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F I S C A L I M P A C T R E P O R T
SPONSOR Altamirano
ORIGINAL DATE
LAST UPDATED
1/30/06
HB
SHORT TITLE Manufacturing Extension Services
SB 173
ANALYST Earnest
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$650.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Companion to House Bill 320
SOURCES OF INFORMATION
LFC Files
Responses Received From
Economic Development Department (EDD)
SUMMARY
Synopsis of Bill
Senate Bill 173 appropriates $650 thousand from the general fund to the Economic Development
Department (EDD) to contract for manufacturing extension services. The appropriation is con-
tingent on the receipt of money from the National Institute of Standards and Technology (NIST)
to operate a manufacturing center in New Mexico. The appropriation may be expended in FY06
and FY07
FISCAL IMPLICATIONS
The appropriation of $650 thousand contained in this bill is a recurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY07 shall revert to
the general fund.
SIGNIFICANT ISSUES
The appropriation will support the New Mexico Manufacturing Extension Partnership
(NMMEP). NM MEP provides technical assistance to emerging and medium-sized manufactur-
pg_0002
Senate Bill 173 Ė Page 2
ing companies. This assistance helps companies streamline their processes to become efficient
and more competitive. EDD indicates that such technical assistance will ultimately result in
more jobs and capital investment in New Mexico. The NM MEP partners with EDDís Home-
field Advantage program to help New Mexico companies expand.
PERFORMANCE IMPLICATIONS
According to EDD, NM MEP assists companies in both rural and urban New Mexico with their
processes. Assisted companies have created approximately 87 additional jobs and increased
sales by approximately $27.5 million which resulted in capital investment in New Mexico of
over $10.6 million. Some of the companies that NM MEP assisted include Viviendas in Taos,
Syzygy Tile, Inc in Silver City, A & M Machine Works in Hobbs and Millennium in Roswell.
ADMINISTRATIVE IMPLICATIONS
There would be little administrative impact on the operations of EDD.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Senate Bill 173 is the companion to House Bill 320.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
EDD indicates that failure to approve this appropriation will reduce NM MEPís ability to pro-
vide technical assistance to many small and emerging manufacturers.
BE/mt