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

SPONSOR Lopez

DATE TYPED 02/04/05 HB

SHORT TITLE School District Additions to Other Districts

SB 308

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.

Relates to General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Albuquerque Technical Vocational Institute

No Response Received From Commission on Higher Education

SUMMARY

Synopsis of Bill

Senate Bill 308 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

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

Senate Bill 308 -- Page 2

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.

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 TVI state appropriation by approximately

$500 thousand per year. This impact of this fiscal impact would be FY07. This analysis as-

sumes all other variables held constant.

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

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/lg