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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F I S C A L I M P A C T R E P O R T





SPONSOR: McSorley DATE TYPED: 2/6/01 HB
SHORT TITLE: Manufacturing Engineering Special Projects SB 389
ANALYST: Gilbert


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 440.0 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates House Bill 321



SOURCES OF INFORMATION



LFC Files

Commission on Higher Education (CHE)



SUMMARY



Synopsis of Bill



Senate Bill 389 appropriates $440.0 from the general fund to the Board of Regents of the University of New Mexico (UNM) for the purpose of funding a manufacturing training and technology center cleanroom.



Significant Issues



The appropriation in this bill represents an incremental funding expansion of the manufacturing engineering special project for the manufacturing training and technology center cleanroom. This program will support approximately 100 students in an attempt to address the statewide demand to fill high-tech manufacturing jobs.



This project was the third highest priority for all research and public service projects that were submitted by the University of New Mexico Board of Regents to the Commission on Higher Education (CHE) for consideration.



After evaluating this program expansion request, the CHE recommended funding for this program at $200.0.





PERFORMANCE IMPLICATIONS



The UNM Manufacturing Engineering is scheduled for evaluation using the CHE's evaluation process in FY02. The evaluation process was developed in conjunction with DFA and LFC to be responsive to the Accountability in Government Act.



FISCAL IMPLICATIONS



The appropriation of $440.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.



AMENDMENTS



The CHE suggests the following language for all new recurring higher education programs and expansion of current programs (assuming that funding will continue beyond 2001-2002):

"The institution receiving the appropriation in this bill shall submit a program evaluation to the Legislative Finance Committee and the Commission on Higher Education by August 2, 2004 detailing the benefits to the State of New Mexico from having this program implemented for a three-year period."



LG/njw