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SPONSOR: |
Maes |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Water & Wastewater Project Grants |
SB |
273/a/SCONC |
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ANALYST: |
Kehoe |
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REVENUE
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Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
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($6,000.0) |
($6,000.0) |
($6,000.0) |
Non-recurring |
W&WWGF |
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(Parenthesis ( ) Indicate Revenue Decreases)
Relates to Senate Bill
294
Legislative Finance
Committee Files (LFC)
SUMMARY
Synopsis of SCONC Amendment
The Senate
Conservation Committee amendments to Senate Bill 273 provides a provision for
an emergency clause; increases the aggregate amounts for emergency public
projects without legislative approval from the current amount of $3,000,000 to
$6,000,000 for fiscal years 2003, 2004 and 2005. The aggregate amount in fiscal year 2006 and
subsequent years authorized for emergency projects shall not exceed $3,000,000.
Synopsis
of Original Bill
Senate Bill 273
increases the aggregate amount of grants that may be made from the Water and
Wastewater Project Grant Fund for emergency public projects from $3,000,000 to
$5,000,000 for fiscal years 2004 through 2006.
The aggregate amount in fiscal year 2007 and subsequent years authorized
for emergency projects shall not exceed $3,000,000.
Significant Issues
Laws of 2000, Chapter
24 allows NMFA to make a limited number of grants in aggregate amounts not to
exceed $3,000,000 per fiscal year from the Water and Wastewater Project Grant
Fund for “emergency” water and wastewater grants without prior legislative
authority. The “emergency public
projects” must meet three criteria: 1)
the project is required by an unforeseen occurrence or circumstance threatening
public health, safety or welfare; 2) the project requires the immediate
expenditure of funds; and 3) the project funding is not within the available
financial resources of the applicant.
Senate Bill 273 temporarily increases the aggregate amount to $5,000,000
for each of fiscal years 2004, 2005 and 2006 and resumes the aggregate amount
of $3,000,000 in fiscal year 2007.
According to NMFA, the
Water and Wastewater Grant Fund has experienced a sharp increase in emergency
grants due to the impact of drought conditions on aging water and wastewater
infrastructure statewide. For the first
time, NMFA exhausted $3,000,000 in emergency funding in fiscal year 2002 and by
January 2003 had exhausted its fiscal 2003 emergency capacity totaling
$2,976,000.
FISCAL IMPLICATIONS
SB 273 would allow for
$5,000.0 in emergency projects for each fiscal year. A $15 million general fund appropriation,
including $6 million for emergency grants, was appropriated to the Water &
Wastewater Grant Fund for fiscal years 2002 and 2003. Legislative authorization to award grants
from the $9,000,000 balance is being requested by NMFA in Senate Bill 294.
NMFA recommends
amending Section 1, subsection B, on page 3, line 10 of the bill to change
“2004” to “2003.”
If NMFA’s
suggested amendment is intended to allow NMFA to expend an additional $2
million for emergency projects in fiscal year 2003, the bill should also be
amended to include an emergency clause.
Without an emergency clause, Senate Bill 273 will take effect
Relationship
Senate Bill 294
requests legislative authorization to make grants for water and wastewater projects
statewide totaling $150 million.
LMK/yr