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 a vailable 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 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 Salazar
DATE TYPED 01/31/05 HB 129
SHORT TITLE NM Tech Technology Research Collaborative
SB
ANALYST Williams
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$7,900.0
Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates House Bill 184
Relates to Senate Bill 169, House Bill 128
SOURCES OF INFORMATION
LFC Files
Economic Development Department
Commission on Higher Education
No Response Received From
Council of University Presidents
SUMMARY
Endorsed by the Economic and Rural Development and Telecommunications Committee
Synopsis of Bill
House Bill 129 appropriates $7.9 million from the general fund to the board of regents of New
Mexico Institute of Mining and Technology for a technology research collaborative to establish
advanced technology centers. The appropriation would be allocated as follows:
$2 million for medical technologies
$750 thousand for sustainable natural resources
$2 million for optics
$750 thousand for security technologies
$500 thousand for digital media and visualization
$1.5 million for alternative fuels
$400 for funding and management oversight.
pg_0002
House Bill 129 -- Page 2
Significant Issues
The appropriation in the bill relates to Senate Bill 128 which establishes the Technology Re-
search Collaborative governed by an eleven-member board. New Mexico Institute of Mining
and Technology would serve as the fiscal agent for the statutorily created Technology Research
Collaborative.
PERFORMANCE IMPLICATIONS
The bill does not place an emphasis on linking the initiative to the state’s strategic plans for eco-
nomic development and higher education and does not include performance accountability com-
ponents, such as a strategic plan for the initiative and outcomes-oriented performance measures.
FISCAL IMPLICATIONS
The appropriation of $7.9 million contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of FY06 would not revert to the
general fund.
ADMINISTRATIVE IMPLICATIONS
The appropriation addresses administrative costs in the amount of $400 thousand, representing
approximately 5 percent of the total appropriation.
OTHER SUBSTANTIVE ISSUES
This request for funding was not submitted to the Commission on Higher Education (CHE) by
the Board of Regents of NMSU, and, accordingly, was not reviewed by the CHE.
ALTERNATIVES
In 2003, the legislature established the technology enhancement fund, administered by the com-
mission on higher education, to support innovative, applied research to enhance the state’s eco-
nomic growth pursuant to the recommendations of the blue ribbon task force on the higher edu-
cation funding formula. House Bill 391 (Chapter 367) identified specific research areas includ-
ing agriculture, biotechnology, biomedicine, energy, materials science, microelectronics, water
resources, aerospace, telecommunications and manufacturing science.
Grants from the technology enhancement fund are to be made available to the state’s research
universities collaborating with corporate and nonprofit organizations. The commission on higher
education is directed to award grant funds on a competitive basis with review by a panel of sci-
entific and business experts. The award process would consider excellence in research design
and innovation in cross-disciplinary, multi-campus and higher education-industry research col-
laboration. The university must have matching funds from non-state sources. To date, monies
have not been appropriated to the fund.
Higher education institutions receive indirect cost revenues from federal contracts and grants.
Further, this money is unrestricted in the sense that the governing board of the institution has the
pg_0003
House Bill 129 -- Page 3
flexibility to choose which projects are supported with these funds One of the purposes of re-
taining these funds is to provide seed money and matching funds for projects such as those pro-
posed in this bill.
POSSIBLE QUESTIONS
1.
How is this program related to existing state government and university initiatives.
2.
How were the specific research areas addressed in this bill identified.
3.
Does the proposal incorporate best practices evident for economic development initia-
tives in other states. What examples can be provided.
4.
How would funding be allocated.
5.
How would planning and accountability be addressed. How would progress and out-
comes be measured.
6.
How would the proposed program impact the New Mexico economy. What is the time
frame for specific, achievable results.
7.
How would rural communities benefit.
8.
Should a non-state funds matching requirement be included in the bill.
AW/lg