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 Picraux
ORIGINAL DATE
LAST UPDATED
1/29/08
HB 338
SHORT TITLE UNM Nursing Programs
SB
ANALYST Haug
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$1,737.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to HB185, HB97, HB66, HB253, SB14, SB77, and SB104
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
Department of Health (DOH)
New Mexico Health Policy Commission (HPC)
SUMMARY
Synopsis of Bill
House Bill 338 appropriates $1,737.0 from the general fund to the Board of Regents of the
University of New Mexico to fund the expansion of nursing programs at the University of New
Mexico’s College of Nursing. The appropriation is for expenditure in Fiscal Year 2009 and
subsequent fiscal years.
FISCAL IMPLICATIONS
The appropriation of $1,737.0 contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of any fiscal year shall not
revert to the general fund.
The HED states that a request was submitted by UNM in the amount of $3,727,600 an increase
of $2,236,900 to the New Mexico Higher Education Department for review. The Department’s
funding recommendation for FY09 is a continuance of FY08 recurring funding in the amount of
pg_0002
House Bill 338 – Page
2
$1,490,700 with no additional funding at this time.
The HED’s evaluation table of FY09 Research and Public Service Projects provided to the LFC
classifies this project as a “breach" of the Higher Education Formula. Reasons for this
classification decision are not provided. (LFC Report 07-20, Higher Education Department
Review of Selected Research and Public Service Projects, January 12, 2008, Table 4, p75.)
UNM states that the College of Nursing is requesting $2.240.0 recurring support in the 2008
session. The College of Nursing is hopeful it will receive $500.0 from HED, via the Nursing
Shortage RFP process, thereby reducing this request to $1.74 million.
The related House Bill 185 would appropriate $2,237.0, effectively the entire amount of the
College of Nursing’s initial request. In addition, the appropriation in House Bill 185 would revert
to the general fund at the end of Fiscal Year 2009 while the appropriation in House Bill 338
would not revert.
SIGNIFICANT ISSUES
UNM states that the House Bill 338 appropriation supports three components of the College of
Nursing:
•
Albuquerque BSN program (24 students) = $693,000;
•
BSN sites at branch campuses in Taos (8 students) = $491,000 and Valencia (8 students)
= $478,000; and
•
RN/BSN on-the-ground satellite sites in Hobbs, Gallup, Farmington, Rio Rancho, Santa
Fe, Albuquerque-UNMH (74 total students in Fall 2007) = $575,000.
According to UNM:
•
85-90% of UNM BSN graduates stay in New Mexico to work.
•
Approximately 92% of College Of Nursing BSN graduates pass state board exams on the
first attempt and almost 98% on the second attempt.
•
At least 95% of BSN students accepted into the College Of Nursing program graduate.
•
33% of the Fall 07 College of Nursing BSN students are NM high school grads from
outside of Bernalillo County.
•
Of the total Fall 07 enrollment in the RN/BSN program, over 43% (74) of the students
were in the College Of Nursing’s satellite sites. These 74 students are receiving their
nursing education at the following sites: Farmington–6, Gallup–5, Hobbs–8, Rio
Rancho–7, Santa Fe–9, UNMH–39.
pg_0003
House Bill 338 – Page
3
The DOH states:
•
HB 338 is based on the recommendations of 2 reports: 1) response to SJM 37 of the 2005
Legislature, which requested a study of the impact of nurse staffing and retention issues
on workforce development; and 2) response to HM 17 of the 2007 Legislature, which
requested recommendations to increase nurse recruitment and retention in NM hospitals.
Importantly, the Health Resources and Services Administration (HRSA) predict New
Mexico will not be able to fill 57% of its nursing requirements by 2020.
•
New Mexico is experiencing a more severe nursing shortage than the United States. The
severity of the shortage has led to relatively high nursing wages and increased interest in
nursing. The number of RN graduates has increased each year, since 2002, and should be
sufficient to replace impending retirements. However, there is a bottleneck in the nursing
education system and qualified applicants are being turned away. There is a 2 to 3 year
waiting list for entry into nursing
RELATIONSHIP
The HPC notes that House Bill 338 is related to HB97 NMSU-Grants Nursing Clinical Lab,
HB66 NMSU Carlsbad Nursing Program, SB14 Health Professional Recruitment & Retention,
SB77 WNMU Nursing Program, SB104 NMSU Nursing Education Program, HB185 Expand
UNM Nursing Program and HB253 Santa Fe Community College Nursing Program.
GH/mt