NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

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

 

SPONSOR:

Carraro

 

DATE TYPED:

3/3/03

 

HB

 

 

SHORT TITLE:

2007 International Science and Engineering Fair

SB

799

 

 

ANALYST:

Collard

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$500.0

 

See Narrative

Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

Economic Development Department

Intel International Science and Engineering Fair 2007 Co-Chairman

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 799 appropriates $500,000 from the general fund to the Economic Development Department for the purpose of supporting the city of Albuquerque’s bid to host the international science and engineering fair in 2007.

 

     Significant Issues

 

The international science and engineering fair is an annual fair, held in a different American city every year.  The sponsors of this event indicate approximately 4,000 to 5,000 people from 40 different countries will enter the city of Albuquerque due to this event.  International travelers will likely come to Albuquerque a few days before the fair and stay a few days after the fair in local hotels. 

 

The week-long fair consists of 1,400 students, whittled down from approximately 5,000,000 students from around the world, competing in 16 categories.  Of these students, 1,200 are actual contestants and 200 are alternates.  Between 30 percent and 35 percent of the students will win prizes totaling between two and three million dollars, including scholarships, computers, tuition grants, trips to Stockholm, Sweden for the Nobel Prize ceremonies, or trips to the European science and engineering fair.  For every category first, second, third, and fourth places are awarded to several students, as well as a “Best in Category” award.  Of the awarded students, three will be chosen from a panel of judges as outstanding science students.  In 2002, the annual fair was held in Louisville, Kentucky, and a New Mexico student was named one of the three outstanding science students.

 

FISCAL IMPLICATIONS

 

The appropriation of $500.0 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY04 shall revert to the general fund.  The Economic Development Department indicate it would be beneficial if this appropriation were contingent on matching funds from non-state sources because one of the requirements to host the international science and engineering fair is a show of community support. The sponsors need to raise $1,700.0 from public and private entities to host the event.  The sponsors of this event support the matching funds requirement.  They also indicate a $7 to $8 million economic impact on the state.

 

ADMINISTRATIVE IMPLICATIONS

 

The Economic Development Department indicates hosting the fair would aid in the department’s effort to promote high quality education in science and mathematics.  In addition, the fair offers the potential of showcasing New Mexico’s research and development organizations and the benefits of doing business in New Mexico.  The department indicates if the appropriation can be contracted out in one sum to the sponsors of the event, the implications are minimal.

 

TECHNICAL ISSUES

 

The department notes it would be helpful if the bill indicated how the appropriation is supposed to be administered and specifies how the money can be spent. 

 

OTHER SUBSTANTIVE ISSUES

 

The department indicates the international science and engineering fair offers New Mexico an opportunity to advance and promote science, math, and engineering education in the state.  In order to successfully win the bid, the organizers need to show that they have community support and the financial resources to support this event.  This will require a strong effort to mobilize existing resources in the state such as the national laboratories, research institutions, private industry and state and local government.   

 

Efforts are already underway in some of the state’s school systems to advance education in science and math.  These are fairly new initiatives and this kind of effort is supported by the state and the Economic Development Department.  Hosting the science and engineering fair can be considered another part of this effort and it would bode well to show that the state is supportive of events which honor achievements in science and engineering at the secondary education level.        

In addition, an event like has the potential of having a multi-million dollar impact on the state.

 

Finally, the department adds, without the state’s support in this effort, Albuquerque’s chances of winning the bid are lessened.  It would be to Albuquerque’s advantage to say not only does the state of New Mexico value high quality education in science, math and engineering but it also supports events that promote achievements in this field by offering to assist financially. 

 

KBC/njw