Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Herrera
/Cates/Gonzales/Abeyta/Lara
LAST UPDATED
ORIGINAL DATE 2/25/2025
SHORT TITLE
Community Water System Assistance
Project
BILL
NUMBER House Bill 482
ANALYST Davidson
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected
$900.0 Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected DFA ($258.5) ($255.7) Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Department of Finance Administration (DFA)
New Mexico Environment Department (NMED)
SUMMARY
Synopsis of House Bill 482
House Bill 482 (HB482) appropriates $900 thousand from the general fund to Department of
Finance Administration (DFA) for the implementation of the Community Water System
Assistance Pilot Project. The bill defines the project as a three-year pilot to support statewide
technical water system providers and directs DFA’s Local Government Division to administer
the funds.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
House Bill 482 – Page 2
FISCAL IMPLICATIONS
The appropriation of $900 contained in this bill is a recurring expense to the general fund. Any
unexpended or unencumbered balance remaining at the end of FY28 shall revert to the general
fund. Although HB482 does not specify future appropriations, establishing a new grant program
could create an expectation the program will continue in future fiscal years; therefore, this cost is
assumed to be recurring.
Analysis from DFA notes it will utilize up to $258.5 thousand in FY26 and $255.7 thousand in
FY27 of the appropriation so the Local Government Division will be able to provide technical,
financial, and managerial assistance to the participating community water and wastewater
systems as well as hire additional staff to ensure implementation of the bill.
Analysis from the New Mexico Environment Department (NMED) notes the agency may need to
divert administrative work and staff to ensure implementation of the bill as NMED will likely
need to coordinate with DFA and the U.S. Environmental Protection Agency for the pilot
project.
SIGNIFICANT ISSUES
NMED analysis notes any funds directed towards supporting the technical, financial, and
managerial aspects of community water systems will ensure these systems, many who struggle
due to limited resources, could improve by addressing operational weaknesses, creating long-
term planning, and enhancing systems’ ability to comply with state and federal regulations.
Analysis from DFA notes implementation of the funds, which within the current bill rests with
DFA, may be better piloted and utilized by an agency such as NMED. NMED has both a
Drinking Water Bureau and a Wastewater bureau; these entities could be better positioned to
oversee the pilot project. NMED analysis echoes this, noting the department’s Drinking Water
Bureau and Wastewater Bureau already receive federal funding specified for work similar to that
which bill is aiming to support.
AD/hj/SL2