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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
pg_0002
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.
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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-
pg_0004
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