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

SPONSOR Cervantes

DATE TYPED 2/22/05

HB 297/aHAGC

SHORT TITLE Water Management & Education Programs

SB

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$750.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB100

Relates to HB192, HB193, SB117, SB113

Relates to the appropriation for New Mexico State University in the General Appropriations Act.

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Office of the State Engineer (OSE) (SB100)

New Mexico State University (NMSU), College of Agriculture and Home Economics (CAHE)

(SB100)

New Mexico Finance Authority

New Mexico Commission on Higher Education (CHE) (SB100)

SUMMARY

Synopsis of HAGC Amendment

House Agricultural and Water Resources Committee amendment to HB297 amends the legisla-

tion as follows:

On page 2, between lines 3 and 4: insert a new subsection to read:

C. New Mexico state university shall submit a plan for program evaluation, in-

cluding specific program goals and criteria for assessing program effectiveness to

the legislative finance committee and the legislative interim water and natural re-

sources committee by October 1, 2005. The institution shall also submit a pro-

House Bill 297/aHAGC -- Page 2

gram evaluation to the legislative finance committee, the legislative interim water

and natural resources committee and the house appropriations and finance com-

mittee by June 30, 2008 detailing the benefits to the state of New Mexico from

having the program implemented for a three-year period. The report shall be sub-

mitted in digital format only and be made available on the appropriate state web

page.

This amendment adds no additional appropriation to the legislation.

Synopsis of Original Bill

House Bill 297 – Making an Appropriation for Water Management Research and Education Pro-

grams by the Agricultural Experiment Station and the Cooperative Extension Service – appropri-

ates $750,000 to the Board of Regent of New Mexico State University to conduct water man-

agement research and education programs in FY06. The appropriation is allocated to (1) the ag-

ricultural experiment station in the amount of $375,000 and (2) the cooperative extension service

in the amount of $375,000. Any unexpended or unencumbered balance remaining at the end of

FY06 shall revert to the general fund.

Significant Issues

NMSU-CAHE indicates that this is a NMSU Board of Regents funding priority endorsed by

CHE. Funds will allow the NMSU Cooperative Extension Service (CES) and Agricultural

Experiment Station (AES) to dedicate faculty members who can address water-related needs

important to New Mexicans. NMSU-CAHE suggests that a water-focused program will generate

the capacity to create knowledge on issues of significant impact. Further, that resulting programs

will provide the public with impartial science-based information for decision making on water

issues such as policy, municipal and industrial use, regulatory changes, agricultural productivity,

environmental management, drought planning and mitigation, and other topics.

OSE notes that although it is not clear which specific projects will be conducted with the funds,

they could certainly benefit and relate to the activities and research conducted by the OSE, and

therefore they should be closely coordinated with the OSE, and other appropriate agencies.

CHE indicates this request was approved by NMSU Board of Regents in the amount of $750,000

and submitted to the Commission on Higher Education for review. The Commission has

recommended funding in the amount of $525,000 for this project.

PERFORMANCE IMPLICATIONS

NMSU-CAHE advises that CES and AES will employ a ‘response team’ approach in

conjunction with traditional education outreach methods to address water problems facing the

public. Advisory groups will help prioritize water research needs. Research findings and

technologies will be presented to the public through applications that will help solve or mitigate

water problems. Research, educational materials, instruments and tools, and related CES/AES

support will become public domain for unrestricted distribution and use by the general public.

House Bill 297/aHAGC -- Page 3

FISCAL IMPLICATIONS

The appropriation of $750,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

ADMINISTRATIVE IMPLICATIONS

NMSU would retain oversight of the program.

CONFLICT, DUPLICATION, COMPANIONSHIP OR RELATIONSHIP

HB297 is a duplicate of SB100.

HB193 and SB117 are related to HB297. These bills create the Water Resources Research Insti-

tute as a division of NMSU.

SB113 relates to HB297 in that SB113 appropriates $200,000 from the general fund to the Board

of Regents of New Mexico State University for expenditure in FY06 for the Water Resources Re-

search Institute to increase research in water conservation, planning and management

OTHER SUBSTANTIVE ISSUES

NMSU-CAHE indicates that current water research and education efforts of CES and AES are

entirely grant driven, short-term activities. Research and outreach programs are designed

pursuant to the objectives of the granting agencies. These objectives are often not pertinent to

critical needs of New Mexico. In-state needs are, therefore, often disregarded due to lack of

funding. This initiative will allow continuity of state-oriented water programs by leveraging

appropriate grant funding, but not being totally reliant upon it. To this end, NMSU-CAHE

proposes an assertive response to what it sees as three critical factors:

•

Economic Issues – Continued demands on water resources will ultimately result in

increased cost to consumers, both large and small. Perpetual ‘bad press’ about water

problems has already driven investment away from New Mexico. Without this funding

support, CES efforts such as the help that was given to Santa Fe High School athletic

field sub-surface irrigation project and to Twin Warriors golf course at the Santa Ana

pueblo in Rio Rancho for their sub-surface irrigation system will continue to operate with

only limited means.

•

Environmental Issues – Without proper scientific support to environmental policy and

decision making, additional water resources may be inappropriately allocated. Without

state funding, activities such as the study to identify alternative refuges for the silvery

minnow will be occasional, short-term efforts.

•

Social Issues – Much of the cultural richness of New Mexico is at risk due to continuing

water uncertainty for the future. Many New Mexicans do not have the resources to

defend and protect their cultural practices in the face of misdirected policies, population

growth, and other social demands. The current NMSU support to various acequias for

technical and organizational management is an example of activities which could be lost

House Bill 297/aHAGC -- Page 4

without this funding.

OSE notes that in discussions conducted by the work groups of the New Mexico Drought Task

Force, representatives from the OSE, the New Mexico Association of Conservation Districts, and

the New Mexico Department of Agriculture agreed that an emphasis should be placed on water-

shed management activities and monitoring work. The proposed research activities might benefit

that intent, and therefore they should be coordinated with the OSE and the Governor’s Drought

Task Force. OSE also advises that duplications could arise in light of the fact that some of the

research and educational programs that could be undertaken by the agricultural experiment sta-

tion and the cooperative extension service might have been already conducted or might be

planned by the OSE. As such, the need for close coordination with the OSE is essential.

AMENDMENTS

CHE suggests the following language for all new recurring higher education programs and ex-

pansion of current programs (assuming that funding will continue beyond FY06):

New Mexico State University shall submit a plan for program evaluation, including

specific program goals and criteria for assessing program effectiveness to the Legisla-

tive Finance Committee and the Commission on Higher Education by October 1, 2005.

The institution shall also submit a program evaluation to the Legislative Finance Com-

mittee and the Commission on Higher Education by June 30, 2008 detailing the benefits

to the State of New Mexico from having this program implemented for a three-year pe-

riod.

BFW/lg:yr