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

SPONSOR Marquardt

DATE TYPED 2/19/05

HB 687

SHORT TITLE Aerospace Engineering Bachelor’s Degree

SB

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$750.0

Recurring General Fund

Relates to Appropriation for Commission on Higher Education in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Bill 687 appropriates $750 thousand from the general fund to the Commission on Higher

Education (CHE) in FY06 for a Bachelor of Science degree program in aerospace engineering.

Significant Issues

The CHE will seek proposals from the four-year post secondary educational institutions that

have engineering programs to develop the Bachelor of Science degree in aerospace engineering.

NMSU indicates that New Mexico is home to a number of public and private aerospace related

companies, including:

•

NASA White Sands,

•

White Sands Missile Range,

•

The Air Force Research Laboratory,

•

Sandia Laboratories,

•

Eclipse Aviation, and

•

Many other each having a strong need for trained aerospace engineers.

While New Mexico is quickly moving to the forefront in aerospace initiatives with the advent of

House Bill 687-- Page 2

the X-Prize and the investment in the spaceport of the future; it does not currently offer an aero-

space engineering program, nor does it possess the capacity to react to current or anticipated in-

dustry needs. Further, a 2003 White Sands Research and Developers, LLC poll of New Mexico

high school students revealed that aerospace engineering ranked third behind electrical and me-

chanical engineering in interest among students wishing to pursue an engineering degree.

New Mexico Economic Development Department (EDD) agrees that the state has a growing

aeronautic industry and that companies are moving to New Mexico for this very purpose. The

bill seeks to address the concern that while aeronautic companies may receive economic incen-

tives to become established in New Mexico, there may be an issue drawn from the state being

able to provide viable employee talent pools with which to pursue and expand their business ac-

tivities.

PERFORMANCE IMPLICATIONS

Citing from the 2003 White Sands Research and Developers survey, “…any new academic pro-

gram in aerospace engineering should directly benefit the high-tech economy of New Mexico.

An aerospace engineering department would provide the focal point for the State’s aerospace

industry, which it currently lacks. In addition, it could assist in consolidating the State’s role in

established aerospace areas as well as position it for emerging aerospace markets.”

FISCAL IMPLICATIONS

This request was not included in CHE’s funding recommendations for FY06.

The appropriation of $750 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the

general fund.

ADMINISTRATIVE IMPLICATIONS

CHE will seek proposals from the four-year post-secondary educational institutions that have

engineering programs to develop the Bachelor of Science degree in aerospace engineering and

will select the best proposal.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to SB 43 NMSU Aerospace Engineering Department

Relates to SB 1048 NMSU Aerospace Engineering Program

Relates to HB 609 NMSU Aerospace Engineering Department

Relates to HB 418 NMSU Aerospace Engineering Department

TECHNICAL ISSUES

An aerospace engineering program will require a curriculum and facilities that are at the fore-

front in aerospace technology.

House Bill 687-- Page 3

OTHER SUBSTANTIVE ISSUES

An aerospace engineering program will have the ability to attract not only federal research dol-

lars, but other research funds as well, also enhancing the state’s status as a leader in the aero-

space industry.

AHO/sb:yr