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

SPONSOR Cisneros

DATE TYPED 01/31/05 HB

SHORT TITLE NM Tech Technology Research Collaborative

SB 184

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 129

Relates to Senate Bill 169, House Bill 128

SOURCES OF INFORMATION

LFC Files

Economic Development Department

No Response Received From

Commission on Higher Education

Council of University Presidents

SUMMARY

Endorsed by the Economic and Rural Development and Telecommunications Committee

Synopsis of Bill

Senate Bill 184 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

Senate Bill 184 -- Page 2

•

$1.5 million for alternative fuels

•

$400 for funding and management oversight.

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 legislation 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.

Senate Bill 184 -- Page 3

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

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