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.





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





SPONSOR: Wallace DATE TYPED: 02/04/00 HB 327
SHORT TITLE: Occupational & Physical Therapy SB
ANALYST: Pacheco-Perez


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
$ 150.0 Rec GF

(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to HB17

SOURCES OF INFORMATION



Commission on Higher Education (CHE)

Regulation and Licensing Department (RLD)



SUMMARY



Synopsis of Bill



This bill appropriates $150.0 from the general fund to the Board of Regents of the University of New Mexico for the purpose of converting existing undergraduate programs in occupational therapy and physical therapy to master's level programs in order to meet increased licensing education requirements. This bill carries an emergency clause.



FISCAL IMPLICATIONS



The appropriation of $150.0 contained in this bill is a recurring expense to the general fund for expenditure in fiscal years 2000 and 2001. Any unexpended or unencumbered balance remaining at the end of FY01 shall revert to the general fund.



ADMINISTRATIVE IMPLICATIONS



This bill provides funding to add 4.0 FTE to the UNM Medical School.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



This bill relates to House Bill 17.



OTHER SUBSTANTIVE ISSUES



According to CHE, physical and occupational therapists are increasingly being expected to function as health care professionals to address complex patient needs. The national accrediting associations therefore concluded that the public would be better served if therapists were educated at the post-baccalaureate level. With this mandate, UNM must upgrade to master's-level degrees in order to graduate students who would then be eligible for licensure. Funding for the master's-level degrees will be phased into the UNM Medical School as students enroll for the programs. However, because the higher education funding formula uses a three-year rolling average, full funding of the programs will not be generated until FY04.



CHE recommends that the following language be included for all new recurring higher education programs: "A plan for a program evaluation, including specific program goals and criteria for assessing program effectiveness shall be submitted to the LFC and CHE by October 1, 2000. An assessment of the program will be completed prior to June 30, 2001 and submitted to the LFC and CHE."



APP/gm