[1] 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:

Altamirano

 

DATE TYPED:

02/08/02

 

HB

 

 

SHORT TITLE:

Faculty Endowment Fund

 

SB

14/aSFC

 

 

ANALYST:

Fernandez

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)      

                                                                                                                                                           

 

SOURCES OF INFORMATION

 

LFC Files

 

SUMMARY

 

     Synopsis of SFC Amendment

 

The Senate Finance Committee amendment adds a new subsection which specifies disbursements of the funds as follows:

 

 

The amendment also adds a second subsection that directs CHE to apply the same proportion used to allocate funds for endowed professorships and endowed faculty to endowed chairs in the event funding is not sufficient to fund endowed chairs specified below.

 

The amendment also strikes the appropriation from the original bill.

 

     Synopsis of Original Bill

 

Senate Bill 14 appropriates $11,987.5 from the general fund to the Commission on Higher Education (CHE) for the purpose of establishing endowments for chairs, professorships and faculty development programs at four-year public post-secondary institutions.

 

     Significant Issues

 

The following institutions are eligible for disbursements from the fund for endowed chairs at $500.0 each:

 

University of New Mexico (UNM)                                                     4

New Mexico State (NMSU)                                                                4

New Mexico Institute for Mining and Technology (NMIMT) 2

University of New Mexico - Medical Center                                      2

 

The University of New Mexico, New Mexico State University, New Mexico Highlands University, New Mexico Institute of Mining and Technology, Western New Mexico University and Eastern New Mexico University are eligible for endowed professorships and endowed faculty development programs.  The number of endowed professorships and endowed faculty development programs allocated to each institution shall be in the same ratio as the main campus full-time equivalent enrollment of an institution as to all main campus full-time equivalent enrollments.

 

FISCAL IMPLICATIONS

 

The appropriation of $11,987.5 contained in this bill is appropriated from the general fund to the faculty endowment fund for expenditure in fiscal year 2002 and succeeding fiscal years.  The appropriation shall not revert to the general fund.

 

The funds are appropriated as follows:

 

            $6,000.0          Endowed Chairs ($500.0 each)

            $4,600.0          Endowed Professorships ($200.0 each)

            $1,387.5          Endowed Faculty Development Programs ($37.5 each)

 

Institutions shall receive disbursements for an endowment only when the institution has notified the CHE that it has received matching funds from a source other than a governmental entity, in an amount that is equal to or greater than the amount authorized in the act.

 

Any money remaining in the faculty endowment fund on or after July 1, 2005 shall be disbursed by CHE to the institutions provided the matching fund requirement is satisfied.  Disbursements may be made based on the date requests are received by the commission.

 

This bill carries an emergency clause.

 

ADMINISTRATIVE IMPLICATIONS

 

The faculty endowment fund will be administered by the CHE.

 

The endowment funds of the institutions shall not be expended but shall be invested by the institutions in accordance with the prudent man rule.  The income form the investments shall be used for the purpose of providing funds for chairs, professorships and faculty development programs.

 

OTHER SUBSTANTIVE ISSUES

 

Peer comparisons by institution indicate that the UNM, NMSU and NMIMT lag behind their peers in terms of endowed chairs and endowed professorships.  Endowed faculty positions enable an institution to attract and retain outstanding faculty and significantly contribute to the quality of teaching, research and public service programs. 

 

CTF/njw

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