NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Revenue Decreases)

Relates to HB186, SJM10, HB165, SB66, SB2 and SJM4

SOURCES OF INFORMATION

Commission on Higher Education (CHE)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

This bill appropriates $2,271.8 to the CHE for the following purposes: $764.3 to be divided accordingly among New Mexico's public post-secondary educational institutions providing extended learning programs, equalizing the tuition credit base and funding off-campus courses at the same level as on-campus courses; and $1,507.5 to be divided among the originating, transmitting and receiving institutions according to their costs for extended learning services statewide.

Significant Issues

The current funding for extended learning credits 150% of tuition to institutions offering extended learning courses. The funding contained in this bill would bring that level down to 100%.

FISCAL IMPLICATIONS

The appropriation of $2,271.8 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY00 shall revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

The CHE notes an administrative impact associated with implementation of this bill as a systems programmer and researcher must be hired or contracted with in order to ensure distribution of funds is made equitably. In addition, a high capacity file server will be required.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

House Bills 186, and 165; Senate Bills 66 and 2; and Senate Joint Memorials 10 and 4 are all related to extended/distance learning and/or updating the higher education cost model for extended learning.

OTHER SUBSTANTIVE ISSUES

According to the CHE, the current policy for funding of extended learning creates for a disincentive in moving instruction off-campus.

APP/njw