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F I S C A L I M P A C T R E P O R T
SPONSOR Garcia
ORIGINAL DATE
LAST UPDATED
1-19-06
HB
SHORT TITLE NMSU Aerospace Engineering Programs
SB 38
ANALYST Dearing
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$600.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates HB154
Relates to Appropriation in HB2
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
New Mexico State University (NMSU)
SUMMARY
Synopsis of Bill
Senate Bill 38 appropriates $600,000 from the general fund to the New Mexico State University
Board of Regents for FY07 for expenditure to develop and deliver a degree program in Aero-
space Engineering. The Aerospace Engineering Program has been approved by the Board of
Regents as major. The program is housed in and administered by the Department of Mechanical
Engineering. The first aerospace engineering courses plan to be offered in the Fall 2006 semes-
ter. Any unexpended or unencumbered balance remaining at the end of FY shall revert to the
general fund.
pg_0002
Senate Bill 38 Page
2
FISCAL IMPLICATIONS
The appropriation of $600,000 contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of FY shall revert to the general
fund.
SIGNIFICANT ISSUES
The New Mexico Higher Education Department is committed to the adequate and equitable sup-
port of necessary instructional, student services, and academic support initiatives for all students
in New Mexico. Activities to be funded in this proposal are currently recommended for funding
through the Instruction and General (I&G) higher education funding formula within the General
Appropriations Act. Funding of this program without the consideration of similar needs at all
institutions could weaken the equitability and thus the integrity of the established I&G formula
funding process.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
A similar proposal for a recurring appropriation of $152,000 is included in the New Mexico
Higher Education Department institutional funding requests for FY, and is supported by Legisla-
tive Finance Committee recommendations. An enactment of this legislation would augment the
appropriation of $152,000 is provided in HB2.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
NMSU will not be able to support and offer the planned aerospace engineering program at the
higher level. Potential consequences of not enacting this bill include minimized technical educa-
tion and subsequently reduced economic development in the aerospace industry.
PD/mt