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

SPONSOR Salazar

ORIGINAL DATE

LAST UPDATED

2/4/2006

2/9/2006 HB 343/aHEC

SHORT TITLE NM State School Postgraduate Program

SB

ANALYST Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$1,500.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 391

Relates to HB 843

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY06 FY07 FY08 3 Year

Total Cost

Recurring

or Non-

Rec

Fund

Affected

Total

Substantial Substantial Recurring General Fund, GOB

& STB’s

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

SUMMARY

Synopsis of HEC Amendments

The House Education Committee amendments change the reference in the bill from Northern

New Mexico State School to Northern New Mexico College.

Summary of Original Bill

House Bill 343 appropriates $1,500,000 from the general fund to the Board of Regents of New

House Bill 343/aHEC – Page

2

Mexico State School (now Northern New Mexico College - NNMC) to fund graduate and post-

graduate program start-up, including planning, hiring faculty and staff, identifying curricula, ob-

taining a student learning outcomes assessment and improving the library.

FISCAL IMPLICATIONS

The appropriation of $1,500,000 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.

Authorization for NNMC to offer graduate and postgraduate programs would require substantial

additional investments of state resources in future years for both operational support and capital

facilities.

SIGNIFICANT ISSUES

This proposal was not included among the special program funding requests submitted by

NNMC to the Higher Education Department (HED) for review. Consequently, this proposal has

not been included in the HED fiscal year 2007 funding recommendations to the Legislature.

HED reports that NNMC has been granted accreditation status to offer associate’s and bachelor’s

degrees by the Higher Learning Commission of the North Central Association of Colleges and

Universities (NCA). The stipulations on the college's affiliated status with the regional accredi-

tation agency limits the degrees offered at the baccalaureate level to teacher education. Addi-

tional baccalaureate degrees and graduate degrees will require approval by the Higher Learning

Commission.

Further, HED has statutory responsibility to review new graduate programs proposed by state

universities as part of its authority for statewide planning and oversight of post-secondary educa-

tion. The Post-Secondary Educational Planning Act, specifically Section 21-2-5 NMSA 1978,

authorizes HED to conduct statewide planning, including analyses of state needs for post-

secondary educational programs. Section 21-1-24 NMSA 1978 requires that any graduate pro-

gram that is to benefit from state funding must first be approved by the HED and by the State

Board of Finance. This proposal to offer graduate and post graduate degrees has not been sub-

mitted to HED for review.

ADMINISTRATIVE IMPLICATIONS

HED reports that Section 21-2-5 of the Post-Secondary Educational Planning Act authorizes the

department to identify cases where "establishment of new institutions and programs are needed

in order to meet the present and projected needs for post-secondary education on a statewide ba-

sis in an effective and efficient manner." The requirement that educational sites receive approval

for new programs from the HED prior to their operation is established through a pattern of statu-

tory and regulatory requirements. This legislation appears to circumvent these planning respon-

sibilities of the HED.

House Bill 343/aHEC – Page

3

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 343 and Senate Bill 391 are duplicate measures.

This bill is related to House Bill 843 which appropriates $100,000 to NNMC to conduct a study

on the efficacy of creating a center for graduate studies and research in northern New Mexico.

OTHER SUBSTANTIVE ISSUES

HED states that it is committed to the adequate and equitable support of necessary instructional,

student services, and academic support initiatives for all students in New Mexico. Activities to

be funded in this proposal will be funded through the Instruction and General (I&G) higher edu-

cation funding formula within the General Appropriation Act. Funding of this program without

consideration of similar needs at all institutions could weaken the equitability and thus the integ-

rity of the I&G formula. NNMC will need to complete the requirements for regional accredita-

tion from the Higher Learning Commission of the North Central Association to offer graduate

and post-graduate degrees and submit the intent to offer such programs to HED and related enti-

ties as required by New Mexico statutes governing graduate program approval.

POSSIBLE QUESTIONS

Has NNMC identified graduate and postgraduate programs for potential implementation.

Does NNMC have adequate campus space to develop facilities for such programs and, if not, are

there plans to acquire additional property.

Has HED addressed a recent request from the State Board of Finance to provide a statewide plan

for graduate programs. (The State Board of Finance has expressed concerns about unnecessary

duplication of expensive graduate programs in the state.)

DKE/yr:mt