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F I S C A L I M P A C T R E P O R T
SPONSOR Snyder
DATE TYPED 2/8/2005 HB
SHORT TITLE Water Trust Fund Appropriation
SB 139
ANALYST Aguilar
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$100,000.0 Indeterminate
Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates HB-403
SOURCES OF INFORMATION
LFC Files
Responses Received From
Office of the State Engineer
FOR THE WATER AND NATURAL RESOURCES COMMITTEE
SUMMARY
Synopsis of Bill
Senate Bill 139 appropriates $100 million dollars from the general fund to the Water Trust Fund
for the purposes of the Water Project Finance Act.
SB-139 declares an emergency.
Significant Issues
The Water Trust Board was created to fund major regional water projects in New Mexico. Ten
percent of the severance tax bond sales are set aside for the water trust fund, from which, the
Water Trust Board funds its projects.
pg_0002
Senate Bill 139 -- Page 2
Section 72-4A-8 NMSA 1978 provides for funds in the Water Trust Fund not to be expended but
instead an annual distribution of $4,000,000 (or 4.7% of the average year end market value of the
fund for the past five years if greater than $4,000,000) to the Water Project Fund for funding wa-
ter projects.
The Office of the State Engineer reports the Water Trust Board, which oversees the Water Pro-
ject Fund, received $814 million in requests for funds in 2004 and the New Mexico Finance Au-
thority estimates that the state has over $2.5 billion in water project needs
FISCAL IMPLICATIONS
The appropriation of $100 million dollars contained in this bill is a recurring expense to the gen-
eral fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006
shall not revert to the general fund.
PA/njw