NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Commission on Higher Education (CHE)

SUMMARY

Synopsis of HAGC Amendment

This amendment extends usage of the appropriation through the fiscal year 2001. Language is added elaborating on vegetation management to include thinning, prescribed burns and re-seeding native grasses in pinon-juniper and alpine woodlands. The soil and water conservation commission shall submit progress reports to the Legislature every six months during the course of the program and annually for five years following the completion of the program.

Synopsis of Bill

This bill appropriates $1,000.0 to New Mexico State University for allocation to soil and water conservation districts statewide for the purpose of conducting a collaborative program of range improvements, including watershed restoration and vegetation management to improve water quality and hydrologic function, to be led by soil and water conservation districts in cooperation with the youth conservation corps and other federal, state, and local agencies.

Significant Issues

According to the CHE, the project proposed in this bill was not included in the list of eleven special project requests made by the institution.

FISCAL IMPLICATIONS

The appropriation of $1,000.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY00 shall revert to the general fund.

OTHER SUBSTANTIVE ISSUES

According to the CHE, the state higher education funding formula allows institutions to retain 100% of earned overhead on federal grants and contracts for the purpose of providing seed money and matching funds for projects such as that proposed in this bill. Of this indirect cost revenue, a portion is used to support salaries of administrative persons monitoring the contracts, utilities and other overhead expenses required to maintain the activities of the contract. However, a great deal of the indirect cost revenues is available to develop new research and public service projects as well as to expand academic departments. The revenue is unrestricted in the sense that the governing board of the institution has the flexibility to chose which projects are supported with these funds.

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