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F I S C A L I M P A C T R E P O R T
SPONSOR Cisneros
ORIGINAL DATE
LAST UPDATED
1/30/08
HB
SHORT TITLE Northern NM State School Salary Increases
SB 253
ANALYST Haug
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
$332.3
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 253 appropriates $332.3 from the general fund to the Board of Regents of Northern
New Mexico State School (now Northern New Mexico College) to increase faculty and staff
salaries to a level closer to peer institutions.
FISCAL IMPLICATIONS
The appropriation of $332.3 contained in this bill is a recurring expense to the general fund. Any
unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert to the
general fund.
This request was not submitted by NNMC to NMHED for review and was not included in the
Departmentís funding recommendation for FY09.
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Senate Bill 253 Ė Page
2
SIGNIFICANT ISSUES
The HED states:
The purpose of SB253 is to make faculty salaries at NNMC comparable to those offered
at other state institutions of higher education. NNMC hopes to double its student
population in five years and increase its number of faculty by 25% in the same period. In
order to attain this goal, NNMC not only hopes to retain its current faculty, which is
aging and approaching retirement age, but also attract new faculty.
The New Mexico Higher Education Department (NMHED) conducted a faculty salary
study in 2006. NMHED estimates that correcting the current difference between salaries
at New Mexico institutions and their peer averages will require an estimated $25,218,000
in additional funding. Assuming this will occur over 4 years, additional funds will be
required to offset an anticipated salary inflation of 3.5%, bringing the amount to
approximately $28,750,000. This will require an annual allocation of $7,200,000 to allow
the institutions to approximate the average salaries of their peers. All values assume the
inclusion of benefits in the calculations.
The NMHED report further noted that the case of NNMC is unique in that the institution
is in transition as it expands its mission to include degrees beyond the associate's level.
Currently, it offers a primarily lower division curriculum, with a typical community
college faculty; that is, a faculty with fewer terminal degrees than other comprehensive
institutions. All faculty are classified as instructors and salaries are in line with instructors
at other comprehensive institutions. Five new bachelor's degrees have been approved and
NNMC is planning to propose a number of bachelorsís and graduate programs in the near
future. Faculty with terminal degrees will be required for these programs. It is expected
that these new faculty members will be hired at the peer average for assistant professors
at other comprehensive universities. Based on this assumption, the salaries required for
NNMC will be approximately $1.9 million dollars for 32 additional faculty by 2009.
Nonetheless, NMHED's study found that current NNMC faculty members are primarily
instructors and that there is no current salary discrepancy between faculty of that rank at
other comprehensive universities in the state. It is not known how many of the faculty has
terminal degrees or could be classified at the assistant professor level. Without this
information, it is not known whether the request in this appropriation elevates the salaries
of instructional faculty without terminal degrees beyond that of similar faculty at other
comprehensive institutions.
GH/jp