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

SPONSOR Moore

DATE TYPED 02-10-05 HB 186/aHEC

SHORT TITLE Statewide Agricultural Education Programs

SB

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$537.1

Recurring

General

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the appropriation for New Mexico State University in the General Appropriations Act.

Duplicates SB238

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico State University (NMSU), College of Agriculture and Home Economics (CAHE)

New Mexico Commission on Higher Education (CHE)

New Mexico Public Education Department (PED)

SUMMARY

Synopsis of

HEC Amendment

House Education Committee Amendment to HB186 adds program evaluation and effectiveness

language as follows:

On page 1, line 21:

After the word “fund” the language: “Any unexpended or unencumbered balance remaining

at the end of FY06 shall revert to the general fund. – the language – New Mexico State Uni-

versity shall submit a plan for program evaluation, including specific program goals and cri-

teria for assessing program effectiveness to the Legislative Finance Committee and the

Commission on Higher Education by October 1, 2005. The institution shall also submit a

House Bill 186\aHEC -- Page 2

program evaluation to the Legislative Finance Committee and the Commission on Higher

Education by June 30, 2008 detailing the benefits to the State of New Mexico from having

the program implemented for a three year period.” is inserted.

House Education Committee Amendment to HB186 attaches no additional appropriation to the

bill.

Original Synopsis of Bill

House Bill 186 – Making an Appropriation for Agricultural Education Programs Statewide; De-

claring an Emergency – appropriates $537,100 from the general fund to the Board of Regents of

New Mexico State University for expenditure in FYs 05 and 06 to support the continuation of

agricultural education programs statewide. Any unexpended or unencumbered balance remaining

at the end of FY06 shall revert to the general fund. This bill carries an emergency clause.

Significant Issues

NMSU-CAHE indicates that at present there are 75 local agriculture education programs in the

state of New Mexico and that funding is needed to bring secondary agriculture education pro-

grams in line with industry standards. These funds would be used to update equipment and tech-

nology at the local district level and on-going program support is required – not only to bring

programs up to acceptable standards – but to ensure that standards are maintained in the future.

NMSU-CAHE additionally suggests that the No Child Left Behind Act has also mandated indus-

try-level certification training programs in agriculture education. Further, that in order to

achieve industry-level certification programs, additional recurring funding is necessary to pur-

chase industry-quality equipment for program and curriculum enhancement. NMSU-CAHE

notes that New Mexico’s economic development projections indicate some 185,000 new jobs in

the next ten years. To this end, significant additional resources are required if the state is to meet

the training and educational needs of the state’s agriculture industry.

CHE indicates that the majority of agriculture education programs in the state receive no federal

appropriations for program improvement and student certification training. It also notes that this

request was not in the list of priority projects submitted by NMSU to CHE for review. Accord-

ingly, the request was not included in the commission’s funding recommendation for FY06.

FISCAL IMPLICATIONS

The appropriation of $537,100 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

ADMINISTRATIVE IMPLICATIONS

NMSU would retain oversight of the program.

House Bill 186\aHEC -- Page 3

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to the appropriation for New Mexico State University in the General Appropriations Act.

Duplicates SB238 in that SB238 also appropriates $537,100 from the general fund to the Board

of Regents of New Mexico State University for expenditure in FYs 05 and 06 to support the con-

tinuation of agricultural education programs statewide.

OTHER SUBSTANTIVE ISSUES

As general background to this issue, PED indicates that a career, technical education program is

composed of three interwoven parts: (1) classroom/laboratory instruction; (2) work-based learn-

ing, and (3) leadership development through the student organization. PED additionally indi-

cates that New Mexico recognizes seven program areas:

•

Family and Consumer Sciences Education;

•

Business Education;

•

Marketing Education;

•

Health Occupations Education;

•

Technology Education;

•

Trade and Industrial Education; and

•

Agriculture Education.

While there are approximately 82,000 secondary students enrolled in career-technical education

programs, approximately 5,000, or 6 percent, of these career-technical students are enrolled in

agricultural education.

PED further observes that the New Mexico Department of Labor, in its IN Brief publication, pre-

sents information on industries and occupations that will impact the state’s economic outlook

through the year 2012. New Mexico’s economy is expected to generate about 158,000 jobs

through the year 2012 and experience growth of about 12 percent. An anticipated job growth of

1,580 jobs or 1 percent is indicated for agriculture-related jobs during this time period.

PED indicates that – as a result of a similar bill introduced in the 2003 legislative session – the

NMSU Agricultural Education/FFA office currently receives $300,000 in recurring state appro-

priated monies for support of statewide agricultural education programs.

BFW/njw