[1] NOTE:  As provided in LFC policy, this report is intended only 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.

 

Only the most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC’s office in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR:

Cisneros

 

DATE TYPED:

1-29-02

 

HB

 

 

SHORT TITLE:

NMIMT Center for Water Quality

 

SB

117

 

 

ANALYST:

Baca

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

$500.0

 

 

Recurring

General Fund

(Parenthesis) Indicate Expenditure Decreases)

 

 

Duplicates HB 134, Relates to HB 45 & SB 27

 

SOURCES OF INFORMATION

 

Commission on Higher Education  (CHE)

LFC Files

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill appropriates $500,000 from the general fund to the New Mexico Institute of Mining & Technology (NMIMT) to establish the New Mexico center for water quality.

 

     Significant Issues

 

New Mexico Department of Agriculture (NMDA) states  "Water issues in the state need immediate attention and study.  The key to addressing the complex issues begins with educating the public on water relationship issues such as agricultural consumptive use, depletion rates, hydrologic connection between surface and ground water, land use risks to water, domestic water systems…”

 

A request was not included in NMIMT's budget request to the NMIMT Board of Regents, and thus was not included in the list of priority projects submitted by NMIMT to the Commission on Higher Education for review.  See attached Appropriation Matrix.

 

The quality and quantity of water in the state to support increasing domestic consumption, agricultural uses and industrial needs is a major public policy concern for the state and many counties and municipalities.

 

FISCAL IMPLICATIONS

 

The appropriation of $500.0 contained in this bill is a recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of FY2003shall revert to the general fund.

 

ADMINISTRATIVE IMPLICATIONS

 

According to CHE, this bill would add one more research/public service project to the current list of ninety-four projects which are funded as separate line items outside of the higher education funding formula.  According to CHE policy, each of these projects must be subjected to a thorough evaluation once every four years to be eligible for continued funding.  This evaluation process has been developed by the CHE to be consistent with the Accountability in Government Act (AGA) mandated by the state legislature.

 

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

 

Senate Bill 117 duplicates HB134.  The bill relates to House Bill 45 and Senate Bill 27, which are duplicates and appropriate $600,000 to New Mexico State University (NMSU) to conduct water management research.

 

OTHER SUBSTANTIVE ISSUES

 

The state currently funds the Water Resources Research project at NMSU.  The current fiscal year appropriation from the general fund is $398,200.  The duplicate bills identified above, HB45 and SB27, appropriate an additional $300,000 to this project.

 

The following information is submitted for information only.  It is not intended as a commentary on the merits of the bill:

 

This program was included in NMIMT’s request was not included in the budget request submitted to the CHE.  Consequently, the program was not reviewed by the CHE.

 

Higher education institutions receive indirect cost revenues from federal contracts and grants.  A portion of the indirect cost revenue, or earned overhead, is used to support items such as the salaries of the accountants responsible for monitoring the contracts and grants, or for paying utilities and other expenses required to maintain the space where the contract and grant activities are housed.  However, a great deal of this money is used as seed money to develop new research and public service projects at institutions.  This money is unrestricted in the sense that the governing board of the institution has the flexibility to choose which projects are supported with these funds.

 

The state higher education funding formula allows institutions to retain 100 percent of this indirect cost revenue.  One of the purposes of retaining these funds is to provide seed money and matching funds for projects such as the one proposed in this bill.

 


POSSIBLE QUESTIONS

 

1.  How does this program relate to the water activities being conducted at NMSU ?

 

2.  If funded, will this program duplicate programs at NMSU ?

 

LB/njw:prr


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