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)

Relates to: House Bill 559, House Bill 589, House Bill 428, Senate Bill 505, House Bill 78, House Bill 15, Senate Bill 250, House Bill 186, House Joint Memorial 12, and House Joint Memorial 30.

SOURCES OF INFORMATION

LFC Files

Commission for Higher Education (CHE)

SUMMARY

Synopsis of Bill

Senate Bill 378 appropriates $300.0 from the general fund (includes an emergency clause) to the Board of Regents of the University of New Mexico (UNM) to provide manpower development and training programs for persons in north-central New Mexico at the UNM's off-campus instruction program in Taos.

FISCAL IMPLICATIONS

The appropriation of $300 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. This bill also contains an emergency clause.

House Bill 559 and House Bill 589 specify that the Economic Development Department shall establish a development training program that provides quick-response classroom and in-plant training to furnish qualified manpower resources for new or expanding industries and non-retail service sector businesses in New Mexico that have business or production procedures that require skills unique to those industries.

House Bill 428 and Senate Bill 505 appropriate $543.0 from the general fund to the Board of Regents of the University of New Mexico (UNM) to provide workforce development in the Barelas, South Valley, and downtown areas of Albuquerque.

House Bill 78, House Bill 15, and Senate Bill 250 appropriate $15.0 million from the general fund to the development training fund for expenditure in fiscal year 2001 and subsequent fiscal years for a development training program providing classroom and in-plant training to furnish qualified manpower resources for certain new or expanding industries and businesses in the state.

House Bill 186 appropriates $2.0 million to the State Department of Education (SDE) for high school-to-workforce transitional counseling services .

This bill requires the SDE to ensure that counseling services include:

(1) career selection and other skills useful to students preparing to enter the workforce;

(2) rehabilitation counseling and services for students with disabilities; and

(3) individual counseling services to assist high-need students in completing high school graduation requirements."

House Joint Memorial 12 requests the SDE, Office of the Governor, State Workforce Development Board, and public and private school-to-work partners to develop a school-to-work sustainability plan.

House Joint Memorial 30 requests the Commission on Higher Education, in cooperation with post-secondary institutions, to study the feasibility of funding certain non-credit courses that support needed workforce training. The study is to be completed no later than November 1, 2001.

OTHER SUBSTANTIVE ISSUES

The following is provided for information only. It is not intended as a commentary on the merits of the program/project:

This program was not included in UNM's budget request to the UNM Board of Regents, and thus was not submitted by UNM to the Commission on Higher Education (CHE) for review. The CHE did not recommend funding this program expansion.

UNM-Taos offers vocational training programs as well as the first two years of academic degree programs. Most community colleges receive full Instruction & General (I&G) formula funding, and then appropriations are reduced by the amount of the minimum local mill levy. According to the CHE, as an off-campus center, UNM-Taos receives only the "I" portion of the formula. However, appropriations are not reduced by the amount of the revenue generated from UNM-Taos' two mill levy.

There are seventeen additional community colleges around the state, plus one additional off-campus center in Ruidoso. All of these institutions are similar in mission, and all offer vocational and workforce development opportunities for citizens in their communities. The CHE states that no other community college or off-campus center receives an additional non-formula adjustment for manpower development and training programs.

LG/prr