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





SPONSOR: Taylor, J. G. DATE TYPED: 01/31/01 HB 162
SHORT TITLE: Drinking Water System Financing Appropriation SB
ANALYST: L. Kehoe


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY01 FY02 FY01 FY02
$ 1,572,660 Recurring General Fund



REVENUE



Estimated Revenue
 Subsequent

Years Impact

 Recurring

or Non-Rec

 Fund

Affected

FY01 FY02
$ 1,572,660 Recurring DWRLL



(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



New Mexico Finance Authority (NMFA)

LFC Files





SUMMARY



Synopsis of Bill



House Bill 162 appropriates $1,572,660 from the General Fund to the Drinking Water State Revolving Loan Fund (DWRLF) for the purpose of carrying out the Drinking Water State Revolving Loan Fund Act.









Significant Issues



The New Mexico Drinking Water state Revolving Loan Fund Act was enacted by the 1997 Legislature in response to the reauthorization of the federal Safe drinking Water Act (SDWA). The re-authorization requires the Environmental Protection Agency (EPA) to make capitalization grants to states over the next several years to further the health objectives of SDWA. The act charged the NMFA with establishing, in cooperation with the Environment Department, a loan program to provide local authorities with low-cost financial assistance in the construction of necessary drinking water facilities. The act created the DWRLF which is administered by the NMFA.



House Bill 162 provides the 20% state match requirement for a federal capitalization grant of $7,806,300 for the state's DWRLF.



FISCAL IMPLICATIONS



The appropriation of $1,572,660, or some similar amount, contained in this bill is a recurring 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.



POSSIBLE QUESTIONS