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

SPONSOR Ryan, J.

ORIGINAL DATE

LAST UPDATED

1/28/06

HB

SHORT TITLE NMSU Tourism Extension Program

SB 276

ANALYST Hoffmann

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$500.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates House Bill 168.

Relates to Senate Bill 55.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Tourism (NMTD)

Higher Education Department (HED)

New Mexico State University (NMSU)

SUMMARY

Synopsis of Bill

SB276 appropriates $500.0 from the general fund for expenditure in fiscal year 2007 to the New

Mexico State University to establish a tourism extension program in the School of Hotel, Restau-

rant and Tourism Management.

FISCAL IMPLICATIONS

The appropriation of $500,000 contained in this bill is a 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.

Senate Bill 276 – Page 2

SIGNIFICANT ISSUES

This request was not in the list of priority projects submitted by NMSU to the Higher Education

Department. It was not reviewed by the Higher Education Department or recommended in their

budget request.

DUPLICATION

House Bill 168 is a duplicate of this bill.

RELATIONSHIP

Senate Bill 55 appropriates $100,000 to Eastern New Mexico University for the purpose of de-

veloping a two-year hospitality education program to be operated by New Mexico high schools.

OTHER SUBSTANTIVE ISSUES

According to the New Mexico State University’s School of Hotel, Restaurant, and Tourism

Management (HRTM), the tourism industry in New Mexico is in need of a continuous supply of

well trained hospitality and tourism graduates. Current resources are not sufficient to meet the

demand for broadened services. The School of Hotel, Restaurant, and Tourism Management

claims that the recurring expense of $500,000 to the General Fund would provide for the addition

of three hospitality and tourism specialists in the area of policy and research, two support staff

members, three graduate assistants, and funding for operational activity. Any unexpended or un-

encumbered balance remaining at the end of fiscal year 2007 shall revert to the general fund.

CH/mt