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

SPONSOR Cisneros

ORIGINAL DATE

LAST UPDATED

2/3/06

HB

SHORT TITLE Strategic Water Reserve Administration

SB 649

ANALYST Hoffmann

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$100.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to House Bill 565.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Office of the State Engineer (OSE)

SUMMARY

Synopsis of Bill

Senate Bill 649 appropriates $100,000 from the general fund to the Interstate Stream Commis-

sion to administer the Strategic Water Reserve (SWR).

FISCAL IMPLICATIONS

The appropriation of $100,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert

to the general fund.

Senate Bill 649 – Page

2

SIGNIFICANT ISSUES

The proposed appropriation is not included in the Executive budget recommendation.

According to the Department of Finance and Administration, the SWR is a mechanism for ac-

quiring and holding water rights for use in meeting interstate stream compact delivery and water

delivery requirements. This appropriation appears sufficient to hire an additional FTE plus asso-

ciated costs and supplies.

PERFORMANCE IMPLICATIONS

According to the Department of Finance and Administration, it is unclear to what degree this ap-

propriation would increase agency performance. It could possibly allow staff currently assigned

to this task to go back to increasing performance in another area. Dedicated staff may also result

in better management of SWR funds, assets and acquisition if the appropriation resulted in an

increase in the overall number of staff working on SWR.

ADMINISTRATIVE IMPLICATIONS

17.14.3-3 NMSA 1978 gives the Interstate Stream Commission the authority to establish the

Strategic Water Reserve.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Senate Bill 649 is related to House Bill 565, which appropriates $5,000,000 to the Interstate

Stream Commission to purchase water rights from willing sellers. The water rights purchase

through House Bill 565 would be assigned to the strategic water reserve.

CH/nt