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F I S C A L I M P A C T R E P O R T
SPONSOR Marquardt
DATE TYPED 2/28/05
HB 519
SHORT TITLE NMSU Alamogordo Nursing Program
SB
ANALYST Hanika-Ortiz
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$301.93
Recurring
GF
Relates to appropriation for NMSU in the General Appropriation Act
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico Commission on Higher Education (NMCHE)
New Mexico Health Policy Commission (HPC)
New Mexico Department of Health (DOH)
SUMMARY
Synopsis of Bill
HB 519 appropriates $301,930 thousand from the general fund to the Board of Regents of New
Mexico State University in FY06 to provide equitable salary levels to retain nursing instructors,
expand the use of relevant technology and clinical opportunities and training for nursing stu-
dents, resulting in increased student retention and the graduation of more registered nurses at the
Alamogordo campus.
Significant Issues
The federal Department of Health and Human Services (DHHS) estimates that vacant nursing
positions in New Mexico will reach 25% in 2005, 36% in 2010 and 57% in 2020. According to
the New Mexico Consortium for Workforce Development (NMCWD), one third of New Mexico
nurses are over 50 years of age. New Mexico currently produces 500 new registered nurses
(RNs) each year, but continues to experience escalating vacancies in health care facilities at a
rate double the national average.
The number of nursing student slots available in NM has almost doubled (from 559 to 1,115) due
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House Bill 519-- Page 2
to legislative funding and a limited number of public/private partnerships in FY03 and FY04.
There were 2,005 qualified students for the 1,115 slots in the state’s nursing programs. Twelve
of fifteen programs have turned down applicants or have a 1-3 year waiting list for students
wanting to enter the program. The largest barrier to increasing school capacity is a lack of quali-
fied faculty.
While almost every nursing education program in New Mexico has a waiting list of 6 to 75
qualified applicants, nursing faculty positions remain vacant because average faculty salaries are
about half that of comparably prepared clinical nurses and because fewer nurses are choosing a
nursing education specialty in graduate school. The faculty shortage situation compounds the
nursing pipeline problem in the state. Data provided by the New Mexico Center for Nursing Ex-
cellence states there were 46.5 vacant nursing faculty positions in July 2004, one month before
the start of the fall semester. Base pay for master’s and doctorate level faculty in 2003 was be-
tween $31 and $46 thousand, with an average base pay of $44 thousand (New Mexico Depart-
ment of Labor, 2003). This average pay for nursing faculty is less than the average salary for
graduate nurses just entering the profession, according to the New Mexico Center for Nursing
Excellence.
PERFORMANCE IMPLICATIONS
HB519 is one of many strategies that may be needed to address the current and future nursing
shortage that has a direct effect on the health of patients in New Mexico.
The CHE reviews accountability measures for all nursing programs at state universities and
community colleges.
HB 519 supports the DOH Strategic Plan in increasing the health workforce supply, in collabora-
tion with other entities in New Mexico.
FISCAL IMPLICATIONS
The appropriation of $301,930 thousand contained in this bill is a recurring expense to the gen-
eral fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert
to the general fund.
The bill does not indicate the expected increased number of students enrolling in the nursing
programs. However, once the program is in existence it will generate state support from any ad-
ditional student credit hour production.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
HB 519 relates to:
•
SB 84 appropriates $500 thousand to NMSU to increase the number of nursing education
options in New Mexico.
•
SB 394 appropriates $2 million to the NMCHE for nursing programs.
•
HB 301 appropriates $584.35 thousand to Western New Mexico University to expand the
Bachelor of Science nursing program.
•
HB 509 creates a $100 thousand “nurse educators fund” in NMCHE.
pg_0003
House Bill 519-- Page 3
OTHER SUBSTANTIVE ISSUES
New Mexico has 14,300 registered nurses (RNs) and 3,000 licensed practical nurses (LPNs) with
New Mexico addresses. The Health Resources and Services Administration (HRSA) predict that
New Mexico will not be able to fill 57% of its nursing requirements by 2020.
The nursing curriculum at NMSU-Alamogordo provides educational preparation leading to the
Associate Degree in Nursing (ADN). Upon completion, the graduate is eligible to take the Na-
tional Council Licensing Examination for licensure as a Registered Nurse. Students continuing
their education towards a Bachelor of Science Degree in Nursing (BSN), apply to the NMSU
BSN or UNM BSN completion programs.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.
The nursing program at NMSU-Alamogordo will continue to operate with its current capacity.
AHO/lg