NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

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

 

 

 

SPONSOR:

Varela

 

DATE TYPED:

02/04/03

 

HB

66

 

SHORT TITLE:

NMIMT Institute Expansion

 

SB

 

 

 

ANALYST:

Williams

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$500.0

 

 

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Responses Received

LFC Files

Economic Development Department

Commission on Higher Education (CHE)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 66 appropriates $500.0 from the general fund to the Board of Regents of the New Mexico Institute of Mining and Technology (NMIMT) for the purpose of expanding the operations of the Institute for Complex Additive Systems Analysis (ICASA).

 

FISCAL IMPLICATIONS

 

The appropriation of $500.0 contained in this bill is a recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of FY 2004 shall revert to the general fund. 

 

The LFC budget recommendation includes an increase of $200.0 for a total appropriation of $523.2 in FY04 for the ICASA at NMIMT.  According to the LFC budget document, the ICASA program is a research initiative engaged in the study of complex interdependent systems.  The expansion funds will allow ICASA to establish a new research center in conjunction with the National Security Agency (NSA).  The additional $200.0 will enable ICASA to leverage an additional $5 million to $10 million annually from NSA to build, staff and maintain an advanced analysis research center.

 

According to the CHE analysis, NMIMT submitted to CHE an expansion request of $500.0; the request was ranked by NMIMT as #3 out of 14 research and public service projects.  In its funding recommendation, CHE noted “In addition to its FY2003-04 funding recommendations, the Commission supports the position that, should adequate revenue be available, funding for the following projects be appropriated” and noted $150.0 for expansion of ICASA. 

 

OTHER SUBSTANTIVE ISSUES

 

CHE notes the possibility of the use of indirect cost revenue for this project. 

 

This is an Information Technology Oversight Committee-sponsored bill.

 

POSSIBLE QUESTIONS

 

  1. What performance measures are available to assess the effectiveness of this proposal ?

 

AW/sb