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

Ponce

DATE TYPED

02/07/04

HB

529

 

SHORT TITLE

School Employee Insurance Contributions

SB

 

 

 

ANALYST

Dunbar

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY04

FY05

FY04

FY05

 

 

 

See Narrative

 

 

 

Relates to HB451 and SB305.

 

Conflicts with SB334, SB373, HB283 and HB451. 

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

NM Public Education Department (NMPED)

 

SUMMARY

 

Synopsis of Bill

 

This bill amends Section 22-29-10, NMSA 1978, to allow public and charter schools to pay up to 80% of the health insurance cost for their employees if they have the money within their budgets. 

 

Significant Issues

 

This bill does not appropriate additional money for the potential increased expenditure by public schools or charter schools.  The bill does not require the increased expenditure.

 

Local boards and staff may have to make decisions as to either provide a salary increase or fund a greater portion of insurance costs.  However, an across the board percentage increase that may be authorized in the General Appropriations Act may conflict with the bill if the act specifically provides for salary increase.

 

 

FISCAL IMPLICATIONS

 

According to the NM Public Education Department without additional appropriations, it would be difficult for public or charter schools to pay the increased insurance contributions.

 

 

TECHNICAL ISSUES

 

Since this is not recurring revenue, a local board and staff decision to pay for increased insurance contributions in one year with extra funds, may create a problem in the subsequent year if extra funds can not be located.

 

Also funding increase insurance contributions at a local level with extra revenue may cause the legislature to questions the original intent of the budget.

 

 

BD/dm