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 a vailable 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 Papen

DATE TYPED 01/31/05 HB

SHORT TITLE Water Management & Education Programs

SB 100

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 HB297

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)

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

New Mexico Finance Authority (HB297)

Responses Not Received From

New Mexico Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

Senate Bill 100 – Making an Appropriation for Water Management Research and Education

Programs by the Agricultural Experiment Station and the Cooperative Extension Service – ap-

propriates $750,000 to the Board of Regent of New Mexico State University to conduct water

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

agricultural experiment station in the amount of $375,000 and (2) the cooperative extension ser-

Senate Bill 100 -- Page 2

vice 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.

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.

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.

The CHE 2005-2006 Higher Education Funding Recommendation recommends a $590,800 ap-

propriation for Water Resources Research. This represents an 34.9 percent (or $152,800) in-

crease over NMSU’s Water Resources Research FY05 appropriation.

ADMINISTRATIVE IMPLICATIONS

NMSU would retain oversight of the program.

CONFLICT, DUPLICATION, COMPANIONSHIP OR RELATIONSHIP

SB100 is a duplicate of HB297.

HB193 and SB117 are related to SB100. These bills create the Water Resources Research Insti-

tute as a division of NMSU.

SB113 relates to SB100 in that SB113 appropriates $200,000 from the general fund to the Board of

Senate Bill 100 -- Page 3

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

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

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.

BFW/sb