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

SPONSOR Tsosie

DATE TYPED 03-03-05 HB

SHORT TITLE ENMU Virtual Education Programs

SB 485

ANALYST Woods

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$3,000.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to the appropriation to Eastern New Mexico University in the General Appropriations

Act.

Relates to HB 487, HB 511

SOURCES OF INFORMATION

LFC Files

New Mexico Commission on Higher Education (CHE)

New Mexico Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 485 – Making an Appropriation to Eastern New Mexico University for Development

of Virtual Education Programs; Declaring an Emergency – appropriates $3,000,000 from the

general fund to the Board of Regents of Eastern New Mexico University for expenditure in FYs

05 through 07 for the purpose of designing, implementing and delivering web-based and other

virtual education and distance learning courses through a consortium of school districts and

higher education institutions. Any unexpended or unencumbered balance remaining at the end of

FY07 shall revert to the general fund. This bill carries emergency language.

Significant Issues

PED indicates that providing high-quality online education opportunities is a key strategy for

addressing the needs of people living outside New Mexico’s major population centers. Access to

such programs can level the playing field for communities historically underserved by traditional

educational delivery systems. This project hopes to build upon the existing success of the South-

east New Mexico Educational Resource Center (SNMERC) experience over the past 12 years.

Senate Bill 485 -- Page 2

SNMERC currently serves 12 districts and would expand to include a minimum of five addi-

tional districts in the northwestern part of the state. The premise is to build upon the strengths of

the SNMERC districts in Advanced Placement and Pre-Advancement courses and support other

areas of the state with teacher expertise, technical support, teacher training and service to stu-

dents through an expansion of course offerings with technical support. These funds will also ad-

dress infrastructure needs to the expanded areas.

PED adds that current postsecondary partnerships exist with ENMU, College of the Southwest,

New Mexico State University, Carlsbad campus, and the ENMU, Roswell campus. Expansion

of postsecondary institutions in other parts of the state will also be part of this initiative.

CHE advises that this request was not in the list of priority projects submitted by the University

of New Mexico to the commission for review. Accordingly, this request was not included in the

commission’s funding recommendation for FY06.

FISCAL IMPLICATIONS

The appropriation of $3,000,000 contained in this bill is a recurring expense to the general fund

allocated for expenditure in FYs 05 through 07. Any unexpended or unencumbered balance re-

maining at the end of FY07 shall revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

Eastern New Mexico University would retain oversight of this project.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to the appropriation to Eastern New Mexico University in the General Appropriations

Act.

Relates to HB487 in that HB487 seeks to appropriate $6,000,000 for a computerized learning

system that aligns public school curricula to New Mexico academic content standards and the

statewide assessment program.

Relates to HB511 in that HB511 seeks to create the non-reverting Education Technology Defi-

ciency Correction Fund; however, the legislation provides no appropriation and none is found in

the General Appropriation Act.

OTHER SUBSTANTIVE ISSUES

CHE suggests that the activities to be funded in this proposal are start up costs for the implemen-

tation of virtual education programs and will generate revenue from the Instruction and General

(I&G) higher education funding formula within the General Appropriation Act when program is

in place and students begin enrolling in the programs. To this end, when student credit hours are

generated for the virtual education programs, the program will begin to generate funding through

the I&G funding formula and the start up funding of the program should be reduced by the same

amount of funding generated by the I&G funding formula.

BFW/yr