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

SPONSOR Martinez

ORIGINAL DATE

LAST UPDATED

1/25/08

HB

SHORT TITLE Entrepreneurial Development Support

SB 191

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$200.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department (EDD)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 191 appropriates $200 thousand from the general fund to Economic Development

Department to support entrepreneurial development through business training, networking op-

portunities, youth programming, policy advocacy, technical assistance and improvement of capi-

tal access in rural areas. The appropriation is divided as follows:

1.

Seventy-five thousand dollars ($75,000) to support operational expenses in northern New

Mexico for partnership coordination;

2.

sixty-five thousand dollars ($65,000) to support development of a coordinated statewide

youth entrepreneurship strategy; and

3.

Sixty thousand dollars ($60,000) in planning funds to create entrepreneurial networks

throughout the state.

FISCAL IMPLICATIONS

The appropriation of $200 thousand 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.

Senate Bill 191 – Page

2

SIGNIFICANT ISSUES

According to PED the bill supports a three-part approach for building entrepreneurship:

1.

the partnership coordination proposal for Northern New Mexico will support and expand

entrepreneurial activities already underway through the work of the Northern Network

and the recently established Microsoft “Partners in Learning" grant to Regional Educa-

tion Cooperative (REC)-2;

2.

Support for the newly formed “New Mexico Statewide Youth Entrepreneurship Net-

work," an initiative introduced by EDD on December 4, 2007, which brought together

individuals and representatives of organizations to brainstorm aspects of entrepreneurial

activity (business, industry, education) with an emphasis on youth; and

3.

Funds to create entrepreneurial networks throughout New Mexico to address a crucial in-

gredient in the development of successful entrepreneurial activity – the creation of sup-

port systems to ensure the growth of new entrepreneurial activities and the sustainability

of existing activities. Significant within the network theme is the expansion of business

incubators within the rural areas.

PERFORMANCE IMPLICATIONS

EDD reports that the bill would enhance the entrepreneurial and economic development oppor-

tunities for the rural areas of the state. The legislation would address business assistance efforts

that do not traditionally meet the standard definition of economic development.

The expansion of entrepreneurial activities within the state will have an impact on the work of

the New Mexico Rural Revitalization Initiative (NMRRI), a program within the Rural Education

Bureau of the PED.

ADMINISTRATIVE IMPLICATIONS

EDD indicates that it does not have the capacity (FTE) to administer the tasks associated with

this legislation. The department would likely contract for these services.

BE/bb