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F I S C A L I M P A C T R E P O R T
SPONSOR Cisneros
ORIGINAL DATE
LAST UPDATED
1/19/08
HB
SHORT TITLE NM Small Business Development Center
SB 48
ANALYST Haug
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$800.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
Santa Fe Community College (SFCC)
Economic Development Department (EDD)
SUMMARY
Synopsis of Bill
Senate Bill 48 appropriates
$800.0
from the general fund to the Higher Education Department for
the statewide New Mexico Small Business Development Center at Santa Fe Community College.
FISCAL IMPLICATIONS
The appropriation of $800.0 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.
The HED states that a proposal of $1,000.0 was submitted to the New Mexico Higher Education
Department (NMHED) by Santa Fe Community College. The Department’s funding
recommendation for FY09 is a continuance of FY08 recurring funding in the amount of $4,673.4
with no additional funding at this time.
Senate Bill 48 provides $800.0 in addition to the recommended recurring funding level.
pg_0002
Senate Bill 48 – Page
2
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
Review of Selected Research and Public Service Projects, January 12, 2008, Table 4, p75.)
SIGNIFICANT ISSUES
The Small Business Development Center at SFCC states that the New Mexico Small Business
Development Center is a Statewide Small Business Development and Training Program, with the
lead office hosted by SFCC. Local SBDC offices are funded by sub-contract between Santa Fe
Community College and sixteen Higher Education institutions across New Mexico. The New
Mexico SBDC’s strategic mission is to provide quality direct assistance, entrepreneurial
education and resource links for potential and existing businesses to strengthen the economy of
New Mexico. The SBDC is overseen at the National level by the United States Small Business
Administration. The appropriation is intended to expand the current services available and
establish additional services.
This additional funding will be utilized for the following purposes:
•
Additional core funding support for the nineteen existing local SBDC offices
across the state.
•
Implementation of a NMSBDC Statewide Small Business Procurement
Assistance Program
•
Expansion of the NMSBDC Business, Stakeholders and Partners Needs
Assessment and Satisfaction measurement system.
According to the Small Business Development Center at SFCC, NMSBDC will be submitting a
funding proposal for $300,000.00 to the US Department of Defense, Defense Logistics Agency
in the spring of 2008 for funding of a Statewide Procurement Assistance Program to be
integrated into NMSBDC core services. This federal grant requires a minimum dollar for dollar
match. $400,000.00 of this appropriation would be used for that purpose
The HED states that the NMSBDC is a partnership of the U.S. Small Business Administration,
the State of New Mexico, the New Mexico Association of Community Colleges, and the private
sector. The NMSBDC provides confidential assistance with the following areas of small business
development:
•
Business planning, marketing, and financing
•
International tradeâ€"import and export
•
Women and minority-owned business programs
•
Veterans information programs
•
Young entrepreneurs programs
GH/nt