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

SPONSOR Leavell

ORIGINAL DATE

LAST UPDATED

2-15-2007

HB

SHORT TITLE Study School Dual Credit Programs

SB 223

ANALYST Dearing

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

*$500.0 Nonrecurring

General Fund

*Please see narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

Conflicts with Senate Bill 943

SOURCES OF INFORMATION

LFC Files

Responses Received From

Higher Education Department (HED)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 223 requires the Higher Education department to conduct a study and report on dual

credit programs within the State.

FISCAL IMPLICATIONS

Senate Bill 223 carries no appropriation. Enactment of Senate Bill 223 would require the Higher

Education department to study dual credit programs in New Mexico and prepare a report on the

findings of that study.

*Estimates of the costs incurred with conducting this study were not provided by the Higher

Education department. HED generally stated that some level of funding must be appropriated to

accomplish provisions of Senate Bill 223. The department referenced the original request of the

Alignment Task Force for $500 thousand to fund the study, however a cost breakdown/analysis

was not provided in the agency’s response to this legislation.

Senate Bill 223 – Page

2

SIGNIFICANT ISSUES

The goal of the dual credit study proposal is to increase student access to dual credit courses

throughout New Mexico by accurately documenting students who participate and the funding

flow required to support program expansion. Currently, data collection and reporting varies

among the school districts, colleges and universities, and there are different methods of funding

and accounting for the student FTE. (Note: the 1990 legislation defining creating dual credit

programs provides for funding through both public education and higher education formulas).

This proposal addresses issues identified by the joint HED/PED Alignment Task Force/Dual

Credit Subcommittee.

The NMHED/PED Alignment Task Force identified dual credit programs as a strategy to

promote alignment.

The study shall result in a report that will:

.

Be based on two school districts that are paired with colleges or universities with dual

credit agreements;

.

Analyze two or more years of student data;

.

Document the definition and flow of students who participate in dual credit programs;

.

Use student reporting data to trace the flow of funds through HED and Public Education

Department (PED) formulas;

.

Quantify student costs of participation, including tuition, books, fees and transportation;

.

Report outcomes for students participating in dual credit courses, including grade point

average, number of courses taken, number of students graduated and number of college

credits earned;

Finally, the report shall result in a recommendation for funding mechanism. The funding

mechanism recommendation is perhaps the most significant issue involved in Senate Bill 223

provisions.

PERFORMANCE IMPLICATIONS

The Higher Education department has requested a policy study of existing dual credit programs

in the State, specifically to gather information regarding the final requirement of Senate Bill 223,

the provision requiring a funding recommendation.

While provisions in Senate Bill 223 prescribe a report based on two (2) school districts and

associated higher education institutions, the department has proposed an exhaustive study of

statewide programs is necessary to provide information for the required funding mechanism

recommendation.

The language in Senate Bill does not specify which districts and associated higher education

institutions are to be included in this study.

ADMINISTRATIVE IMPLICATIONS

Senate Bill 943 would require the Higher Education department to oversee the study of dual-

credit programs.

Senate Bill 223 – Page

3

CONFLICT

Senate Bill 223 relates to SB943. Senate Bill 943 creates a new section of statute addressing the

dual credit issue. The proposed legislation will allow high school students the ability to attend

higher education institutions, receive credit in both, and provides a mechanism to fund dual

credit programs.

Funding for dual credit students would be provided through several methods. The district, or

students’ originating school would provide funding for the re-circulating texts and other

materials necessary for the higher-level courses.

Post-secondary institutions would be required to waive general fees; and encouraged to waive

tuition. Section 1 (e) of Senate Bill 943 directs the Higher Education department to revise the

funding formula for post-secondary institutions to address enrollment in dual-credit programs.

The bill does not specify a detailed methodology for establishing these “incentive" adjustments.

Additionally, there is no provision in Senate Bill 943 addressing the implications of a necessary

and subsequent reallocation of funds among institutions that would result from the proposed

revision to these “incentive" adjustments proposed in Section 1 (e).

It is not clear whether the study proposed in Senate Bill 223 would be necessary in the event

Senate Bill 943 is enacted.

Since the final requirement of Senate Bill 223 is for the Higher Education department to

provide a recommendation for a funding mechanism, and Senate Bill 943 provides such

funding mechanism, the bills are in conflict.

PD/csd