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

SPONSOR B. Lujan

ORIGINAL DATE

LAST UPDATED

1/23/08

HB 303

SHORT TITLE Acequia & Community Ditch Fund Purposes

SB

ANALYST Haug

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$575.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

$575.0

Recurring

Acequia and

Community

Ditch Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Agriculture (NMDA)

SUMMARY

Synopsis of Bill

House Bill 303 appropriates $575.0 from the general fund for Fiscal Year 2009 and subsequent

fiscal years to the Acequia and Community Ditch Fund to carry out the purposes of the Acequia

and Community Ditch Fund Act.

FISCAL IMPLICATIONS

The appropriation of $575.0 contained in this bill is a recurring expense to the general fund. Any

unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall not revert to

the general fund.

House Bill 303 – Page

2

SIGNIFICANT ISSUES

NMDA states that the New Mexico Department of Agriculture provides all administrative and

fiduciary oversight for the Acequia and Community Ditch Fund (ACDF).

According to NMDA, this increase in the ACDF will enable eligible acequia and community

ditch associations to access additional funding. Total funding requests by acequia and

community ditch associations have historically exceeded $1.0 million per year and requests have

increased to over $2.2 million in FY07. The ACDF has been funded at $648,700 for years and

this increase would provide needed assistance to eligible recipients for the purposes of the Act;

including development of hydrologic studies, the acquisition of technical and legal research, and

other services necessary to conserve and protect water for New Mexico’s future through the

adjudication of water rights.

According to the Executive Budget for Higher Education, the Executive recommends a $1.0

million increase to the Department of Agriculture's operating budget to support the performance

and accountability policy of Promoting and Growing New Mexico. Supported NMDA initiatives

include: $500.0 for Agriculture Experiment Station operating costs; $500.0 for Cooperative

Extension Service operating costs; and $500.0 nonrecurring for the acequia and community ditch

fund.

GH/bb