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

SPONSOR Gutierrez

ORIGINAL DATE

LAST UPDATED

1/19/08

1/26/08 HB 36

SHORT TITLE NMSU Economic Development Doctorate

SB

ANALYST Haug

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$155.0

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

House Bill 36 appropriates $155.0 from the General Fund to the Board of Regents of New

Mexico State University to establish a new degree program for a doctorate in economic

development.

FISCAL IMPLICATIONS

The appropriation of $155.0 contained in this bill is a recurring expense to the general fund. Any

unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert to the

general fund.

HED states that this request was submitted and presented by NMSU to the New Mexico Higher

Education Department for review, but it is not included in the Department’s Executive funding

recommendation for FY09.

The HED’s evaluation table of FY09 Research and Public Service Projects provided to the LFC

classifies this project as a “breach" of the Higher Education Formula. Reasons for this

classification decision are not provided. (LFC Report 07-20, Higher Education Department

House Bill 36 – Page

2

Review of Selected Research and Public Service Projects, January 12, 2008, Table 4, p74.)

The appropriation request is NMSU’s 1

st

priority out of 29 research and public service projects

submitted in their budget request.

SIGNIFICANT ISSUES

According to NMSU analysis, the bill provides basic funding so that two NMSU departments,

the Department of Agricultural Economics and Agricultural Business and the Department of

Economics and International Business, can begin to offer a professional doctorate in economic

development. The sponsoring departments expect to selectively admit 15-17 students per year

and expect the program to grow to a mature size of approximately 40 students. The Higher

Education Department adds that while there are master's degree and certificate programs in

economic development, there are no existing doctoral programs of this type in New Mexico.

According to NMSU analysis, approximately 2/3 of the funds will be used to fund graduate

assistant stipends. This approach assists students by providing partial funding for their education

and makes them available to participate actively in economic development projects, teaching,

and related activities under the supervision of and in cooperation with faculty members and

entities supporting economic development. It is possible that entities otherwise unable to afford

analytical work on their economic development projects will be able to use supervised student

workers help them on their projects.

Further, NMSU states that the Doctor of Economic Development is a new program developed

largely in response to the need for economic development in New Mexico but also in other

regions of the nation and world. In the proposal stage the program received extensive, statewide

support. Now the program has been designed and needs only funds for implementation. If the

Doctor of Economic Development is successful, economic development professionals across the

state will have the opportunity to increase their understanding of economic development and

analyze economic development opportunities to assure that the state of New Mexico, its

counties, and its cities, make the most out of their economic development efforts. In the long

term, better success at economic development will potentially lead to higher incomes (and tax

revenues) across the state.

GH/mt