Legislative committee backs LFC higher-education recommendations, presses institutions on student supports and retention

The Legislative Finance Committee on Friday reviewed higher-education budget recommendations, questioned agency and campus leaders about student retention, FAFSA uptake and shared-services investments, and voted to adopt the Legislative Finance Committee (LFC) funding proposals for multiple institutions and special schools.

LFC analyst Connor Jorgensen opened the hearing with an overview of statewide higher-education metrics and the LFC’s funding choices. “New Mexico has been a leader in affordable college education since 1996,” Jorgensen told the committee, and he outlined enrollment, retention and graduation trends the committee said should guide funding decisions.

The committee pressed the Higher Education Department and campus representatives on the persistent gap between college entry and degree completion. Stephanie Rodriguez, cabinet secretary of the New Mexico Higher Education Department, told lawmakers the department supports targeted investments for student supports, workforce alignment and research projects and is working with the LFC on a funding‑formula study to refine ING (Instruction and General) allocations.

Why it matters: Lawmakers said they want state dollars to improve not only access but completion. Committee members repeatedly asked whether existing scholarships and reduced tuition are translating into timely degrees and local workforce outcomes. They also flagged several program areas they said need clearer tracking and additional investment: adult literacy and high‑school‑equivalency vouchers, student basic‑needs services, and shared information systems for community colleges (known as CHESS).

Key details - Enrollment and completion: Jorgensen told the committee New Mexico’s 6‑year graduation rate averaged 49 percent in 2023 versus a 59 percent national average, and he said the state loses many students between their first and second year. The LFC recommended directing additional “student support” dollars to institutions to address advising, tutoring and basic‑needs supports. - Student support and retention funds: The LFC recommendation adds a $3.0 million recurring student‑support allocation to be distributed pro rata to institutions based on their ING share; the LFC also proposed a $20.0 million, three‑year retention fund to reward institutions that increase student retention. The executive recommendation proposed a smaller retention initiative (approximately $8.0 million nonrecurring). Jorgensen described the LFC emphasis as shifting funds into operational supports that research shows boost outcomes more than additional undergraduate financial aid alone. - FAFSA and Opportunity Scholarship: Committee members pressed institutions and the department to raise FAFSA completion because an LFC review found about $27.0 million in federal aid was going unclaimed. The LFC proposed language encouraging institutions to obtain either a FAFSA, an income‑verification form or a waiver from students receiving the Opportunity Scholarship; the executive recommendation did not include that language. Secretary Rodriguez noted the Opportunity Scholarship remains fully funded in both plans and that institutions must continue outreach on federal aid. - Shared services (CHESS): Several community college leaders warned that the CHESS shared‑services system needs more funding than the LFC recommended. The CHESS consortium has sought $10.0 million (executive proposed $5.0 million; the LFC recommended $3.0 million in general fund). Committee members flagged the item for follow‑up at a designated hearing on CHESS. - Research and public‑service projects (RPSPs) and centers of excellence: The executive recommended multiple new RPSPs and increases to centers of excellence (including UNM centers and New Mexico Tech aquifer mapping). The LFC prioritized ING increases and student supports over several of the executive’s RPSP additions; lawmakers discussed both approaches during the hearing.

Votes at a glance - Motion to adopt the LFC recommendation for New Mexico Military Institute (adopted). Mover: Representative Brown; second: Representative Pettigrew; outcome: approved (no recorded roll call). - Motion to adopt the LFC recommendation for New Mexico School for the Blind and Visually Impaired (adopted). Mover: Representative Dallas; second: Representative Duncan; outcome: approved (no recorded roll call). - Motion to adopt the LFC recommendation for New Mexico School for the Deaf (adopted). Mover: Representative Salina; second: Representative Brown; outcome: approved (no recorded roll call). - Motion to adopt the LFC recommendation for higher education (adopted). Mover: Vice Chair Dixon; second: Representative Chatfield; outcome: approved (no recorded roll call).

What lawmakers asked for next Committee members asked staff and the Higher Education Department for: clearer reporting on how student‑support dollars are spent and measured; a plan to increase FAFSA completion and document federal aid takeup; additional details and options for CHESS funding; and follow‑up on targeted investments such as centers of excellence, the New Mexico Literacy Institute and tribal education technical‑assistance centers.

Ending Committee leadership adopted the LFC package after debate and directed staff and the Higher Education Department to return with follow‑up data on student supports, FAFSA outreach, CHESS financing and the performance measures that will determine future formula allocations.