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(Parenthesis ( ) Indicate Revenue Decreases)

Relates to HB253

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SOURCES OF INFORMATION

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

This bill appropriates $300.0 to the Board of Regents of the University of New Mexico to provide manpower development and training programs for persons in north central New Mexico at the UNM Taos Education Center. This bill carries an emergency clause.

Significant Issues

According to the CHE, UNM Taos currently operates as an Off-Campus Instructional Center, Section 21-14A NMSA 1978. The CHE has received an application from UNM to change the status of UNM-Taos to a Branch Community College, Section 21-14 NMSA 1978. After a CHE hearing in January, the CHE has tabled the proposal to allow UNM time to do further planning and to complete the application. Because the proposal was not included in the special projects requested by the institution, the CHE does not recommend funding for this project. The project proposed in this bill was not submitted in the list of eleven special project requests made by the institution.

FISCAL IMPLICATIONS

The appropriation of $300.0 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.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

This bill relates to House Bill 253.

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.

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