NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates appropriations included in House Bill 38 and House Bill 2.

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SOURCES OF INFORMATION

LFC Files

Commission for Higher Education (CHE)

SUMMARY

Synopsis of Bill

House Bill 43 appropriates $5,038.1 from the general fund to the Board of Regents of the University of New Mexico (UNM) for UNM's Health Science Center instruction and general expenditures. The appropriation is distributed as follows: $643,000 to expand college of nursing enrollment, $494,800 to extend nursing faculty salaries to a twelve month year, $573,400 for salary market adjustments for nursing faculty and information technology staff, $246,000 to the occupational therapy and physical therapy programs, $796,400 for specialty education in pediatrics, $750,000 for specialty education in trauma, critical care and emergency care, $378,900 for health science center library collections, $1,155,600 for unavoidable costs.

Significant Issues

Commission for Higher Education (CHE) recommendations relating to this bill are outlined below:

(Page one, lines 21 - 24) Expansion of the college of nursing enrollment and extend nursing faculty salaries to a twelve-month year -- All nursing programs in NM public higher education are funded via the higher education funding formula. As additional students are brought in to the nursing program, they will be phased onto the formula. An additional appropriation to fund expansion would be a non-formula adjustment. UNM's funding request includes $798,800 for nursing programs. This request is in the third priority group. The CHE did not recommend a non-formula adjustment for nursing.

(Page 2, lines 1 - 3) Market salary adjustments for nursing faculty and information technology staff -- both groups of employees would benefit from the CHE's 7.0% requested salary increases. The LFC also recommended a 7.0% salary increase.

(Page 2, lines 4 - 6) Occupational therapy (OT), physical therapy (PT) master's degree programs - both OT and PT are funded via the higher education funding formula. As the programs expand from bachelor level programs to master level programs, they will be phased onto the formula. Some of the funding for this request would be used to upgrade existing staff positions. An additional appropriation to fund this would be a non-formula adjustment. UNM's funding request includes $198,700 in their 2nd priority group for OT and PT. The CHE did not recommend a non-formula adjustment for OT/PT.

(Page 2, lines 7 - 9) Specialty education in pediatrics - additional funding for specialty education in pediatrics is requested by UNM in their 2nd priority group. The additional funds would be used to hire additional faculty in order to reduce the workload on current faculty. The CHE did not recommend funding for this request.

(Page 2, lines 10 - 12) Specialty education in trauma, critical care and emergency care - additional funding for trauma, critical care, and emergency care is requested by UNM in their 2nd priority group. The additional funds would be used to hire additional faculty in order to reduce the workload on current faculty. The CHE did not recommend funding for this request.

(Page 2, lines 13 - 15) Health sciences library collections - UNM includes this request in their 3rd priority grouping. In the funding recommendation cycle for 2001, most institutions did not express a desire to increase the library formula funding. Therefore, the CHE did not recommend any library enhancements in its funding recommendation.

(Page 2, lines 16 - 20) Unavoidable costs - UNM includes unavoidable costs for the health science center in their 2nd priority grouping. The CHE recommendation includes 354,700 for increased hazardous materials disposal costs and increased utility expenses. Additionally, a $182,800 enhancement and $329,000 equipment workload adjustment is included in the CHE's recommendation for UNM's health science center for equipment renewal and replacement. This funding may be used to support the information technology maintenance needs of the health science center. The LFC funding recommendation includes the same unavoidable cost adjustments as in the CHE's recommendation.

FISCAL IMPLICATIONS

The appropriation of $5,038.1 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

Provisions of House Bill 38 duplicate the appropriation request in this bill as follows:

(3) seven hundred ninety-six thousand four hundred dollars ($796,400) for the school of medicine's speciality education program in pediatrics.

House Bill 2 also includes the $737.8 in the unavoidable costs section, lines 16 - 20 on page 2 of this bill.

AMENDMENTS

The CHE suggests the following language for all new recurring higher education programs and expansion of current programs (assuming that funding will continue beyond 2001-2002):

"The institution receiving the appropriation in this bill shall submit a program evaluation to the Legislative Finance Committee and the Commission on Higher Education by August 2, 2004 detailing the benefits to the State of New Mexico from having this program implemented for a three-year period."

RLG/prr