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SPONSOR: |
Garcia, M.P. |
DATE TYPED: |
|
HB |
367 |
||
SHORT TITLE: |
Payment of Student Loans for Some Teachers |
SB |
|
||||
|
ANALYST: |
Williams |
|||||
APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
$642.0 |
|
|
Recurring |
General
Fund |
|
|
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
$642.0 |
|
Recurring |
Teacher
Loan Payment Fund |
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to:
HB 177:
School Differential Pay Act
HB 366:
Income Tax Credit for Certain Teachers
HJR 5:
Loans for Teacher Preparation Programs, CA
HJR 6:
Loan Repayment for Teacher Education, CA
LFC
Files
Commission
on Higher Education (CHE)
State
Department of Education (SDE)
SUMMARY
Synopsis
of Bill
House Bill 367 appropriates $642.0 from the General
Fund to a new, non-reverting fund, the teacher loan payment fund, for the
purpose of providing payments for student loans of up to $6,000 for a
qualifying teacher. Eligibility criteria for teachers would include receipt of
a Master's degree and teaching for a minimum of four consecutive years at a
school in which at least ninety percent of the students receive free or
reduced-fee lunches. The CHE would administer the program.
Significant
Issues
CHE
notes the extent of teacher shortages in the state.
If
maximum loan payments of $6,000 were made, this appropriation would assist 107
qualifying teachers. SDE reports a total of 107 National Board Certified
Teachers across the state.
Two SDE lists of qualifying
schools for HB 177 and HB 367 differ significantly in the elementary schools
component of qualifying schools. HB 367 also includes junior high and high
schools as eligible schools. The number of qualifying schools is not clear from
SDE data.
CHE
notes current statute authorizes establishment and administration of the
Teacher Loan-for- Service program to address the state's teacher shortage. As a
condition of obtaining a loan, a student must declare their intent to serve as
a full-time, public school teacher in a designated teacher shortage area of the
state. Shortage areas may be geographic or subject specific. Generally, the service obligation period is equal
to the period of the loan; however, three or more years of loans would require
three years of service.
FISCAL IMPLICATIONS
The
appropriation of $642.0 contained in this bill is a recurring expense to the
general fund. Any unexpended or unencumbered balance remaining at the end of
the fiscal year would not
revert.
This bill creates a new fund
and provides for continuing appropriations. The LFC objects
to in- cluding continuing appropriation language in
the statutory provisions for newly created funds. Earmarking reduces the
ability of the legislature to establish spending priorities.
TECHNICAL ISSUES
SDE
notes the text of the bill does not address National Board Certification as a
qualification and notes inconsistency with title, see page 1, line 18.
OTHER SUBSTANTIVE ISSUES
SDE notes this legislation is consistent with the
agency's Strategic Plan.
SDE
notes concerns regarding the use of state funds to make awards to private
citizens for per- sonal expenses.
CHE notes the intent might be more appropriately
addressed in a loan repayment program.
POSSIBLE QUESTIONS
1.
What are the
costs/benefits of the incentive proposed in this bill?
2.
Is the incentive
designed to achieve the sponsor’s intent?
AW/prr:yr