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

SPONSOR Snyder

ORIGINAL DATE

LAST UPDATED

01/29/08

HB

SHORT TITLE Expand UNM Biomedical Engineering

SB 384

ANALYST Williams

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$655.8

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

SUMMARY

Synopsis of Bill

Senate Bill 384 appropriates $655,780 from the General Fund to the University of New Mexico

to establish a graduate program in biomedical engineering.

FISCAL IMPLICATIONS

The appropriation of $655,780 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY09 shall revert to the

general fund.

SIGNIFICANT ISSUES

The University of New Mexico Center for Biomedical Engineering currently exists and

researches biomaterials, nanobiotechnology, bioanalytical microsystems and bioenergy

technologies. The UNM website shows there are sixteen graduate students enrolled in the

program.

Senate Bill 384 – Page

2

These funds would augment funding received by UNM through the Instruction and General

(I&G) funding formula for operation of the existing Biomedical Engineering Program. Also, the

FY08 operating budget and House Bill 7 (LFC version of the budget recommendation for FY09)

include $200.0 thousand in Section 4, recurring appropriations, to UNM for biomedical

engineering.

An expansion proposal was submitted by UNM to the HED for consideration in fall 2007, but

was not included in the Department’s funding recommendation for FY09. In its November 2007

evaluation of research and public service projects expansion requests and new initiatives, HED

rated the UNM expansion request for biomedical engineering as a breach of the higher education

funding formula.

The January 2008 LFC report “Higher Education Department Review of Selected Research and

Public Service Projects" discusses best practices for funding these types of projects.

OTHER SUBSTANTIVE ISSUES

The UNM Center for Biomedical Engineering received a $2.5 million grant from the National

Science Foundation over five years (2006 through 2011) to fund a research and educational

partnership with Harvard University, Albuquerque Public Schools and the Southwestern Indian

Polytechnic Institute. Outreach and research activities are conducted under the “Partnership for

Research and Education in Biomaterials (PREM) initiative. The purpose of the grant is “to

attract girls and minorities to careers in engineering, and to stimulate interest in science and

technology." Research activities address smart materials for tissues, DNA sequencing and high

performance materials and low-cost diagnostics.

HED notes “at current funding rates, the center is limited in its ability to offer degree programs

to graduate students. Additional funding is necessary ….to hire faculty to teach within the

program. However, monies must be attained …to reach a minimal level of activity for courses,

research, laboratory and recruiting. Further, funds are required to defray the expenses associated

with graduate student qualifying exam committees and dissertation committees." HED

continues: “previous funds enabled the center to hire two faculty members, … not sufficient to

run a graduate program."

POSSIBLE QUESTIONS

1.

Which activities are supported by the current state appropriation for biomedical

engineering ---- academic instruction, research or outreach.

2.

How would the additional funding in this bill be used.

3.

What is the indirect cost recovery rate and associated revenues received by the university

on federal grants received by this center. How are these other sources of funds being

used.

4.

Does the center have a strategic plan and performance measures and targets. How does

this plan align with the university strategic plan. What specific outcomes are resulting or

are projected to occur.

AW/bb