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

SPONSOR Feldman

ORIGINAL DATE

LAST UPDATED

1-18-2007

HB

SHORT TITLE NM Dental Student Funding

SB 146

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$600.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

SUMMARY

Synopsis of Bill

Senate Bill 146 appropriates $600 thousand from the general fund to Higher Education

department for expenditure in FY08 and subsequent years for the purpose of increasing the

available dental student slots for Western Interstate Commission for Higher Education (WICHE).

FISCAL IMPLICATIONS

The appropriation of $600 thousand contained in this bill is a recurring expense to the General

Fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to

the General Fund.

This bill provides for continuing appropriations. The LFC has concerns with including

continuing appropriation language in the statutory provisions, as earmarking reduces the ability

of the legislature to establish spending priorities.

Senate Bill 146 – Page

2

SIGNIFICANT ISSUES

The Western Interstate Commission on Higher Education (WICHE) professional student

exchange program allows western states’ collaboration among higher education institutions.

Many programs and degree choices are offered at regional institutions, however not all degrees

are offered in each state. The WICHE program offers participating students reduced tuition

levels at participating institutions across state lines in several fields such as dentistry, library

science, optometry, osteopathy, and veterinary medicine. New Mexico students are required to

return to New Mexico to practice in their respective fields upon graduation and are directed to

underserved areas. The State student financial aid program provides students with a financial

support fee determined by WICHE, currently $20,600 per student, up from $19,900 in October,

2006.

The student support fee is provided to students attending out of state.

In FY07, New Mexico offered 7 slots dedicated to dentistry with WICHE institutions, while 8

applicants were denied. Slots in the various fields of study are rated at various support fees, with

the highest being the veterinary medicine field, at $25,400 annually. Approximately 36 percent

of FY07 WICHE funding is distributed for dentistry slots, with 55 percent allocated to veterinary

medicine.

In addressing the increased need for dental loan-for-service, the FY08 LFC budget

recommendation included increased funding for a student slots in the dentistry loan-for-service

program at Baylor University, a non-participant in the WICHE program. Including 7 new

entrants to the program in FY07, the WICHE dentistry program has approximately 32

participants, with renewing participants accounting for of approximately 75% of available slots

in any given year.

Total FY07 funding was $1.6 million, with an additional $223 thousand taken from other loan

for service funds HED administers. The appropriation contained in Senate Bill 146 would

substantially increase the size of the WICHE Program.

dentistry library science optometr

y

osteopathy vet. medicine

Number of Renewals

25

1

6

3

29

Numer of New Recipients

7

1

1

0

10

Annual Support Fee

19,900

$

5,600

$

13,600

$

1,700

$

25,400

$

Field of Study Total

636,800

$

11,200

$

95,200

$

5,100

$

990,600

$

FY07 WICHE Funding

1,738,900

$

Table 1. FY07 WICHE Program Allocation by Field of Study

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

WICHE dentistry slots would remain funded at the FY07 level.

PD/csd