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

SPONSOR:	Regensberg		DATE TYPED:	03/04/01		HB	707
SHORT TITLE:		National Guard Tuition Scholarship				SB
					ANALYST:		Woodlee

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY01

FY02

FY01

FY02

$ 489.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to House Bill 631 and Senate Bill 328

SOURCES OF INFORMATION

Department of Military Affairs

LFC Files

SUMMARY

Synopsis of Bill

House Bill 707 appropriates $489.0 from the general fund to the Department of Military Affairs for the New Mexico National Guard Scholarship program to fund a one hundred percent tuition credit for current and projected scholarship program participants.

Significant Issues

According to the agency, tuition reimbursement is the number one discriminator in terms of recruitment. Currently, the New Mexico National Guard ranks last in the nation in terms of readiness and is short approximately 1000 soldiers. The agency's goal is to recruit 350 new soldiers for fiscal year 2002.

Currently, the NM National Guard only is able to fund 66% of tuition costs for the soldiers in the program. The appropriation contained in this bill would bring the current students to 100% tuition reimbursement. Also, the appropriation would fund an additional 70 soldiers who wish to enter the tuition reimbursement program.

FISCAL IMPLICATIONS

The appropriation of $489.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall revert to the general fund.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

House Bill 707 relates to House Bill 631 and Senate Bill 328. Both of these bills propose to appropriate $637.0 to the program to fund current students and 175 additional student soldiers, rather than the 70 additional students proposed in this bill.

MW/lrs:ar