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F I S C A L I M P A C T R E P O R T
SPONSOR Rawson
ORIGINAL DATE
LAST UPDATED
1/20/06
HB
SHORT TITLE NMSU Manufacturing & Engineering Center
SB 4
ANALYST Earp
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$650.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates House Bill 185
Relates to Appropriation in the General Appropriation Act
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
New Mexico State University (NMSU)
SUMMARY
Synopsis of Bill
Senate Bill 4 appropriates $650,000 from the general fund to the Board of Regents of New Mex-
ico State University to provide technical assistance to businesses and entrepreneurs through the
Manufacturing Technology and Engineering Center (M-TEC.)
FISCAL IMPLICATIONS
The appropriation of $650,000 contained in this bill is indicated in the table above as a recurring
expense to the general fund; however, the NMSU analysis states that $460,000 of this amount is
intended to be used for non-recurring purchases of advanced manufacturing equipment. The ad-
ditional $190,000 would support the hiring of additional technical staff to meet an increasing
demand for services. Any unexpended or unencumbered balance remaining at the end of fiscal
year 2007 shall revert to the general fund.
pg_0002
Senate Bill 4 Page
2
SIGNIFICANT ISSUES
Information submitted by NMSU indicates that this proposal is supported by the NMSU Board
of Regents. However, it was not submitted to the Higher Education Department (HED) for con-
sideration during the funding recommendation development process. Consequently, no recom-
mendation for this purpose is included in the higher education funding recommendations for fis-
cal year 2007.
PERFORMANCE IMPLICATIONS
According to the NMSU analysis, approval of this funding would allow M-TEC to provide tech-
nical assistance to 50% additional businesses each year and would also improve the capability
for M-TEC to design and prototype state-of-the-art products for its clients. The availability of
this leading edge design and product development technology would be an advantage in attract-
ing new businesses and improving the competitiveness of existing high tech industries.
ADMINISTRATIVE IMPLICATIONS
NMSU reports that no additional administrative support will be required in the event funding for
this existing program is expanded.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 185 and Senate Bill 4 are duplicate measures.
Funding provided through this bill would augment approximately $384,000 in recurring appro-
priations found in the General Appropriation Act for the Manufacturing Sector Development
Program.
POSSIBLE QUESTIONS
Are the Manufacturing Sector Development Program and the Manufacturing Technology and
Engineering Center distinct entities, or is NMSU changing the program name.
DE/mt