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F I S C A L I M P A C T R E P O R T
SPONSOR Fidel
DATE TYPED 3/7/05
HB
SHORT TITLE Wastewater Construction Loan Fund
SB 974
ANALYST Hadwiger
APPROPRIATION
(in $000s)
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$1,500.0
Non-Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico Department of Environment (NMED)
SUMMARY
Synopsis of Bill
Senate Bill 974 appropriates $1.5 million from the general fund to the Wastewater Facility Con-
struction Loan Fund for expenditure in FY05 through FY10 to carry out the provisions of the
Wastewater Facility Construction Loan Act.
Significant Issues
NMED indicated this appropriation is needed as a state match for up to $7 million of federal
funding to capitalize the state’s revolving loan fund for wastewater projects in New Mexico. The
fund provides low interest loans (3% or less) to New Mexico communities for needed wastewa-
ter facility improvements.
FISCAL IMPLICATIONS
The appropriation of $1.5 million contained in this bill is a non-recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY10 would revert to
the general fund. NMED receives four percent of the federal capitalization money to administer
the loan program. Matching federal dollars will bring additional administration funding to New
Mexico.
pg_0002
Senate Bill 974 -- Page 2
ADMINISTRATIVE IMPLICATIONS
SB974 would generate additional funding for NMED administration of the program.
OTHER SUBSTANTIVE ISSUES
NMED asked that the funds be made non-reverting and remain in the fund for construction loans,
because this could create audit issues with regard to federal match. Also, it is unclear how an
appropriation to a loan fund would be reverted after four years (i.e. how would the particular
funds from the FY06 appropriation be identified and segregated from other funds in the revolv-
ing loan fund.)
DH/yr