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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)

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.

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-

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