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

SPONSOR Tsosie

DATE TYPED 3/3/05

HB

SHORT TITLE McKinley County School Teacher Training

SB 484

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$250.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicated HB 464

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of Workforce Training and Development (OWTD)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 484 appropriates $250 thousand from the general fund to PED for the purpose of con-

tracting with a program to train and employ, for at least a two-year commitment, recent college

graduates as teachers in the Gallup-McKinley county public schools.

Significant Issues

PED states this bill is intended to address the teacher shortage in the McKinley county area but

did not provide statistics reflecting the shortage.

PERFORMANCE IMPLICATIONS

This bill relates to PED measures in public school support on the percentage of highly qualified

teachers in classrooms.

FISCAL IMPLICATIONS

The appropriation of $250 thousand contained in this bill is a recurring expense to the general

Senate Bill 484 -- Page 2

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.

Education reform will require the expenditures of at least an additional $42 million in FY07 as

follows: $16 million for raising minimum salaries of level 3-A teachers to $45,000; $16 million

for raising the employer contribution to the educational retirement fund by .075 percent; $4 mil-

lion for pre-kindergarten; and $6 million for fine arts. These will be in addition to expected in-

creased costs for opening the doors (fixed costs, insurance, and enrollment growth). The LFC

cautions about putting additional funding requirements in statute because of potential shortfall in

FY07 revenues.

ADMINISTRATIVE IMPLICATIONS

PED states it assesses a 3 percent for administering appropriations requiring a request for pro-

posal, contract and monitoring services.

TECHNICAL ISSUES

PED recommends inserting in line 21 after “schools.” “Three percent of the appropriation may

be use by the department for administrative costs.”

The sponsor may want the appropriation be made to the Gallup-McKinley County Schools di-

rectly or through the Department of Finance and Administration Local Government Division in-

stead of the Public Education Department to save the administrative fee.

OTHER SUBSTANTIVE ISSUES

OWTD states it will coordinate efforts with workforce development boards. In addition, OWTD

assesses the bill does not specify how the appropriation will be apportioned between training and

employment services.

The LFC assesses that PED should provide administrative services to the school districts through

the department operating budget rather than assess districts for contract services.

POSSIBLE QUESTIONS

1.

Should this appropriation be to the Department of Finance and Administration Local

Government Division for the Gallup-McKinley County School District.

2.

Should this appropriation be to PED without specification as to school district and be

used for statewide teacher recruitment.

3.

What is the percentage of highly qualified teachers as defined by the federal No Child

Left Behind act in the Gallup-McKinley Schools.

GAC/lg:yr