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

SPONSOR Stewart

DATE TYPED 02/18/05 HB 83/aHEC

SHORT TITLE Educational Support Provider Licensure

SB

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

See Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Public Education Department (PED)

Regulation and Licensing Department (RLD)

SUMMARY

Synopsis of HEC Amendment

The House Education Committee amendment requires PED to determine the licensure level for

instructional support providers to adopt rules that consider verified related employment in a

clinical or parallel setting as experience to be counted in fulfilling the time requirements for the

levels of licensure. It also changes the requirement for level 2 licensure from meeting both the

three-year level one license and other qualification of PED to meeting either of the qualifications

by changing the word “and” to “or”. Lastly it requires PED to consult with professional licens-

ing boards and professional organizations in developing the three-level licensure system for in-

structional support providers.

PED assess the amendment allows “flexibility in rule-making by PED when placing an instruc-

tional support provider in the appropriate licensure level.”

Synopsis of Original Bill

House Bill 83 deletes the examples for instructional support providers found in Section 22-10A-

House Bill 83 -- Page 2

17A NMSA 1978. Instructional support providers are defined in Section 22-1-2 NMSA (at-

tached). The bill adds paragraph C which provides if an instructional support provider practices

a licensed profession requiring a bachelor’s or higher degree, the individual will be licensed by

PED under a three-tiered licensure system (defined in the bill). Licensure requirements for pro-

viders who do not hold a bachelor’s degree will be established by PED. By the 2007-08 school

year and upon adoption of highly objective performance evaluation for professional instruction

providers by PED, minimum salaries for level one providers will be $30 thousand, level two will

be $40 thousand and level three will be $50 thousand. PED is to consult with professional li-

censing boards and professional organizations in the development of the competencies for the

evaluation system.

Significant Issues

School districts are inconsistent as to where instructional support providers, many who are li-

censed teachers, receive minimum salaries under three-tiered teacher licensure. Albuquerque

Public Schools has the most instructional support providers and does not include them under

three-tiered minimum salaries. This bill would require all districts to pay minimum salary re-

quirements for licensed instructional support providers.

PED states this bill creates a single license type: the Instructional Support Provider License with

endorsements for specific areas of practice. This would replace the current array of stand-alone

licenses for each profession. This bill also requires providers work at levels one and two for

three full school years before advancement to the next level of licensure. PED states there is no

effective date for the minimum salaries only the requirement the evaluation system must be in

place by the 2007-08 school year. It adds “the language cited here would clearly pressure the

PED into adopting an evaluation system as soon as possible so that the minimum would become

effective earlier than that.

LFC assess the amount of effort for PED to determine a licensure structure, how professional

licensure relates to the 3-tier, and develop an evaluation system will be extensive. Working with

DFA, it was determined there are at least 16 categories of instruction support providers and ap-

proximately 2,600 individuals currently that would be affected by this bill.

FISCAL IMPLICATIONS

This bill could result in increased costs for salaries of instructional support providers. It will also

have an impact on the work of the PED Educator Quality Division which will have to develop

the licensure system, evaluation system and review applications from the instructional support

providers. PED estimates this cost at $281 thousand.

The out-year cost for this bill is difficult to estimate. There is no easy method to correlate the

existing employment groups to the level of licensure they would receive under this bill and how

it would relate to a minimum salary requirement. In addition, it is difficult to estimate what the

employees will be in 2007 when the salary structure will take effect.

LFC and DFA estimated a cost of implementation of $6 to $10 million by taking the average

salaries by group and moving that average to the next level minimum salary. For example, if the

average salary was $35,000, the calculation was based upon a minimum of $40,000. Average

salaries below $30,000 were calculated at $30,000, salaries between $30,000 to 40,000 were cal-

House Bill 83 -- Page 3

culated at $40,000, and salaries above $40,000 were calculated at $50,000. This method was

used to provide an order of magnitude of the cost of this bill. Actual implementation cost could

be considerably higher or lower.

However, the sponsor stated there would be no fiscal impact as some positions are optional and

many of the other specialists are earning more than the minimum salaries. Several of the instruc-

tional support provider positions are supported by the Public School Funding Formula (Section

22-8-21 NMSA 1978 (Special Education Program Units)) and earn more units than the minimum

salary requirements by proposed level of licensure.

Increased costs to the Educational Retirement Board may result because the increased salaries

some individuals receive will result in higher benefits based upon average salary calculations.

ADMINISTRATIVE IMPLICATIONS

PED will have to design an evaluation system and have it in place before the 2007-08 school

year so individuals can be qualified for minimum salary requirements. PED suggests working

through outside contractors as the best way to approach the task.

TECHNICAL ISSUES

PED recommends the following amendments to the bill:

1.

Add to page 3, at the end of line 4: The Public Education Department may establish in

rules the requirements for a person to meet the qualifications for a level two instructional

support provider license without first holding a level one license if that person, at a

minimum, holds a master’s degree or higher.

2.

Page 7, line 16 insert: TEMPORARY PROVISION—LICENSE TRANSITION—The

public education department shall promulgate rules to transition from the license system

in effective on June 30, 2005 to the license system provided in Section 2 of this act.

3.

Page 7, lines 16-17 strike and replace with: EMERGENCY—It is necessary for the pub-

lic peace, health and safety that this act take place immediately.

OTHER SUBSTANTIVE ISSUES

PED recommends the emergency clause to allow instructional support providers approximately

three months after enactment to advance to level three licensure with no criteria in place other

than the superintendent’s recommendation. The bill requires three years of experience at each

level before advancing to the next level. This provision would go into effect immediately upon

the Governor’s signature and would prevent a rush to advance to the highest licensure level be-

fore the deadline. This amendment would correspond to action taken by the legislature on

teacher licensure when the Public School Reforms act was passed in 2003.

PED raises the issue of whether a Level 2 teacher making $40 thousand minimum salary would

have to take a pay cut to take a position as a Level 1 instructional support provider. The LFC

assessment is, since the bill establishes minimum salary levels, districts would not have to reduce

the individual’s salary as a result of taking a new position. However, it would be a negotiable

issue with the district.

House Bill 83 -- Page 4

ALTERNATIVES

Use the current method and have instruction support providers negotiate with districts on salary

level upon being hired. Many of these personnel will command higher salaries than the mini-

mum based on the available work force and average wage.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

Minimum salaries of instructional support providers will be determined by the school districts.

POSSIBLE QUESTIONS

1.

How many school employees are instructional support providers.

2.

Will minimum salaries be phased in as was done with teacher salaries.

3.

Will instructional support providers not holding a bachelor’s or higher degree have

minimum salary levels established by statute.

4.

Is PED’s estimated cost of $281 thousand a realistic estimate of cost to put all required

rules, regulation and evaluation system if effect before the 2007 school year.

GAC/lg

Attachment

Attachment

22-1-2. Definitions. (2004)

As used in the Public School Code:

F. "instructional support provider" means a person who is employed to support the instruc-

tional program of a school district, including educational assistant, school counselor, social

worker, school nurse, speech-language pathologist, psychologist, physical therapist, occupational

therapist, recreational therapist, interpreter for the deaf and diagnostician;

GC/sb