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

SPONSOR Nunez

ORIGINAL DATE

LAST UPDATED

1/18/08

HB 87

SHORT TITLE NMSU Economic Development Through Tour

ism

SB

ANALYST Haug

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$331.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

Tourism Department (TD)

New Mexico State University (NMSU)

SUMMARY

Synopsis of Bill

House Bill 87 appropriates $331.0 from the general fund to the Board of Regents of New Mexico

State University to support the rural economic development through tourism program.

FISCAL IMPLICATIONS

The appropriation of $331.0 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.

According to the HED, this request was submitted by NMSU to the New Mexico Higher

Education Department for review, but is not included in the Department’s 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 “Would not oppose if funding available" project. Reasons for this

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

House Bill 87 – Page

2

Review of Selected Research and Public Service Projects, January 12, 2008, Table 4, p75.)

SIGNIFICANT ISSUES

NMSU states that the Rural Economic Development Through Tourism Project (REDTT) began

in 1992 and was designed to boost tourism development and research in five New Mexico

counties. The service area in 2007 is 17 counties encompassing 47 villages, towns, and cities, 10

Native American pueblos and two Native American tribes. REDTT, administered through

NMSU’s Cooperative Extension Service, would work collaboratively with the Tourism Research

Center in the School of Hotel, Restaurant, and Tourism Management.

NMSU states further that the appropriation requested in House Bill 87 would continue the

program, resulting in better industry access to university-wide extension tourism related

resources. The REDTT Tourism Research Center will be positioned to allow students to

participate in a quality hospitality and tourism graduate program in tourism development and

research. The program will allow faculty and students in the Tourism Research Center of the

School of Hotel, Restaurant and Tourism Management to gain valuable “hand-on" experience by

working with local and tribal organizations on their tourism projects throughout New Mexico.

The HED states that House Bill 87 provides technical support to rural communities and Native

American tribes and pueblos for the development of tourism sites and support systems.

The TD states that The REDDT program at NMSU is a very successful program that assists rural

communities in promotion and production of their resources for tourism. With tourism being a

multi-billion dollar industry, this program can help the smaller communities share in the benefits

of the industry.

GH/nt