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 for other purposes.

 

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

 

 

 

SPONSOR:

Ponce

 

DATE TYPED:

1/28/03

 

HB

94

 

SHORT TITLE:

Cotton Bollworm Control

 

SB

 

 

 

ANALYST:

Baca

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$750.0

 

 

Recurring

General Fund

(Parenthesis () Indicate Expenditure Decreases)

 

Relates to HB 99 AND SB 56

 

Relates to Appropriation for New Mexico State University in the General Appropriation Act

 

SOURCES OF INFORMATION

 

LFC files

 

Responses Received From

New Mexico Department of Agriculture (NMDA) at New Mexico State University (NMSU)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 94 appropriates $750.0 from the general fund to the Board of Regents of New Mexico State University for the New Mexico Department of Agriculture (NMDA) to match expenditures for the eradication of boll weevil by cotton boll weevil control districts established pursuant to the provisions of the federal Boll Weevil Control Act.

           

     Significant Issues

 

NMDA reports that the cotton boll weevil has infested an estimated 70,000 acres of cotton throughout New Mexico and that growers in established control districts in the nine major cotton producing counties in New Mexico contributed approximately $1.3 million in crop year 2002 for eradication.  NMDA further reports that cotton producers will contribute an estimated $1.9 million toward eradication during crop year 2003. 

 

 

FISCAL IMPLICATIONS

 

The appropriation of $750.0 contained in this bill is a recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund. 

 

ADMINISTRATIVE IMPLICATIONS

 

NMDA will administer the program and funding will pass through to established cotton boll weevil control districts.  Administrative impact on NMDA will be minimal.

 

RELATES TO:

 

HB 99

SB 99

The two bills cited above request funding for the control and eradication of pink boll worms.

 

OTHER SUBSTANTIVE ISSUES

 

This request for funding was submitted to and approved by the NMSU Board of Regents.  However, it is not recommend for funding by the CHE.

 

POSSIBLE QUESTIONS

 

  1. Is it possible to address the eradication of the two species of boll weevils utilizing one program instead of two programs and two requests for separate funding?
  2. Will NMDA coordinate the two programs if they are funded ?
  3. Boll weevil control districts are established pursuant to federal statutes.  Does the federal government provide any funding for these programs ?

 

 

LB/ls/njw