In 2024, the New Mexico Department of Higher Education partnered with NCHEMS to conduct the Higher Education Sustainability Study. NCHEMS applied its adequacy model to examine the key foundational costs and estimate potential inequities at individual institutions and sectors. The study also reviewed the policies and procedures connected to how the state provides appropriations outside the funding formula and evaluated the performance-driven formula.
The Higher Education Sustainability Study covered the following topics:
Higher education in New Mexico has experienced a significant transformation in recent years. Notably, the state recently launched a historic new Opportunity Scholarship program. While the state’s pledge to students is considered a substantial commitment to funding higher education, the scholarship focuses on supporting students rather than the institutions. To ensure that the colleges and universities in New Mexico receive adequate funding to serve students benefiting from the Opportunity Scholarship, NCHEMS is holistically assessing the funding formula and offering recommendations for improvement. This initiative identified existing funding disparities and explored strategies to optimize the base, RPSP, and performance components, thereby enhancing institutional sustainability, transparency, and student success.
NCHEMS used a mixed-methods approach to conducting the Higher Education Sustainability Study. The qualitative component focused on stakeholder engagement with the Secretary of Higher Education, department staff, and a technical committee, which included representatives from various formula-funded institutions and associations. NCHEMS conducted stakeholder engagement through presentations to the technical committee and virtual focus groups with the campus leaders to learn more about the RPSP process. The data sources used in the quantitative analysis include IPEDS, the New Mexico Department of Higher Education, and some individual campuses.
