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

SPONSOR Altamirano

DATE TYPED 02/14/05 HB

SHORT TITLE Soil & Water Conservation Districts

SB 396

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$570.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

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

Relates to HB 491

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico State Department of Agriculture (NMDA)

Commission on Higher Education (CHE)

New Mexico Finance Authority (NMFA)

Office of the State Engineer (OSE)

Energy, Minerals and Natural Resources Department (EMNRD)

SUMMARY

Synopsis of Bill

Senate Bill 396 – Making an Appropriation for Soil and Water Conservation Districts –

appropriates $570,000 from the general fund to the Board of Regents of New Mexico State Uni-

versity for expenditure in FY06 to match federal money for water conservation and natural re-

source restoration technical assistance pursuant to agreements with the United States Department

of Agriculture's Natural Resources Conservation Service. Any unexpended or unencumbered

balance remaining at the end of FY06 shall revert to the general fund.

Senate Bill 396 -- Page 2

Significant Issues

NMDA indicates that this appropriation provides matching dollars for federal funds to provide

New Mexico with technical service for the implementation of Farm Bill programs. New Mexico

received approximately $33 million in 2004 and the state should receive approximately the same

amount of funding from the Farm Bill in 2005. Combined state and federal funding in the

amount of just over $1 million will keep 28 regular employees and 9 contract employees paid for

one year. This program assists in accomplishing watershed restoration and water conservation in

New Mexico.

NMDA adds that the technical service provider program provides assistance to private landown-

ers for water conservation measures and watershed/rangeland health improvements that are a part

of the Farm Bill program and protect and enhance New Mexico’s water, forest health, and water-

shed restoration goals as outlined in recent statewide planning efforts.

CHE indicates this program was appropriated $75,000 of non-recurring funds in last year’s legis-

lative session; but that this request was not in the list of priority projects submitted by NMSU to

CHE for review. Accordingly, this request was not included in the commission’s funding rec-

ommendation for FY06.

FISCAL IMPLICATIONS

The $570,000 appropriation contained in this bill would be a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the

general fund.

ADMINISTRATIVE IMPLICATIONS

New Mexico State University will retain administrative oversight of this project.

OSE suggests 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.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

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

Relates to HB491 in that HB491 seeks to appropriate $500,000 from the general fund to the

board of regents of New Mexico State University for expenditure in FY06 for soil and water

conservation districts to match federal funds for water conservation and resource restoration

technical assistance pursuant to an agreement with the United States Department of Agriculture

Natural Resource Conservation Services

.

OTHER SUBSTANTIVE ISSUES

EMNRD suggests that significant issues relate to the soil and water conservation district’s re-

quest for state funding to match federal grant funding. The matching funds will enable the dis-

tricts to qualify for additional federal funds the United States Department of Agriculture’s Natu-

Senate Bill 396 -- Page 3

ral Resources Conservation Service has set aside if this bill passes. The state’s 47 soil and water

conservation districts control and prevent erosion, prevent sediment damage after floods, encour-

age water conservation, as well as conduct forest thinning projects around communities that are

at risk from wildland fire in New Mexico.

Further, EMNRD indicates that since 2001 it has provided federal funds to some of the soil and

water conservation districts to conduct hazardous fuel reduction thinning projects around com-

munities and individual homes to reduce local fire danger. Although the appropriation indicated

in this bill is not specifically identified as match for the fuel reduction projects, the district’s ca-

pacity to conduct hazardous fuel reduction work may be enhanced and the bill may indirectly

benefit the Forestry Division’s efforts to reduce hazardous forest fuel loads in and around at risk

communities.

BFW/yr