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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 2-3-2006 HB

SHORT TITLE NMSU & NM Tech Aerospace Departments

SB 623

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$1,500.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

New Mexico State University (NMSU)

SUMMARY

Synopsis of Bill

Senate Bill 623 appropriates $1,000,000 from the general fund to the New Mexico State Univer-

sity Board of Regents for FY07 and $500,000 from the general fund to the New Mexico Tech

Board of Regents for FY07 for expenditure to develop and deliver a degree program in Aero-

space Engineering at each school. The program is housed in and administered by the Depart-

ment of Mechanical Engineering. The first aerospace engineering courses plan to be offered in

the Fall 2006 semester. Any unexpended or unencumbered balance remaining at the end of

FY08 shall not revert to the general fund.

FISCAL IMPLICATIONS

The appropriation of $1,500,000 contained in this bill is non-recurring initial capital outlay. The

New Mexico State University program will subsequently be supported by a recurring annual ex-

pense of $152,000 to the general fund. A budget appropriation of $152,000 in fiscal year 2006

for the NMSU program currently exists, in addition to a LFC recommendation of $152,000 ap-

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

Senate Bill 623 – Page

2

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

cumbered 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.

SB 623 request for appropriation for NMSU & NM Tech Aerospace Engineering Program(s) is

for the purpose of developing Bachelor of Science (BS), Master of Science (MS), and Ph.D. pro-

grams in Aerospace Engineering (AE) at NMSU & NM Tech. These will be the only AE degree

programs in the State of New Mexico. The requested funding is to hire approximately six aero-

space 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 under-

graduate 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 & NM Tech will have a positive economic impact on young/small

NM aerospace companies that are growing and/or expanding product lines; 3) educated work-

force remaining in NM: anticipated increase in aerospace employment in southern New Mexico

will result 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.

•

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.

Senate Bill 623 – Page

3

•

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

this project in FY07.

PERFORMANCE IMPLICATIONS

NMSU and NMIMT shall submit a plan for program evaluation, including specific program

goals and criteria for assessing program effectiveness to the Legislative Finance Committee

(LFC) and NMHED by August 1, 2006. NMSU shall also submit a program evaluation to the

LFC and NMHED by June 30, 2009 detailing the benefits to the State of New Mexico from hav-

ing this program implemented for a three-year period.

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

Senate Bill 623 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 & NM Tech technical, engineering, scien-

tific, mathematics, and research programs. SB 623 is specifically related establishing an aero-

space engineering degree program at NMSU.

Senate Bill 623 – Page

4

TECHNICAL ISSUES

The Aerospace Engineering programs are 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 both the New Mexico Federal Congressional Delegation, as well

as the federal Executive’s funding and legislative initiatives. This initiative is an effort to pro-

mote New Mexico’s development of a technically proficient state population that is able to com-

pete 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.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Present college-bound students will have fewer academic options within universities in New

Mexico. Subsequent economic development will be minimized.

PD/nt