state's water resources and the long term stability of water resources in a region. Funding is needed for well monitoring programs, stream flow measurement activities, water shed management, and planning and construction works. Matching funds to implement completed water plans will be an additional incentive for regions to complete their plans.



FISCAL IMPLICATIONS



The appropriation of $500,000 contained in this bill is a recurring expense to the general fund in FY02, FY03 and FY04. Any unexpended or unencumbered balance remaining at the end of FY04 shall revert to the general fund.



According to the State Engineer, the long term cost of not conducting and implementing water planning is huge, including reduced government revenues. State matching funds can be used by regions to secure both local and federal matching funds for implementation of regional water plan activities and programs.



ADMINISTRATIVE IMPLICATIONS



According to the State Engineer, no new FTE is required.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



HB 113 appropriates $1.5 million from the general fund to the Interstate Stream Commission to complete the regional water planning process.



OTHER SUBSTANTIVE ISSUES



According to the State Engineer, if this bill is not enacted, completed regional water plans will not be implemented and regions with uncompleted plans will not have the incentive of funding for their plans.



POSSIBLE QUESTIONS



Are the matching funds required for implementation in place? If not, what obstacles need to be overcome to secure these funds?



PD/njw:ar