NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.





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





SPONSOR: Beam DATE TYPED: 02/02/00 HB 330
SHORT TITLE: Alternate Educational Assessment SB
ANALYST: Baca


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
$ 400.0 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 308



SOURCES OF INFORMATION



State Department of Education (SDE)



SUMMARY



Synopsis of Bill



House Bill 330 appropriates $400.0 from the general fund to the SDE for expenditure in fiscal year 2001 for the development and implementation of an alternate assessment system for special students unable to take the standard assessment.



Significant Issues



The SDE analysis states that not passing this bill MAY jeopardize the flow of $45 million available to New Mexico under the provisions of IDEA. If federal funds are not available, the state will have to provide services at New Mexico tax payer expense.



The analysis prepared by the SDE cites provisions in the 1997 reauthorization of the Individuals with Disabilities Act (IDEA) which requires that:





SDE estimate that 3% of all special education students will participate in the alternate assessment system.



FISCAL IMPLICATIONS



House Bill 330 appropriates $400.0 in general fund. The appropriation in the bill will be sufficient to cover the projected cost of implementation, including materials and professional development, according to the SDE analysis.



Any unexpended or unencumbered balance remaining at the endo fiscal year 2001 shall revert to the general fund.



ADMINISTRATIVE IMPLICATIONS



None anticipated. SDE staff will implement the program with current FTE.



POSSIBLE QUESTIONS



How specific is the federal statute regarding the consequences of not enacting this legislation prior to July 1, 2000.



Will the federal government refuse to flow IDEA dollars? Is there an appeals process if the alternate assessment system is not in place?



Is it possible to develop this alternate system with federal dollars?



LB/prr/njw