Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

 

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us).  Adobe PDF versions include all attachments, whereas HTML versions may not.  Previously issued FIRs and attachments may also be obtained from the LFC 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

Heaton

DATE TYPED

1/30/04

HB

120

 

SHORT TITLE

“Student” In Teacher Loan For Service Act

SB

 

 

 

ANALYST

Baca

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

NFI

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

Relates to SB 147

Relates to Appropriation in the General Appropriation Act

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

New Mexico Public Education Department (PED)

Commission on Higher Education (CHE)

 

SUBMITTED FOR THE LESC

 

SUMMARY

 

Synopsis of Bill

 

House Bill 120 amends the Teacher Loan for Service Act to include high school and community college students who sign an agreement declaring their intent to serve as a public school teacher in a designated teacher shortage area in New Mexico through a career pathway program.

 

Significant Issues

 

A significant issue revolves around the availability of funding to allow grants to all who have applied pursuant to the requirements of the Act.  The PED and CHE report that current funding enables the CHE to fund only 70% of applicants who had either enrolled in, or been accept to, a teacher preparation program.

 

FISCAL IMPLICATIONS

 

The bill does not carry on appropriation and, therefore, has no immediate impact on the general fund.  CHE and the PED report current funding is insufficient for the identified need. The program’s success may well depend on the program being fully funded.

 

ADMINISTRATIVE IMPLICATIONS

 

In its analysis, the CHE points out the bill does not address three significant issues:

 

  • How students will provide the service component is they are not accepted into the teacher preparation program,
  • Or if they decide not to declare education as their major, and
  • How graduates will fulfill the service component of their repayment if a position in their teaching field is unavailable in New Mexico.

 

AMENDMENTS

 

The following language is suggested for all new recurring higher education programs and expansion of current programs (assuming that funding will continue beyond FY05):

 

“The institution receiving the appropriation in this bill shall submit a program evaluation to the Legislative Finance Committee, the Public Education Department and the Commission on Higher Education by August 2007 detailing the benefits to the State of New Mexico from having implemented this program over a three period.”

 

POSSIBLE QUESTIONS

 

  1. Does the CHE have a process to monitor the enrollment and declared majors of students participating in this program?
  2. How   many students are currently participating in the program?
  3. Have any students completed degree work pursuant to the provisions of the program?

 

 

LB/lg:dm