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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
2/03/2006
2/03/2006 HB
SHORT TITLE NM Small Business Development Center
SB 174
ANALYST Earp
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$2,000.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to Appropriation in the General Appropriation Act
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
SUMMARY
Synopsis of Bill
Senate Bill 174 appropriates $2,000,000 from the general fund to the Higher Education Depart-
ment (HED) for the statewide New Mexico Small Business Development Center at Santa Fe
Community College.
FISCAL IMPLICATIONS
The appropriation of $2,000,000 contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert
to the general fund.
These funds would augment a recurring line-item appropriation made annually in the General
Appropriation Act. For fiscal year 2006, this appropriation was made to Santa Fe Community
College (SFCC) in the amount of $3,187,800. An additional $988,000 was appropriated to HED
for the SBDCs in Senate Bill 190 (Chapter 34, Laws of 2005). For fiscal year 2007, as of the
date of this FIR, HED is directed by language in HAFC Substitute for HB2s 2,3,4,5,6 and 78 to
pg_0002
Senate Bill 174 Page
2
continue those projects initiated by Chapter 34 using a lump sum appropriation provided for spe-
cial projects expansion. (See page 182, lines 12-15.)
SIGNIFICANT ISSUES
This proposal was included among the special program funding requests submitted by SFCC to
the Higher Education Department (HED) for review. However, this proposal has not been in-
cluded in the HED fiscal year 2007 funding recommendations to the Legislature.
PERFORMANCE IMPLICATIONS
HED is directed by language in HAFC Substitute for HBs 2,3,4,5,6 and 78 to develop perform-
ance criteria and outcomes and report on financial accountability to ensure efficient funding allo-
cation. Additionally, the NMSBDC has established performance measures.
ADMINISTRATIVE IMPLICATIONS
HED would be responsible for administering the funding appropriated through this bill. It is an-
ticipated that HED would sub-allocate the funding to Santa Fe Community College which pro-
vides administrative services for the NMSBDC.
OTHER SUBSTANTIVE ISSUES
HED reports that SFCC has hosted the Lead Center of the New Mexico Small Business Devel-
opment Center network since 1988. SFCC provides physical space and fiscal support services to
the Lead Center, which directs and manages New Mexicos 18 Small Business Development
Centers. The requested appropriation of $2,000,000 would be used to enhance existing core ser-
vices and implement additional program services by:
assisting small businesses in international trade;
implementing formal business retention and expansion projects in local regions served;
supporting business incubation efforts in regions served by community colleges and local
small business development offices;
providing services and support for quality management training to small businesses and
expand outreach to underserved communities.
The Economic Development Department notes that SBDC is a partner with the Department in
their retention and expansion efforts. These funds will provide increased outreach effort and the
potential for new job creation by small businesses in the state.
DKE/nt