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| SPONSOR: | Kidd | DATE TYPED: | 2-19-99 | HB | |||
| SHORT TITLE: | Current Distribution of Lottery Revenue | SB | 453 | ||||
| ANALYST: | Taylor | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| N.A. | $ (16,500.0) | $ (16,500.0) | Recurring | General Fund |
| N.A. | $ 9,900.0 | $ 9,900.0 | Recurring | Public School Capital Outlay |
| N.A. | $ 6,600.0 | $ 6,600.0 | Recurring | Lottery Tuition |
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to HB 9, HB23, HB81, HB-258, SB9, SB13, SB14, SB126 and SB 251
SOURCES OF INFORMATION
Commission on Higher Education
Legislative Finance Committee Files
New Mexico Lottery Authority budget
SUMMARY
Synopsis of Bill
Senate Bill 453 would change the lottery tuition scholarship program by allowing the Commission on Higher Education to consider exceptional circumstances such as health problems and military service requirements that might have prevented a student from meeting the first semester eligibility requirements. It would also allow students who failed to meet the first semester requirements to re establish program eligibility. It makes the program available to students who complete an adult basic education program in New Mexico and obtain a general equivalent diploma and attend a New Mexico community college on a part time basis for four consecutive years. If the student transfers to a New Mexico four year institution, the student would be eligible for a scholarship for two more years, providing that he maintains the grade point requirements.
It also repeals the sunset provisions covering the distribution of net lottery revenues. Lottery revenues are currently shared by the public school capital outlay fund (60%) and the lottery tuition fund (40%). If the sunset provisions are not repealed, net lottery revenue will go to the state's general fund beginning in FY 2000.
FISCAL IMPLICATIONS
The New Mexico Lottery Authority has estimated that net revenues for FY 2000 will be $16.5 million. The revenue table shows this as a $17 million loss to the general fund because absent action by the legislature to repeal the sunset the money would flow there. The table shows that this loss is offset by a total $16.5 million distribution to the scholarship and capital outlay funds. The distribution to the public school capital outlay fund would be $9.9 million, while the distribution to the Lottery Tuition Fund would be $6.6 million. The fiscal impact for later years assumes that lottery revenues remain constant. There is likely to be some modest revenue growth, however.
The Commission on Higher Education reports that in FY98, 3,102 students obtained their GED. They estimate that if 20 percent, or 620 students were to avail themselves of the program, the cost would be $184 thousand. This assumes that the average tuition at a two year campus is $297. The table shows no fiscal impact from this because it does not change the amount of money in the fund. It does change the demands on the fund, however.
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