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

SPONSOR Begaye

ORIGINAL DATE

LAST UPDATED

01/26/07

HB 274

SHORT TITLE Statewide Water Projects

SB

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

280,000.0

Non-recurring

General fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of the State Engineer (OSE)

SUMMARY

Synopsis of Bill

House Bill 274 seeks to appropriate $280,000,000 from the general fund to the support statewide

water projects in fiscal year 2008 and subsequent fiscal years. Any unexpended or unencumbered

balance remaining at the end of a fiscal year shall not revert to the general fund. This bill carries

emergency language.

SIGNIFICANT ISSUES

This bill would appropriate $280 million to the Indian water rights settlement fund, the interstate

stream commission, the middle Rio Grande Endangered Species Act Collaborative program, and

the New Mexico irrigation works construction fund for expenditure in FY 08 and subsequent fis-

cal years for the following purposes:

•

$75 million to the Indian water rights settlement fund to pay the state’s portion of the

costs necessary to implement Indian water rights settlements proposed by the legislature

and the United States Congress.

House Bill 274 – Page

2

•

$48 million to the interstate stream commission for the Pecos River Compact settle-

ment.

•

$30 million to the improvement of Rio Grande income fund for the middle Rio Grande

Endangered Species Act collaborative programs

•

$7 million to the interstate stream commission for the Gila River settlement in the fed-

eral Arizona Water Settlements Act, to be used to conduct a full and inclusive process

of public involvement, complete a thorough scientific assessment of ecological condi-

tions in the Gila river basin and perform a full analysis of all water needs and supply al-

ternatives in the southwestern water-planning region.

•

$70 million to the interstate stream commission for the Ute Pipeline project.

•

$44 million to the New Mexico irrigation works construction fund for acequia and dam

safety improvements.

•

$6 million to the interstate stream commission for the La Plata conservancy district’s

cost share of the Animas-La Plata project.

OSE notes that $280 million is the figure used in a presentation to the Interim Water and Natural

Resources Committee in 2005 as that amount of state funding needed for water projects that are

ready to proceed; however, some projects require federal appropriations as well.

OSE adds that major assumptions underlying fiscal impact should be documented.

BFW/sb