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F I S C A L I M P A C T R E P O R T
SPONSOR Taylor
ORIGINAL DATE
LAST UPDATED
1/29/08
HB
SHORT TITLE NMSU Food Service Program
SB 301
ANALYST Haug
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$85.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
New Mexico State University (NMSU)
SUMMARY
Synopsis of Bill
Senate Bill 301 appropriates $85.0 from the general fund to the Board of Regents of New
Mexico State University to support the New Mexico Department of Agriculture’s Food Service
Program.
FISCAL IMPLICATIONS
The appropriation of $85.0 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.
The HED states that this request was submitted by NMSU to the New Mexico Higher Education
Department for review and is not included in the Department’s funding recommendation for
FY09.
The HED’s evaluation table of FY09 Research and Public Service Projects provided to the LFC
classifies this project as a “would not oppose if funding available" project. Reasons for this
classification decision are not provided. (LFC Report 07-20, Higher Education Department
Review of Selected Research and Public Service Projects, January 12, 2008, Table 4, p75.)
pg_0002
Senate Bill 301 – Page
2
SIGNIFICANT ISSUES
NMSU states that:
The New Mexico food processing industry is experiencing rapid growth and looking to
establish and expand market share in regional and national markets.
The New Mexico Department of Agriculture (NMDA) provides support in the form of
development, advertising, promotion, and trade show assistance.
There exists a demand to increase sales and market share of New Mexico food products
to hotels, restaurants, casinos, and other markets where New Mexico suppliers have had
minimal participation.
NMDA is currently working with major food service distributors such as Sysco, Zanios,
Shamrock foods, Aramark, and others to establish distribution for New Mexico food
products to the food service industry.
The demand for services addressing the food service industry has reached beyond the
current resources/capabilities of NMDA. A new FTE is needed to work with agricultural
producers and food manufacturers to establish market share in restaurants, hotels,
casinos, and other markets. NMDA has support from industry, infrastructure, and
momentum to establish a new FTE and generate success in the form of sales and market
share.
GH/bb