Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Picraux

DATE TYPED 03/08/05 HB HJM73/aHEC

SHORT TITLE NM Colleges Part & Fulltime Faculty Study

SB

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SJM59

SOURCES OF INFORMATION

LFC Files

Commission on Higher Education

SUMMARY

Synopsis of HEC Amendment

House Education Committee amendment to HJM73 amends the legislation as follows:

•

On page 2, line 18: after the word “include” the phrase “a member of the

house of representatives appointed by the speaker of the house of representa-

tives and a member of the senate appointed by the president pro tempore of

the senate,” is inserted.

•

On page 2, line 24: after the word “force” the phrase “prepare a written” is

inserted.

•

On page 2, line 25: after the word “report” the phrase “be presented” is de-

leted, and the phrase “and present it” is inserted in lieu thereof.

Synopsis of Original Bill

House Joint Memorial 73 requests that the Commission on Higher Education convene a “best

practices taskforce” to examine compensation practices and conditions of employment for part-

time faculty at post-secondary institutions. The joint memorial outlines specific issues that are to

House Joint Memorial 73/aHEC -- Page 2

be addressed in a report of the task force to be presented to an appropriate interim legislative

committee by September 30, 2005. The task force is also requested to develop a set of best prac-

tice principles and recommendations for use of all institutions beginning in 2007. Finally, the

joint memorial requests CHE to develop a ten-year implementation plan for improved part-time

faculty salaries and benefits.

Significant Issues

The Commission on Higher Education notes that, historically, compensation practices at the

post-secondary institutions have been matters within the full control of institutional governing

boards and administrations, further that the commission has not played a significant role in the

development of common compensation practices. The commission additionally suggests that the

current higher education funding mechanism generates resources for the institutions primarily

based on estimated costs per student credit hour of instruction, and the formula does not, at pre-

sent, directly address issues related to full-time versus part-time faculty compensation.

ADMINISTRATIVE IMPLICATIONS

While this joint memorial does not address the matter of costs, the Commission on Higher Edu-

cation observes that it could impact the commission in two respects:

•

The commission would bear the fiscal impact of conducting the requested study,

preparing reports, etc. These non-recurring costs would impact the operating

budget of the commission; and

•

implementation of a multi-year proposal to improve part-time faculty salaries and

benefits could have very substantial fiscal impacts on the state general fund appro-

priations to the institutions. This would occur in the event that the higher educa-

tion funding formula is revised to provide additional financial resources to the in-

stitutions for this purpose.

The Commission on Higher Education adds that the commission is charged with the administra-

tive responsibility for the activities outlined in this joint memorial, and that implementation will

require a significant commitment of staff time and resources, especially in view of the relatively

short time frame defined in the bill for development and presentation of recommendations.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

HJM73 and SJM59 are duplicate measures.

OTHER SUBSTANTIVE ISSUES

The Commission on Higher Education indicates that the higher education funding mechanism

currently used in New Mexico provides a lump sum appropriation to the institutions for “Instruc-

tion and General” purposes. Institutions have broad discretion to allocate the state funding to

best address institutional priorities. Institutional practices with respect to faculty compensation

and fringe benefits have generally been under the purview of the institutional boards and admini-

strations. Commission involvement in this area has historically been very limited.

BFW/sb