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

SPONSOR Altamirano

ORIGINAL DATE

LAST UPDATED

1/30/06

HB

SHORT TITLE Manufacturing Extension Services

SB 173

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$650.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Companion to House Bill 320

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

Senate Bill 173 appropriates $650 thousand from the general fund to the Economic Development

Department (EDD) to contract for manufacturing extension services. The appropriation is con-

tingent on the receipt of money from the National Institute of Standards and Technology (NIST)

to operate a manufacturing center in New Mexico. The appropriation may be expended in FY06

and FY07

FISCAL IMPLICATIONS

The appropriation of $650 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY07 shall revert to

the general fund.

SIGNIFICANT ISSUES

The appropriation will support the New Mexico Manufacturing Extension Partnership

(NMMEP). NM MEP provides technical assistance to emerging and medium-sized manufactur-

Senate Bill 173 – Page 2

ing companies. This assistance helps companies streamline their processes to become efficient

and more competitive. EDD indicates that such technical assistance will ultimately result in

more jobs and capital investment in New Mexico. The NM MEP partners with EDD’s Home-

field Advantage program to help New Mexico companies expand.

PERFORMANCE IMPLICATIONS

According to EDD, NM MEP assists companies in both rural and urban New Mexico with their

processes. Assisted companies have created approximately 87 additional jobs and increased

sales by approximately $27.5 million which resulted in capital investment in New Mexico of

over $10.6 million. Some of the companies that NM MEP assisted include Viviendas in Taos,

Syzygy Tile, Inc in Silver City, A & M Machine Works in Hobbs and Millennium in Roswell.

ADMINISTRATIVE IMPLICATIONS

There would be little administrative impact on the operations of EDD.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Senate Bill 173 is the companion to House Bill 320.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

EDD indicates that failure to approve this appropriation will reduce NM MEP’s ability to pro-

vide technical assistance to many small and emerging manufacturers.

BE/mt