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

SPONSOR McSorley

ORIGINAL DATE

LAST UPDATED

1/27/08 HB

SHORT TITLE UNM Training & Technology Cleanroom

SB 120

ANALYST Wilson

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$385.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB432

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

University Of New Mexico (UNM)

SUMMARY

Synopsis of Bill

Senate Bill 120 appropriates $385,000 from the general fund to the board of regents of the

University of New Mexico for expenditure in fiscal year 2009 for the manufacturing engineering

program's manufacturing training and technology center cleanroom phase two development and

auxiliary salaries.

The MEP is a Research and Public Service Project (RPSP). The MEP operates a cleanroom

within the MTTC on the UNM Science and Technology Park.

FISCAL IMPLICATIONS

The appropriation of $385,000 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 MTTC building and the MTTC cleanroom have been built up over the past decade, using a

capital investment mix of State bonds, federal funds, and UNM bonds, totaling $13M. In

Senate Bill 120 – Page

2

addition, New Mexico companies, such as Intel, Philips Semiconductor, Next Generation

Economy and SNL, have provided over $3,000,000 in modern process equipment. This facility

is unique in the State of New Mexico,

The MTTC completed a $3,400,000 Phase II construction expansion during 2007. This

construction nearly doubled the functional size of the cleanroom. In addition, it installed several

tools, including $600,000 of NSF-funded process tools.

UNM states that the MTTC cleanroom needs a base line of funding from the State, in order to

establish a nominal safe, steady level of operation and training. The cleanroom can then build a

pool of user-derived fees, albeit variable, from university grants, federal labs and companies on

top of that base. However, UNM claims that without the $385,000 requested herein, the

minimum level of safe operations will not be achieved.

The MTTC Cleanroom is expected to support the training of over 100 students per year. It is

expected to eventually leverage over $15,000,000 per year of graduate-level research. And, it is

expected to support more small companies needing pilot production, to thereby secure millions

of dollars of venture capital. The MEP, since 1992, has brought in over $25,000,000 in federal

funds, which has been leveraged by $8,800,000 of State capital and programmatic funds,

$4,300,000 of UNM funds, and $3,400,000 of industry donations.

A request was submitted by UNM in the amount of $1,041,900 to the HED for review. The HED

funding recommendation for FY09 is a continuance of FY08 recurring funding in the amount of

$656,900 with no additional funding at this time.

SIGNIFICANT ISSUES

This cleanroom facility is unique in the state of New Mexico and it is now a core resource not

only for UNM, but also for the State for workforce, technology and economic development in

the area of microsystems and bio-nano-energy technologies. Without sufficient staffing and

supplies, this facility will languish. Forward looking states across the nation have made major

investments in university-based micro and nano fabrication facilities, and in the annual support

of such facilities, in order to either spawn or draw high-tech companies, with high-pay, high-tech

jobs to their regions.

MEP is a multi-disciplinary master's-level academic program that prepares students for real-

world manufacturing and management. The graduate program covers modern manufacturing

methods across computer, mechanical, electronic, and business disciplines.

UNM offers several options leading to a master's degree in manufacturing disciplines. Students

may earn Master of Science (MS) degrees in Mechanical Engineering or Electrical Engineering

with a manufacturing concentration, or a student may earn the degree of Master of Engineering

in Manufacturing Engineering -- a degree that is aimed at engineering practice and covers a

wider range of manufacturing topics than the M.S programs.

This bill supports the expansion of the UNM graduate-level MEP within the UNM school of

engineering. The MEP program seeks to:

1.

Build a nationally-competitive manufacturing engineering program able to meet the

statewide demand for high-tech workers.

Senate Bill 120 – Page

3

2.

Promote economic growth by facilitating, developing, transferring, and teaching new

manufacturing technologies.

3.

Train students on state-of-the-art equipment.

4.

Deliver industry-relevant courses that utilize industry expertise.

5.

Articulate training, curriculum, and facilities with regional community colleges.

UNM notes that this funding will support teaching, research, commercialization requirements of

the Manufacturing Training and Technology Center cleanroom and cover the cost of materials,

supplies, periodic maintenance and minor equipment.

ADMINISTRATIVE IMPLICATIONS

The MEP cleanroom needs additional staff engineer and technician, and additional materials,

supplies and contract services for preventative maintenance, tool refurbishment, periodic etc. to

safely, effectively and efficiently meet user demand. Users include UNM undergraduate and

graduate engineers, UNM researchers, large and small companies seeking to prove their concepts

to venture capitalists. Several times per year, the MTTC cleanroom hosts workshops, offered to

regional high-school faculty and out-of-state community college faculty, on how to fabricate

micro devices such as pressure sensors.

UNM states that without the $385,000 requested herein, the MTTC cleanroom will not achieve a

minimum level of safe and efficient operations. The current staff of two is already stretched to

meet instructional demands for the various training lab sessions required of the universities.

Since more tools and infrastructure have been added to the cleanroom in the past year, the

demands on staff are more severe. Furthermore, the community college and commercial users

will like to have extended hours of operation on nights and weekends, which cannot be provided

with current staffing. The cleanroom as a business community asset is thereby diminished and

its long-term viability made questionable, as a consequence.

OTHER SUBSTANTIVE ISSUES

The MTTC Cleanroom is a high-tech facility, open to multiple educational institutions UNM

research operations and small companies seeking to demonstrate working microsystem

prototypes to venture capitalists. The cleanroom can create microsystems for biomedical,

bioenergy and telecommunication applications. However, to build these systems, the facility

needs to properly and safely operate expensive, complex equipment and supporting infrastructure

such as DI water, acid-waste neutralization, scrubbers, chilled water, boilers, gas supplies, etc.

These tools require potentially hazardous liquid and gas chemicals. Gowns and safety gear must

be worn by all users of the cleanroom. The cleanroom coordinates with fire marshals and

hazmat teams on a regular basis to review safety protocols and response plans. Students,

company users, and staff must adhere to the buddy system. As the cleanroom grows in size and

user demand, the staff must increase in order to safely accommodate the necessary coverage of

tools and users.

DW/mt