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

SPONSOR Jennings

ORIGINAL DATE

LAST UPDATED

1/20/06

2/9/06 HB

SHORT TITLE Additional Degree Programs at ENMU-Roswell

SB 12/aSFC

ANALYST Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

None, but see “additional

operating budget impact”

section below

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in the General Appropriation Act

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY06

FY07

FY08 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

Substantial Substantial Substantial Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

Health Policy Commission (HPC)

Department of Health (DOH)

SUMMARY

Synopsis of SFC Amendment

The Senate Finance Committee amendment to Senate Bill 12 removes the general fund appro-

priation. No other changes are noted from the implications of this bill as described in the origi-

nal FIR.

Senate Bill 12/aSFC– Page

2

Synopsis of Original Bill

Senate Bill 12 appropriates $100,000 from the general fund to Eastern New Mexico University

for the purpose of establishing programs at the Roswell branch campus that lead to a bachelor of

aviation science degree and a bachelor of science degree in emergency medical services man-

agement.

FISCAL IMPLICATIONS

The appropriation of $100,000 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.

In addition to the appropriation contained in this bill, additional general fund resources would be

generated for the institution in future years through the higher education funding formula based

upon actual student credit hour enrollments in the proposed aviation maintenance and emergency

medical services management bachelor’s degree programs. No specific estimate of the future

formula impact of the proposed programs has been provided as of this date; however, this impact

would be substantial if the programs are successful.

SIGNIFICANT ISSUES

HED reports that the Emergency Medical Services Management program is a web-based pro-

gram that is intended to be offered nationally. The Health Policy Commission reports that the

seventeen Emergency Medical Services Management programs exist nationwide, and only three

advertise distance education programs. If this legislation is enacted, this program would be the

first located west of the Mississippi.

According to the Department of Health, the proposed Emergency Medical Services Management

program would provide an expanded opportunity through web-based training for New Mexicans,

regardless of location, to acquire Emergency Medical Services Management education. Avail-

ability of this program would potentially increase the EMS workforce, and may provide im-

proved services and care to the entire State.

HED also reports that part of its role is to review new academic programs according to the fol-

lowing criteria: 1) that the program has gone through an internal review process and has been

approved by the institution’s board; 2) statement of purpose; 3) program description; 4) program

requirements; 5) needs assessment; 6) critical issues in establishing or implementing the pro-

gram; 7) partnerships/collaborations; 8) enrollment projections, marketing, recruitment; and 9)

cost of the program including start-up and recurring funds. This bill would preempt all of the

review processes associated with the creation of new bachelor’s degree programs in New Mex-

ico.

Additionally, HED indicates that it is committed to the adequate and equitable support of neces-

sary instructional, student services, and academic support initiatives for all students in New Mex-

ico. Activities to be funded in this proposal will be funded through the Instruction and General

(I&G) higher education funding formula within the General Appropriation Act. Funding of a

specific program without consideration of similar needs at all institutions could weaken the equi-

tability and thus the integrity of the I&G formula.

Senate Bill 12/aSFC– Page

3

ADMINISTRATIVE IMPLICATIONS

Approval of this legislation would have administrative implications for multiple entities, includ-

ing the ENMU-Roswell campus, the ENMU-Portales administration and Board of Regents, and

the Higher Education Department. Given the legal and state policy issues associated with this

proposal, these administrative impacts could be significant.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

This proposal relates to appropriations to ENMU-Roswell contained in the General Appropria-

tion Act for Instruction and General purposes and the Aviation Maintenance program.

OTHER SUBSTANTIVE ISSUES

This proposal raises the following significant issues:

1.

The Branch Community College Act (Chapter 21, Article 14 NMSA) authorizes institu-

tions such as the Roswell Branch Community College to offer the first two years of col-

lege education, and provides that the board of regents of the parent campus is to have full

authority and responsibility in relation to all academic matters, as well as the course of

study and program offered at the branch campus.

a.

Is it intended that the parent campus (ENMU-Portales) offer the programs and

award the degrees on the Roswell campus, or that the Roswell branch offer the

programs and award the degrees. (The Branch Community College Act would

need to be amended in order to provide authorization for Roswell to directly offer

bachelors degree programs. Further, the regional accrediting body (North Central

Association) would need to approve a change in institutional mission.

b.

Have the proposed programs been requested through or endorsed by the Eastern

New Mexico University Board of Regents, which is legally responsible for the

academic offerings of the Roswell branch campus.

2. Legislation creating the Higher Education Department (Laws 2005, Chapter 289) provided

new authority to the department concerning creation of new academic programs by state post-

secondary institutions. The new statutory language in Section 21-1-26B reads as follows:

“Effective July 1, 2005, all new state-funded baccalaureate, graduate and professional

degree programs shall be offered by public four-year educational institutions and all new

associate degree programs shall be offered by public post-secondary educational institu-

tions after a timely and thorough consultation with and review by the department.”

The Higher Education Department (HED) reports that the programs proposed in this legislation

have not been submitted for review through the HED process.

ALTERNATIVES

HED suggests that ENMU submit the two proposed bachelor’s degree programs to HED to un-

dergo the review process for new academic program creation.

If line-item funding is approved for these new programs, it should be provided on a start-up basis

Senate Bill 12/aSFC– Page

4

and phased-out within two to three years as resources are generated through the I&G formula.

Such funding could better be provided through the Program Development Fund established for

this purpose pursuant to Section 21-1-27.4 NMSA 1978.

DE/mt:yr