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



SPONSOR: Howes DATE TYPED: 02/16/99 HB
SHORT TITLE: School Program Cost Calculation SB 158/aSEC
ANALYST: Fernandez

APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 511.0 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates HB115, Relates to HB16, HJM1, SB73 and SB74

SOURCES OF INFORMATION



State Department of Public Education (SDE)



SUMMARY



Synopsis of SEC Amendment



The Senate Education Committee amendment clarifies the methodology for determining certified teacher program units.



Synopsis of Bill



Senate Bill 158 amends the public school funding formula to recognize a new category and cost differential, National Board for Professional Teaching Standards (NBPTS) certification, in the calculation of total program costs.

Significant Issues



This new category will generate three additional program units for school districts that employ teachers that have been certified by the National Board for Professional Teaching Standards. The additional units will then require funds which will be used to pay teachers that have been certified by the National Board for Professional Teaching Standards, a one-time salary differential. The amount of the salary differential must be equal to or greater than the number of program units (3) multiplied by the current unit value.



The number of program units for districts will be determined by multiplying the number of certified school instructors employed by the school district by three. SDE must verify the number of teachers who are certified by the national board for professional teaching standards. The additional units are not subject to multiplication by the district's training and experience index.



According to the Legislative Education Study Committee (LESC), nationwide, 1,836 teachers have completed the NBPTS process which includes 193 teachers from New Mexico. Currently, 67 teachers in New Mexico are board certified, representing 15 school districts.



FISCAL IMPLICATIONS



This bill appropriates $511.0 from the general fund to SDE for expenditure in fiscal year 2000. Any unexpended or unencumbered balance remaining at the end of fiscal year 2000 shall revert to the general fund.



According to SDE, 67 teachers are currently certified and based on the current unit value of $2,344.09, each NBPTS certified teacher would receive a one-time salary increase of $7,032.27 for a total cost of $471.2. SDE also indicates that the additional salary adjustment would not become part of a qualifying teacher's base salary. Teachers are required to maintain certification in order to receive the one-time salary increase.



ADMINISTRATIVE IMPLICATIONS



SDE will be required to verify NBPTS certified teachers during the budget and audit process.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



This bill duplicates HB115, relates to HB16, HJM1, SB73 and SB74



TECHNICAL ISSUES



SDE recommends the following language:



On Page 2, line 16, strike "teaching standards certification" and replace with "national board for professional teaching standards certification".



On Page 3, lines 7 through 19, amend the language to read the following: "The number of program units for teachers certified by the national board for professional teaching standards is determined by multiplying by three the number of such certified school instructors employed by the school district on or before the fortieth day of the school year and verified by the department. Department approval of these units shall be contingent upon verification by the school district that these teachers are receiving a one-time salary differential equal to or greater than the amount generated by the units multiplied by the program unit value during the fiscal year in which the school district will receive these units.



OTHER SUBSTANTIVE ISSUES



History

1994-95 - NM Legislature appropriated $400.0 for staff development of which $327.9 was allocated to support teachers seeking NBPTS certification.



1995-97 NM Legislature appropriated funds to support teachers seeking NBPTS certification, however the appropriations were vetoed by the Governor.



1995-99 School districts have supported the program with funding from the Goals 2000 federal grant or with operational funds.



SDE reports that two school districts are utilizing operational funds to support NBPTS candidates and the associated fees. This option is available to all districts.



CTF/prr:gm