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

SPONSOR:	Swisstack		DATE TYPED:	03/05/03		HB	HJM 93
SHORT TITLE:		Evaluate Albuquerque TVI District Boundaries				SB
					ANALYST:		Williams

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
	NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

House Joint Memorial 93 requests the Legislative Education Study Committee evaluate Albuquerque Technical-Vocational Institute district boundaries to determine if the entire City of Rio Rancho should be included within the district. Further, the committee would also evaluate whether a citizen of Rio Rancho would be appointed to the governing board.

Significant Issues

Public school district geographic boundaries form the basis for community college and technical/vocation district boundaries. Statute requires that changes in boundaries be initiated by the public school district. Provision for expansion (and withdrawal) is based on intact school districts which may or may not be congruent with municipal boundaries. No provision exists for a part of a school district to join or withdraw from a community college or technical/vocational district.

CHE notes the historical reason that ATVI is the only community college or technical/vocation district in the state not consistent with public school boundaries is because the original ATVI boundaries reflected that of the Albuquerque Public School district (APS). When the APS district was split into the new APS and Rio Rancho districts, ATVI’s boundaries were left unchanged.

FISCAL IMPLICATIONS

No fiscal impact from this joint memorial.

TECHNICAL ISSUES

CHE raises concerns regarding its involvement in the evaluation. Participation by or input from the Taxation and Revenue Department and State Department of Education might also be considered.

OTHER SUBSTANTIVE ISSUES

New Mexico’s public higher education funding formula takes a 2 mill credit on independent community colleges’ taxing district proceeds. The effect of the credit is to reduce the General Fund support for the community colleges. Boundary changes might impact General Fund appropriations to the institution. In addition, boundary changes might impact tuition collections by the institution, if Albuquerque TVI charged in-district /out-of-district rates.

POSSIBLE QUESTIONS

1. What other mechanisms might be available to address potential concerns?
2. Should a target date for reporting the evaluation be included?
3. Should the report be submitted to LFC and Department of Finance and Administration?

AW/yr