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

SPONSOR:	Aragon		DATE TYPED:	2-4-02		HB
SHORT TITLE:		Dropout Prevention Programs				SB	224
					ANALYST:		Segura

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY02	FY03	FY02	FY03
	$1,000.0			Recurring	GF

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

State Department of Education (SDE)

SUMMARY

Synopsis of Bill

Senate Bill 224 appropriates $1,000.0 to the State Department of Education to contract with a private nonprofit organization to establish dropout prevention programs for students from Valley, Rio Grande and West Mesa High schools in Bernalillo County, Santa Fe Indian School in Santa Fe County and Los Lunas High School in Valencia County.

Significant Issues

According to SDE, model intervention programs include strategies to stabilize student behavior and increase students’ academic achievement while providing support and advocacy services to the students and their families.

The legislation addresses some on New Mexico’s districts with the highest dropout rates:

Albuquerque 8.8% State dropout average 6%

Bernalillo 4.6%

Santa Fe 10.7%

Los Lunas 4.4%

Hispanic students are more likely than White students to leave school before completing high school program. In 1999, 7.7 % of Hispanic students were dropouts, compared with 4% of White students.

FISCAL IMPLICATIONS

Senate Bill 224 appropriates $1,000.0 from the general fund and is recurring.

The related appropriations for Public School Support in FY02 included $750.0 for Dropout Prevention Programs but was vetoed. In FY03 the House Appropriations and Finance Committee and Senate Finance Committee recommendations do not include funding for this program.

ADMINISTRATIVE IMPLICATIONS

The SDE would need to develop a request for proposal to select a contractor to provide the services.

RS/njw:ar