[1] NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

 

Only the most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC’s office in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR:

Stell

 

DATE TYPED:

02/03/02

 

HB

323

 

SHORT TITLE:

2002 Water Project Fund GO Bond Act

 

SB

 

 

 

ANALYST:

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

$50,000.0

 

 

 

Non-recurring

GOB capacity

$50,000.0

 

 

 

Non-recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates/Relates to Appropriation in The General Appropriation Act                                           

 

Relates to        Senate Bill 44 and Senate Bill 252                                                                

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

 

 

 

$50,000.0

 

 

Non-recurring

Water Project Fund

$50,000.0

 

 

Non-recurring

Water Trust Fund

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

                                                                                                                                                           

 

SOURCES OF INFORMATION

 

New Mexico Finance Authority (NMFA)

LFC Files

 

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 323 appropriates $50,000.0 from the General Fund to the Water Trust Fund and authorizes the issuance and sale of General Obligation Bonds (GOBs) in an amount not to exceed $50,000.0 to be deposited in the Water Project Fund.  The proceeds are for the purpose of carrying out the Water Project Finance Act.  The authorization to issue and sell GOBs is subject to a majority of all votes cast by the registered voters of New Mexico at the general election to be held in November 2002.  The bill contains an emergency clause.

 

     Significant Issues

 

The Legislature enacted the Water Project Finance Act (Laws 2001, Chapter 164) establishing a Water Trust Fund Program, a Water Project Fund and a Water Trust Board.  The purpose of the Act is to provide grants and loans to political subdivisions and to provide for long-range planning and financing of regional and statewide water supply projects.  The 2001 statute authorizes NMFA to administer the grant and loan projects.  However, the bill did not contain an appropriation for loans, grants or recovery of NMFA administrative costs.  A 15-member Water Trust Board with broad representation of water interests and expertise was appointed and charged with prioritizing projects for recommendation to the Legislature.  The NMFA Board approved the use of NMFA funds to support the first year of operations of the Water Trust Board.  The Water Trust Board identifies water projects for funding that meet the criteria set forth in the legislation such as: storage, conveyance or delivery of water to end users, implementation of the Endangered Species Act collaborative programs, restoration and management of watersheds, and flood prevention.   

 

According to NMFA and the State Engineer’s Office, the development of long-term surface water supplies is estimated at over $1.5 billion.

 

 

FISCAL IMPLICATIONS

 

The issuance and sale of GOBs totaling $50,000.0 is a non-recurring impact to GOB capacity.  The State Treasurer shall keep separate accounts of all money collected pursuant to the taxes imposed and levied pursuant to the provisions of the 2002 Water Trust Fund General Obligation Bond Act and shall use the money only for the purposes of paying the principal of and interest on the bonds as they become due and any other related expenses.  Earnings from the investment of the funds are to be credited to the Water Trust Fund and shall be used only for an annual distribution to the Water Project Fund to fund water projects authorized by the Legislature.  The $50,000.0 appropriation from the General Fund to the Water Trust Fund shall be used only for an annual distribution to the Water Project Fund to fund water projects authorized by the Legislature. 

 

COMPANSIONSHIP/RELATIONSHIP

 

Senate Bill 44 appropriates $90,000.0 in FY03 and subsequent years from the General Fund to the Water Trust Fund for the purpose of carrying out the Water Project Finance Act.  The appropriation

is contingent upon the state receiving an equal amount from Indian gaming back-payment receipts pursuant to gaming compacts.  Senate Bill 252 authorizes the issuance and sale of General Obligation Bonds to fund the Water Trust Fund in an amount not to exceed $20,000.0.

 

LMK/njw:prr

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