Fiscal impact
reports (FIRs) are prepared by the Legislative
Finance Committee (LFC) for standing finance committees of the NM Legislature. The
LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are available on the
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Previously issued FIRs and attachments may be
obtained from the LFC in
SPONSOR |
Carraro |
DATE TYPED |
|
HB |
|
||
SHORT
TITLE |
Tuition Scholarships for Certain Students |
SB |
98 |
||||
|
ANALYST |
Williams |
|||||
APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
FY04 |
FY05 |
FY04 |
FY05 |
|
|
|
|
|
Very significant impact (see
text) |
Recurring |
Lottery
Tuition Scholarship Fund |
|
|
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to HB 109, HB 179, HB 226, HB 426, SB 98, SB 145, SB 274, SB 331
LFC Files
Public Education Department
Commission
on Higher Education
SUMMARY
Synopsis of Bill
Senate Bill 98 eliminates language in the
Lottery Scholarship fund statute that requires students to attend college
immediately upon graduating from a
Significant Issues
The latest revenue and expenditure projections
for the lottery tuition scholarship fund are attached. Fund balances are projected to continue to
grow and reach $85 million in FY09, then fall through FY14.
The CHE generally does not support changes to
the Lottery Success Scholarship Program, However, at its February 2004 meeting,
the CHE adopted a staff recommendation that the 2004 legislature provide
incremental funding for existing, state-level, needs-based student financial
aid programs in the amount of $2 million from lottery tuition fund
balances. The Governor’s budget
recommendation includes a transfer of $2.3 million for a similar purpose. At the February 2004 meeting, CHE directed
staff to engage in “a comprehensive study of the Lottery Success Scholarship
Program, all other Student Financial Aid programs, and revenue sources to fund
use programs.”
FISCAL IMPLICATIONS
CHE estimates this bill would result in unlimited
draws on the lottery tuition scholarship fund and projects depletion of cash
balances within the first year.
ADMINISTRATIVE IMPLICATIONS
Additional reporting and verification
responsibilities would impact post-secondary institutions and the CHE. CHE notes the bill would require university
financial aid officers to certify high school graduation dates, without a
system to track graduation dates, college enrollment dates, qualifying
semester and reimbursement awards.
TECHNICAL ISSUES
CHE notes the bill eliminates current language
and the need for this language relating to students who enter the military
within 120 days of graduation or GED completion and enroll in a
AW/yr:lg
Attachment