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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Economic Development Department

State Personnel Office

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Amendment

This amendment replaces the Department of Finance and Administration with the Commission on Higher Education as the beneficiary of the appropriation. The amendment also adds as a responsibility of the program to assist with rural outreach for the development training program.

Synopsis of Bill

Senate Bill 181 appropriates $600.0 from the general fund to the Department of Finance and Administration for expenditure in fiscal year 2000 for the following purposes for small business development centers:

(1) $60.0 for statewide professional development;

(2) $50.0 to install and maintain a statewide management information system;

(3) $90.0 to establish a small business development center in Taos;

(4) $$150.0 to establish a small business development center in Rio Rancho;

(5) $10.0 to support the North American free trade association institute at western New

Mexico university;

(6) $200.0 for equipment and business reference library upgrades; and

(7) $40.0 for administrative costs of the lead center.

Significant Issues

According to CHE, "appropriations for the small business development centers have historically gone through CHE. This year, the Commission recommended that the funds be appropriated for this non-formula program to the Santa Fe Community College, where the program is housed and through which it is administered. The CHE recommended a budget in the amount of $2,598.6. The $600.0 appropriation in SB181 is in addition to the CHE recommended budget."

FISCAL IMPLICATIONS

The bill provides a general fund appropriation of $600.0 for expenditure in fiscal year 2000 for two additional small business development center locations as well as additional programs. Any unexpended or unencumbered balance remaining at the end of fiscal year 2000 reverts to the general fund.

ADMINISTRATIVE IMPLICATIONS

According to CHE, a total of 5 FTE would be required to implement the programs listed in this bill as follows: 1FTE for the professional development; 2 FTEs for the Taos Center and 3 FTEs for the Rio Rancho Center. No administrative impact on CHE is expected.

RELATIONSHIP

Relates to Senate Bill 56, Business Incubation Services

OTHER SUBSTANTIVE ISSUES

The original purpose of the small business development centers was to stimulate economic growth by assisting in the development of small businesses. The proposed appropriations appear to be consistent with that purpose.

POSSIBLE QUESTIONS

Should the appropriation be made to the Santa Fe Community College or CHE as fiscal agent for the program?

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