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)

SOURCES OF INFORMATION

Commission on Higher Education (CHE)

SUMMARY

Synopsis of SEC Amendment

This amendment adds language to allow the Gallup Branch Advisory Board to impose a local tax to support the operations of the learning center. Any tax approved by voters will not exceed $5 per $1,000 of taxable value property and may not be imposed for more than six years. The Board shall not again adopt a resolution authorizing the imposition of a tax levy for at least two years after the date of an initial resolution which the voters rejected. The Board may discontinue the imposition of any tax authorized by mailing a discontinuance resolution to the Department of Finance and Administration no later than June 15 of the year in which the tax rate is not to be certified.

Synopsis of Bill

This bill appropriates $75.0 from the general fund to the Board of Regents of the University of New Mexico for use by the Gallup branch to establish and initially operate the McKinley county learning center. The appropriation shall be used in the same manner as funding that is provided to universities for residence instruction.

Significant Issues

According to the CHE, learning centers must be reviewed by the CHE and established by the Legislature. The CHE has not reviewed the proposal for a McKinley county learning center until UNM main campus officials discuss the proposal with UNM-Gallup branch campus.

FISCAL IMPLICATIONS

The appropriation of $75.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY01 shall revert to the general fund.

OTHER SUBSTANTIVE ISSUES

According to the CHE, as an alternative, UNM-Gallup could broker upper division and graduate level courses with other higher education institutions through extended services instruction.

The CHE recommends that the following language be included for all new recurring higher education programs: "The institution receiving the special appropriation in this bill shall submit a program evaluation to the LFC and the CHE by August 1, 2003 detailing the benefits to the State from having this program implemented for a three-year period."

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