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

Miera

DATE TYPED

02-07-04

HB

158

 

SHORT TITLE

School District Cash Balance Calculation

SB

 

 

 

ANALYST

Segura

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

 

 

Significant

See Narrative

 

 

 

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

New Mexico Public Education Department (PED)

 

SUMMARY

 

Synopsis of Bill

 

House Bill 158 changes the methodology in calculating the amount of excess cash balance for school districts and charter schools.

 

Significant Issues

 

House Bill 158 also substitutes references to the State Superintendent with the Secretary of Education throughout Section 22-8-41 NMSA 1978.

 

According to PED,House Bill 158 modifies the method of calculating the cash balance credit by providing a much clearer definition of the allowable limit by using the amount of cash balance defined as unrestricted, unreserved operational cash balance and the emergency reserve.

 

The bill inserts new language that clarifies that the state must determine the excess cash balance by using only the proportional share of cash balance not attributable to revenue derived from the school district property tax, forest reserve funds and impact aid which the state takes credit in determining a school district’s or charter school’s state equalization guarantee distribution.

 

 

FISCAL IMPLICATIONS

 

House Bill 158 does not contain an appropriation. The enactment of this bill could have a fiscal impact on the current HAFC substitute for HB2 in funding the level of the public school support. The appropriation bill applies a $6 million cash credit to the state equalization guarantee.

 

ADMINISTRATIVE IMPLICATIONS

 

The PED would have to verify the available cash balance at each district and apply the mandates of House Bill 158.

 

RLG/dm