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F I S C A L I M P A C T R E P O R T
SPONSOR Garcia, M. J.
ORIGINAL DATE
LAST UPDATED
1/23/08
HB
SHORT TITLE Manufacturing Extension Services
SB 110
ANALYST Earnest
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$1,300.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Senate Bill 110 duplicates House Bill 280.
SOURCES OF INFORMATION
LFC Files
Responses Received From
Economic Development Department (EDD)
SUMMARY
Synopsis of Bill
Senate Bill 110 appropriates $1.3 million for expenditure in FY08 and FY09 from the general
fund to the Economic Development Department to contract for manufacturing extension services
for small and mid-sized manufacturers. The appropriation is contingent on the receipt of money
from the National Institute of Standards and Technology (NIST) to operate a manufacturing
center in New Mexico that is approved by NIST. The bill declares an emergency.
FISCAL IMPLICATIONS
The appropriation of $1.3 million contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert
to the general fund.
SIGNIFICANT ISSUES
EDD reports that manufacturing extension services to New Mexico’s emerging and medium-size
manufacturing companies is a key technical assistance program utilized by the Economic
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Senate Bill 110 – Page
2
Development Department. This assistance helps these companies streamline their processes so
that they operate more efficiently and become more competitive. This type of technical
assistance ultimately results in the creation of more jobs and greater capital investment in New
Mexico. Manufacturing Extension Services is extremely valuable to start-up manufacturers by
helping them design streamlined processes.
The Economic Development Department also has a program to train companies in streamlining
manufacturing practices to become IS0-9000 certified.
PERFORMANCE IMPLICATIONS
According to EDD, the department has an existing contract with New Mexico Manufacturing
Extension Partnership (NMMEP) for manufacturing extension services. From July 1 to
December 31, 2007, NMMEP has assisted 26 urban and 46 rural companies with manufacturing
extension services. Since 2000, NMMEP has created or retained approximately 2,631 jobs.
In addition, EDD reports that one of NMMEP’s successes is La Puerta Original Incorporated, a
high-end custom door and millwork company located in Santa Fe. Through Lean Manufacturing
Principles, NMMEP’s assistance has resulted in faster, more efficient production process,
reduced paperwork, greater on-time delivery to customers, improved customer satisfaction, and
improved cash flow for La Puerta.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Senate Bill 110 duplicates House Bill 280.
BE/bb