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 Gutierrez

ORIGINAL DATE

LAST UPDATED

1/31/06

HB 190

SHORT TITLE Expand NMSU Nursing Program

SB

ANALYST Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$600.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 192

Relates to HB 54 and 95, and SB 94 and 203

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

New Mexico State University (NMSU)

Health Policy Commission (HPC)

Department of Health (DOH)

SUMMARY

Synopsis of Bill

House Bill 190 appropriates $600,000 from the general fund to the Board of Regents of New

Mexico State University (NMSU) to expand the university’s nursing program.

FISCAL IMPLICATIONS

The appropriation of $600,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert

to the general fund.

House Bill 190 – Page

2

The appropriation in this bill relates to a recurring line-item appropriation made to NMSU for

nursing program expansion, as well as an appropriation made to the Higher Education Depart-

ment (HED) for competitive allocation among nursing programs statewide. For fiscal year 2007,

the Legislative Finance Committee (LFC) has recommended a total of $3 million for nursing

program expansion through the Program Development Enhancement Fund. The Executive has

recommended continuation of the $2 million appropriation made for fiscal year 2006. These

amounts are in addition to the line-item appropriations to NMSU and several other institutions.

SIGNIFICANT ISSUES

This proposal was submitted to the Higher Education Department (HED) by New Mexico State

University. It was ranked as priority #2 of 9 expansion requests submitted by NMSU but was not

included among HED’s fiscal year 2007 funding recommendations to the Legislature.

The New Mexico Legislature has pursued multiple funding approaches in an effort to address

significant problems with the supply of nursing professionals in the state. The LFC conducted a

performance review during the 2005 interim of the nursing program expansion initiatives funded

through institutions of higher education. The LFC report, Higher Education Department: State

Funding of Nurse Education and Outcomes, dated October 27, 2005, documents that some pro-

gress is being made in terms of increasing program capacity in the state, but also suggests the

need to develop a statewide strategic plan and financial strategy to assure that the problems are

addressed in an effective and efficient manner.

The Health Policy Commission notes that this bill seeks to address many of the issues heard by

the Legislative Health and Human Services Committee about the nursing shortage in New Mex-

ico. Senate Joint Memorial 37 (A Study of the Impact of Nurse Staffing and Retention Issues on

Workforce Development from the Health Policy Commission) presented information to the

committee that noted the difficulty in hiring faculty at all of the nursing programs throughout the

state. The undersupply of teaching faculty has created waiting lists of students to get into nursing

programs.

PERFORMANCE IMPLICATIONS

HED reports that the task force which prepared the SJM 37 report suggested the following per-

formance measures relative to evaluation of nursing program funding allocations:

•

Number of students admitted into nursing programs

•

Graduation rates

•

Number of students passing the NCLEX examination within six months of completion of

their program

•

Number of qualified students who applied but could not be admitted due to lack of pro-

gram capacity

ADMINISTRATIVE IMPLICATIONS

NMSU is currently managing the program to be augmented through this bill. No significant ad-

ditional administrative impact is evident. However, the Department of Nursing points out that

tenure and tenure track faculty lines within the Department of Nursing, College of Health & So-

cial Services, will need to be permanently increased to sustain increased enrollments and out-

reach efforts with community colleges. (Some faculty positions/salaries are currently supported

House Bill 190 – Page

3

via the competitively-allocated annual funding from HED.)

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

This bill is related to House Bill 54 and Senate Bill 203. These are duplicate measures that ap-

propriate a total of $2.9 million for nursing program expansion statewide.

This bill is related to House Bill 95 which provides $593,130 for expansion of the nursing pro-

gram at Western New Mexico University

.

This bill is related to Senate Bill 94 which provides $625,000 to the Department of Health for

nursing leadership and nurse retention programs.

OTHER SUBSTANTIVE ISSUES

NMSU reports that it is the only public university providing comprehensive nursing education

from pre-licensure baccalaureate education, RN to BSN education, and master’s level nursing

education programs within the southern region of the state. Approximately 334 students are en-

rolled in the various nursing programs at any given time (in addition more than 400 pre-nursing

majors are enrolled at NMSU). A high percentage of undergraduate students (~47%) and gradu-

ate students (~25%) are Hispanic, American Indian, and African American.

The Health Policy Commission also provided the following background information that may be

of interest:

According to the New Mexico Center for Nursing Excellence’s 2006 Nursing Fact Sheet, “as of

2005 there are 14,736 registered nurses (RNs) and 2,977 licensed practical nurses (LPNs) with

New Mexico residency. The New Mexico nursing workforce has increased by 13% since 2001.

However, over 44% of RNs and LPNs are over age 50 (up from 41% for RNs and 43% for LPNs

in 2004). This means 44% of the NM workforce will need to be replaced over the next 15 years. In

comparison, the national average age of nurses is 46.2 years.”

Center data also show that it was predicted in 2000 that “40% of the national nurse workforce

would be over age 50 by 2010. NM exceeded that mark. Additional nurses will be needed for the

increased demand of a growing population (35% growth between 2000 and 2020) and a higher

percentage of elderly (population over age 65 increasing by 74% between 2000 and 2020). 94%

of the NM RN workforce and 93% of the LPN work force are currently employed in nursing full or

part time (91% in 2004).”

The New Mexico Department of Labor predicts “the state will need an additional 4,520 RNs and

680 LPNs by 2012.”

The Associate Degree nursing programs in New Mexico have increased their admissions by

68.8% since 2000. Bachelor programs have increased their admissions by 175%.

The data also shows that there are more qualified applicants than were admitted.

For the 2004 –2005 school year, there were 2005 qualified applicants for 1115 student slots

available.

DKE\nt