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 Rawson
DATE TYPED 02-16-05 HB
SHORT TITLE NMSU Aeronautics & Space Program
SB 382/aSEC
ANALYST Woods
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$475.0
Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to the appropriation for New Mexico State University in the General Appropriations Act.
Relates to HB557
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico State University (NMSU)
Commission on Higher Education (CHE) (HB557)
SUMMARY
Synopsis of SEC Amendment
Senate Education Amendment to SB 382 amends the legislation as follows:
•
On page 1, line 12: The title of the bill is amended to read “Making an Appropriation to
the Board of Regents of New Mexico State University for the New Mexico Space Grant
Consortium; Declaring an Emergency.”
•
On page 1, lines 18 and 19: The original appropriation in FY06 is amended to read
“2005 and subsequent years;” and the recipient is clarified to be the “New Mexico Space
Grant Consortium.”
•
On page 1, line 20: Amends reversion language to indicate that any unexpended or un-
encumbered balance remaining “at the end of a fiscal year shall not revert to the general
pg_0002
Senate Bill 382/aSEC -- Page 2
fund.”
•
On page 1, between lines 20 and 21: Emergency language is added.
Original Synopsis of Bill
Senate Bill 382 – Making an Appropriation to the Board of Regents of New Mexico State Uni-
versity for an Aeronautics and Space Program – appropriates $475,000 from the general fund to
the Board of Regents of New Mexico State University for expenditure in FY06 for an aeronau-
tics and space program. Any unexpended or unencumbered balance remaining at the end of
FY06 shall revert to the general fund.
Significant Issues
NMSU and CHE indicate that this appropriation will be applied to match a federal grant of
$475,000 that will fund the activities of the New Mexico Space Grant Consortium (NMSGC).
NMSGC is federally funded program administered by NASA. NMSU is the lead institution and
NMSGC has been granted a five year extension renewal.
CHE notes that NMSGC was founded in 1989 and is a statewide network of universities, col-
leges, industry, museums, and federal, state, and local agencies. NMSGC programs provide
“hands-on” educational opportunities for students and faculty, Kindergarten through graduate
school. NMSGC programs directly fund students to enter science, technology, engineering, and
mathematics careers where opportunities are expanding in the space industry in America.
CHE suggests that the requested funds will directly benefit students and faculty by allowing
NMSGC to expand beyond the three research universities to all universities in the state, and in-
terested community colleges, tribal colleges, public school districts, and museums. Further, that
the grant requires 100 percent matching funds annually and that the federal portion of the grant is
$475,000.
NMSU observes that the proposed program is compatible with all partner institutional missions
which encourage the inclusion of all students in research and education programs. Moreover, the
program’s history of directly funding students and faculty is critical to assuring requested funds
reach students in a timely fashion. Additionally, multiple paths are pursued for recruitment and
retention of students in the difficult science, technology, engineering, and mathematics (STEM)
fields.
Retention of women and minorities in the program throughout the state has led to recognition by
NASA and the National Science Foundation as exemplary, as New Mexico’s population is made
up of 53 percent underrepresented minorities, while NMSGC scholarship recipients represent 67
percent under-represented minorities.
CHE indicates that request was not in the list of priority projects submitted by NMSU to CHE
for review. Accordingly, the request was not included in the commission’s funding recommen-
dation for FY06.
FISCAL IMPLICATIONS
The $475,000 appropriation contained in this bill would be a recurring expense to the general
pg_0003
Senate Bill 382/aSEC -- Page 3
fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the
general fund.
CHE notes that higher education institutions receive indirect cost revenues from federal contracts
and grants. 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. A great deal of this
money is used as seed money to develop new research and public services projects at institutions.
A portion of the indirect cost revenue, and earned overhead, is used to support items such as the
salaries of the accountants responsible for monitoring the contract and grants, or for paying utili-
ties and other expenses required to maintain the space where the contract and grant activities are
housed. CHE further observes that the higher education funding formula allows institutions to
retain 100 percent of this indirect cost revenue, and that 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.
ADMINISTRATIVE IMPLICATIONS
New Mexico State University will retain administrative oversight of this project.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Relates to the appropriation for New Mexico State University in the General Appropriations Act.
Relates to HB557 in that HB557 seeks to appropriate $475,000 from the general fund to the
Board of Regents of New Mexico State University to provide matching funds for the New Mex-
ico Space Grant Consortium; however, HB557 contains emergency language.
NMSU and CHE indicate that this bill duplicates HB557 in the sense that both bills seek to pro-
vide $475,000 in funding to the New Mexico Space Grant Consortium.
OTHER SUBSTANTIVE ISSUES
NMSU indicates that over 300,000 New Mexico citizens have participated in a wide variety of
NMSGC programs during the years 1997-2003:
•
650 students received scholarships in science, technology, engineering, math, and educa-
tion, including:
- 294 female and 356 male students
- 407 under-represented minority and 243 non-minority students
- 536 undergraduate and 114 graduate students
•
5,323 students and faculty participated in higher education programs
•
147,481 students and teachers participated in pre-college programs
•
174,718 New Mexicans participated in public outreach programs
•
14 new courses were created through NMSGC support
pg_0004
Senate Bill 382/aSEC -- Page 4
•
8 reduced gravity flights designed and flown by undergraduate students from state col-
leges and universities
•
211 research/teaching papers were publications by faculty and students as a result of
NMSGC support
•
34 research projects were funded by NMSGC
NMSU further notes that the New Mexico Department of Labor projected an annual need to fill
over 1,000 new science, technology, engineering, and mathematics (STEM) jobs as follows:
BFW/yr
Employment Prospects for Selected Fields New Mexico Department of Labor
2002-2012
Occupational Title
Percent Change
Annual Openings
Computer Specialists
37.6%
650
Mathematical Scientists
2.9%
20
Engineers
5.9%
310
Life Scientists
7.7%
40
Physical Scientists
6.8%
130
Total annual entrants into STEM workforce
1150