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

SPONSOR Begaye

DATE TYPED 03/09/05 HB HJM 7

SHORT TITLE Support Navajo Products and Industries

SB

ANALYST Weber

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

None

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Indian Affairs Department

SUMMARY

Synopsis of Bill

House Joint Memorial 7, (HJM 7), requests Congress to support the efforts of the Navajo Agri-

cultural Products Industry (NAPI) and most importantly to adequately fund the Navajo Indian

Irrigation Project (NIIP) in order to complete construction.

Significant Issues

The Indian Affairs Department comments that the completion of NIIP is more than 20 years be-

hind schedule and the construction of the project is a federal responsibility mandated by federal

statute and an agreement with the Navajo Nation. The completion of the project is paramount,

not only for the Navajo Nation, but also for the State of New Mexico and their water users.

NAPI utilizes water provided by NIIP to cultivate seventy thousand acres of industrial farm land.

As a result, NAPI provides agricultural product to major food processing companies throughout

the United States and internationally, contributes more than fifty million dollars ($50,000,000)

annually to the regional economy, and provides one hundred ten full-time jobs and five hundred

fifty seasonal jobs to Northwest New Mexico. The completion of NIIP would allow NAPI to

cultivate an additional forty thousand acres to increase and enhance its current efforts.

MW/njw