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

SPONSOR Hamilton

DATE TYPED 3/18/05

HB 888/aHEC

SHORT TITLE Zia Award Receipt Recognition

SB

ANALYST Williams

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$500.0

Non-Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

No Response Received From

Commission on Higher Education (CHE)

SUMMARY

Synopsis of HEC Amendment

The House Education Committee amendment reduces the appropriation amount for the CHE to

award recipients of the Zia Quality Award from $5 million to $500.0 thousand.

Synopsis of Original Bill

House Bill 888 appropriates $5 million from the general fund to the Commission on Higher Edu-

cation for an award to a New Mexico four-year public institution of higher education which con-

fers baccalaureate degrees and has received a New Mexico Zia Quality Award from Quality New

Mexico.

Significant Issues

In 2004, Western New Mexico University received the Zia Award from Quality New Mexico.

Quality New Mexico models products and services after the Malcolm Baldridge National Quality

Award program. The Zia is the highest award a company or institution can earn through Quality

New Mexico and recognizes demonstrated practices and achievements.

House Bill 888/aHEC -- Page 2

PERFORMANCE IMPLICATIONS

The recipient of this award, Western New Mexico University, received a performance review by

trained examiners and judges utilizing quality principles.

FISCAL IMPLICATIONS

The appropriation of $5 million contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 would revert to

the general fund.

OTHER SUBSTANTIVE ISSUES

San Juan College received the Zia Quality Award from Quality New Mexico in 2000.

ALTERNATIVES

In 2003, the Legislature established the higher education performance fund, which is adminis-

tered by the Commission on Higher Education. Money in the fund is to be distributed annually

to each public post-secondary educational institution that meets performance standards in the

preceding year (Laws of 2003, Chapter 388). The fund was established pursuant to the recom-

mendations of the blue ribbon task force on higher education formula funding. To date, monies

have not been appropriated to the fund. The legislature may wish to consider the higher educa-

tion performance fund as a mechanism to plan and prioritize needs such as those as identified in

this bill.

POSSIBLE QUESTIONS

1.

On what criteria is the Zia Quality Award based.

2.

Are any other monetary awards available to Zia winners.

3.

Are other public, post-secondary institutions applying for Quality New Mexico awards.

4.

What other entities are reviewing quality initiatives of public, post-secondary institu-

tions.

AW/rs:yr:njw