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.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Commission for Higher Education (CHE)

SUMMARY

Synopsis of Bill

Senate Bill 87 appropriates $150.0 from the general fund to the Board of Regents of Eastern New Mexico University (ENMU) to market the airframe mechanics program on the Roswell campus.

Significant Issues

The appropriation in this bill was not included in ENMU's budget request to the ENMU Board of Regents, and thus was not submitted by ENMU to the Commission on Higher Education (CHE) for their review. The ENMU Board of Regents did not formally grant their approval for this appropriation and the CHE does not recommend funding this project.

FISCAL IMPLICATIONS

The appropriation of $150.0 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.

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/ar