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F I S C A L I M P A C T R E P O R T
SPONSOR Vigil
DATE TYPED 3-3-05
HB
923
SHORT TITLE Additional Program Units for Certain Students
SB
ANALYST Segura
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$0.1 Significant Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Public Education Department (PED)
SUMMARY
Synopsis of Bill
House Bill 923 amends Section 22-8-18 NMSA 1978, Program Cost Calculation. The amend-
ment would add program units for school districts that have school and charter school students
participating in extracurricular.
Significant Issues
House Bill 923 proposes to enact new sections of law to allow home school student and charter
school student participation in public school extracurricular activities.
According to PED, the number of home school and charter school activities program units is cal-
culated by multiplying the MEM of home school and charter school students participating in the
school district extracurricular activities by a factor of .1.
Eligible charter school students would be permitted to participate in either the public school in
the attendance zone in which the student lives or in which the student’s charter school is located;
the student may chose only one public school.
pg_0002
House Bill 923 -- Page 2
PERFORMANCE IMPLICATIONS
PED indicates that the bill supports the core performance measure of implementation of educa-
tion reform initiatives.
FISCAL IMPLICATIONS
House Bill 923 does not contain an appropriation. PED indicates that the bill will allow school
districts to generate additional program units and receive additional program cost. There are ap-
proximately 6,600 charter school students in grades 7-12 and approximately 6,000 home school
students. Assuming 25% of charter school and home school students participate in extracurricu-
lar activities at a cost factor of .1 with the current unit value of $3,068.7, the cost is estimated to
be $966.0.
Education reform may require the expenditures of at least an additional $26 million in FY07 as
follows: $16 million for raising minimum salaries of level 3-A teachers to $45,000; $4 million
for pre-kindergarten; and $6 million for fine arts. These will be in addition to expected increased
costs for opening the doors (fixed costs, insurance, enrollment growth, and increased employer
contributions to the educational retirement fund) which could be another $35 million. In addi-
tion, $4 million is needed for increased employer contributions to educational retirement fund
from higher education institutions. It may be prudent to avoid additional commitments to recur-
ring appropriations in future fiscal years.
ADMINISTRATIVE IMPLICATIONS
PED indicates that the calculation of the State Equalization Guarantee Funding Formula would
need to be reprogrammed.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 923 relates to HB-249 and HB-668 and duplicates SB-789
RS/lg:yr