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

SPONSOR:	Hamilton		DATE TYPED:	2/25/03		HB	576/aHEC
SHORT TITLE:		WNMU Economic Development Course Scholarships				SB
					ANALYST:		L. Baca

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
	20.0			Recurring	GF

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation Western New Mexico University in the General Appropriation Act

SOURCES OF INFORMATION

Responses Received From

Commission on Higher Education (CHE)

Economic Development Department (EDD)

SUMMARY

Synopsis of HEC Amendment

The amendment adopted by the House Education Committee adds an evaluation component as recommended by the CHE:

“A plan for a program evaluation, including specific program goals and criteria for assessing program effectiveness, shall be submitted to the Legislative Finance Committee and the Commission on Higher Education by October 1, 2004. An assessment of the program will be completed prior to June 30, 2005, and submitted to the Legislative Finance Committee and the Commission on Higher Education.”

Synopsis of Original Bill

House Bill 576 appropriates $20.0 from the general fund to the Board of Regents of Western New Mexico University (WNMU) to provide funding for scholarship opportunities an economic development course to be taught at WNMU.

Significant Issues

WNMU reports the economic development course is accredited by the International Economic Development Council and has been offered to students from throughout New Mexico. The three credit hour course may be taken for either graduate or under-graduate credit and often serves as a first step in obtaining national certification in economic development. The appropriation will provide approximate forty scholarships.

FISCAL IMPLICATIONS

The appropriation of $20.0 contained in this bill is a recurring expense to the general. Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the general fund.

OTHER SUBSTANTIVE ISSUES

A request was not included in Western New Mexico University’s (WNMU) budget request to its Board of Regents, and thus was not included in the list of priority projects submitted by WNMU to the Commission on Higher Education for review

AMENDMENTS

The CHE suggests adding the following language for all new recurring higher education programs (assuming that funding will continue beyond 2003-2004):

“A plan for a program evaluation, including specific program goals and criteria for assessing program effectiveness, shall be submitted to the Legislative Finance Committee and the Commission on Higher Education by October 1, 2004. An assessment of the program will be completed prior to June 30, 2005, and submitted to the Legislative Finance Committee and the Commission on Higher Education

POSSIBLE QUESTIONS

1. Has WNMU attempted to secure funds from the business community to fund this program?

2. How often is the course offered?

3. To date, how many students have completed the course?

4. Have the business of local governments offered their support for the course, either financial or moral?

5. Is this course part of a “national curriculum” in economic development?

LRB/prr/njw