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: Wilson DATE TYPED: 01/29/01 HB
SHORT TITLE: NMSU Water Research & Conservation SB 79
ANALYST: Gilbert


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 1,538.8 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates House Bill 201

Relates to House Bill 116 and Senate Bill 91



SOURCES OF INFORMATION



LFC Files

Commission for Higher Education (CHE)

CHE Files - Special Funding Requests Submitted by NMSU

New Mexico Department of Agriculture (NMDA)



SUMMARY



Synopsis of Bill



Senate Bill 79 appropriates $1,538.8 to New Mexico State University (NMSU) for various water related projects. The appropriation is to be distributed as follows: $600.0 to the Water Resources Research Institute for conducting aquatic species research; $138.2 to the Agriculture Experiment Station for water use education and research programs, $300.6 to the Cooperative Extension Service for water use education and research programs, and $500.0 to New Mexico Soil and Water Conservation Districts for watershed management and restoration project technical and financial incentives to landowners.



Significant Issues



According to the New Mexico Department of Agriculture (NMDA), many current water research, education, and outreach activities are funded with short-term, project specific grants. Appropriations from this bill will enable long term funding of projects which are necessary to ensure prudent water resources management in New Mexico.



Institutions were asked to provide the Commission for Higher Education (CHE) with an overall priority listing for all new and expansion research and public service project requests. The NMSU Board of Regents ranked these water research projects as a high priority in the institution programs category.



The CHE recommended funding the Water Resources Research Institute project at $300.0, but does not recommend funding the balance of $1238.8 requested in this bill.



PERFORMANCE IMPLICATIONS



According to the Water Resources Research Institute is scheduled for evaluation using the CHE's evaluation process during 2002. The evaluation process was developed in conjunction with DFA and the LFC to be responsive to the Accountability in Government Act.



FISCAL IMPLICATIONS



The appropriation of $1,538.8 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



Senate Bill 79 duplicates House Bill 201.



This bill is also related to Senate Bill 91 and House Bill 116. These bills all appropriate funds to soil and water conservation districts and are administered/distributed by NMSU and the NMDA.



AMENDMENTS



The CHE suggests the following language for all new recurring higher education programs and expansion of current programs (assuming that funding will continue beyond 2001-2002):



"The institution receiving the appropriation in this bill shall submit a program evaluation to the Legislative Finance Committee and the Commission on Higher Education by August 2, 2004 detailing the benefits to the State of New Mexico from having this program implemented for a three-year period."

LG/prr:ar