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





SPONSOR: Rodella DATE TYPED: 01/26/01 HB 249
SHORT TITLE: Continue Errors and Omissions Process SB
ANALYST: Dotson


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 60.0 Non-Recurring General



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to HB 157.



SOURCES OF INFORMATION



Office of the State Engineer



SUMMARY



Synopsis of Bill



HB 249 appropriates $60,000 from the general fund to the local goverment division of the Department of Finance and Administration for the purpose of identifying errors and omissions in the Rio Santa Cruz-Rios Truchas, Rio Chama and Rio Pueblo de Taos-Rio Hondo stream systems water adjudication lawsuit.



Significant Issues



According to the State Engineer, the level of funding for the participation of acequias in ongoing water adjudication suits in Northern New Mexico may be excess of present needs. The 2000 legislature appropriated $650,000 for the Acequia and Community Ditch Fund (ACDF). During the distribution of these funds to applicant acequias, it was reported by the staff of the New Mexico Department of Agriculture (the body who administers the fund) that 8 applicant acequias had a total balance of approximately $380,000 from previous appropriations remaining in their accounts. Many of these funds were not encumbered by the acequias who in some cases had no specific plans for their use. Actual litigation activity in ongoing water adjudication suits in Northern New Mexico is very uneven. While there is much work to be done, budgetary and manpower constraints within the Office of State Engineer limit the ability of the agency to advance these suits.



FISCAL IMPLICATIONS



The appropriation of $60,000 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.



PD/ar