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Committee OKs transfer from PPRF to drinking-water, planning and cultural-facilities accounts

5723806 · March 6, 2025
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Summary

The Conservation Committee voted to give House Bill 41 a favorable recommendation to move $13.25 million from the Public Project Revolving Fund into three accounts: $6.25 million to the Drinking Water State Revolving Fund, $2 million to the Local Government Planning Fund and $5 million to the Cultural Affairs Facilities Infrastructure Fund.

The Conservation Committee gave House Bill 41 a due-pass recommendation after hearing officials from the New Mexico Finance Authority and the Department of Cultural Affairs explain how the $13.25 million transfer from the Public Project Revolving Fund would be used.

Representative (bill sponsor) introduced the bill as New Mexico Finance Authority's public project revolving appropriation and said the appropriation would be distributed to three funds: $6,250,000 to the Drinking Water State Revolving Fund, $2,000,000 to the Local Government Planning Fund and $5,000,000 to the Cultural Affairs Facilities Infrastructure Fund.

Marquita Russell, senior staff at the New Mexico Finance Authority, told the committee that "this doesn't impact the general fund. These are monies that are moved from the public project revolving fund, which the finance authority administers." Russell explained the $6.25 million portion serves as the 20% state match to secure EPA capitalization grants for clean drinking water projects.

Michelle Gallagher Roberts, deputy cabinet secretary for the Department of Cultural Affairs, told the committee the $5 million for cultural affairs supports maintenance and infrastructure across the department's properties. "This fund is vital to the agency's maintenance of the facilities that we oversee across the state," she said, adding the department uses the money for maintenance, infrastructure and repairs and that the department operates more than 240 buildings and several drinking-water and wastewater systems.

Senators on the committee pressed for detail on how the $5 million was set and how it would be spent. Russell said the appropriation amounts reflect a statutory cap (she referenced language that allows up to 35% of annual governmental gross receipts tax receipts administered by NMFA to be appropriated for eligible programs) and the authority's assessment of needs: the drinking-water match was known ($6.25 million), the Local Government Planning Fund needed roughly $2 million to meet the annual application flow, and the remaining $5 million was allocated to cultural affairs.

Committee members asked whether the $5 million covered the department's full need; Gallagher Roberts said the department had identified about $46.5 million in projects on its capital improvements plan for fiscal year 2026. Committee members also asked about oversight and audits; Gallagher Roberts said cultural affairs projects go through standard state procurement and audit processes.

The committee recorded the motion to pass the bill and the secretary called the roll. House Bill 41 received a due-pass recommendation with seven affirmative votes, one negative vote and one excused member.

Votes at a glance: House Bill 41 '13.25 million from PPRF to: Drinking Water SRF ($6.25M), Local Government Planning Fund ($2M), Cultural Affairs Facilities ($5M). Committee action: due-pass recommendation (7 yes, 1 no, 1 excused).