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F I S C A L I M P A C T R E P O R T
SPONSOR Vigil
DATE TYPED 02/26/05 HB 942
SHORT TITLE NM Highlands Loan Retirement
SB
ANALYST Williams
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$2,514.6
Non-Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to Senate Bill 737 with the same purpose, but an appropriation of $2,520,000
SOURCES OF INFORMATION
LFC Files
No Response Received From Commission on Higher Education
SUMMARY
Synopsis of Bill
House Bill 942 appropriates $2,514,600.0 from the general fund to the board of regents of New
Mexico Highlands University to pay the principal balance on outstanding loans.
FISCAL IMPLICATIONS
The appropriation of $2,514,600.0 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
The Legislative Finance Committee prepared a Review of Financial and Administrative Proc-
esses, New Mexico Highlands University in October 2004 at the request of the Board of Regents.
The report recommends the institution “pay down the bank loan that may violate the New Mex-
ico Constitution as soon as feasible and refrain from drawing on lines of credit in the future”
(pages 2-3). Detail on two notes can be found in the report.