NOTE: As provided in LFC policy, this report is intended only 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 for other purposes.

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

SPONSOR:	Jennings		DATE TYPED:	03/16/03		HB
SHORT TITLE:		Loan-for-Service Program for Dental Students				SB	247/aSFC
					ANALYST:		Williams

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HM 1

SOURCES OF INFORMATION

Responses Received From

LFC Files

Commission on Higher Education (CHE)

SUMMARY

Synopsis of SFC Amendment

The Senate Finance Committee amendment removes the fiscal impact of the bill and clarifies the authorization for the CHE to expend funds already appropriated for FY03. Unexpended or unencumbered balances would revert at the end of FY03.

Synopsis of Original Bill

Senate Bill 247 appropriates $50.0 from the general fund to the Commission on Higher Education to provide loan-for-service financial aid to train dentists at Baylor University to work in New Mexico. The bill carries an emergency clause and indicates unexpended or unencumbered balances remaining at the end of FY04 should revert to the general fund.

Significant Issues

According to the LFC budget document, the FY03 budget includes $50.0 for the contract to train dentists in New Mexico. The agency has requested BAR authority to be included in the General Appropriations Act of 2003 to transfer fifty thousand dollars ($50,000) from the policy development and institutional financial oversight program in the contractual services category to the financial aid program in FY03.

The LFC recommendation for FY04 includes $50.0 for the contract to train dentists in New Mexico. The LFC funding recommendation is reflected in the financial aid program at the Commission on Higher Education.

FISCAL IMPLICATIONS

The appropriation of $50.0 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY 04 shall revert to the general fund.

OTHER SUBSTANTIVE ISSUES

According to CHE, the Baylor College of Dentistry currently has six New Mexico students. The State of New Mexico has not provided financial aid under the contract to train dentists in New Mexico program in the current fiscal year.

TECHNICAL AMENDMENTS

CHE recommends on line 23, after shall, the word “not” be inserted. According to CHE, all financial aid funding is non-reverting.

AW/njw:yr