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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
pg_0002
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
pg_0003
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