NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



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F I S C A L I M P A C T R E P O R T





SPONSOR: Maes DATE TYPED: 01/26/00 HB
SHORT TITLE: NMSU Hotel/Tourism Management Program SB 44
ANALYST: Pacheco-Perez


APPROPRIATION

Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
$ 380.0 Rec GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates HB96



SOURCES OF INFORMATION



Commission on Higher Education (CHE)

Economic Development Department (EDD)



SUMMARY



Synopsis of Bill



This bill appropriates $380.0 from the general fund to the Board of Regents of the New Mexico State University (NMSU) to enhance the hotel, restaurant and tourism management programs in the College of Agriculture and Home Economics. The appropriation is distributed as follows: $190.0 to the Agricultural Experiment Station (AES) and $190.0 to the Cooperative Extension Service (CES).



Significant Issues



According to EDD, this bill helps to improve the skilled labor management pool which positively impacts the economic development in the services sector of New Mexico's economy. The Hotel, Restaurant and Tourism program is the fastest growing program at NMSU's College of Agriculture and Home Economics, growing 10% per year over the last three years.



FISCAL IMPLICATIONS



The appropriation of $380.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY01 shall revert to the general fund.



ADMINISTRATIVE IMPLICATIONS



According to EDD, this bill provides funding for three FTEs.



DUPLICATION



This bill duplicates House Bill 96.



TECHNICAL ISSUES



The EDD suggests appropriating funds directly to the Hotel, Restaurant and Tourism program itself rather than to AES and CES.



OTHER SUBSTANTIVE ISSUES



According to the CHE, NMSU ranked this project first out of six special project requests. Funding for this program would allow NMSU to work with existing hospitality providers, promoting the "head and beds" approach to lengthening the number of days visitors stay in New Mexico.



The CHE recommends that the following language be included for all new recurring higher education programs: "The institution receiving the special appropriation in this bill shall submit a program evaluation to the LFC and the CHE by August 1, 2003 detailing the benefits to the State from having this program implemented for a three-year period."



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