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F I S C A L I M P A C T R E P O R T
SPONSOR Campos
ORIGINAL DATE
LAST UPDATED
1/27/2007
HB
SHORT TITLE NM Highlands Regional Economic Development
SB 56
ANALYST McOlash
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$800.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Economic Development Department (EDD)
Higher Education Department (HED)
SUMMARY
Synopsis of Bill
Senate Bill 56 appropriates $800,000 from the General Fund to the Board of Regents of New
Mexico Highlands University for expenditure in FY 2008 to fund the Northeastern New Mexico
Regional Economic Development Center.
FISCAL IMPLICATIONS
The appropriation of $800,000 contained in this bill is a recurring expense to the General Fund.
Any unexpended or unencumbered balance remaining at the end of FY 2008 shall revert to the
General Fund.
SIGNIFICANT ISSUES
The Economic Development Center at NMHU was created under the School of Business
Administration with funding from the Department of Commerce Economic Development
Administration Grant for the purpose of economic development. The center offers research,
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Senate Bill 56 – Page
2
technical analysis, and quantitative support for economic development projects in the northeast
quadrant of New Mexico.
The program works with students by integrating academic curriculums, providing access to
internships, offering a business practicum class, and inviting community-based leaders to speak
with business classes on NMHU campus.
Appropriations would broaden the center's capacity to retain and expand existing businesses,
help develop new start-up businesses, attract businesses that fit area communities, and stimulate
job creation in northern New Mexico.
The Economic Development Department indicates the program has seen:
1.
Major progress towards the development of manufacturing properties and exports;
2.
Increased partnerships, collaboration and relationships with local area stakeholders,
including regional Chamber of Commerce, the MainStreet programs, and local
governments; and
3.
The development of several businesses, and the potential expansion of the business
incubator program to another site in the community.
This proposal was submitted to the HED by NMHU, but was not included in the Department’s
funding recommendation for FY08.
PERFORMANCE IMPLICATIONS
Senate Bill 56 does not indicate performance measures. and criteria for evaluating include
tracking progress toward the development of manufacturing properties, increasing partnerships
and collaborations, and program expansion efforts within the community (HED Analysis).
OTHER SUBSTANTIVE ISSUES
The Economic Development Department indicates the program has seen:
4.
Major progress towards the development of manufacturing properties and exports;
5.
Increased partnerships, collaboration and relationships with local area stakeholders,
including regional Chamber of Commerce, the MainStreet programs, and local
governments; and
6.
The development of several businesses, and the potential expansion of the business
incubator program to another site in the community.
BM/mt