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Wednesday, December 03, 2008
Santa Fe College Takeover Price? $6M a Year
Associated Press
New Mexico taxpayers could have to shell out about $6 million a year in operating costs, if the financially troubled College of Santa Fe is brought into the state's higher education system, a state Higher Education Department analysis has found.
The private College of Santa Fe is having financial troubles after talks with a for-profit company faltered and is looking to the state for a possible takeover.
Highlands University in Las Vegas, N.M., and the University of New Mexico have been mentioned as possibilities for assuming operations of the college.
Higher Education Secretary Reed Dasenbrock said the $6 million figure contains certain assumptions, but he wants to see if a decision can be reached based on the figure to make a state takeover work.
Dasenbrock's model sets tuition at $5,000 a year, down from the $27,000 a year the college now charges. The model also assumes that enrollment of 1,339 students remains flat.
The $6 million would come from the state's funding formula, which is based on enrollment, and determines how much colleges and universities get from the state each year.
If the college is taken over by a university, that institution would have to assume the college's debt, which is reportedly between $25 million and $33 million.
Dasenbrock said the debt service would cost about $2 million a year, but that would be covered by the university that partners with the college.
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