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

SPONSOR Miera

DATE TYPED 3-4-05

HB 1083

SHORT TITLE Capital Outlay Use of Local and Federal Revenue

SB

ANALYST Segura

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of Bill

House Bill 1083 amends Section 22-8-25 NMSA 1978 to remove the requirement that a portion

of local and federal revenue be used for capital outlay.

Significant Issues

According to PED, the statutory requirement for districts to designate 20% of these funds for

capital outlay purposes is assisting the state in its efforts to ensure that all schools meet the

minimum levels of adequacy.

Currently, schools have great needs and limited resources. A reduction in available funding for

capital outlay projects will increase the time frame for all school buildings to meet established

minimum adequacy standards.

House Bill 1083 -- Page 2

FISCAL IMPLICATIONS

House Bill 1083 does not contain an appropriation. PED indicates that over the last four years,

statewide, approximately $1,984.0 has been budgeted for capital outlay from the .5 mill opera-

tional levy, $12,644.0 from Impact Aid funds and $119.0 from the Forest Reserve. This accounts

for approximately $14.7 million statewide that schools use for capital purposes.

ALTERNATIVES

PED indicates that school districts can continue to use SB-9 funds, HB-33 funds, Educational

Technology Funds, Local General Obligation Bonds and direct appropriations to pay for capital

outlay needs. However districts may already have other plans for these funds.

POSSIBLE QUESTIONS

How will the enactment of House Bill 1083 impact the maintenance requirements in school

districts.

Will the enactment of House Bill 1083 make school districts more reliant on the Public

School Capital Outlay Council for capital outlay.

RS/yr