NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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

 

 

 

SPONSOR:

Thompson

 

DATE TYPED:

03/05/03

 

HB

892

 

SHORT TITLE:

Nursing Student Loan for Service Program

 

SB

 

 

 

ANALYST:

Williams

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

$300.0

 

 

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Relates to HB 851

 

SOURCES OF INFORMATION

LFC Files

Commission on Higher Education (CHE)

Department of Health (DOH)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 892 appropriates $300.0 from the General Fund to the Commission on Higher Education for a nursing student loan for service program.

 

     Significant Issues

 

The Department of Health notes the severity of nursing shortages nationally and in New Mexico.  Given current trends, the United States Department of Health and Human Services projects the New Mexico nursing shortage will reach 25 percent in 2005, 36 percent in 2010 and 57 percent in 2020.  While most nursing education programs in the state having wait lists for student applicants, certain nursing faculty positions are vacant, and fewer nurses selecting a nursing education specialty in graduate school.

 

In 2002, the Nursing Shortage Statewide Strategic Summit of the Commission on Higher Education and the University of New Mexico Health Sciences Center noted the importance of expanding nursing education program by increasing faculty and enhancing faculty retention through salary adjustments.  Specifically, the Summit calls for an incremental 500 licensed nurse graduate per year (doubling of current levels) beginning in three years and continuing for fifteen to twenty years.

 

FISCAL IMPLICATIONS

 

The appropriation of $300.0 contained in this bill is a recurring expense to the General Fund.  Any unexpended or unencumbered balance remaining at the end of FY04 would revert to the General Fund. 

 

The LFC budget recommendation for the nursing student loan program for FY04 is $345.8, of which $321.8 is general fund.  This general fund recommendation represents an increase of 11.2 percent over FY03. 

 

TECHNICAL ISSUES

 

CHE notes all other financial aid funds are non-reverting, and an amendment would provide consistency.

 

OTHER SUBSTANTIVE ISSUES

 

CHE notes selection for this competitive program is based on coursework and an essay.  In FY03, 32 qualified students were funded from a pool of 56 applicants.  Program participants must provide service in a health shortage area of the state for up to three years after graduation.

 

AR/prr