Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Campos
ORIGINAL DATE
LAST UPDATED
02/14/07
HB
SHORT TITLE
Luna College Staff & Faculty Salaries
SB 751
ANALYST Hanika Ortiz
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$1,000.0
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 751 appropriates $1 million from the General Fund to the New Mexico Higher
Education Department (NMHED) for FY08 for Luna Community College (LCC) to increase the
salaries of 77 full-time staff, 34 full-time faculty, 60 part-time faculty, and 28 maintenance
workers at the institution in order to achieve parity with other state colleges and universities.
FISCAL IMPLICATIONS
The appropriation of $1 million contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to the
general fund.
This request was not on the list of priority projects submitted by LCC to NMHED for review
and is not included in the Departments funding recommendation for FY08.
SIGNIFICANT ISSUES
The purpose of SB 751 is to provide salary increases for all LCC employees in order to ensure
that salaries are comparable to salaries at other two-year colleges in New Mexico. Currently,
pg_0002
Senate Bill 751 – Page
2
LCC employees are among the lowest paid in the state. An administrator at LCC indicated that
although already enacted legislation gives all two-year college employees salary increases, this
does not adjust the ranking of LCC employees relative to other state colleges.
HD conducted a faculty salary study for full-time faculty and presented its results to the
Legislative Education Study Committee in October 2006. The report indicated that Central New
Mexico College (CNM) faculty salaries are closest to the state average. At CNM, 330 faculty
members receive an average of $55,286 per year. The average salary for full-time faculty at LCC
is $44,674 for 34 faculty members. The difference between the weighted state average of
$55,136 and LCC full-time faculty salary is $10,462. Based on the October 2006 Faculty Study,
the amount needed to bring LCC up to parity with the state community college average for full-
time faculty will be $355,708 for a one-year period without factoring in inflationary costs.
Future feasibility studies pertaining to part-time faculty, full-time staff, and part-time staff
salaries will address state compensation in order to find state averages and determine the
impact to all community colleges in New Mexico.
PERFORMANCE IMPLICATIONS
An LCC administrator indicated that in the previous year, the institution lost 23 staff members,
85% of whom left due to salary issues. The remaining 15% who left were either terminated,
retired, or requested a voluntary separation. LCC expects to decrease this turnover rate and
increase its retention rate through SB 896.
If SB 751 is funded, LCC would work in coordination with HED in developing any additional
performance measures.
ADMINISTRATIVE IMPLICATIONS
SB 751 appropriates funding to NMHED to serve as the administrator of this request for LCC
and may need additional staff.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Relates to HB 9 Public employee salary increases
Relates to SB 642 Northern NM state school faculty salary increases.
Duplicates HB 913 and SB 896
ALTERNATIVES
LCC can submit a salary adjustment plan for study and review by HED, the Legislative Finance
Committee (LFC), and the Department of Finance and Administration (DFA).
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
If SB 751 is not enacted, LCC will not be able to adjust faculty and staff salaries above and
beyond the statewide compensation increase appropriations.
AHO/mt