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F I S C A L I M P A C T R E P O R T
SPONSOR King
ORIGINAL DATE
LAST UPDATED
1/30/2007
HB 366
SHORT TITLE Water Conservation & Resource Restoration
SB
ANALYST McOlash
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$595.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to SB 12.
Duplicates SB 62.
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico State University – Department of Agriculture (NMSU-DA)
Environment, Mineral, & Natural Resources Department (EMNRD)
Office of the State Engineer (OSE)
Higher Education Department (HED)
SUMMARY
Synopsis of Bill
House Bill 366 appropriates $595,000 from the General Fund to the Board of Regents of New
Mexico State University for expenditure in FY 2008 for soil and water conservation districts to
match federal funds for water conservation and resource technical assistance.
FISCAL IMPLICATIONS
The appropriation of $595,000 contained in this bill is a recurring expense to the General Fund.
Any unexpended or unencumbered balance remaining at the end of FY shall revert to the
General Fund.
pg_0002
House Bill 366– Page
2
SIGNIFICANT ISSUES
Since 2003, the New Mexico legislature has annually funded the technical assistance program,
matching United States Department of Agriculture (USDA) funds and in-kind support. The
legislature previously funded the program as follows:
2003 $1,152.0;
2004 $75.0;
2005 $500.0; and
2006 $500.0.
The funds provide matching dollars to hire personnel to assist with USDA Farm Bill
conservation programs. Up to 30 individuals are employed through this program.
The proposal of $595,000 was not submitted to the New Mexico Higher Education Department
by NMSU and not included in the Department’s funding recommendation for FY08.
ADMINISTRATIVE IMPLICATIONS
There is an administrative cost associated with this program. A minimum impact of 5% in
administrative costs will be incurred ($27.5).
The New Mexico Department of Agriculture is responsible for hiring technical service providers
and managing the federal matching funds
.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 366 relates to Senate Bill 12, which appropriates $550,000 to the Board of Regents of
New Mexico State University for the management of soil and water conservation districts and
operation of district programs and projects.
HB 366 duplicates SB 62.
OTHER SUBSTANTIVE ISSUES
The matching funds will enable the districts to qualify for additional federal funds the NRCS has
set aside. The state’s 47 soil and water conservation districts control and prevent erosion,
prevent sediment damage after floods, encourage water conservation, as well as conduct forest
thinning projects around communities that are at risk from wild land fire in New Mexico.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
If this bill is not passed, the New Mexico Department of Agriculture might not have the USDA
matching funds. This may result in reduced or lost efficiencies in implementing Farm Bills.
Reduced or lost efficiencies may lead to the reduction in federal funds earmarked for the State of
New Mexico.
BM/nt