Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Nava

ORIGINAL DATE

LAST UPDATED

1/26/07

HB

SHORT TITLE UNM El Centro de la Raza

SB 318

ANALYST McOlash

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$200.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 128 and HB 66.

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Higher Education Department (HED)

SUMMARY

Synopsis of Bill

Senate Bill 318 appropriates $200,000 from the General Fund to the Board of Regents of the

University of New Mexico for expenditure in FY 2008 to pay operating expenses of El Centro de

la Raza.

FISCAL IMPLICATIONS

The appropriation of $200,000 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.

SIGNIFICANT ISSUES

The Resource Center for Raza Planning (RCRP), established in 1996, is in the Community and

Regional Planning Program within the School of Architecture and Planning at the University of

New Mexico. The goal of RCRP is to contribute to the sustainability and survivability of

Senate Bill 318 – Page

2

traditional New Mexico communities. The core membership of Resource Center for Raza

Planning is drawn from New Mexico graduate students in the Community and Regional Planning

program at the University of New Mexico.

The RCRP has four main objectives:

1.

Produce research and policy analysis of planning issues affecting traditional

communities.

2.

Partner with other organizations to promote effective strategies for community

development.

3.

Produce, compile, and distribute educational material.

4.

Generate and nurture a pipeline of individuals interested in planning and development

issues and planning education.

A request was submitted by UNM to the New Mexico Higher Education Department in the

amount $95,000 for additional funding to the base. The Department's recommendation for FY08

is a continuance of recurring funding from FY07 in the amount of $127,800, no additional

funding at this time.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Senate Bill 318 is related to the duplicate bills HB 66 and SB 128 that appropriate $220,000 for

the expansion of the Resource Center for Raza Planning.

ALTERNATIVES

Higher Education Department Analysis for HB 66.

Higher education institutions receive indirect cost revenues from federal contracts

and grants. This money is unrestricted in the sense that the governing board of the

institution has the flexibility to choose which projects are supported with these

funds. A great deal of this money is used as seed money to develop new research

and public services projects at institutions. A portion of the indirect cost revenue,

or earned overhead, is used to support items such as the salaries of the

accountants responsible for monitoring the contracts and grants, or for paying

utilities and other expenses required to maintain the space where the contract and

grant activities are housed.

The higher education funding formula allows institutions to retain 100% of this

indirect cost revenue. One of the purposes of retaining these funds is to provide

seed money and matching funds for projects such as the one proposed in this bill.

BM/mt