NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.





F I S C A L I M P A C T R E P O R T





SPONSOR: Fidel DATE TYPED: 01/25/00 HB
SHORT TITLE: NM Small Business Development Centers SB 6
ANALYST: Pacheco-Perez


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY00 FY01 FY00 FY01
$ 600.0 Rec GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to HB164



SOURCES OF INFORMATION



Commission on Higher Education (CHE)



SUMMARY



Synopsis of Bill



This bill appropriates $600.0 from the general fund to the Commission on Higher Education for the following: $100.0 for the Small Business Development Centers (SBDC) statewide professional development, staff certification and training expenses; $200.0 for equipment upgrades, hardware and software and business reference library upgrades; $150.0 to establish and operate a SBDC in Rio Rancho; $50.0 to the lead Center in Santa Fe; and $100.0 for local Center operating needs.



Significant Issues



According to the CHE, professional development and staff certification is now required by the National Association of Small Business Development Centers. Technology and library upgrades would provide high quality service and would assist in meeting the increased workload of local centers. The development of a SBDC in Rio Rancho would serve the needs of the 65,000 population.



FISCAL IMPLICATIONS



The appropriation of $600.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY01 shall revert to the general fund.



ADMINISTRATIVE IMPLICATIONS



One FTE will be needed to conduct professional development and staff certification. Additional FTE will be needed to staff a new center in Rio Rancho.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



This bill relates to House Bill 164 which provides $150.0 to establish a SBDC in Taos.



TECHNICAL ISSUES



Funding for the SBDCs flows through the Santa Fe Community College (SFCC) and not the CHE. This bill should be amended to appropriate funds to SFCC.



OTHER SUBSTANTIVE ISSUES



The CHE recommends that the following language be included for all new recurring higher education programs: "The institution receiving the special appropriation in this bill shall submit a program evaluation to the LFC and the CHE by August 1, 2003 detailing the benefits to the State from having this program implemented for a three-year period."



APP/njw