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F I S C A L I M P A C T R E P O R T





SPONSOR: Taylor, JG DATE TYPED: 02/20/01 HB 530
SHORT TITLE: Establish Dropout Prevention Programs SB
ANALYST: Gilbert


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
$ 750.0 Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to: House Bills 19, 82, 398, and Senate Bills 4, 31, 307, 312, 483, 505.



SOURCES OF INFORMATION



LFC Files

State Department of Education (SDE)



SUMMARY



Synopsis of Bill



House Bill 530 appropriates $750.0 from the general fund to the State Department of Education (SDE) to establish high school dropout prevention programs in Bernalillo, Sandoval, and Valencia counties, and contains an emergency clause.



Significant Issues



The appropriation in this bill would allow the SDE to contract with a private nonprofit organization to establish dropout prevention programs for at-risk students.



FISCAL IMPLICATIONS



The appropriation of $750.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund. This bill contains an emergency clause.









ADMINISTRATIVE IMPACT



Implementation of this bill would require the SDE to develop a contract with an appropriate private nonprofit organization for the establishment of dropout prevention programs to target at risk students.



RELATIONSHIP



Senate Bill 312 and House Bill 398 require the SDE to establish a "dropout prevention pilot program" at ten public high schools with the highest dropout rates.



Related appropriations in Senate Bill 307 and House Bill 82 - Section 7 of these bills makes STUDENT IMPROVEMENT APPROPRIATIONS.--The following amount is appropriated from the general fund to the state department of public education for expenditure in fiscal year 2002:

A. four million sixty-three thousand three hundred dollars ($4,063,300) to pay teachers to teach intensive summer education programs for students in need of assistance.



OTHER SUBSTANTIVE ISSUES



According to the SDE, the overall dropout rate for New Mexico declined from 8.7% in 1994-95 to 7.1% in 1997-98. However, in some school districts, and in some schools within districts, the dropout rate increased.



Information for the three counties targeted in this bill are outlined below:



District 1994-95 Dropout Rate 1997-98 Dropout Rate

Bernalillo County

Albuquerque Public Schools 12.2% 8.8%



Valencia County

Los Lunas 2.6% 8.8%

Belen 3.9% 13.7%

Sandoval County

Bernalillo 8.1% 10.8%

Rio Rancho N/A 4.5%

Cuba 19.8% 5.8%

Jemez Valley 1.9% 14.4%

Jemez Mountain 2.2% .7%



LG/ar