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





SPONSOR: Rainaldi DATE TYPED: 02/16/01 HB
SHORT TITLE: Assess Navajo-Gallup Water Supply Project SB 115
ANALYST: Padilla


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 200.0 Non-recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates House Bill 79.



Also duplicates Senate Capital Outlay Request 358.



SOURCES OF INFORMATION



LFC Files

Office of the State Engineer



No response received:



Department of Finance and Administration (DFA)



SUMMARY



Synopsis of Bill



Senate Bill 115 appropriates $200.0 from the general fund to DFA's Local Government Division for the purpose of conducting an engineering assessment of the city of Gallup's water system as a component of the Navajo-Gallup water supply project.



Significant Issues



The city of Gallup and the Navajo Nation are exhausting their groundwater resources and need to develop a dependable, renewable and long-term solution to their water needs. The U.S. Bureau of Reclamation is developing plans for the Navajo-Gallup water supply project which would bring San Juan River water to the area. The city of Gallup needs to develop a hydraulic water system model to determine if system improvements are needed in order to interface with this project.



FISCAL IMPLICATIONS



The appropriation of $200.0 contained in this bill is a non-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.



State funds expended on the project would be credited by the Bureau of Reclamation as matching funds toward the Navajo-Gallup water supply project.



LP/njw