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| SPONSOR: | Sanchez | DATE TYPED: | 02/07/01 | HB | |||
| SHORT TITLE: | All Net Revenue To Lottery Tuition Fund | SB | 59 | ||||
| ANALYST: | Fernandez | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| $ (15,000.0) | Recurring | Public School Capital Outlay Fund | ||
| $ 15,000.0 | Recurring | Lottery Tuition Fund | ||
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to Related to HB22 and HB56, Conflicts with HB28
SOURCES OF INFORMATION
State Department of Public Education (SDE)
Commission on Higher Education (CHE)
New Mexico Lottery Authority
LFC Files
SUMMARY
Synopsis of Bill
This bill amends the New Mexico Lottery Act to change the distribution of funds to allocate 100 percent of net lottery revenue to the Lottery Success Fund.
Significant Issues
Currently, the New Mexico Lottery Act distributes 50 percent of net lottery revenues to the Public School Capital Outlay Fund and 50 percent to the Lottery Tuition Fund. This bill increases the distribution available for lottery tuition scholarships to 100 percent.
FISCAL IMPLICATIONS
Projections from CHE indicate that if no changes to the program or current statute are made, the program will run short of the funding needed to provide 100-percent tuition scholarships to students in FY03. The projections are based on an assumption of 9 percent tuition increases at universities and 5 percent at community colleges.
According to SDE, the net revenues deposited into the Public School Capital Outlay Fund total approximately $12-15 million per fiscal year. With passage of this bill, 100 percent of net lottery revenue would be deposited in the Lottery Tuition Fund. Other sources of funding for critical capital outlay include supplemental severance tax bonds. House Joint Resolution 3 proposes to amend the constitution to increase the statewide general obligation bonding capacity by 2 percent and dedicating the revenues to the Public School Capital Outlay Council. House Bill 134 implements the Public School Capital Outlay Task Force recommendations which provides additional funding for critical capital outlay.
RELATIONSHIP
This bill relates to HB22 and HB56.
This bill conflicts with HB28. House Bill 28 amends the New Mexico Lottery Act to change the name of the Lottery Tuition Fund to the Lottery Success Fund and changes the distribution of funds to allocate 60 percent of net lottery revenue to the Lottery Success Fund and 40 percent to the Educational Technology Fund.
CTF/njw