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SPONSOR: |
Rawson |
DATE TYPED: |
|
HB |
|
||
SHORT TITLE: |
NMSU Endowed Chair for Nursing |
SB |
722/aSEC |
||||
|
ANALYST: |
Williams |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
500.0 |
|
|
Non-Recurring |
General
Fund |
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to SB 94, SB 186, SB 291, SB 455, SB
460, SB 466, HB 255, HB 376, HB 385, HB 476, HB 567, HB 756
LFC Files
Commission on Higher Education
SUMMARY
Synopsis
of SEC Amendment
The Senate Education Committee amendment removes
the reversion language.
Synopsis of Original Bill
Senate Bill 722
appropriates $500.0 from the general fund to the Board of Regents of New Mexico
State University for the purpose of an endowed chair for nursing.
Significant Issues
NMSU notes an endowed chair would provide
incentive to retain or recruit senior nursing faculty with additional funds and
prestige for the faculty member.
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
sal-
ary adjustments.
Specifically, the
FISCAL IMPLICATIONS
The appropriation of
$500.0 contained in this bill is a non-recurring expense to the General
Fund. Any unexpended or unencumbered
balance remaining at the end of FY04 shall revert to the general fund.
Through the Faculty
Development Fund created in 2002, NMSU currently has the opportunity to utilize
$2,675,000 toward endowed chairs and endowed faculty development programs, as
follows:
Program State Treasury
funds Non-govt’l
funds (match) Total
3 Endowed
Chairs $1,500,000
$1,500,000 $3,000,000
4 Endowed
Professorships 800,000 800,000 1,600,000
Endowed
Faculty Development 375,000 375,000 750,000
$2,675,000
According to the LFC
budget document, over the past couple of years, the Legislature has appropriated
funds to institutions to address statewide nursing workforce needs. 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 12-month contract, and
expand nursing student enrollments for two-year and four-year institutions,
other than the University of New Mexico.
NMSU received $419.2, of which 85 percent was allocated to provide
market salary adjustment for nursing faculty and 15 percent was allocated to
expand nursing student enrollment. NMSU
Alamogordo received $27.9, with 71.4 percent allocated to provide market salary
adjustments for nursing faculty and 28.6 percent allocated to expand nursing
student enrollment. NMSU Carlsbad
received $34.9 for market salary adjustment for nursing faculty. Finally, NMSU Dona Ana received $104.8,
equally split between market salary adjustments for nursing faculty and
expansion of nursing student enrollment.
For
those institutions that did not use the funds appropriated in FY03 to expand
nursing student enrollments, the LFC recommended institutions expand nursing
enrollment in FY04. The LFC budget
recommendation for FY04 includes $419.2 for NMSU nursing expansion, $27.9 for
NMSU Alamogordo nursing expansion, $34.9 for NMSU Carlsbad nursing expansion
and $104.8 for NMSU Dona Ana nursing expansion.
TECHNICAL ISSUES
If this is to be an endowment, funds must not revert
because the faculty is paid from the interest of the investments. The bill
could be amended to remove the last sentence, the reversion clause, which
starts on line 18 and ends on line 20.
OTHER SUBSTANTIVE ISSUES
The
Faculty Development Fund was created during the 2002 session. Conformity with the law requires that the
four-year public higher education institutions have in place two items to
access the Fund: 1) an investment policy
approved by their Board of Regents, and 2) an advisory committee in place whose
duties involve oversight of the institutional investments. AW/njw