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.

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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates: Senate Bill 557

SOURCES OF INFORMATION

LFC Files

Commission for Higher Education (CHE)

SUMMARY

Synopsis of Bill

House Bill 508 appropriates $500.0 from the general fund (includes an emergency clause) to the Board of Regents of the University of New Mexico (UNM) to create a transportation technology center.

Significant Issues

The appropriation in this bill would enable the UNM Alliance for Transportation Research Institute to create a transportation technology center. The new transportation technology center would develop programs in intelligent transportation systems, information management systems in transportation for urban and rural areas, multi-modal and community development, border-area trade and other technologies to enhance transportation delivery in the New Mexico.

FISCAL IMPLICATIONS

The appropriation of $500 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund. This bill contains an emergency clause.

OTHER SUBSTANTIVE ISSUES

The following is provided for information only. It is not intended as a commentary on the merits of the program/project:

This program was not included in UNM's budget request to the UNM Board of Regents, and thus was not submitted by UNM to the Commission on Higher Education (CHE) for review. The CHE did not recommend funding this program expansion.

According to the CHE, higher education institutions receive indirect cost revenues from federal contracts and grants. A great deal of this money is used as seed money to develop new research and public service projects at institutions. This money is unrestricted in the sense that the governing board of the institution has the flexibility to choose which projects are supported with these funds.

The state higher education funding formula allows institutions to retain 100% of this indirect cost revenue. One of the purposes of retaining these funds is to provide seed money and matching funds for projects such as the one proposed in this bill.

LG/ar