NOTE:  As provided in LFC policy, this report is intended only 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 for other purposes.

 

The most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC 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:

Hurt

 

DATE TYPED:

02/18/03

 

HB

 

 

SHORT TITLE:

Expand San Juan College Nursing Program

 

SB

458

 

 

ANALYST:

Williams

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$150.0

 

 

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to

HB 255: WNMU Nursing

HB 476:  UNM Nursing

SB 94:  NMSU Nursing

SB 291:  Nursing Education

SB 460/HB 385:  San Juan College Nursing Opportunities

SB 722:  NMSU Endowed Chair for Nursing

SB 186:  Nurse Licensure Compact

HB 376:  Nursing Excellence Program

 

SOURCES OF INFORMATION

 

LFC Files

Commission on Higher Education (CHE)

Department of Health (DOH)

Health Policy Commission

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 458 appropriates $150.0 from the general fund to San Juan College for the purpose of expanding the nursing education program.   

 

     Significant Issues

 

DOH and HPC note the severity of nursing shortages nationally and in New Mexico.  Given current trends, the United States Department of Health and Human Services projects the New Mexico nursing shortage will reach 25 percent in 2005, 36 percent in 2010 and 57 percent in 2020.  While most nursing education programs in the state having wait lists for student applicants, certain nursing faculty positions are vacant, and fewer nurses selecting a nursing education specialty in graduate school.

 

In 2002, the Nursing Shortage Statewide Strategic Summit of the Commission on Higher Education and the University of New Mexico Health Sciences Center noted the importance of expanding nursing education program by increasing faculty and enhancing faculty retention through salary adjustments.  Specifically, the Summit calls for an incremental 500 licensed nurse graduate per year (doubling of current levels) beginning in three years and continuing for fifteen to twenty years.

 

DOH notes the extent of the current nursing shortage in San Juan County.  Further, CHE notes the applicant pool for the San Juan College program is declining, all available seats are being filled, with 75% of the nursing class graduating.  At San Juan College, from 93% to 100% of these students pass the National Council Licensing Exam—Registered Nurse over the last four years.

 

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 FY04 shall revert to the General Fund. 

 

CHE notes San Juan College requested $255.5 for a nursing program expansion, which was ranked by the institution as 1st of 4 new or expansion research and public service requests. 

 

According to the LFC budget document, in an effort to address market salary needs for all other two- and four-year institutions, the Legislature appropriated a total of $2,569.8 in FY03 to provide market salary adjustments for nursing faculty, convert nursing faculty from a nine-month contract to a twelve-month contract, and expand nursing student enrollment.  San Juan College received $134.7 to expand nursing enrollment.  For those institutions that did not use the funds appropriated in FY03 to expand nursing student enrollment, the LFC recommended institutions expand nursing enrollment in FY04.  The LFC recommendation for FY 04 includes $134.7 for nursing expansion, flat compared to FY03.

 

OTHER SUBSTANTIVE ISSUES

 

DOH notes this legislation is consistent with the DOH Strategic Plan.

 

ALTERNATIVES

 

In its analysis, CHE notes it did not recommend additional nursing expansion requests in FY04, but instead recommended the revised education funding formula.  The Plus Incentives component of the new formula includes establishment of the Program Development Enhancement Fund.  For this fund, the CHE recommended initial funding of $3 million, while the LFC recommendation includes $1.5 million of general fund and $1.0 million of federal funds in the form of temporary assistance for needy families block grant.  

 

POSSIBLE QUESTIONS

 

  1. How would the appropriation be utilized?
  2. Does this appropriation duplicate SB 460?
  3. What would be the associated impacts on institutional revenues and formula funding?
  4. What performance measures would be available to measure the effectiveness of the program ?

 

AW/njw