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

SPONSOR:	Herrera		DATE TYPED:	02/04/02		HB	390
SHORT TITLE:		Acquire Mimbres Valley Water Rights				SB
					ANALYST:		Valenzuela

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

$600.0

Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Relates to Appropriation in The General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Department of Game and Fish

SUMMARY

Synopsis of Bill

House Bill 390 appropriates $600.0 from the general fund to Department of Game and Fish for the purpose of acquiring water rights for habitat improvements in the Mimbres Valley in Grant county.

Significant Issues

The department states that the appropriation could be used to increase water storage capability within Bear Canyon Lake. There could be an opportunity to purchase the water rights with available cash balance in the Game Protection Fund. A reconciliation of this fund is shown below:

Game Protection Fund	FY00 Actuals	FY01 Actuals	FY02 Estimated
Beginning cash balance	$ 20,456,706	$ 22,896,746	$ 20,583,348
Revenues	27,285,254	25,238,845	25,705,171
Expenditures	(20,313,104)	(22,104,075)	(22,017,100)
Other items impacting cash	(3,032,110)	(2,448,168)	(3,621,000)
Game Protection Fund	FY00 Actuals	FY01 Actuals	FY02 Estimated
Cash restrictions and obligations	(1,500,000)	(3,000,000)	(3,750,000)
Cash reserve requirement			(6,000,000)
Unobligated cash	$ 22,896,746	$ 20,583,348	$ 10,900,419

FISCAL IMPLICATIONS

The appropriation of $600.0 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY03 shall revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

Enactment of House Bill 390 would have a minor administrative impact on the Department of Game and Fish, which the agency could absorb with its existing resources.

MFV/ar/njw