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





SPONSOR: Taylor, JG DATE TYPED: 03/02/01 HB 905
SHORT TITLE: Equalize Athletic Scholarships SB
ANALYST: Fernandez


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY01 FY02 FY01 FY02
$ 441.6 Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to HB906



SOURCES OF INFORMATION



LFC Files

Commission on Higher Education (CHE)



SUMMARY



Synopsis of Bill



House Bill 905 appropriates a total of $441.6 from the general fund to various post-secondary institutions for athletics.



Significant Issues



According to CHE, when NCAA intercollegiate athletic scholarships were established, institutions received an appropriation to provide the allowable number of scholarships at the tuition and fee rate actually charged by the institution. Subsequently, each year the athletic appropriation for scholarships has been increased by the tuition credit included in the General Appropriation Act.



Because institutions increase tuition by rates higher than the tuition credit included in the General Appropriation Act, a gap is created between the appropriation for athletics and the cost to cover actual athletes' tuition fees.











FISCAL IMPLICATIONS



The appropriation of $441.6 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.



The funds are appropriated as follows:



$163,479 New Mexico Highlands University

$ 87,464 Western New Mexico University

$114,829 University of New Mexico

$ 64,999 New Mexico State University

$ 10,867 Eastern New Mexico University

$441,638



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



This bill relates to HB906. HB906 amends existing statute to require that increases in the actual tuition rate be used when calculating increases for athletic scholarships.



TECHNICAL ISSUES



According to CHE the bill should indicate that funds shall be non-reverting.



OTHER SUBSTANTIVE ISSUES



Included in the CHE FY02 request for higher education, was $181.6 to fund the incremental cost of athletic scholarships in FY02 for various institutions. This request was based on the 4 percent tuition credit recommended by the CHE in FY02 plus another 4 percent to compensate institutions for what they did not receive in FY01. The total amount requested by CHE for FY01 was $90.8. The request for $90.8 for FY01 was not recommended by the LFC.



POSSIBLE QUESTIONS