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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 SBDC’s 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 HB2’s 2,3,4,5,6 and 78 to

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 HB’s 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 Mexico’s 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