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

SPONSOR M.J. Garcia

ORIGINAL DATE

LAST UPDATED

1/28/08

HB

SHORT TITLE NMSU Arrowhead Programs

SB 140

ANALYST Haug

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$165.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

New Mexico State University (NMSU)

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

Senate Bill 140 appropriates $165.0 from the general fund to the Board of Regents of New

Mexico State University to support the economic development programs of New Mexico State

University’s Arrowhead Center for economic and sustainable development.

FISCAL IMPLICATIONS

The appropriation of $165.0 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 this request was submitted by NMSU to the New Mexico Higher Education

Department for review. The Department’s funding recommendation for FY09 is a continuance of

FY08 recurring funding in the amount of $111,600.

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

Senate Bill 140 – Page

2

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, p74.)

SIGNIFICANT ISSUES

NMSU states:

•

With a 47

th

ranking in per capita income, New Mexico must foster economic growth in a

largely rural setting by integrating academic, research, and business talents in the

business development process. As New Mexico’s land grant institution, it is New

Mexico State University’s unique mission to foster technology-based development

through teaching, research, and service. The Arrowhead Center for Business

Development will help NMSU meet its goals for Graduate Education, Economic

Development and Outreach.

•

The vision of Arrowhead Center is to be a nationally recognized leader in the promotion

of sustainable economic development.

•

The mission of Arrowhead Center is to promote prosperity and public welfare in New

Mexico through economic development.

•

Arrowhead Center is in the business of fostering commercialization of NMSU intellectual

property, providing relevant public policy research analysis on economic issues, making

University resources available to serve as a springboard to start-up businesses;

developing new entrepreneurial concepts, jobs, and sources of wealth; and supplying

training and degree programs for identified business needs of both the public and private

sector in New Mexico.

•

The mission, vision, and goals of Arrowhead Center are linked intimately with those of

NMSU, its parent organization.

•

By fostering commercialization of NMSU intellectual property and making resources

available for start-up and emerging businesses, Arrowhead Center will nurture the small

businesses through a strong incubation program facilitating networking and providing

business management assistance as part of a larger economic development plan for the

state. The Arrowhead Center works very closely with local, regional and state economic

development organizations including the New Mexico Economic Development

Department, the Mesilla Valley Economic Development Alliance, and the Otero County

Economic Development Corporation as well as White Sands Missile Range, city, county,

and state officials and legislative field representatives for United States Senators, Jeff

Bingaman and Pete Domenici, and United States Congressman Steve Pearce.

The EDD states that The Economic Development Department has utilized the Arrowhead Center

to conduct feasibility studies and business plans for local businesses and considers the

organization an invaluable partner.

GH/mt