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	Papen		DATE TYPED	01/27/04		HB
SHORT TITLE		Pink Bollworm Control Program				SB	11
					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 HB 49

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 Bill

Senate Bill 11 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

HB 49 duplicates SB 11.

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, and, consequently was not reviewed by either the NMSU Board of Regents or the CHE.

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?

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