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

SPONSOR Garcia

ORIGINAL DATE

LAST UPDATED

1-19-06

HB

SHORT TITLE NMSU Aerospace Engineering Programs

SB 38

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 HB154

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

Senate Bill 38 appropriates $600,000 from the general fund to the New Mexico State University

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

space 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 Mechanical

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

ter. Any unexpended or unencumbered balance remaining at the end of FY shall revert to the

general fund.

Senate Bill 38 – 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 FY 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. 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 FY, and is supported by Legisla-

tive 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