Bad Ignition TIming..help!

I have a 99 Altima with 49,000 miles. I just got the smog done on it, it passed the emissions part but it failed the "functional" part because the Ignition Timing is off. It says Ignition Timing 12 BTDC. Is this serious? Hard / Expensive to fix? What can cause this? Is this damaging my engine? Now, I have to get this fixed and do a retest for $40. The jerks knew there was a problem w/ the timing before they did the smog but went w/ the test anyways :(.

thanks

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elmo
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