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

SPONSOR Campos

DATE TYPED 2-7-05

HB

SHORT TITLE Luna-Vocational-Technical Institute

SB 205

ANALYST Segura

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$2,000.0

Rec

GF

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Commission of Higher Education (CHE)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 205 appropriates $2,000.0 to support operations of the Luna-Vocational-Technical

Institute.

Significant Issues

According to CHE, this request was not on the list of priority projects submitted by LVTI to the

CHE for review. Therefore, the request is not included in the Commission’s funding recommen-

dation for FY06.

According to LVTI, the bill would provide funding to bring a network of agencies that include

eight public schools, workforce development agencies and the Las Vegas/San Miguel Economic

Center. Such a partnership would increase learning opportunities for students in northern New

Mexico by providing education and training through a dual certification program.

Senate Bill 205 -- Page 2

FISCAL IMPLICATIONS

Senate Bill 205 appropriates $2,000.0 from the general fund and is recurring. Funding is not in-

cluded in CHE or PED budget requests forFY06.

ADMINISTRATIVE IMPLICATIONS

Both PED and CHE would develop a process to monitor the funds and ensure accountability for

the program.

OTHER SUBSTANTIVE ISSUES

The CHE states that the appropriations to support the Instruction and General (I&G) mission of

the institutions are made based on a funding formula designed to ensure adequate and equitable

funding of higher education institutions. In addition to I & G formula funding, many institutions

also receive line item appropriations to support their research and public service missions. How-

ever, over the years, many line item appropriations have been made that provide additional I&

G funding beyond the level generated by the funding formula. Since the appropriations in Senate

Bill 205 are really an enhancement of I&G, the CHE recommends that these funds be moved

from line item appropriations to the Program Enhancement Fund.

RS/njw