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F I S C A L I M P A C T R E P O R T
SPONSOR Cisneros
ORIGINAL DATE
LAST UPDATED
2/3/06
HB
SHORT TITLE Strategic Water Reserve Administration
SB 649
ANALYST Hoffmann
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$100.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to House Bill 565.
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Finance and Administration (DFA)
Office of the State Engineer (OSE)
SUMMARY
Synopsis of Bill
Senate Bill 649 appropriates $100,000 from the general fund to the Interstate Stream Commis-
sion to administer the Strategic Water Reserve (SWR).
FISCAL IMPLICATIONS
The appropriation of $100,000 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.
pg_0002
Senate Bill 649 Page
2
SIGNIFICANT ISSUES
The proposed appropriation is not included in the Executive budget recommendation.
According to the Department of Finance and Administration, the SWR is a mechanism for ac-
quiring and holding water rights for use in meeting interstate stream compact delivery and water
delivery requirements. This appropriation appears sufficient to hire an additional FTE plus asso-
ciated costs and supplies.
PERFORMANCE IMPLICATIONS
According to the Department of Finance and Administration, it is unclear to what degree this ap-
propriation would increase agency performance. It could possibly allow staff currently assigned
to this task to go back to increasing performance in another area. Dedicated staff may also result
in better management of SWR funds, assets and acquisition if the appropriation resulted in an
increase in the overall number of staff working on SWR.
ADMINISTRATIVE IMPLICATIONS
17.14.3-3 NMSA 1978 gives the Interstate Stream Commission the authority to establish the
Strategic Water Reserve.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Senate Bill 649 is related to House Bill 565, which appropriates $5,000,000 to the Interstate
Stream Commission to purchase water rights from willing sellers. The water rights purchase
through House Bill 565 would be assigned to the strategic water reserve.
CH/nt