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

SPONSOR Nava

DATE TYPED 01/25/05 HB

SHORT TITLE College Tuition Payment for Certain Students

SB 127

ANALYST Williams/Ford

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

See Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

No Response Received

Public Education Department (PED)

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

Senate Bill 127 amends existing statute to require that school districts pay tuition and fees of

public school students who receive high school credit for higher education course work. In sum,

the bill “legalizes” the participation of four- and six-year institutions in dually enrolling students

and requires that school districts pay the tuition of high school students receiving credit from

both a university and a high school. This requirement is currently applied to activities between

community colleges and school districts. The bill recognizes a school district and the post-

secondary institution may have an agreement to reduce or waive tuition and fees.

Significant Issues

Students enrolled in concurrent (dual) enrollment programs receive both high school and college

credit for qualifying coursework. Most education experts indicate concurrent enrollment pro-

grams are valuable. In New Mexico, these students are included in the public school funding

formula; as well, the student credit hours from the college courses in which they are enrolled are

included in the workload component of the higher education funding formula. According to

Laws 1990, Chapter 25, public school districts with students participating in concurrent enroll-

Senate Bill 127 -- Page 2

ment will transfer tuition and fees to the two-year, postsecondary institution if the student is

counted in the membership of the public school district and will receive high school credit for

coursework taken at a postsecondary institution.

Note tuition at four-year post-secondary institutions is significantly higher than at two-year insti-

tutions.

FISCAL IMPLICATIONS

This bill has no direct impact on the general fund, but impacts higher education institutions and

school districts. Generally speaking, school districts pay, and community colleges receive, the

tuition of dually enrolled students.

To the extent barriers to participation in dual enrollment are addressed, then the general fund cost

of workload under the higher education funding formula will increase.

OTHER SUBSTANTIVE ISSUES

According to Volume II of the Legislative Finance Committee budget recommendation, “despite

recommendations from two task forces, the concurrent enrollment program remains plagued with

inconsistent policies and a lack of data to understand participation, program outcomes, and fiscal

costs” (page 317). Currently, there are significant variations across the state in the payment

mechanisms for tuition, fees, books, and transportation (see attached table).

The purpose, goals, and objectives of the concurrent enrollment program are not readily clear.

The need for data and in some cases, better quality data, reflecting the program and its perform-

ance was noted by the 2003 Task Force Report on Concurrent Enrollment. It is not clear if CHE

and PED are advancing in this area. There have been no performance measures or accountability

tracking for the program reported by either CHE or PED; CHE is proposing to measure the num-

ber of students in the program in FY06, but lacks focus on program outcomes.

There are significant concerns regarding enforcement of existing statue by the CHE and PED.

Inconsistencies exist in the following:

•

Terms of the agreements between school districts and postsecondary institutions;

•

Who pays for tuition, textbooks, and fees;

•

What courses are available for concurrent enrollment or dual credit;

•

Who teaches the course;

•

What sort of credit the courses earn; and

•

Who provides transportation for participating students

Statute and regulations regarding funding and credit earned are not enforced. The kinds of

courses eligible for concurrent enrollment are uncertain and inconsistent.

POSSIBLE QUESTIONS

1.

How many school districts currently report they have dually enrolled students.

2.

On a statewide basis, how many students are participating in dual enrollment.

Senate Bill 127 -- Page 3

3.

What steps are being taken to ensure that the provisions of the law are enforced.

4.

Which agency is responsible for enforcing the provisions of the law.

5.

How are PED and CHE addressing program inconsistencies.

6.

What steps are being taken to ensure effectiveness and accountability.

EF/yr

Attachment

Senate Bill 127 -- Page 4