1. POST SESSION UPDATE 2010 Regular Session 2010 Special Session March 8, 2010

2. STATE FISCAL SITUATION o Estimated reserves at 0.9% for FY10 o Estimated total recurring appropriations of $5.400 billion for FY10 o Estimated recurring revenue of $5.174 billion for FY11

3. REGULAR LEGISLATIVE SESSION o Regular session ended without final action on fiscal and capital outlay bills  General appropriations bill for FY11  General Obligation Bond bill  Severance Tax Bond bill o Took action on other legislation – For Example:  SB91 – Delay Educational Retirement Contributions  SB182 – Capital Outlay for Solvency  SJM18 – National Solar Observatory

4. SPECIAL LEGISLATIVE SESSION o Special Session started on March 1 and ended on March 4 o Action Completed  General Appropriations Act  Revenue Enhancement Bills  General Obligation Bill  Severance Tax Bond Bill

5. SPECIAL LEGISLATIVE SESSION Higher Education Recurring Funding FY09 - FY11 Comparison (Dollars in Millions) FY09FY11$ Change% Change Higher Education Department48.040.4(7.6)-15.9% Higher Education Institutions836.6747.6(89.0)-10.6% Total Higher Education884.6788.0(96.6)-10.9% NMSU System 214.2 193.8(20.4)-9.5% NMSU Office of Government Relations Estimates The Higher Education Department will release official amounts

6. SPECIAL LEGISLATIVE SESSION Instruction and General Policy Comparisons Legislative Finance Committee House Passed HB 2 Senate Passed HB 2 Special Session HB 2 Four-year workload growth$7.7 M Two-year workload growth$13.5 M I&G Institutional Support Productivity Savings Institutional Support-5.25%-- Academic Support-5.00%-- Reduce BR&R (Currently at 67.5% of formula)33.75%67.50% Reduce I&G by ARRA distribution($10.9 M)$0 Tuition Revenue Credit 4-year Resident6%4%5% Non Resident15%4%5% 2-year Resident15%4%9% Non Resident15%4%9% Tuition waivers reduction5%0% Prorated I&G base reduction1.5%3.9%3.4% Additional Sanding (included in Section 10)0% 0.5% Reduction in Compensation (impact both I&G and non-I&G)2%0%1.4%0%

7. REGULAR LEGISLATIVE SESSION

8. SPECIAL LEGISLATIVE SESSION NMSU TOTAL FUNDING (Dollars in millions) FY10 Solvency FY11 House Passed FY11 Senate Passed Inc. 1.43% Comp Reduction FY11 Special Session Inc. 0.5% Reduction Special Session vs. FY10 Solvency Special Session vs. FY10 Pre-Solvency NMSU Total211.5201.8195.5191.6193.8-4.0%-8.4% NMSU Office of Government Relations Estimates The Higher Education Department will release official amounts

9. SPECIAL LEGISLATIVE SESSION NMSU INSTRUCTION AND GENERAL FUNDING (Dollars in thousands) CampusFY10 Solvency FY11 House Passed FY11 Senate Passed Inc. 1.43% Comp Reduction FY11 Special Session Inc. 0.5% Reduction Special Session vs. FY10 Solvency Special Session vs. FY10 Las Cruces125,338.5120,333.8113,727.8111,720.9113,017.8-6.1%-9.8% Alamogordo7,240.86,951.67,308.77,096.27,155.42.9%-1.2% Carlsbad4,409.64,233.54,320.04,227.04,272.80.9%-3.1% Dona Ana20,463.419,646320,363.519,794.120,011.01.9%-2.2% Grants3,332.13,199.03,487.63,415.43,436.87.4%3.1% Total160,784.4154,364.2149,207.6146,253.6147,893.9-4.2%-8.0% NMSU Office of Government Relations Estimates The Higher Education Department will release official amounts

10. SPECIAL LEGISLATIVE SESSION NON-INSTRUCTION AND GENERAL FUNDING (Dollars in thousands) NMSU FY10FY10 Solvency FY 11 House Passed FY 11 Senate Passed Inc. 1.4% comp reduction Estimate FY 11 Special Session Inc. 0.54% Sanding Estimate Special Session vs. FY 10 Solvency Special Session vs. FY 10 NMSU Athletics3,766.83,522.43,390.13,359.33,371.7 -4.3%-10.5% Educational Television1,167.41,091.71,050.71,038.11,045.0 -4.3%-10.5% Department of Agriculture11,261.610,531.210,529.610,667.610,701.1 1.6%-5.0% Agricultural Experiment Station15,315.814,324.514,168.713,977.414,166.2 -1.1%-7.5% Cooperative Extension Service12,627.111,811.511,806.311,459.911,742.1 -0.6%-7.0% Other RPSPs6,625.96,196.05,315.04,858.54,879.9-21.2%-26.4% Total Non-I&G50,764.647,477.346,260.445,360.845,905.9-3.3%-7.0% NMSU Office of Government Relations Estimates The Higher Education Department will release official amounts

11. Capital Outlay Regular Session SB182 – Capital Outlay Solvency Bill Special Session SB1 - General Obligation Bonds HB5 - Severance Tax Bonds & Reauthorizations

13. FUTURE REVENUE ESTIMATES Uncertainty regarding future revenue estimates Estimated revenue growth of 6.2% between FY10 and FY11 Not many tools left in the tool box

14. THANK YOU