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F I S C A L I M P A C T R E P O R T
SPONSOR M.J. Garcia
ORIGINAL DATE
LAST UPDATED
1/29/08
HB
SHORT TITLE NMSU Vegetable & Fruit Distribution Center
SB 332
ANALYST Haug
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$160.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
New Mexico State University (NMSU)
SUMMARY
Synopsis of Bill
Senate Bill 332 appropriates $160.0 from the general fund to the Board of Regents of New
Mexico State University for the New Mexico Department of Agriculture to fund a cooperative
vegetable and fruit distribution center in Dona Ana County.
FISCAL IMPLICATIONS
The appropriation of $160.0 contained in this bill is a recurring expense to the general fund. Any
unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert to the
general fund.
This request was not submitted by NMSU to the New Mexico Higher Education Department for
review and is not included in the Department’s funding recommendation for FY09.
SIGNIFICANT ISSUES
According to NMSU, marketing and distribution of locally grown fruits and vegetables is an
important movement in agriculture. Fresh fruits and vegetables provide nutritional benefits.
pg_0002
Senate Bill 332 – Page
2
Funding of the fruit and vegetable cooperative was not vetted through the Board of Regents of
New Mexico State University budget process. NMDA does not have the technical staff expertise
in establishing and managing agricultural cooperatives.
The HED notes that Cooperatives can make contributions to the rural economic, social, and
political development of a region by assisting small and medium farmers in producing higher
yields and providing a market for sale. This proposal aims to support a distribution center in
Dona Ana County. According to the US Census Bureau, Dona Ana County shows the median
household income at $30,740 and 23% of the population are persons living below poverty.
GH/mt