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





SPONSOR: Irwin DATE TYPED: 01/22/01 HB 116
SHORT TITLE: Making an Appropriation for Soil and Water Conservation District Water Conservation

Projects

SB
ANALYST: Gilbert



APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 500.0 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Relates to Appropriation in The General Appropriation Act





SOURCES OF INFORMATION



LFC Files

New Mexico Department of Agriculture



SUMMARY



Synopsis of Bill



House Bill 116 appropriates $500.0 from the general fund to the Board of Regents of New Mexico State University for allocation to New Mexico's soil and water conservation districts to permit cost-sharing for water conservation projects.



Significant Issues



Soil and water conservation districts in New Mexico intend to implement a number of projects for water conservation. Some of these projects have partial funding from federal or private sources, but must obtain matching funds before work can commence. More than $2.5 million worth of projects have been outlined by soil and water conservation districts throughout the state. Example projects are described below:







FISCAL IMPLICATIONS



The $500.0 appropriation contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.



ADMINISTRATIVE IMPLICATIONS



Funds would flow through the New Mexico Department of Agriculture for distribution to conservation districts.

OTHER SUBSTANTIVE ISSUES



Most federal grants for soil and water conservation projects require non-federal matching funds of at least 40%.Funds from this appropriation could be used for this purpose.



LG/ar