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

SPONSOR Rawson

ORIGINAL DATE

LAST UPDATED

2/8/07

HB

SHORT TITLE NMSU Social Entrepreneurship Program

SB 46

ANALYST Leger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$50.0 Nonrecurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Higher Education Department (HED)

New Mexico State University (NMSU)

SUMMARY

Synopsis of Bill

Senate Bill 46 appropriates $50 thousand from the general fund to the Board of Regents of New

Mexico State University for the purpose of supporting the social entrepreneurship program at the

Arrowhead center.

FISCAL IMPLICATIONS

The appropriation of $50 thousand contained in this bill is a nonrecurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to the

general fund.

SIGNIFICANT ISSUES

According to HED the Arrowhead Center, Inc is organized for the purpose of fostering economic

growth in a largely rural state by integrating academic, research, and business talents in the

economic development process. It is divided into five business units: Intellectual Property

Senate Bill 46 – Page

2

Commercialization, Research Park, Entrepreneurship, Workforce Development, and Policy

Analysis. The units facilitate Arrowhead’s need to address a broad spectrum of issues related to

sustainable and economic development in New Mexico. Together, the units create a cohesive

research center that is able to effectively aid New Mexico’s economy.

NMSU indicates the appropriation in SB 46 would be used to support a social entrepreneurship

program. The funding would provide resources, design and build, and create the new program at

NMSU. The program would help non-profit organizations by providing business strategies to

the businesses. The individualized strategies would focus on long-term sustainability.

PERFORMANCE IMPLICATIONS

NMSU reports its Arrowhead center has provided business assistance to nearly 150

entrepreneurs across the state by providing business plans and feasibility studies to for-profit

companies. The appropriation would expand their market into non-profit companies. Rivers

Academy, a Las Cruces non-profit school that accommodates students who are challenged

academically and/or socially because of learning disabilities, academic disorders, or their special

needs, was on the verge of closure. Arrowhead provided a semester of consulting and

developing a financial plan. The academy remains open and provides education to a larger

amount of students.

The Arrowhead Center, Inc. provided the following goal/performance table for the social

entrepreneurship program:

Social Entrepreneurship Program at Arrowhead Center, Inc.

Goal/Performance Objective

Performance

Indicator

FY 2007 -

2008

JL/nt

1

To develop a social entrepreneurship program

1.2

Design Social Entrepreneurship program

By 6/30/07

1.3

Provide research and support services to social

entrepreneurship projects

7

1.4

Number of NMSU students involved in social

entrepreneurship projects

14

1.5

Identify new programs in global entrepreneurship

By 03/31/07