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

Coll

DATE TYPED

02-07-04

HB

504

 

SHORT TITLE

Create Public School Reform Reserve

SB

 

 

 

ANALYST

Segura

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

FY08

 

$40,000.0

$40,000.0

$40,000.0

 

Recurring

Public School Reform Reserve

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

 

SOURCES OF INFORMATION

 

LFC Files

 

Response Received From

New Mexico Public Education Department (PED)

 

 

SUMMARY

 

Synopsis of Bill

 

House Bill 504 creates the “public school reform reserve” in the general fund for use in implementing provisions of the 2003 public school reform legislation and the federal No Child Left Behind Act of 2001.

 

Significant Issues

 

The act creates a public school reform reserve in the general fund and makes an appropriation of $40 million from the public school reform reserve to the state equalization guarantee distribution in each of fiscal years 2006, 2007, 2008 for public school reform programs.

 

The priority use of the reserve will be to provide minimum salaries required by the three-tiered licensure system for teachers and school administrators.

 

 

FISCAL IMPLICATIONS

 

House Bill 504 is companion to HAFC substitute for HB 2,3,4,5,6, 8 and 177. The bill provides a distribution of $120,000.0 to the public school reform reserve and is recurring. In FY09, the final phase of the tax cut is reflected and revenues are expected to grow.

 

 

ADMINISTRATIVE IMPLICATIONS

 

It would require that the PED ensure the funds are used for public school reform programs only, and do not supplant general fund supported public school programs.

 

Relates to House Bill 286.

 

 

OTHER SUBSTANTIVE ISSUES

 

House Appropriations and Finance Committee Substitute for House Bills 2,3,4,5,6,8, and 177 includes contingency language on the passage of House Bill 504.

 

 

RS/lg:dm