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

SPONSOR King

ORIGINAL DATE

LAST UPDATED

1/30/2007

HB 366

SHORT TITLE Water Conservation & Resource Restoration

SB

ANALYST McOlash

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$595.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 12.

Duplicates SB 62.

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico State University – Department of Agriculture (NMSU-DA)

Environment, Mineral, & Natural Resources Department (EMNRD)

Office of the State Engineer (OSE)

Higher Education Department (HED)

SUMMARY

Synopsis of Bill

House Bill 366 appropriates $595,000 from the General Fund to the Board of Regents of New

Mexico State University for expenditure in FY 2008 for soil and water conservation districts to

match federal funds for water conservation and resource technical assistance.

FISCAL IMPLICATIONS

The appropriation of $595,000 contained in this bill is a recurring expense to the General Fund.

Any unexpended or unencumbered balance remaining at the end of FY shall revert to the

General Fund.

House Bill 366– Page

2

SIGNIFICANT ISSUES

Since 2003, the New Mexico legislature has annually funded the technical assistance program,

matching United States Department of Agriculture (USDA) funds and in-kind support. The

legislature previously funded the program as follows:

•

2003 $1,152.0;

•

2004 $75.0;

•

2005 $500.0; and

•

2006 $500.0.

The funds provide matching dollars to hire personnel to assist with USDA Farm Bill

conservation programs. Up to 30 individuals are employed through this program.

The proposal of $595,000 was not submitted to the New Mexico Higher Education Department

by NMSU and not included in the Department’s funding recommendation for FY08.

ADMINISTRATIVE IMPLICATIONS

There is an administrative cost associated with this program. A minimum impact of 5% in

administrative costs will be incurred ($27.5).

The New Mexico Department of Agriculture is responsible for hiring technical service providers

and managing the federal matching funds

.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 366 relates to Senate Bill 12, which appropriates $550,000 to the Board of Regents of

New Mexico State University for the management of soil and water conservation districts and

operation of district programs and projects.

HB 366 duplicates SB 62.

OTHER SUBSTANTIVE ISSUES

The matching funds will enable the districts to qualify for additional federal funds the NRCS has

set aside. The state’s 47 soil and water conservation districts control and prevent erosion,

prevent sediment damage after floods, encourage water conservation, as well as conduct forest

thinning projects around communities that are at risk from wild land fire in New Mexico.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

If this bill is not passed, the New Mexico Department of Agriculture might not have the USDA

matching funds. This may result in reduced or lost efficiencies in implementing Farm Bills.

Reduced or lost efficiencies may lead to the reduction in federal funds earmarked for the State of

New Mexico.

BM/nt