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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
2/6/2007
2/8/2007 HB
SHORT TITLE UNM Geographic Alliance Program
SB 217/aSEC
ANALYST McOlash
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$500.0 Non-Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates HB 383.
SOURCES OF INFORMATION
LFC Files
Responses Received From
Energy, Minerals, & Natural Resources Department (EMNRD)
Public education Department (PED)
Higher Education Department (HED)
SUMMARY
Synopsis of SEC Amendment
The Senate Education Committee amendment establishes the purpose of SB 217 as “establishing
an endowment," not addressed in the original bill.
The amendment also clarifies that the New Mexico Geographic Alliance Program provides geo-
graphic education in public schools.
Finally, the amendment converts the appropriation from reverting to non-reverting to be more
consistent with the concept of an endowment.
Synopsis of Original Bill
Senate Bill 217 appropriates $500,000 from the General Fund to the Regents of UNM for expen-
diture in FY 2008 to fund the New Mexico Geographic Alliance (NMGA).
pg_0002
Senate Bill 217/aSEC – Page
2
FISCAL IMPLICATIONS
The appropriation of $500,000 contained in this bill is a non-recurring expense to the General
Fund. Any unexpended or unencumbered balance remaining at the end of FY 2008 shall revert to
the General Fund.
The University of New Mexico confirms this request for $500,000 is non-recurring and will be
matched by National Geographic to establish an endowment for geographic education in New
Mexico (UNM Legislative Priorities, 2007). The endowment will provide continuing funding for
NMGA.
SIGNIFICANT ISSUES
According to UNM, the $500,000 requested are non-recurring funds to be matched by the Na-
tional Geographic Society Alliance to establish an endowment for geographic education in New
Mexico. The endowment will provide continuing funding for NMGA. NMGA links professional
geographers at colleges and universities with K-12 teachers throughout the state of New Mexico.
The goal is to improve geography education at the K-12 level.
The New Mexico Geographic Alliance was formed in 1992 as a collaboration of the National
Geographic Society and the University of New Mexico. The Alliance offers a variety of pro-
grams for teachers, parents, and school districts including:
Alliance Summer Geography Institute
Alliance Advanced Summer Geography Institute
Curriculum Materials Development
National Geographic Society Geographic Bee
Geography for Life
Geography Outreach
In-Service Workshops
Advanced Placement Geography
Reading Through Geography
Conferences
Mentoring Induction
This request was submitted by UNM to HED for review, but is not included in the Department’s
funding recommendation for FY08.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
HB 383 is a duplicate of SB 217.
TECHNICAL ISSUES
The University of New Mexico and analyses of HB 383 mention an “endowment" that will pro-
vide continuing funding for this project. The bill, however, does not address the issues of an en-
dowment. Section 21-1-38 outlines some of the procedures relating to endowment funds.
pg_0003
Senate Bill 217/aSEC – Page
3
21-1-38. Definition; requirements for adoption of investment policy for investing endow-
ment funds.
A. As used in this section:
(1) "endowment funds" means funds:
(a) acquired by gift by an educational institution with respect to which the donors or other
outside agencies have stipulated as a condition of the gift, and the stipulation is expressed spe-
cifically in the gift instrument, that the principal is to be maintained and invested for the purpose
of producing current and future income that may either be added to the principal or expended,
and the maintenance of the principal may be either: 1) held inviolate and in perpetuity; or 2) ex-
pended after the passage of a stated period of time or upon the happening of a specified event;
and
(b) notwithstanding the source of acquisition, that the governing board of the educational in-
stitution has determined and has designated by a written instrument, either revocable or irrevoca-
ble, to be retained for long-term investment; and
(2) "educational institution" means an educational institution designated in Article 12,
Section
11
of the constitution of New Mexico and any post-secondary educational institution, which term
includes, but is not limited to, an academic, vocational, technical, business, professional or other
school, college or university or other organization or person offering or purporting to offer
courses, instruction, training or education through correspondence or in person, to any individual
within this state over the compulsory school attendance age, if that post-secondary educational
institution is directly supported in whole or in part by state or local taxation.
B. The board of finance, as that term is defined in Section 6-10-9
NMSA 1978, for each of the
educational institutions:
(1) shall adopt regulations governing the investment of endowment funds by the institution's
board of finance, which regulations shall provide at least for:
(a) the application of the investment standard of conduct described in Section 6-8-10
NMSA
1978 and the Uniform Management of Institutional Funds Act [46-9-1
NMSA 1978] as the stan-
dard for evaluating an investment;
(b) the appointment of an investment advisory committee made up of individuals having dem-
onstrated experience and skill in the field of the investment of endowment funds; and
(c) the development of a comprehensive investment policy for the investment of endowment
funds by the institution, with the advice and upon the recommendation of the investment com-
mittee; and
(2) may employ an institutional endowment funds investment manager and delegate to him
the power to make purchases, sales exchanges, investments and reinvestments of endowment
funds.
BM/nt