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

SPONSOR Campos

ORIGINAL DATE

LAST UPDATED

2/3/2006

HB

SHORT TITLE Luna Community College Student Health Care

SB 690

ANALYST Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$150.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

SUMMARY

Synopsis of Bill

Senate Bill 690 appropriates $150,000 from the general fund to the Higher Education Depart-

ment (HED) for the purpose of providing student health care at Luna Community College.

FISCAL IMPLICATIONS

The appropriation of $150,000 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert

to the general fund.

SIGNIFICANT ISSUES

This proposal was not submitted by LCC to HED for review and is not included among the de-

partment’s fiscal year 2007 funding recommendations to the Legislature.

Student health insurance/health care expenses are not provided at state general fund expense at

other New Mexico higher education institutions. Enactment of this legislation could establish a

precedent for other institutions to expect similar funding.

Senate Bill 690 – Page

2

ADMINISTRATIVE IMPLICATIONS

The appropriation in this bill is made to HED rather than LCC. It is not clear why the appropria-

tion is not made directly to the institution. As drafted, HED would bear administrative responsi-

bility for the appropriation and would need to develop a means of transferring the funds to the

institution.

OTHER SUBSTANTIVE ISSUES

Student health care expenses at other New Mexico institutions of higher education are generally

covered by the student on an individual basis or through a student fee-supported student health

center. Specially designed student health insurance programs are also commercially available.

POSSIBLE QUESTIONS

Is the intent of this legislation to cover the cost of student health insurance or to cover the direct

costs of health care. (The language in the bill is not clear in this regard.)

Why is the appropriation made to HED.

DE/mt