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F I S C A L I M P A C T R E P O R T
SPONSOR
Nunez
ORIGINAL DATE
LAST UPDATED
1/19/06
HB 140
SHORT TITLE New Mexico Space Grant Consortium
SB
ANALYST Dearing
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$575.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates: SB3
Relates to:
SB1 General Appropriation act of 2006
SB38
NMSU Aerospace Engineering Programs
SB119 NMSU Science, Math & Engineering Academy
SB120 NMSU Aerospace Engineering Department
SB 121
NMSU Space & Aerospace Research Program
HB7 General Appropriation act of 2006
HB154 NMSU Aerospace Engineering Program
HB158 NMSU Science, Math & Aerospace Academy
HB159 NMSU Space and Aerospace Research Program
HB167 Create NMSU Aerospace Research Program
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
New Mexico State University (NMSU)
pg_0002
House Bill 140 – Page
2
SUMMARY
Synopsis of Bill
House Bill 140 – appropriates $575,000 from the General Fund to the Board of Regents of New
Mexico State University (NMSU) to provide matching funds for the New Mexico Space Grant
Consortium (NMSGC).
FISCAL IMPLICATIONS
The $575,000 proposed appropriation in HB140 is a recurring expense to the General Fund to
support space related research, education, outreach, scholarships, fellowships, summer intern-
ships, and related opportunities to students and faculty throughout New Mexico. This appropria-
tion matches federal funding sources, which are administered through NASA. Any unexpended
or unencumbered balance remaining at the end of FY07 shall revert to the General Fund.
SIGNIFICANT ISSUES
The New Mexico Higher Education Department is committed to the adequate and equitable sup-
port of necessary instructional, student services, and academic support initiatives for all students
in New Mexico. Funding of this program without the consideration of similar needs at all institu-
tions could weaken the equitability and thus the integrity of the established I&G formula funding
process.
According to analysis performed by the Commission on Higher Education, NMSGC is a state-
wide network of universities, colleges, industry, museums, and federal, state, and local agencies.
NMSGC programs provide “hands-on” educational opportunities for students and faculty, kin-
dergarten through graduate school. NMSGC programs directly fund students who enter science,
technology, engineering, and mathematics careers where opportunities are expanding in the
space industry in America. Requested funds will directly benefit students and faculty by allow-
ing NMSGC to expand beyond the three research universities to all universities in the state and
interested community colleges, tribal colleges, public school districts, and museums. Further, the
grant requires 100 percent matching funds annually.
NMSU observes that the proposed program is compatible with all partner institutional missions
that encourage the inclusion of all students in research and education programs. The program’s
history of directly funding students and faculty is critical to assuring requested funds reach stu-
dents in a timely fashion. Additionally, multiple paths are pursued for recruitment and retention
of students in the fields of science, technology, engineering, and mathematics (STEM). Reten-
tion of women and minorities in the program throughout the state has led to recognition by
NASA and the National Science Foundation as exemplary, as NMSGC scholarship recipients
represent 67 percent under-represented minorities. This request does not appear on the list of
research, public service, and special programs submitted by NMSU to the New Mexico Higher
Education Department (NMHED) for review.
The State of New Mexico has a long successful history in space-based research and education.
Assuring New Mexicans a role in the future benefits related to space commercialization, requires
that we prepare the workforce in our public institutions including universities, public schools
museums, and other educational venues.
pg_0003
House Bill 140 – Page
3
ADMINISTRATIVE IMPLICATIONS
According to New Mexico Space Grant Consortium, there are no additional administrative costs
incurred through the passage of this legislation.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Duplicates: SB3
Relates to:
SB1 General Appropriation act of 2006
SB38
NMSU Aerospace Engineering Programs
SB119 NMSU Science, Math & Engineering Academy
SB120 NMSU Aerospace Engineering Department
SB 121
NMSU Space & Aerospace Research Program
HB7 General Appropriation act of 2006
HB154 NMSU Aerospace Engineering Program
HB158 NMSU Science, Math & Aerospace Academy
HB159 NMSU Space and Aerospace Research Program
HB167 Create NMSU Aerospace Research Program
This legislation is duplicated by Senate Bill 3. House Bill 140 relates to the aforementioned list
of proposed legislation. This list of related bills has in common the request to appropriate fund-
ing for programs that directly relate to: aerospace, aerospace engineering degree programs, and
NMSU technical, scientific, mathematics, and research programs. HB 140 is specifically related
to research programs within the field of aerospace at NMSU.
OTHER SUBSTANTIVE ISSUES
The promotion of Science, Technology, Engineering, and Mathematics (STEM) education pro-
grams within secondary institutions within New Mexico have recently been high-lighted as is-
sues that are at the forefront of the New Mexico Federal Congressional Delegation’s funding and
legislative initiatives. This initiative is an effort to promote New Mexico’s development of a
technically proficient state population that is able to compete in attracting investment at both the
national and global level in high-tech manufacturing, engineering and research.
There is an established correlation among STEM education programs and related research and
incrementally higher rates of high-wage employment.
ALTERNATIVES
According to analysis performed by the Higher Education Department, higher education institu-
tions 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 service 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 utilities and other expenses required to maintain
the space where the contract and grant activities are housed. The higher education funding for-
pg_0004
House Bill 140 – Page
4
mula allows institutions to retain 100 percent of this indirect cost revenue. 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.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
While it is possible that NMSU could lose federal grant award monies if the $575,000 appropria-
tion is not fully matched, other sources of funding can establish the 100% match criteria related
to the congressionally appropriated NASA funds.
POSSIBLE QUESTIONS
Can NASA federal funds be matched through institutional overhead funding.
Have other funding sources for this program been exhausted.
PD/nt