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

SPONSOR Lujan, A.

ORIGINAL DATE

LAST UPDATED

1-19-06

HB 154

SHORT TITLE NMSU Aerospace Engineering Programs

SB

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$600.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB38

Relates to Appropriation in HB2

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

New Mexico State University (NMSU)

SUMMARY

Synopsis of Bill

House Bill 154, appropriates $600,000 from the general fund to the New Mexico State Univer-

sity Board of Regents for FY07 for expenditure to develop and deliver a degree program in

Aerospace Engineering. The Aerospace Engineering Program has been approved by the Board

of Regents as major. The program is housed in and administered by the Department of Mechani-

cal Engineering. The first aerospace engineering courses plan to be offered in the Fall 2006 se-

mester. Any unexpended or unencumbered balance remaining at the end of FY07 shall revert to

the general fund.

House Bill 154. – Page

2

FISCAL IMPLICATIONS

The appropriation of $600,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY07 shall revert to the gen-

eral 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. Activities to be funded in this proposal are currently recommended for funding

through the Instruction and General (I&G) higher education funding formula within the General

Appropriations Act. Funding of this program without the consideration of similar needs at all

institutions could weaken the equitability and thus the integrity of the established I&G formula

funding process.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

A similar proposal for a recurring appropriation of $152,000 is included in the New Mexico

Higher Education Department institutional funding requests for FY07 and is supported by Legis-

lative Finance Committee recommendations. An enactment of this legislation would augment

the appropriation of $152,000 is provided in HB2.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

NMSU will not be able to support and offer the planned aerospace engineering program at the

higher level. Potential consequences of not enacting this bill include minimized technical educa-

tion and subsequently reduced economic development in the aerospace industry.

PD/mt