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F I S C A L I M P A C T R E P O R T
SPONSOR Papen
DATE TYPED 01/26/05 HB
SHORT TITLE NMSU Viticulture Program
SB 89
ANALYST Woods
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$75.0
Recurring
General
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to the appropriation for New Mexico State University in the General Appropriations Act.
Duplicates HB92
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) (HB92 analysis)
SUMMARY
Synopsis of Bill
Senate Bill 89 – Making an Appropriation for the Viticulture Program at New Mexico State Uni-
versity – appropriates $75,000 from the general fund to the Board of Regents of New Mexico
State University for FY06 to provide support for the viticulture (the cultivation, study and
science of grape growing
)
program. Any unexpended or unencumbered balance remaining at the
end of FY06 shall revert to the general fund.
Significant Issues
NMSU-CAHE suggests that although the wine making industry in New Mexico is developing
into a significant economic activity and directly reliant upon proper plant selection and care and
long-term maintenance of vineyards, there is not a specialist in NMSU’s Cooperative Extension
Service dedicated to this field. Employment of a viticulturist would seek to advance the univer-
sity’s statewide extension education and research role as it specifically relates to New Mexico’s
grape growers and wine producers, and serve as a resource for applied information and recom-
mendations for business operations.
pg_0002
Senate Bill 89 -- Page 2
NMSU-CAHE indicates this initiative would be integrated with numerous institutions, including
NMSU academic programs, the New Mexico Department of Agriculture, small business devel-
opment centers, county governments, tribal governments, soil and water conservation districts,
agricultural producers associations, agribusinesses, and state and federal agencies.
FISCAL IMPLICATIONS
The CHE notes that this program was funded $75,000 last year and has a recurring appropriation
that is rolled into the Department of Agriculture’s base budget in the FY06 appropriation act.
SB89 is a request to augment program with an additional $75,000 that will provide for a fully-
funded viticulturist specialist position responsible for educational and operational outreach ac-
tivities. It will also provide for a .5 clerical support staff position, as well as funding for supplies
and operating expenses, including funding travel within the state.
This request was not in the list of priority projects submitted by the NMSU Board of Regents to
the CHE for review. Accordingly, it was not included in the CHE’s funding recommendations
for FY06.
ADMINISTRATIVE IMPLICATIONS
NMSU-CAHE will retain oversight of the viticulture program.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Relates to the appropriation for NMSU in the General Appropriations Act.
Duplicates SB89.
ALTERNATIVES
The CHE advises that higher education institutions receive indirect cost revenues from federal
contracts and grants. Further, that this money is unrestricted in the sense that the governing board
of the institution has the flexibility to choose which projects are supported with these funds. One
of the purposes of retaining these funds is to provide seed money and matching funds for projects
such as the one proposed in this bill.
BFW/lg