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 for other purposes.

 

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 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:

Taylor, J. G.

 

DATE TYPED:

2/20/03

 

HB

836

 

SHORT TITLE:

Drinking Water System Financing

 

SB

 

 

 

ANALYST:

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

$1,610.5

 

 

 

Non-recurring

PPRF

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

$1,160.5

 

 

Non-recurring

DWRLF

See Narrative

 

 

Non-recurring

Federal

(Parenthesis ( ) Indicate Revenue Decreases)

 

Duplicates SB 109.

 

SOURCES OF INFORMATION

 

Legislative Finance Committee Files (LFC)

New Mexico Finance Authority (NMFA)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 836 appropriates $1,610.5 from the public project revolving fund (PPRF) to the drinking water state revolving loan fund (DWRLF) to provide a 20% state match for a capitalization grant from the federal Environmental Protection Agency for implementation of the Drinking Water State Revolving Loan Fund Act.  The bill includes an emergency clause.

 

     Significant Issues

 

The purpose of the Drinking Water Revolving Loan Program is to improve and protect drinking water quality and public health by providing public authorities in New Mexico with low-cost financial assistance in the construction and rehabilitation of necessary drinking water facilities through the creation of a revolving loan fund program.  The program responsibilities are divided between NMFA and New Mexico Environment Department (NMED).  The collaborated effort is intended to provide a more efficient use of state, federal and local funds; provide for better coordination with existing funding sources at NMFA and elsewhere; allow faster disbursement of funds to projects; and provide a more centralized and coordinated approach to water infrastructure financing.

 

As of December 2002, the loan capacity in the DWRLF was approximately $14 million.

 

FISCAL IMPLICATIONS

 

The appropriation of $1,610.5 contained in this bill is a non-recurring expense to the public project revolving loan fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 and subsequent years shall not revert to PPRF.

 

TECHNICAL ISSUES

 

House Bill 836 should be amended to reflect the appropriation contained in the bill is intended as a state match.  Suggested amendment:  On page 1, line 19, between the words “years” and “to” insert the words “as a 20% state match for a federal capitalization grant.”

 

DUPLICATES

 

Senate Bill 109 duplicates House Bill 836.

 

POSSIBLE QUESTIONS

 

  1. The federal Safe Drinking Water Act allows up to 31 percent in set-asides for technical and administration costs for the Drinking Water state Revolving Loan Fund.  However, only 12 loans have been made since the inception of the program in 1997.  Why ?

 

LMK/njw:sb