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

SPONSOR Nunez

DATE TYPED 01/26/05 HB 92

SHORT TITLE NMSU Viticulture Program

SB

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$75.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the appropriation for New Mexico State University in the General Appropriations Act.

Duplicates SB89

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico State University (NMSU), College of Agriculture and Home Economics (CAHE)

New Mexico Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

House Bill 92 – Making an Appropriation for the Viticulture Program at New Mexico State Uni-

versity – appropriates $75,000 from the general fund to the Board of Regents of New Mexico

State University for FY06 to provide support for the viticulture (the cultivation, study and

science of grape growing

)

program. Any unexpended or unencumbered balance remaining at the

end of FY06 shall revert to the general fund.

Significant Issues

NMSU-CAHE suggests that although the wine making industry in New Mexico is developing

into a significant economic activity and directly reliant upon proper plant selection and care and

long-term maintenance of vineyards, there is not a specialist in NMSU’s Cooperative Extension

Service dedicated to this field. Employment of a viticulturist would seek to advance the univer-

sity’s statewide extension education and research role as it specifically relates to New Mexico’s

grape growers and wine producers, and serve as a resource for applied information and recom-

mendations for business operations.

House Bill 92 -- Page 2

NMSU-CAHE indicates this initiative would be integrated with numerous institutions, including

NMSU academic programs, the New Mexico Department of Agriculture, small business devel-

opment centers, county governments, tribal governments, soil and water conservation districts,

agricultural producers associations, agribusinesses, and state and federal agencies.

FISCAL IMPLICATIONS

The CHE notes that this program was funded $75,000 last year and has a recurring appropriation

that is rolled into the Department of Agriculture’s base budget in the FY06 appropriation act. HB

92 is a request to augment program with an additional $75,000 that will provide for a fully-

funded viticulturist specialist position responsible for educational and operational outreach ac-

tivities. It will also provide for a .5 clerical support staff position, as well as funding for supplies

and operating expenses, including funding travel within the state.

This request was not in the list of priority projects submitted by the NMSU Board of Regents to

the CHE for review. Accordingly, it was not included in the CHE’s funding recommendations

for FY06.

ADMINISTRATIVE IMPLICATIONS

NMSU-CAHE will retain oversight of the viticulture program.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to the appropriation for NMSU in the General Appropriations Act.

Duplicates SB89.

ALTERNATIVES

The CHE advises that higher education institutions receive indirect cost revenues from federal

contracts and grants. Further, that 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. 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.

BFW/lg