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

SPONSOR Duran

ORIGINAL DATE

LAST UPDATED

1/23/06

1/25/06 HB

SHORT TITLE NMSU National Solar Observatory

SB 76

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$300.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB 176

Relates to:

SB1 General Appropriation act of 2006

SB 3 New Mexico Space Grant Consortium

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

HB 140 New Mexico Space Grant Consortium

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

New Mexico State University (NMSU)

Higher Education Department (HED)

SUMMARY

Synopsis of Bill

Senate Bill 76 appropriates $300,000 from the general fund to New Mexico State University

Board of Regents for the purpose of developing architectural plans for a laboratory/headquarters

Senate Bill 76 – Page

2

center for the National Solar Observatory (NSO) on the campus at NMSU.

FISCAL IMPLICATIONS

The appropriation of $300,000 contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall

revert to the general fund.

NMSU did submit a Research and Public Service Project request to the New Mexico Higher

Education Department (NMHED) for $75,000 General Fund base expansion for the Apache

Point Observatory whose facilities include the National Solar Observatory. The proposal was

submitted to NMHED but was not recommended for expansion.

According to Higher Education Department analysis, the NSO is going to consolidate its opera-

tions at a single university. New Mexico is in jeopardy of losing this facility. If it moves to an-

other state, New Mexico will lose $125M in economic impact over each 5-year period and 175

permanent jobs. In contrast, its consolidation at NMSU will dramatically improve the stature of

NMSU as a world-class scientific and technological center, will attract scientists from around the

world to southern New Mexico who are experts in science and engineering, will improve the

competitiveness of NMSU for external grants and top quality graduate students, will enhance

synergies between NMSU and Los Alamos and Sandia National Laboratories, White Sands Mis-

sile Range, and the New Mexico Spaceport. Its addition will also augment NMSU outreach ef-

forts to increase the numbers of students entering technology focused fields.

SIGNIFICANT ISSUES

The headquarters of the National Solar Observatory (NSO) is currently located in Sunspot, New

Mexico, but its staff live in several places around the world. Over the next few years, the NSO

plans to consolidate its operations at a single university. Several universities have expressed an

interest in moving this facility to their state. This Bill requests $300,000 to develop an architec-

tural plan for a 57,000 sq ft building at New Mexico State University that could serve as the

NSO headquarters and as a campus education/research center.

According to NMSU analysis, it is anticipated that this building could be completed by 2010 at a

cost of $24M. A future appropriation of up to $6 million in State money would be matched by

an $18 million Federal matching grant. The NSO is entirely supported by federal appropriations,

and, its yearly program operations should not require state funds.

Currently, there is a multi-state bidding process for the consolidated headquarters of the NSO.

Current impact due to the Sunspot location is approximately $30 million annually and 50 jobs.

PERFORMANCE IMPLICATIONS

The outcome measure of this bill will be the completion of an architectural plan.

Senate Bill 76 – Page

3

ADMINISTRATIVE IMPLICATIONS

The NSO is entirely supported by federal appropriations. Its yearly operation should not require

state funds.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicates HB 176

Relates to:

SB1 General Appropriation act of 2006

SB 3 New Mexico Space Grant Consortium

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

HB 140 New Mexico Space Grant Consortium

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 bill relates to the aforementioned list of proposed legislation. This list of related bills has in

common the request to appropriate funding for programs that directly relate to: aerospace, aero-

space engineering degree programs, and NMSU technical, scientific, mathematics, and research

programs.

OTHER SUBSTANTIVE ISSUES

According to Higher Education Department, The NSO has a separate budget for K-12 programs

that could be coordinated with NMSU K-12 initiatives to maximize their effectiveness through-

out all of southern NM. The NSO also provides research support and mentoring for graduate stu-

dents in science in engineering.

In general, the costs of insuring satellites while in space have greatly increased recently due to

substantial losses incurred from solar wind and other space weather phenomena. The effects of

space weather have recently become an important consideration for companies and government

entities that have extremely expensive satellites in orbit. The National Solar Observatory’s role

is expected to increase in the near future, as the need to predict solar weather becomes a more

pressing issue.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

According to the Higher Education Department, The NSO will relocate to another state. New

Mexico will lose $125M in economic impact over each 5-year period and 175 high paying jobs.

NMSU will lose the opportunity of establishing graduate programs, at very little cost, in solar

astronomy and advanced instrumentation. NMSU will lose the opportunity of being recognized

as a world-wide leader in an increasingly important field of study (solar activity and space

weather). A valuable opportunity for attracting highly talented undergraduate and graduate stu-

Senate Bill 76 – Page

4

dents to NMSU will be lost. New Mexico will lose a self-sustaining asset. Additionally, the cur-

rent level of economic impact to the State, approximately 50 jobs and $30 million annually,

could be impaired.

POSSIBLE QUESTIONS

Will there be any additional costs associated with the bidding process, in addition to this

appropriation, aside from a future building appropriation to be matched with federal monies.

PD/nt:yr