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F I S C A L I M P A C T R E P O R T
SPONSOR Sandoval
DATE TYPED 03/04/05 HB 1066
SHORT TITLE Middle Rio Grande Conservancy District
SB
ANALYST Ford
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$3,000.0
Non-Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Office of the State Engineer (OSE)
SUMMARY
Synopsis of Bill
House Bill 1066 appropriates $3 million from the general fund to the OSE to improve water con-
servation, efficiency, and management of the middle Rio Grande conservancy district
(MRGCD). The appropriation will match federal funding for the same purpose.
Significant Issues
The OSE indicates that it will work with the MRGCD and the federal government to identify op-
portunities to improve conservation, irrigation efficiency, and water management. According to
OSE, the federal government will provide $3 million in matching funds that flow directly to the
MRGCD.
FISCAL IMPLICATIONS
The appropriation of $3 million contained in this bill is a non-recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY 06 shall revert to
the general fund. According to OSE the appropriation matches federal funding of $3 million that
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House Bill 1066 -- Page 2
was appropriated directly to the MRGCD and does not flow through the state. However, the
OSE indicates that the federal funding does require a match.
OSE indicates that it will be able to administer the funding with its existing staff resources.
OTHER SUBSTANTIVE ISSUES
According to OSE, there are many options for improving water efficiency, such as installation of
additional measurement and recording devices to monitor and improve water efficiency, installa-
tion of canal lining, installation of technologically-advanced on-farm irrigation systems, imple-
mentation of advanced water management tools and installation of monitoring equipment to
monitor soil moisture and identify ideal times for application of water in the correct amounts.
EF/lg