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F I S C A L I M P A C T R E P O R T
SPONSOR Altamirano
ORIGINAL DATE
LAST UPDATED
2/1/06
HB
SHORT TITLE Market New Mexico Grown Wheat
SB 172
ANALYST Earp
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$150.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates House Bill 474
Relates to Appropriation in General Appropriation Act
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
New Mexico Department of Agriculture (NMDA)
SUMMARY
Synopsis of Bill
Senate Bill 172 appropriates $150,000 from the general fund to the Board of Regents of New
Mexico State University (NMSU) for the New Mexico Department of Agriculture (NMDA) to
market New Mexico-grown wheat internationally and domestically.
FISCAL IMPLICATIONS
The appropriation of $150,000 contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert
to the general fund.
The sum of $47,500 was appropriated for this purpose in Chapter 34, Laws of 2005 (Senate Bill
190.) The Legislative Finance Committee funding recommendation for fiscal year 2007 has in-
cluded this amount as a component of a block-grant appropriation to NMSU for special project
expansion. The Executive recommendation does not include funding for this item. Therefore,
pg_0002
Senate Bill 172 Page
2
depending on which recommendation is adopted, the appropriation in this bill will may result in
the augmentation of the funding contained in HB 2.
SIGNIFICANT ISSUES
This proposal was not included among the special program funding requests submitted by
NMSU to the Higher Education Department (HED) for review. Consequently, this proposal has
not been included in the HED fiscal year 2007 funding recommendations to the Legislature.
ADMINISTRATIVE IMPLICATIONS
NMSU would be responsible for administration of the funds appropriated through this legisla-
tion.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 474 and Senate Bill 172 are duplicate measures.
OTHER SUBSTANTIVE ISSUES
NMDA reports that it is following the lead of the United States Department of Agriculture
(USDA) to develop value-added bio-fuels using bulk grains such as wheat. This funding will
provide the New Mexico wheat industry needed resources to evaluate not only bio-fuels but
other value-added activities. The New Mexico wheat industry is extremely important to eastern
and northeastern New Mexico. This funding will help stimulate the development of alternative
markets and usage.
DKE/mt