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 also 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

01/30/04

HB

49/aHEC

 

SHORT TITLE

Pink Bollworm Control Program

SB

 

 

 

ANALYST

Baca

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

$400.0

 

 

Recurring

General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

 

 

Duplicates SB 11

 

Relates to Appropriation for New Mexico State University in the General Appropriation Act  

 

SOURCES OF INFORMATION

 

LFC Files

 

Higher Education Commission Funding Recommendations for FY05

 

Response Received From

New Mexico Department of Agriculture (NMDA)

 

No Response

Commission on Higher Education (CHE)

 

SUMMARY

 

     Synopsis of HEC Amendment

 

The House Education Committee amendment adds a program evaluation requirement that reads as follows:

 

“The institution receiving the appropriation in this bill shall submit a program evaluation to the Legislative Finance Committee and the Commission on Higher Education by August 2007 detailing the benefits to the State of New Mexico from having implemented this program over a three period.”

 

 

Synopsis of Original Bill

 

House Bill 49 appropriates $400 thousand from the general fund to the Board of Regents of NMSU for pink bollworm eradication.  Funding would flow through NMDA to pink bollworm control districts established under New Mexico’s Pink Bollworm Control Act to assist in the development and implementation of programs necessary for pink bollworm eradication.

 

Significant Issues

 

The NMDA reports that “pink bollworms are trapped annually in all cotton production areas of New Mexico (approximately 70,000 acres), but currently infest cotton acreage at an economic threshold in Dona Ana, Luna, Sierra, Chaves, and Eddy counties, or approximately 26,000 acres of cotton.  Timely eradication of this pest in these counties may prevent economic pink bollworm populations from developing in other areas of the state.

 Producers in Dona Ana, Luna, and Sierra counties have voted to create a pink bollworm control district and are working in conjunction with the United States Department of Agriculture, Animal and Plant Health Inspection Service (USDA APHIS) and cotton producers in west Texas and northern Mexico in an area-wide pink bollworm eradication program.  Eradication efforts in south central New Mexico have decreased pink bollworm populations by 84 percent in two years of eradication with the estimated three year eradication cost to cotton producers at over $1,300,000.  Pink bollworm eradication programs have been successful in Arkansas, Louisiana, Tennessee, Missouri, and California.” 

 

FISCAL IMPLICATIONS

 

The appropriation of $400 thousand contained in this bill is a recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of FY05 shall revert to the general fund.

 

ADMINISTRATIVE IMPLICATIONS

 

NMSU reports the administrative impact of this bill would be minimal.

 

DUPLICATION

 

SB 11 duplicates HB 49.

 

AMENDMENTS

 

The following language is suggested for all new recurring higher education programs and expansion of current programs (assuming that funding will continue beyond FY05):

 

“The institution receiving the appropriation in this bill shall submit a program evaluation to the Legislative Finance Committee and the Commission on Higher Education by August 2007 detailing the benefits to the State of New Mexico from having implemented this program over a three period.”

 

 

 

 

OTHER SUBSTANTIVE ISSUES

 

This request was initiated by cotton growers, was reviewed by the NMSU Board of Regents and subsequently approved as a “pass through” request.  Since this appropriation is to flow through NMSU, it was not included in the Regent’s funding recommendations to the CHE.   Consequently, the CHE did not receive nor recommend funding for this proposal.

 

POSSIBLE QUESTIONS

 

1.         How are current efforts to eradicate pink bollworm funded?

2.         Has NMDA developed a plan to distribute any funds appropriated pursuant to the provisions of this bill?

 

RLG/lg:dm