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

ORIGINAL DATE

LAST UPDATED

1/30/06

HB

SHORT TITLE NMSU Manufacturing Sector Development Program SB 6

ANALYST Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$105.0

Recurring

General Fund

$95.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates House Bill 189

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

New Mexico State University (NMSU)

SUMMARY

Synopsis of Bill

Senate Bill 6 appropriates $200,000 from the general fund to the Board of Regents of New Mex-

ico State University (NMSU) to foster economic development in the manufacturing sector

through support for statewide technical, engineering, design and other extension services through

the manufacturing sector development program.

FISCAL IMPLICATIONS

NMSU reports that $95,000 of the $200,000 appropriation contained in this bill would be a non-

recurring expense for purchase of equipment. The remaining $105,000 would be a recurring ex-

pense to the general fund. Any unexpended or unencumbered balance remaining at the end of

fiscal year 2007 shall revert to the general fund.

Senate Bill 6 – Page

2

This funding would augment an on-going line-item appropriation for the Manufacturing Devel-

opment Program made annually in the General Appropriation Act.

SIGNIFICANT ISSUES

This proposal was submitted to the Higher Education Department (HED) by NMSU as a compo-

nent of the university’s “K-12 outreach” which was ranked #1 out of 9 requests for special pro-

gram expansion. However, this request was not included in HED’s fiscal year 2007 funding rec-

ommendations to the Legislature.

ADMINISTRATIVE IMPLICATIONS

NMSU administers the existing funding provided for the Manufacturing Sector Development

Program. No significant additional impact is anticipated if this legislation is adopted.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 189 and Senate Bill 6 are duplicate measures.

TECHNICAL ISSUES

The language in the bill regarding the purpose of the proposed appropriation is very general and

makes no reference to the specific pre-engineering initiative described in the materials submitted

by NMSU. The university would have broad discretion regarding the use of the funds under the

current language in the bill.

OTHER SUBSTANTIVE ISSUES

The NMSU Manufacturing Technology and Engineering Center (M-TEC) states that the purpose

of this request is to support a statewide program that will increase the quality and quantity of the

technical and engineering workforce in New Mexico. This initiative would be based on a proven

national program, Project Lead the Way (http://www.pltw.org/aindex.htm). Implementation of

Project Lead the Way will greatly expand the availability of pre-engineering and technical edu-

cation in high schools in the state using a nationally recognized curriculum of study and estab-

lished system of professional development and certification. Project Lead the Way is based on

partnerships among high schools, community colleges, universities and the private sector.

NMSU is unique in that it is the only higher educational institution in the state to offer both en-

gineering and technology baccalaureate degree programs. The NMSU College of Engineering at

NMSU would become an Affiliate Member of Project Lead the Way to support the implementa-

tion of Project Lead the Way in the high schools that choose to participate.

Over 65,000 students in 640 schools in over 40 states participate in Project Lead the Way. New

Mexico is one of only a few states that does not have an affiliate university located within the

state. NMSU would become the first Affiliate University in the state. The major responsibilities

of an Affiliate University are to train the teachers and provide guidance and support to the high

schools that participate in the program. A major component of the “Project Lead the Way” pro-

gram is its comprehensive teacher training model.

Senate Bill 6 – Page

3

M-TEC is a state funded Research and Public Service Project (RPSP) providing technical work-

force development programs and manufacturing and engineering services to businesses that

would not otherwise be available. The Center leverages facilities, expertise and other resources

of the university community. M-TEC with its experience in workforce development and experi-

ence providing support for businesses has the ability to make this program successful in high

schools throughout the state. To minimize the initial investment, a pilot for statewide implemen-

tation will be located in southern New Mexico in partnership with the Dona Ana Branch Com-

munity College and regional high schools.

POSSIBLE QUESTIONS

How does this proposal relate to the Public Education Department’s career clusters initiative.

Could NMSU seek and receive Project Lead the Way Affiliate University status without the

benefit of the funding requested through this bill.

DKE/yr