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F I S C A L I M P A C T R E P O R T
SPONSOR Campos
DATE TYPED 2/20/05
HB
SHORT TITLE NM Highlands Economic Development Initiative
SB 741
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 HB944
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
Senate Bill 741 – 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-
pg_0002
Senate Bill 741 -- 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 HB944 in that HB944 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