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





SPONSOR: Hamilton DATE TYPED: 2/08/99 HB 392
SHORT TITLE: WNMU Nursing - OTA Programs SB
ANALYST: Pacheco-Perez


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY99 FY2000 FY99 FY2000
$ 318.7 Recurring GF



(Parenthesis ( ) Indicate Revenue Decreases)



Relates to SB138, HB2, SB2



SOURCES OF INFORMATION



Commission on Higher Education (CHE)



SUMMARY



Synopsis of Bill



This bill appropriates $318.7 to the Board of Regents of the Western New Mexico University for purpose of funding nursing-occupational therapy programs. This bill carries an emergency clause.



Significant Issues



According to the CHE, both nursing-occupational therapy programs generate funding through the higher education funding formula. The funding expansion proposed in this bill ranked 1st and 2nd of eight special project requests.



FISCAL IMPLICATIONS



The appropriation of $318.7 contained in this bill is a recurring expense to the general fund for expenditure in fiscal years 1999 and 2000. Any unexpended or unencumbered balance remaining at the end of FY00 shall revert to the general fund.



ADMINISTRATIVE IMPLICATIONS



According to the CHE, the project request will add a combined 6.7 FTE.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



This bill relates to Senate Bill 138. This bill also relates to House Bill 2 and Senate Bill 2 in that the higher education funding formula generates approximately $275.0 for the program proposed.



OTHER SUBSTANTIVE ISSUES



According to the CHE, the state higher education funding formula allows institutions to retain 100% of earned overhead on federal grants and contracts for the purpose of providing seed money and matching funds for projects such as that proposed in this bill. Of this indirect cost revenue, a portion is used to support salaries of administrative persons monitoring the contracts, utilities and other overhead expenses required to maintain the activities of the contract. However, a great deal of the indirect cost revenues is available to develop new research and public service projects as well as to expand academic departments. The revenue is unrestricted in the sense that the governing board of the institution has the flexibility to chose which projects are supported with these funds. Benefits resulting from passage of this bill are indeterminate.



APP/njw