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

SPONSOR Lujan, B

ORIGINAL DATE

LAST UPDATED

2/6/06

2/14/06 HB 843/aHEC

SHORT TITLE Northern NM Center for Graduate Studies

SB

ANALYST Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$100.0

Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB 343

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

(Parenthesis ( ) Indicate Expenditure Decreases)

* See narrative

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

SUMMARY

Synopsis of HEC Amendments

The House Education Committee amendments to House Bill 843 provide that the appropriation

to conduct a study on the efficacy of creating a center for graduate studies and research in north-

ern New Mexico is to be made to the Higher Education Department rather than the Board of Re-

gents of Northern New Mexico State School. The amendments address concerns raised by HED

with respect to its statutory responsibilities for statewide academic program planning.

House Bill 843/aHEC – Page

2

Synopsis of Original Bill

House Bill 843 appropriates $100,000 from the general fund to the Board of Regents of Northern

New Mexico State School (now Northern New Mexico College - NNMC) to conduct a study on

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

which universities offer graduate-level courses leading to master’s and doctoral degrees. The

board is to report its finding and recommendations to an appropriate interim legislative commit-

tee by December 15, 2006. The bill contains the Emergency Clause so that funds can be made

available to implement the study during fiscal year 2006.

FISCAL IMPLICATIONS

The appropriation of $100,000 contained in this bill is a non-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. However, it is noted that creation of a new graduate center at NNMC

would require substantial additional investments of state resources in future years for both opera-

tional 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.

Section 21-2-5 of the Post-Secondary Educational Planning Act authorizes HED 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 basis in an effective and effi-

cient manner." The requirement that educational sites receive approval for new programs from

the HED prior to their operation is established through a pattern of statutory and regulatory re-

quirements. This legislation appears to shift these state-level planning responsibilities of the

HED to an individual institution.

ADMINISTRATIVE IMPLICATIONS

NNMC would conduct the requested study and report its findings and recommendations to the

appropriate interim legislative committee. Given that HED has a statutory responsibility to per-

form state-level planning in this area, it is anticipated that the institution would need to consult

with and coordinate activities with HED.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

This bill is related to House Bill 343 and Senate Bill 391. These are duplicate measures that

would appropriate $1.5 million to initiate graduate and post-graduate studies at Northern New

Mexico College.

OTHER SUBSTANTIVE ISSUES

HED reports that the proposal for a study of the efficacy of creating a center for graduate studies

and research in northern New Mexico has not been discussed with the department. Furthermore,

House Bill 843/aHEC – Page

3

it duplicates some of the work that HED is presently engaged in with the Geographic Service

Area Task Force. HED is studying all of the degree programs, including graduate degrees to es-

tablish need as well as duplication across the state. It is examining workforce needs statewide

and comparing those needs against the programs that colleges and universities have to offer. Of

special concern in the work of the department is providing educational programs to meet the

needs of rural communities and students, including those in northern New Mexico. Any study

that examines programs and need should be funded through and done by HED in order to estab-

lish a statewide perspective and to advocate for resources as needed.

ALTERNATIVES

Consider appropriating the funds for the proposed study to the New Mexico Higher Education

Department which has the statutory responsibility to perform this function.

DKE/mt