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

SPONSOR Martinez, R.

ORIGINAL DATE

LAST UPDATED

1/28/08

HB

SHORT TITLE Sustainable Youth Entrepreneurial Program

SB 380

ANALYST Cox

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$50.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Economic Development Department - NMEDD

SUMMARY

Synopsis of Bill

Senate Bill 380 requests an appropriation of fifty thousand dollars ($50,000) from the General

Fund to the Department of Finance and Administration. These funds will then be flowed and be

used to contract with a not-for profit organization. This not-for-profit organization will

administer sustainable youth entrepreneurial programs on a State-wide basis. Hence, this Senate

Bill provides necessary administrative funds for a variety of entrepreneurial initiatives for New

Mexico’s youth.

FISCAL IMPLICATIONS

The appropriation of fifty thousand dollars ($50,000) 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.

SIGNIFICANT ISSUES

NMEDD noted:

Development of rural entrepreneurial initiatives for New Mexico’s youth is vitally important for

our State’s economic development. Several Companion Bills provide specifics as to where and

Senate Bill 380 – Page

2

how ‘Companion" funds will be spent on these youth initiatives. (see Companion Relationships

below) However, it was noted that these ‘Companion Bills’ did not include administrative

funding for these funding programs. This Bill adds necessary administrative funding and

addresses a noted problem. It is noted that prior support for economic development programs has

been made through Governmental funding and private foundation grants

Non profit entities involved is these related economic initiatives commonly are:

•

Community Colleges

•

Universities

•

Chambers of Commerce

•

Business incubators and;

•

‘business alliances’

NMEDD further states that:

This legislation would enhance the entrepreneurial and economic development opportunities for

the youth of the state. The legislation would address business assistance efforts that do not

traditionally meet the standard definition of economic development

.

COMPANION RELATIONSHIP

There is a ‘Companion Bill’ relationship between Senate Bill 191, House Bill 349 and This

Senate Bill. These above-mentioned Bills address needs and funding targets. This Senate Bill

380 provides the needed support, administrative costs, and accountability for implementation of

SB 191 and HB 349.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

NMEDD further notes:

If this legislation is not passed, rural New Mexico will miss an opportunity to build and support

entrepreneurial/economic development initiatives that have been started or are ready for

expansion, which includes youth. NMEDD, through its Regional Representative Program has

been an active partner in the successful Empowering Business Spirit Initiative (EBS) that was

developed from a Kellogg Grant for the four county service area of: Rio Arriba, Taos, Mora, and

San Miguel.

PRC/mt