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 a vailable 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 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 Tripp

DATE TYPED 2/21/05

HB 939/aHEC

SHORT TITLE Reserve and Quemado School District Activities

SB

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$400.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of HEC Amendment

The House Education Committee amendment to House Bill 939 deletes “professional develop-

ment” from the bill and the appropriations will be for extracurricular activities at the Reserve and

Quemado Independent School Districts.

Synopsis of Bill

House Bill 939 appropriates $400 thousand from the general fund to PED for the purpose of dis-

tributing $200 thousand each to the Reserve and Quemado Independent School Districts for pro-

fessional development and extracurricular activities.

Significant Issues

PED states “funding school districts programs outside the State Equalization Guarantee has a

disequalizing effect and conflicts with the spirit of equalized resources for New Mexico public

schools.

House Bill 939/aHEC -- Page 2

The Executive, LESC and LFC have all recommended a study of the public school funding for-

mula during the interim to determine if it should be amended to reflect all school district re-

quirements for funding.

PERFORMANCE IMPLICATIONS

The bill is not related to PED or public school support performance measures.

FISCAL IMPLICATIONS

The appropriation of $400 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall

revert to the general fund.

The LFC FY06 appropriation recommendation is balanced between revenues and expenditures

and any increase in recurring funding must be offset by reductions in other areas of the recom-

mendation. The Legislature must consider all priorities and funding requirements to find reve-

nue to support this legislation.

PED considers the appropriation as non-recurring.

The bill does not state how much will be spent on professional development and how much on

extracurricular activities. Presumably, the school districts will have the discretion to determine

the funding allocation.

ALTERNATIVES

Defer the bill to the 47

th

Legislature, Second Session depending results of studying the public

school funding formula.

POSSIBLE QUESTIONS

1.

What programs are to be funded from this appropriation.

2.

What will be the main focus of the professional development.

3.

What type of extracurricular activities will be funded.

GAC/yr:lg