NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



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





SPONSOR: Lyons DATE TYPED: 02/01/00 HB
SHORT TITLE: Matching Funds for Water Projects SB 229
ANALYST: Pacheco-Perez


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
$ 500.0 Rec GF

(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to HB89, HB145, HB202, SB120, SB202, SB218, SB219 Duplicates HB379



SOURCES OF INFORMATION



Commission on Higher Education (CHE)

Environment Department (ED)

New Mexico Department of Agriculture (NMDA)



SUMMARY



Synopsis of Bill



This bill appropriates $500.0 from the general fund to the Board of Regents of the New Mexico State University for the NMDA to provide matching funds for water quality and water conservation projects, including watershed enhancement in the Soil and Water Conservation Districts (SWCD) statewide. The SWC Commission shall approve applications for funding. At least 50% of the cost of a project shall be provided from sources other than the state. Only water quality or water conservation projects that are based on approved conservation plans shall be eligible for funding.



FISCAL IMPLICATIONS



The appropriation of $500.0 contained in this bill is a recurring expense to the general fund for expenditure in fiscal years 2001 and 2002. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.



ADMINISTRATIVE IMPLICATIONS



The NMDA notes an impact to provide matching grants and coordinate applications.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



This bill relates to House Bills 89, 145, 202 and Senate Bills 120, 202, 218, and 219 all of which enhance funding for the Soil and Water Conservation Districts. This bill duplicates House Bill 379.



OTHER SUBSTANTIVE ISSUES



According to the ED, funding from this bill would result in an increased ability to access or leverage federal matching from a variety of programs.



The CHE recommends that the following language be included for all new recurring higher education programs: "The institution receiving the special appropriation in this bill shall submit a program evaluation to the LFC and the CHE by August 1, 2003 detailing the benefits to the State from having this program implemented for a three-year period."



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