HOUSE BILL 327

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Jimmie C. Hall

AN ACT

RELATING TO HIGHER EDUCATION; ENACTING THE HIGHER EDUCATION FINANCE ACT; PROVIDING FOR A UNIFORM FUNDING FORMULA FOR HIGHER EDUCATION INSTRUCTION AND GENERAL BUDGETS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Higher Education Finance Act"."

     SECTION 2. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] DEFINITIONS.--As used in the Higher Education Finance Act:

          A. "branch community college" means a branch community college of a state educational institution;

          B. "comprehensive institution" means eastern New Mexico university, western new Mexico university, New Mexico highlands university or northern New Mexico college;

          C. "degree" includes a degree or certificate;

          D. "department" means the higher education department;

          E. "independent community college" means a community college or technical and vocational institute established pursuant to Chapter 21, Article 13 or 16 NMSA 1978, respectively;

          F. "public post-secondary educational institution" means a branch community college, independent community college, comprehensive institution, research institution or state educational institution;

          G. "research institution" means the university of New Mexico, New Mexico state university or New Mexico institute of mining and technology;

          H. "state educational institution" means an institution of higher education enumerated in Article 12, Section 11 of the constitution of New Mexico; and

          I. "unit" means the quantity chosen as a standard for uniformly calculating higher education instruction and general budgets."

     SECTION 3. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] PUBLIC POST-SECONDARY EDUCATIONAL INSTITUTIONS--DATA FOR INSTRUCTION AND GENERAL BUDGETS.--For calculation of the annual instruction and general budget, each public post-secondary educational institution shall provide requisite data pursuant to an institutional finance schedule issued by the department. The data shall include financial, enrollment and performance data and any other data required by the department."

     SECTION 4. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] DEPARTMENT--UNITS--FUNDING FORMULA FOR ANNUAL INSTRUCTION AND GENERAL BUDGETS.--

          A. Based on the availability of legislative appropriations and the data provided by each public post-secondary educational institution pursuant to Section 3 of the Higher Education Finance Act, the department shall annually determine a uniform dollar value per unit. The annual instruction and general budget shall be calculated upon the department's allocation of units for each public post-secondary educational institution. The maximum number of units allocable to a public post-secondary educational institution is one hundred. The minimum number of units allocable to a public post-secondary educational institution is twenty-five.

          B. Units shall be allocated as follows:

                (1) a range of twenty to fifty units based on the number of credits from courses in which students received a grade with adjustments within the unit range for the type and level of courses;

                (2) a range of one to fifteen units based on the number and types of degrees awarded with adjustments within the unit range for:

                     (a) associate's or bachelor's degrees awarded in science, technology, engineering, mathematics or health science; and

                     (b) degrees awarded to students from financially at-risk populations;

                (3) a range of one to ten units based on the number of dual credits awarded to a student who completed the course and received a grade;

                (4) a range of one to ten units for a branch community college, independent community college, comprehensive institution or state educational institution based on the number of students who completed thirty or sixty course credits applicable toward a degree;

                (5) a range of one to ten units for a research institution based on the amount of research funding attained from sources other than legislative appropriations; and

                (6) a range of one to five units as the base amount to contribute toward the fixed costs of branch community colleges, independent community colleges, comprehensive institutions, state educational institutions and research institutions."

     SECTION 5. A new section of Chapter 21 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] DEPARTMENT--RULES--REPORTING.--

          A. By November 1, 2014, the department shall promulgate rules detailing the bases for calculating the annual instruction and general budget, including the rationales, policies and considerations for determining:

                (1) the uniform dollar value per unit;

                (2) the unit allocations pursuant to Subsection B of Section 4 of the Higher Education Finance Act;

                (3) the adjustments to unit allocations pursuant to Subsection B of Section 4 of the Higher Education Finance Act; and

                (4) the departures, if any, from adherence to the prescribed ranges in Subsection B of Section 4 of the Higher Education Finance Act or department rules.

          B. By September 1, 2015, and September 1 of each subsequent year, the department shall provide and present to the legislative finance committee a report detailing for the prior academic year the uniform dollar value per unit and for each public post-secondary educational institution the:

                (1) unit allocations;

                (2) adjustments to unit allocations; and                  (3) departures, if any, from adherence to the prescribed ranges in Subsection B of Section 4 of the Higher Education Finance Act or department rules.

          C. By January 15, 2016, and January 15 of each subsequent year, the department shall provide and present to the legislative finance committee a report detailing for the subsequent academic year the projected uniform dollar value per unit and for each public post-secondary educational institution the:

                (1) unit allocations;

                (2) adjustments to unit allocations; and                  (3) departures, if any, from adherence to the prescribed ranges in Subsection B of Section 4 of the Higher Education Finance Act or department rules."

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