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F I S C A L I M P A C T R E P O R T
SPONSOR McSorley
ORIGINAL DATE
LAST UPDATED
1/27/08 HB
SHORT TITLE UNM Training & Technology Cleanroom
SB 120
ANALYST Wilson
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$385.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates HB432
Relates to Appropriation in the General Appropriation Act
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
University Of New Mexico (UNM)
SUMMARY
Synopsis of Bill
Senate Bill 120 appropriates $385,000 from the general fund to the board of regents of the
University of New Mexico for expenditure in fiscal year 2009 for the manufacturing engineering
program's manufacturing training and technology center cleanroom phase two development and
auxiliary salaries.
The MEP is a Research and Public Service Project (RPSP). The MEP operates a cleanroom
within the MTTC on the UNM Science and Technology Park.
FISCAL IMPLICATIONS
The appropriation of $385,000 contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert
to the general fund.
The MTTC building and the MTTC cleanroom have been built up over the past decade, using a
capital investment mix of State bonds, federal funds, and UNM bonds, totaling $13M. In
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Senate Bill 120 – Page
2
addition, New Mexico companies, such as Intel, Philips Semiconductor, Next Generation
Economy and SNL, have provided over $3,000,000 in modern process equipment. This facility
is unique in the State of New Mexico,
The MTTC completed a $3,400,000 Phase II construction expansion during 2007. This
construction nearly doubled the functional size of the cleanroom. In addition, it installed several
tools, including $600,000 of NSF-funded process tools.
UNM states that the MTTC cleanroom needs a base line of funding from the State, in order to
establish a nominal safe, steady level of operation and training. The cleanroom can then build a
pool of user-derived fees, albeit variable, from university grants, federal labs and companies on
top of that base. However, UNM claims that without the $385,000 requested herein, the
minimum level of safe operations will not be achieved.
The MTTC Cleanroom is expected to support the training of over 100 students per year. It is
expected to eventually leverage over $15,000,000 per year of graduate-level research. And, it is
expected to support more small companies needing pilot production, to thereby secure millions
of dollars of venture capital. The MEP, since 1992, has brought in over $25,000,000 in federal
funds, which has been leveraged by $8,800,000 of State capital and programmatic funds,
$4,300,000 of UNM funds, and $3,400,000 of industry donations.
A request was submitted by UNM in the amount of $1,041,900 to the HED for review. The HED
funding recommendation for FY09 is a continuance of FY08 recurring funding in the amount of
$656,900 with no additional funding at this time.
SIGNIFICANT ISSUES
This cleanroom facility is unique in the state of New Mexico and it is now a core resource not
only for UNM, but also for the State for workforce, technology and economic development in
the area of microsystems and bio-nano-energy technologies. Without sufficient staffing and
supplies, this facility will languish. Forward looking states across the nation have made major
investments in university-based micro and nano fabrication facilities, and in the annual support
of such facilities, in order to either spawn or draw high-tech companies, with high-pay, high-tech
jobs to their regions.
MEP is a multi-disciplinary master's-level academic program that prepares students for real-
world manufacturing and management. The graduate program covers modern manufacturing
methods across computer, mechanical, electronic, and business disciplines.
UNM offers several options leading to a master's degree in manufacturing disciplines. Students
may earn Master of Science (MS) degrees in Mechanical Engineering or Electrical Engineering
with a manufacturing concentration, or a student may earn the degree of Master of Engineering
in Manufacturing Engineering -- a degree that is aimed at engineering practice and covers a
wider range of manufacturing topics than the M.S programs.
This bill supports the expansion of the UNM graduate-level MEP within the UNM school of
engineering. The MEP program seeks to:
1.
Build a nationally-competitive manufacturing engineering program able to meet the
statewide demand for high-tech workers.
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Senate Bill 120 – Page
3
2.
Promote economic growth by facilitating, developing, transferring, and teaching new
manufacturing technologies.
3.
Train students on state-of-the-art equipment.
4.
Deliver industry-relevant courses that utilize industry expertise.
5.
Articulate training, curriculum, and facilities with regional community colleges.
UNM notes that this funding will support teaching, research, commercialization requirements of
the Manufacturing Training and Technology Center cleanroom and cover the cost of materials,
supplies, periodic maintenance and minor equipment.
ADMINISTRATIVE IMPLICATIONS
The MEP cleanroom needs additional staff engineer and technician, and additional materials,
supplies and contract services for preventative maintenance, tool refurbishment, periodic etc. to
safely, effectively and efficiently meet user demand. Users include UNM undergraduate and
graduate engineers, UNM researchers, large and small companies seeking to prove their concepts
to venture capitalists. Several times per year, the MTTC cleanroom hosts workshops, offered to
regional high-school faculty and out-of-state community college faculty, on how to fabricate
micro devices such as pressure sensors.
UNM states that without the $385,000 requested herein, the MTTC cleanroom will not achieve a
minimum level of safe and efficient operations. The current staff of two is already stretched to
meet instructional demands for the various training lab sessions required of the universities.
Since more tools and infrastructure have been added to the cleanroom in the past year, the
demands on staff are more severe. Furthermore, the community college and commercial users
will like to have extended hours of operation on nights and weekends, which cannot be provided
with current staffing. The cleanroom as a business community asset is thereby diminished and
its long-term viability made questionable, as a consequence.
OTHER SUBSTANTIVE ISSUES
The MTTC Cleanroom is a high-tech facility, open to multiple educational institutions UNM
research operations and small companies seeking to demonstrate working microsystem
prototypes to venture capitalists. The cleanroom can create microsystems for biomedical,
bioenergy and telecommunication applications. However, to build these systems, the facility
needs to properly and safely operate expensive, complex equipment and supporting infrastructure
such as DI water, acid-waste neutralization, scrubbers, chilled water, boilers, gas supplies, etc.
These tools require potentially hazardous liquid and gas chemicals. Gowns and safety gear must
be worn by all users of the cleanroom. The cleanroom coordinates with fire marshals and
hazmat teams on a regular basis to review safety protocols and response plans. Students,
company users, and staff must adhere to the buddy system. As the cleanroom grows in size and
user demand, the staff must increase in order to safely accommodate the necessary coverage of
tools and users.
DW/mt