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





SPONSOR: Wilson DATE TYPED: 02/16/01 HB 574
SHORT TITLE: Irrigation Works Construction Fund SB
ANALYST: Dotson


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 6,000.0 Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



Office of the State Engineer.



SUMMARY



Synopsis of Bill



HB 574 appropriates $6 million from the general fund to the Irrigation Works Construction Fund to carry out the purpose of the fund. The bill contains an emergency clause.



Significant Issues



According to the State Engineer, the most recent stress on the Irrigation Works Construction Fund has been to provide support to ongoing litigation related to the Endangered Species Act. The Interstate Stream Commission, on behalf of the state, has enjoined the Forest Guardians law suits against the United States regarding operations of federal facilities and their effect on the Pecos bluntnose shiner and the Rio Grande silvery minnow. Without this intervention, the state would not be represented in these proceedings and the courts would not be advised of the significant constraints on water use in New Mexico.



PERFORMANCE IMPLICATIONS



This may affect the state's ability to maintain compliance with interstate stream compacts and limit the ability to continue represent the state in the ongoing endangered species act litigation.





FISCAL IMPLICATIONS



The appropriation of $6,000.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall revert to the general fund.



According to the State Engineer, currently 60% of the Interstate Stream Commission's budget comes from Irrigation Works Construction Fund and the Improvement of the Rio Grande Income Fund. At the current rate these substantial funds are likely to be depleted by FY 2003 and the current level of expenditures will have to be reduced.



PD/njw