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F I S C A L I M P A C T R E P O R T

SPONSOR Madalena

DATE TYPED 01/30/05 HB 221

SHORT TITLE NMSU Tribal Management Degree Program

SB

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$500.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the appropriation for New Mexico State University in the General Appropriations Act.

Duplicates SB93

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico State University (NMSU)

New Mexico Commission on Higher Education (CHE) (SB93)

New Mexico Department of Indian Affairs (IAD)

SUMMARY

Synopsis of Bill

House Bill 221 – Making an Appropriation to New Mexico State University for a Tribal Manage-

ment Degree Program – appropriates $500,000 from the general fund to the Board of Regents of New

Mexico State University for expenditure in FY06 to establish a tribal management degree program

through the College of Business Administration and Economics, the College of Extended Learning,

and the Southwestern Indian Polytechnic Institute. Any unexpended or unencumbered balance re-

maining at the end of FY06 shall revert to the general fund.

Significant Issues

CHE indicates that the New Mexico Tribal Higher Education Commission and various tribes in

New Mexico have been requesting a tribal management degree program from NMSU. In re-

sponse, the NMSU College of Business Administration and Economics and College of Extended

Learning have been in collaboration with the leadership of Southwest Indian Polytechnic Insti-

tute (SIPI) to develop a joint program that could be offered via distance education. Activities to

be funded in this proposal are start up costs for the implementation of a new degree program and

House Bill 221 -- Page 2

will generate revenue from the Instruction and General (I&G) higher education funding formula

within the General Appropriation Act when students begin enrolling in the program.

NMSU identifies the objectives of the distance education tribal management program as follows:

•

Develop in collaboration with SIPI, a distance education tribal management degree pro-

gram in with a focus on the needs of the American Indian communities.

•

Recruit students into the distance education tribal management degree program that are

committed to provide effective leadership/management in their communities.

•

Increase number of American Indian students transferring from SIPI to NMSU.

•

Coordinate with the New Mexico Tribal Higher Education Committee to identify schol-

arship students.

•

Identify best practices to support American Indian students’ successful participation in

online learning (these practices would also benefit distance education programs for all

students).

PERFORMANCE IMPLICATIONS

NMSU suggests that a tribal management degree program positively influences the achievement

of New Mexico’s goals and objectives for higher education by supporting inter-institutional col-

laboration and efficiencies, in this case between NMSU and SIPI. It will also increase diversity

among New Mexico’s higher education students by increasing the number of American Indian

first-time students that, in turn, will enhance the undergraduate experience for all students at

NMSU. By close collaboration with SIPI and the New Mexico Tribal Higher Education Com-

mission, the tribal management degree program will increase the number of undergraduate trans-

fers from 2-year to 4-year higher education institutions by providing additional student scholar-

ships for American Indian students to obtain a university degree without relocating from their

tribal communities. The tribal management degree program will apply and further develop best

practices in online learning to support success for American Indian students who are committed

to their communities and who are highly motivated to bring effective leadership and manage-

ment skills to their communities after graduation.

FISCAL IMPLICATIONS

CHE delineates the following appropriation assignments:

NMSU Tribal Management Degree Program Budget

NMSU: course development, teaching, and marketing $300,000

SIPI: course development and teaching

$100,000

Student scholarships

$100,000

Total Request

$500,000

House Bill 221 -- Page 3

CHE additionally indicates this request was approved by the NMSU Board of Regents in the

amount of $500,000 and submitted to the CHE for review; however the program was not rec-

ommended for expansion by the CHE at this time.

The appropriation of $500,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

ADMINISTRATIVE IMPLICATIONS

NMSU would retain oversight of the program.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Duplicates SB93

Relates to the appropriation for New Mexico State University in the General Appropriations Act.

TECHNICAL ISSUES

NMSU suggests that it has a long history of providing distance education services to New Mex-

ico communities and has effectively demonstrated its capacity to collaborate with tribal govern-

ance and local communities to provide online learning in response to that supports local commu-

nity and tribal needs.

OTHER SUBSTANTIVE ISSUES

IAD notes that while NMSU and SIPI currently provide courses and degrees related to Native

American studies and culture, a tribal management degree program would provide Native

American students the opportunity to gain the skills and knowledge to effectively manage chal-

lenging and complex tribal programs and businesses. Additionally, a tribal management pro-

gram may include curriculum in tribal government structures, processes and laws, which would

prepare students to become managers while at the same time helping the New Mexico tribes en-

hance their human resources capacity.

BFW/sb