Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC 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

Altamirano

DATE TYPED

2/9/04

HB

 

 

SHORT TITLE

NM Small Business Development Center

SB

57

 

 

ANALYST

Baca

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

$2,700.0

 

 

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to Appropriation for Santa Fe Community College in the General Appropriation Act

 

 

SOURCES OF INFORMATION

 

LFC Files

 

No Response

Commission on Higher Education (CHE)

 

SUMMARY

 

Synopsis of Bill

 

Senate Bill 57 appropriates $2.7 million from the general fund to the Commission on Higher Education for the New Mexico Small Business Development Center at Santa Fe Community College to enhance existing core services and to implement additional services to small businesses and to establish a small business incubator project.

 

      Significant Issues

 

This program expansion is intended to further assist the development of small businesses.  The request was approved by the Board of Regents of Santa Fe Community College (SFCC) and submitted to the CHE, but the CHE did not recommend funding this request.  The Director of the NMSBDC has written that the funding for the NMSBDC totals $3,399.7 from the general fund and $511 thousand from federal funds.

 

 

FISCAL IMPLICATIONS

 

The appropriation of $2.7 million contained in this bill is a recurring expense to the general fund.  Any unexpended or unencumbered balance remaining at the end of FY05 shall revert to the general fund.

                                                     

OTHER SUBSTANTIVE ISSUES

 

The following language is suggested for all new recurring higher education programs and expansion of current programs (assuming that funding will continue beyond FY05):

 

“The institution receiving the appropriation in this bill shall submit a program evaluation to the Legislative Finance Committee and the Commission on Higher Education by August 2007 detailing the benefits to the State of New Mexico from having implemented this program over a three period.”

 

POSSIBLE QUESTIONS

 

  1. Which areas of the state are currently served by the Small Business Development Center at SFCC?
  2. How will this additional funding be used to expand the areas served?
  3. Would this additional funding be used to help small businesses in rural areas?

 

RLG/lg:njw