Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may 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

Nunez

DATE TYPED

02/05/04

HB

45/aHENRC

 

SHORT TITLE

Water Resources Research Institute

SB

 

 

 

ANALYST

Williams

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

 

 

200.0

 

 

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

 

 

 

 

 

See Narrative

Recurring

OSF/NMSU

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

Relates to research and public service project funding in General Appropriation Act for Water Resources Research Institute at New Mexico State University and LFC budget recommendation funding of $455.9 thousand in FY05.

 

SOURCES OF INFORMATION

LFC Files

Commission on Higher Education

Office of State Engineer

Water Resources Research Institute

 

SUMMARY

 

Synopsis of HENRC Amendment

 

The House Energy and Natural Resources Committee amendments provide technical clarifications to the bill.

 

Synopsis of Original Bill

 

House Bill 45 creates the Water Resources Research Institute and the Waste Management Education and Research Consortion at New Mexico State University.  Further, the bill appropriates $200 thousand from the general fund to the board of regents of New Mexico State University to increase research in water conservation, planning and management.  The bill authorizes the Institute to collect fees. 

 

            Significant Issues

 

The Office of the State Engineer notes “instead of more research, we need programs to actually implement conservation measures that we know work.”

 

The bill specifies the institutions participating in the Institute: New Mexico State University, University of New Mexico, New Mexico Institute of Mining and Technology, New Mexico Highlands University, Eastern New Mexico University and Western New Mexico University.

 

The purpose would be:  (1) to provide research and training; (2) transfer water information; (3) provide expertise and assistance and (4) cooperate with other local, state and federal government stakeholders.

 

The Governor’s budget recommendation includes a 15 percent reduction in non-statutory research and public service projects at public, post-secondary institutions.  This Institute currently exists as a non-statutory entity, and therefore is subject to proposed fiscal reductions based on this methodology. 

 

WRRI notes funding would be utilized for research, not administration.

 

FISCAL IMPLICATIONS

 

The appropriation of $200 thousand contained in this bill is a recurring expense to the general fund. 

 

The bill includes an earmarked revenue source because authorized fees would be retained by New Mexico State University. 

 

ALTERNATIVES

 

Indirect cost revenues could be used as an alternative funding source.  Office of State Engineer suggests funding an expansion of the OSE conservation program to increase school curriculum and public education activities and technical assistance.

 

ADMINISTRATIVE IMPLICATIONS

 

Office of State Engineer notes the need for coordination between NMSU and OSE to avoid duplication of effort and ensure productive interface.

 

OTHER SUBSTANTIVE ISSUES

 

The appropriation in this bill is not included in the New Mexico State University Board of Regents top nine funding priorities for FY05 as submitted to the Commission on Higher Education.

 

Office of State Engineer notes technical drafting issues, which are addressed in the HENRC amendment. 

 

POSSIBLE QUESTIONS

 

  1. How would the incremental appropriation contained in the bill be utilized? 
  2. What performance measures would be used to address performance outcomes of the institute?

 

AW/lg:prr:njw