NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

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

 

 

 

SPONSOR:

Leavell

 

DATE TYPED:

03/06/03

 

HB

 

 

SHORT TITLE:

Statewide Agricultural Education Programs

 

SB

536/aSCONC

 

 

ANALYST:

L. Baca

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

$300.0

 

 

 

Recurring

GF

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SB 536 is identical to HB 387, except for the appropriation amount ($837.1); and

Relates to HB 478, Statewide Career & Technical Education

 

Relates to the Appropriation New Mexico State University in the General Appropriation Act

 

SOURCES OF INFORMATION

 

Responses Received From

State Department of Education (SDE)

Commission on Higher Education (CHE)

 

SUMMARY

 

      Synopsis of SCONC Amendment

 

The amendment adopted by the Senate Conservation Committee increases the appropriation to $300.0 from $250.0.

 

     Synopsis of Original Bill

 

Senate Bill 536 appropriates $250.0 from the general fund to the Board of Regents of New Mexico State University (NMSU) for expenditure in fiscal years 2003 and 2004 to support the continuation of agricultural education programs statewide.

 

The bill contains an emergency clause.

 

     Significant Issues

 

This expansion request was not included in NMSU’s budget request to the NMSU Board of Regents, and thus was not included in the list of priority projects submitted by NMSU to the CHE for review. Funds for these programs flowed through SDE in previous years, and this is probably one reason why CHE was not asked to review the request.

 

The appropriation in this bill is intended for use through the New Mexico Department of Agriculture to support the Future Farmers of America (FFA) and Vocational Agriculture programs, two programs technically under the SDE but whose functions have been carried out through the NMDA at NMSU since 1975.  These programs have been used to encourage students to decide on a career in agriculture and/or related fields.  The programs have been popular and served to help students decide on a career.  However, while New Mexico’s economy is expected to generate nearly 185,000 jobs during the next ten years, the Department of Labor reports agriculture is one of two industries showing a negative growth percentage.

 

FISCAL IMPLICATIONS

 

The appropriation of $837.1 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund. Using federal funds, the SDE currently funds two positions and contracts for a third for these two and related educational programs at NMSU.   This request appears to be a bid to establish a grassroots FFA office at NMSU.

 

Since no budget is available, it is not known whether NMDA intends to add staff or whether outsourcing is planned.

 

RELATIONSHIP

 

SB 536 relates to HB 478, which appropriates $600.0 to provide career and technical education programs for public school students to assist with technical skills, knowledge and training needed to succeed in the occupation or careers of their choice.

 

AMENDMENTS

 

The CHE suggests adding the following language for all new recurring higher education programs and expansion of current programs (assuming that funding will continue beyond 2003-2004):

 

“A plan for a program evaluation, including specific program goals and criteria for assessing program effectiveness, shall be submitted to the Legislative Finance Committee and the Commission on Higher Education by October 1, 2004.  An assessment of the program will be completed prior to June 30, 2005, and submitted to the Legislative

Finance Committee and the Commission on Higher Education.”

 

POSIBLE QUESTIONS

 

1.               What types of activities will be conducted with this appropriation?

2.               To date, federal funding has been used for these activities. Why is an additional $37.1 million needed?

3.               Has this proposal been reviewed by the NMSU Board of Regents?  Why not?

4.               How will this fit in with other, related career development programs?

5.               This bill requests a $250.0 appropriation and HB 387 asks for $837.1.  Why is the difference so great?

LRB/prr