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F I S C A L I M P A C T R E P O R T
SPONSOR Papen
ORIGINAL DATE
LAST UPDATED
1/19/08
HB
SHORT TITLE Local Government Planning Fund
SB 65
ANALYST Kehoe, L.
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$1,000.0
Non-Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico Finance Authority (NMFA)
SUMMARY
Synopsis of Bill
Senate Bill 65 appropriates $1 million from the general fund to the local government planning
fund for the purpose of providing planning funds for water or wastewater system development,
long-term water management, water conservation strategies, or economic development.
FISCAL IMPLICATIONS
The appropriation of $1 million contained in this bill is a non-recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not
revert to the general fund.
The bill contains an emergency clause.
SIGNIFICANT ISSUES
The Legislature created the water and wastewater planning fund in 2002 to provide grants for
qualified entities to plan and estimate the costs of implementing the most cost effect and means
to meet water and wastewater public project needs and to assist in paying for the administrative
costs of the program. In 2005, the Legislature changed the name to the local government
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Senate Bill 65 Page
2
planning fund and expanded the scope to allow planning grants for water conservation, long-term
master plans, and economic development plans. Grants from the fund do not require legislative
authorization. In accordance with statute, NMFA issued $1 million in revenue bonds to
capitalize the grant fund, and the Legislature appropriated $1 million to the fund in 2003. As of
June 30, 2007, NMFA has made 39 grants totaling $907 thousand from the fund.
The maximum allowable grant amount per project is $50 thousand. Qualified entities are
required to reimburse the local government planning fund without interest or fees. However, if
the project is financed through the NMFA, the repayment provision is waived.
As provided by NMFA, the following chart demonstrates the type of planning grants
administered to date:
LMK/mt