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

SPONSOR Anderson

ORIGINAL DATE

LAST UPDATED

1/27/2007

HB 162

SHORT TITLE UNM Institute for Aerospace Engineering

SB

ANALYST McOlash

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$777.2

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 221/HB 253, SB 8/HB 79, HB 284/HB 215

Relates to Appropriation in the General Appropriation Act (SB 2/HB 7)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

SUMMARY

Synopsis of Bill

House Bill 162 appropriates $777,200 from the General Fund to the Board of Regents of the

University of New Mexico for expenditure in FY 2008 to expand the Institute for Aerospace En-

gineering.

FISCAL IMPLICATIONS

The appropriation of $777,200 contained in this bill is a recurring expense to the General Fund.

Any unexpended or unencumbered balance remaining at the end of FY 2008 shall revert to the

General Fund.

UNM indicated in its request that $473,600 is for recurring and $923,600 for non-recurring ex-

penses. However, HB162 appropriates funding of $777,200.

House Bill 162 – Page

2

`

SIGNIFICANT ISSUES

The Higher Education Department reports that this request supports the development of new in-

terdisciplinary Aerospace Engineering (AE) programs. Funding is sought for faculty, laboratory

equipment, and associated research infrastructure. New academic programs in AE will be cre-

ated, but not new degree programs. The new academic programs in AE will comprise: 1) a cer-

tificate at the undergraduate level using courses cross-listed in the graduate program; 2) a new

concentration at the graduate level; and 3) a summer school for high school students.

This proposal was submitted to HED by the University of New Mexico for review, but was not

included in the Department’s funding recommendation for FY08.

PERFORMANCE IMPLICATIONS

HED Analysis

UNM shall submit a plan for program evaluation, including specific program goals and

criteria for assessing program effectiveness to the Legislative Finance Committee and

NMHED by August 1, 2007. The institution shall also submit a program evaluation to the

Legislative Finance Committee and NMHED by June 30, 2010 detailing the benefits to

the State of New Mexico from having this program implemented for a three-year period.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

SB 221/HB 253 – authorizes New Mexico Finance Authority to provide financing assistance for

an aerospace technology warehouse facility in Bernalillo County, an aerospace technol-

ogy project in Grant County, and an aerospace technology project in Sandoval County.

SB 8/HB 79 – funding for aerospace engineering at New Mexico State University.

HB 284/HB 215 – authorizes the State Investment Officer to invest in certain New Mexico aero

space businesses.

General Appropriation Act (SB 2/HB 7) – make appropriations for NMSU aerospace

engineering.

ALTERNATIVES

An alternative is to assess whether an accredited AE degree program should be established to

accord with UNM's stated goals in AE education, research, and development.

BM/sb