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

SPONSOR:	Tripp		DATE TYPED:	02/13/03		HB	466
SHORT TITLE:		NM Tech to Continue Mapping Aquifer				SB
					ANALYST:		Williams

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
	$150.0			Recurring	General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received

Commission on Higher Education (CHE)

Energy, Minerals and Natural Resources Department (EMNRD)

No Response Received

Office of State Engineer

SUMMARY

Synopsis of Bill

House Bill 466 appropriates $150.0 from the general fund to the Board of Regents at New Mexico Institute of Mining and Technology (NMIMT) for continuation of a project to map the state’s aquifer and underground water resources. The intent of this project is to develop a better understanding of surface and underground water relationships and aquifer recharge and capacity issues.

Significant Issues

CHE notes a request for this project was not included in list of priority projects submitted by NMIMT.

FISCAL IMPLICATIONS

The appropriation of $150.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY04 shall revert to the general fund.

According to CHE and NMIMT, the appropriation would support the following:

Salaries (2.0 FTE hydrologists)	$114,000
Fringe Benefits	11,000
Supplies	8,500
Travel	8,500
Equipment	8,000
Other: (specify)
TOTAL	$150,000

ALTERNATIVES

CHE notes the potential for the use of indirect cost revenues as an alternative funding source.

OTHER SUBSTANTIVE ISSUES

CHE notes the Bureau of Mines, located at NMIMT, has mapped the Albuquerque Basin and portions of the Pecos Basin. EMNRD notes the importance of understanding ground water and recharge rates along with efficient management of water resources given the drought and the state’s dependence on underground water supplies.

AW/prr