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

SPONSOR Vigil

DATE TYPED 02-26-05 HB 944

SHORT TITLE NM Highlands Economic Development Initiative

SB

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$810.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

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

Duplicates SB741

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Commission on Higher Education (CHE)

New Mexico Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

House Bill 944 – Making an Appropriation to the Board of Regents of New Mexico Highlands

University for an Economic Development Initiative – appropriates $810,000 from the general

fund to the Board of Regents of New Mexico Highlands University for expenditure in FY06 for

an economic development initiative centered at New Mexico Highlands University in conjunc-

tion with the city of Las Vegas and Luna Vocational-Technical Institute. Any unexpended or un-

encumbered balance remaining at the end of FY06 shall revert to the general fund.

Significant Issues

CHE indicates that this program will be centered at New Mexico Highlands University School of

Business Administration and seeks to stimulate economic development for the city of Las Vegas

and San Miguel County. The group represents a wide spectrum of business people from gov-

House Bill 944 -- Page 2

ernment and private sectors along with concerned individuals. The project is directed at encour-

aging new “homegrown” ventures, nourish existing local and regional businesses, and attract

outside business investments.

CHE further notes that this request was approved by New Mexico Highlands University Board of

Regents in the amount of $560,000 and submitted to CHE for review; however the program was

not recommended for expansion by the commission at this time.

FISCAL IMPLICATIONS

The appropriation of $810,000 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

New Mexico Highlands University will retain oversight of this appropriation.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

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

Duplicates SB741 in that SB741 also seeks to appropriate $810,000 from the general fund to the

Board of Regents of New Mexico Highlands University for expenditure in FY06 for an eco-

nomic development initiative centered at New Mexico Highlands University in conjunction with

the city of Las Vegas and Luna Vocational-Technical Institute.

OTHER SUBSTANTIVE ISSUES

CHE suggests – assuming that funding will continue beyond FY06 – that consideration might be

given to requiring New Mexico Highlands University to submit a plan for program evaluation,

including specific program goals and criteria for assessing program effectiveness to the Legisla-

tive Finance Committee and the Commission on Higher Education by October 1, 2005. Further

that the university should also submit a program evaluation to the Legislative Finance Commit-

tee and the Commission on Higher Education by June 30, 2008 detailing the benefits to the State

of New Mexico from having this program implemented for a three-year period.

BFW/yr