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

SPONSOR Garcia, M.J.

ORIGINAL DATE

LAST UPDATED

1-21-06

HB

SHORT TITLE

NMSU Aerospace Engineering Department

SB 120

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$152.0

$6848.0 Non-recurring

General Fund

$152.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to:

SB1 General Appropriation act of 2006

SB38

NMSU Aerospace Engineering Programs

SB119 NMSU Science, Math & Engineering Academy

SB 121

NMSU Space & Aerospace Research Program

HB7 General Appropriation act of 2006

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 120 $7,000,000 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 Aerospace Engi-

neering. 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 Engineer-

ing. The first aerospace engineering courses plan to be offered in the fall 2006 semester. Any

Senate Bill No. 120 – Page

2

unexpended or unencumbered balance remaining at the end of FY08 shall not revert to the gen-

eral fund.

FISCAL IMPLICATIONS

The appropriation of $7,000,000 contained in this bill is an initial capital outlay, subsequently

supported by a recurring annual expense of $152,000 to the general fund. A budget appropria-

tion of $152,000 in fiscal year 2006 exists, in addition to a LFC recommendation of $152,000

appropriation for the program in fiscal year 2007. The balance of funds is to remain in place

during the initial 5-7 year program implementation period, and as such, any unexpended or un-

encumbered balance remaining at the end of FY08 shall not 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, however, not at the level established within this legislation. Funding of this

program without the consideration of similar needs at all institutions could weaken the equitabil-

ity and thus the integrity of the established I&G formula funding process.

SB120 request for appropriation for NMSU Aerospace Engineering Program is for the purpose

of developing Bachelor of Science (BS), Master of Science (MS), and Ph.D. programs in Aero-

space Engineering (AE) at NMSU. These will be the only AE degree programs in the State of

New Mexico. The requested funding is to hire approximately six aerospace engineering faculty

and supporting infrastructure to 1) develop and deliver an accredited undergraduate aerospace

engineering program that would produce about 25 BSAE graduates per year and 2) to develop a

nationally competitive research/graduate program that would focus on the significant presence in

New Mexico of aerospace related research and industry. The undergraduate program has been

approved by the NMSU Board of Regents.

Economic Impact: Economic development in the state of New Mexico will be enhanced in sev-

eral ways: 1) new aerospace enterprises, availability of local AE graduates, AE educational op-

portunities for company employees, and aerospace research capabilities in aerospace at NMSU

will be important factors in the decision of companies to locate/relocate in New Mexico; 2) aero-

space enterprises already in New Mexico; availability of qualified AE graduates and academic

research capability at NMSU will have a positive economic impact on young/small NM aero-

space companies that are growing and/or expanding product lines; 3) educated workforce re-

maining in NM: anticipated increase in aerospace employment in southern New Mexico will re-

sult in NMSU AE graduates remaining in the area, strengthening the state economic base.

Educational Benefit: The aerospace program will provide a valuable new educational opportu-

nity and career path for New Mexico’s high school students and for established workers in New

Mexico who want to pursue undergraduate or advanced degrees in aerospace engineering. AE

program outreach will generate interest and competence in math, science and engineering for K-

12 students in New Mexico. Survey results indicate that student interest in aerospace engineering

is high.

Senate Bill No. 120 – Page

3

•

SB190 in the 2004 General Session appropriated $152.0 to NMSU Aerospace Engineer-

ing.

•

This proposal was not submitted to the New Mexico Higher Education Department

(NMHED) by NMSU. Consequently, this request was not included in the Department’s

funding recommendation for FY07.

•

NMSU submitted a funding request for FY07 to NMHED in the amount of $600,000 for

this project in FY07.

PERFORMANCE IMPLICATIONS

NMSU will submit a plan for program evaluation, including specific program goals and criteria

for assessment of program effectiveness to the Legislative Finance Committee (LFC), as well as

the New Mexico Higher Education Department by October 1, 2006. NMSU will similarly sub-

mit a program evaluation to LFC and NMHED by June 30, 2008 detailing the benefits to the

state of New Mexico, attributed to this program, incurred over the initial three-year period since

the program’s inception.

Significant aspects of the Aerospace engineering program are stated to be implemented at no ad-

ditional expense due to expected synergies in the existing Mechanical Engineering program. The

program will establish existing Mechanical Engineering courses for Aerospace Engineering stu-

dents in the freshman and sophomore years. Mechanical Engineering facilities, including exist-

ing laboratories and infrastructure will be utilized for teaching and research.

ADMINISTRATIVE IMPLICATIONS

The balance of funds is to remain in place during the initial 5-7 year program implementation

period, and as such, any unexpended or unencumbered balance remaining at the end of FY08

shall not revert to the general fund. Some level of funding and program administration costs

could be incurred while these funds are in place over this period. The administration of this ap-

propriation would most likely be conducted by the proposed Aerospace Engineering Advisory

Board mentioned within the Technical Issues section.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

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

SB 121

NMSU Space & Aerospace Research Program

HB 140 New Mexico Space Grant Consortium

HB7 General Appropriation act of 2006

HB154 NMSU Aerospace Engineering Program

HB158 NMSU Science, Math & Aerospace Academy

HB159 NMSU Space and Aerospace Research Program

HB167 Create NMSU Aerospace Research Program

Senate Bill No. 120 – Page

4

Senate Bill 120 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,

aerospace engineering degree programs, and NMSU technical, engineering, scientific, mathemat-

ics, and research programs. SB 120 is specifically related establishing an aerospace engineering

degree program at NMSU.

TECHNICAL ISSUES

The Aerospace Engineering program is intended to operate competitively at the national level

among similar aerospace education programs. An Aerospace Engineering Advisory Board is to

be formed to provide guidance and oversight of the program in curriculum and research areas of

aerospace.

OTHER SUBSTANTIVE ISSUES

The promotion of Science, Technology, Engineering, and Mathematics (STEM) education pro-

grams within secondary institutions within New Mexico have recently been high-lighted as is-

sues that are at the forefront of the New Mexico Federal Congressional Delegation’s funding and

legislative initiatives. This initiative is an effort to promote New Mexico’s development of a

technically proficient state population that is able to compete in attracting investment at both the

national and global level in high-tech manufacturing, engineering and research.

There is an established correlation among STEM education programs and related research and

incrementally higher rates of high-wage employment.

Research conducted by faculty and graduate students can help to attract other sources of research

funding such as federal and private sector sources. High levels of research funding can correlate

to a catalytic impact on economic development within New Mexico.

PD/nt