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

SPONSOR Stapleton

DATE TYPED 02/20/05 HB 693

SHORT TITLE School District Additions to Other Districts

SB

ANALYST Williams

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

($500.0) Recurring General Fund in

FY07*

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$770.0 Recurring Other State Funds *

(Parenthesis ( ) Indicate Revenue Decreases)

* Potential impact depends on timing and outcome of potential election.

Duplicate of Senate Bill 308

Relates to General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Albuquerque Technical Vocational Institute

Public Education Department (PED)

Commission on Higher Education (CHE)

SUMMARY

Synopsis of Bill

House Bill 693 authorizes procedures for adding portions of school districts to existing technical

and vocational institute districts. The bill expands language to specify qualified voters in a

school district or a portion of a school district might petition to be added to the vocational insti-

tute district; the petition must be signed by ten percent of the votes cast for governor in a given

House Bill 693 -- Page 2

school district or portion of a school district. If the vocational institute district includes less than

a complete school district, an election within the institute district and in the portion of the school

district not included in the institute district may determine the addition of the excluded portion of

the school district to the established post-secondary institute district.

The bill provides procedures for this election. If the measure passes, then the institute district

would be expanded to include all of the impacted school district.

The bill also includes technical cleanup language.

Significant Issues

The bill applies only to Albuquerque Technical Vocational Institute (TVI) as the only public,

post-secondary institute organized under 21-16-14 NMSA 1978. As well, TVI is the only two-

year post-secondary institute which currently contains a portion of a school district. If all quali-

fying criteria are met, a potential election as authorized in this bill would decide whether the por-

tion of the Rio Rancho Public Schools District not currently within the TVI district would be an-

nexed to the TVI district.

PED notes “Intricate involvement in elections is not a typical duty of the PED or the Secretary of

Education and it raises serious questions whether there is sufficient expertise or any ex-

pertise within the PED to manage such elections.”

FISCAL IMPLICATIONS

The bill does not include an appropriation. Albuquerque TVI notes if annexation is approved,

property tax revenues received by TVI would increase by an estimated $770 thousand per year.

Because the instruction and general component of the higher education funding formula consid-

ers mill levy revenues when calculating the general fund cost of workload, successful passage of

a measure for annexation is estimated to reduce the general fund appropriation to TVI by ap-

proximately $500 thousand per year. The timing of this fiscal impact would probably be FY07.

This analysis assumes all other variables held constant.

ADMINISTRATIVE IMPLICATIONS

The PED notes “the County Clerk’s office for Bernalillo County indicated that Chapter 1, Article

22 of the School Election Law (Sections 1-22-1 through 1-22-19) specifies that the cost

of conducting such election to expand an educational institution’s boundary would be

paid by the school district. Furthermore, the Clerk’s office indicated that the vocational

technical institute would bear the majority of costs associated with such an election, and

the area proposed to be included in the boundary would bear a lesser amount. The

Clerk’s office estimated that a total cost of $185,000 to $200,000 would be imposed to

conduct such an election.”

OTHER SUBSTANTIVE ISSUES

Currently, Albuquerque TVI’s northern boundary bisects the City of Rio Rancho—the result of

TVI’s boundaries being designated in 1963 by the State Legislature and approved by voters in

1964 to mirror those of the then-existing Albuquerque Public Schools District. In 1993, Rio

House Bill 693 -- Page 3

Rancho established its own school district, which changed the APS boundaries but not those of

TVI. Rio Rancho property owners who live inside the TVI District pay TVI taxes while Rio

Rancho property owners living outside the TVI District do not.

Albuquerque TVI notes its commitment to establish a permanent campus in the City of Rio Ran-

cho if voters approve inclusion of the entire Rio Ranch Public Schools District in the TVI Dis-

trict.

AW/yr