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

SPONSOR Nuñez

ORIGINAL DATE

LAST UPDATED

1-19-2008

HB 85

SHORT TITLE Regional Water Planning Program

SB

ANALYST Woods

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

345.0

Recurring

General

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

DFA Files

Responses Received From

Office of the State Engineer (OSE)

SUMMARY

Synopsis of Bill:

House Bill 85 seeks to appropriate $345,000 from the general fund to the Interstate Stream

Commission for expenditure in fiscal year 2009 to support the regional water planning program.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert

to the general fund.

FISCAL IMPLICATIONS

The agency (OSE) analysis does not score this appropriation as either recurring or non-recurring.

However, it should be noted that the agency’s FY09 budget request included $345 thousand for

updating regional plans as an expansion item within the interstate stream program. This

expansion was not supported in either the LFC or executive budget recommendations.

SIGNIFICANT ISSUES

In support of the legislation, OSE advises that regional water planning originated in 1987 as a

way to demonstrate and document present and future demand for water within New Mexico.

Regional water plans provide the needed basis for demonstrating that New Mexico’s water is

House Bill 85 – Page

2

needed for New Mexico residents. Water resource assessment in a regional water plan must

therefore be reliable and technically accurate and reflect current conditions. To provide this

technical accuracy, regional water plans must be updated on a regular basis. Fifteen of sixteen

regional water plans are complete, with the first one (Lea County) completed in 1999 - almost 10

years ago. No regional water plans have been completely updated. Ongoing funding is need to

document changed hydrologic conditions, new data, implementation of accepted strategies,

changed legal and institutional parameters, drought and flood emergencies, and population and

demographic shifts. A cornerstone of regional water plans is the local stakeholder involvement.

Without adequate funding to facilitate local decision making, regional water plans will not

accurately reflect the needs of a particular region.

OSE further indicates that New Mexico State Water Plan (2003) policy supports adequate

funding to complete, update and implement regional water plans (Section C. 11). Regional plan

updates provide information for State Water Plan updates as required by state statute. Many

regions do not have drought strategies and adequate water conservation plans. Many regions

require assistance in water management strategies and funding for water development. Each

region’s plan will require an estimated $100,000 to update, and the goal is to update four plans

per year to fulfill the statutory requirement that calls for updating technical studies, analyzing

demand and changes in the legal or institutional framework, and ensuring adequate public

involvement, and to prepare drought and conservation plans. This goal was first identified

during the 2007 legislative session and $55,000 was appropriated to meet this goal. The

appropriation in this bill is for the difference of $345,000.

OTHER SUBSTANTIVE ISSUES

OSE advises that this bill originated at a recent annual New Mexico Water Dialog meeting in

which it was recommended that regional water planning be funded through this appropriation.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

OSE indicates that if sufficient funding for updating regional water plans is not provided, the

state will be less secure in preventing appropriation of its waters to other states. Funding

provides the basis for maintaining the accuracy and utility of regional water plans. Further that,

“The lack of momentum in developing or improving infrastructure for growing municipal and

industrial demand is a consequence of inadequate planning for water resources. Other

consequences of not planning are loss of economic potential due to lack of understanding of

available water resources, lack of data to assure water supplies for the future, lack of

preparedness for drought, negative environmental impacts, and inadequate public input into state

and regional water planning decisions."

BFW/mt