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

SPONSOR Beffort

DATE TYPED 3/17/05 HB

SHORT TITLE Program Units For Extracurricular Activities

SB

789/aSEC/aSFC/aSFl#1/

aHEC

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$0.1

Recurring General Fund

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of HEC Amendment

The House Education Committee amendment strikes the SFl #1 amendment and removes Sec-

tions 1 and 2 in their entirety. Section 1 describes the program cost calculations for remedial and

enrichment programs. Section 2 relates to a school district’s eligibility for additional program

units for home school and charter school students participating in extracurricular activities. The

amendment enacts a new section of the Public School Code to allow charter school students in

grades seven through twelve to participate in public school extracurricular activities. The

amendment removes Section 3 in its entirety that proposed a new section of the Public School

Code to allow home school students to participate in school district extracurricular activities.

Significant Issues

Charter school students will be allowed to participate in public school extracurricular activities

but school districts will not generate additional program units. Home school students will not be

allowed to participate.

Senate Bill 789/aSEC/aSFC/aSF#1/aHEC-- Page 2

Synopsis of SF Amendment #1

The Senate Floor amendment number one restores the program cost calculations for remedial

and enrichment programs and enacts a new section of the Public School Finance Act allowing a

school district to be eligible for additional program units for home school and charter school stu-

dents participating in NMAA extracurricular activities at the public school in their attendance

zone.

Synopsis of SFC Amendment

The Senate Finance Committee amendment removes Sections 1 and 2 in their entirety. Section 1

describes the program cost calculations for remedial and enrichment programs. Section 2 enact-

ing a new section of the Public School Finance Act regarding a school district’s eligibility for

additional program units for home school and charter school students participating in school dis-

trict extracurricular activities is removed. The amendment enacts a new section of the Public

School Code to allow home school students and charter school students in grades seven through

twelve to participate in public school extracurricular activities sanctioned by the NMAA.

Significant Issues

PED will not receive additional program units for charter and home school students to participate

in NMAA sanctioned extracurricular activities under the amendment.

Synopsis of SEC Amendment

The Senate Education Committee amendment allows a charter school student to participate in

school district extracurricular activities in a public school in their attendance zone and may only

choose one public school in which to participate.

Synopsis of Original Bill

Senate Bill 789 amends the NMSA 1978, Section 22-8-18, Program Cost Calculation to add pro-

gram units for school districts who have home school and charter school students participating in

extracurricular activities sanctioned by the New Mexico Activities Association (NMAA). The

bill proposes to enact new sections of law to allow home school student and charter school stu-

dent participation in public school extracurricular activities.

Significant Issues

Home school students will be permitted to participate in NMAA sanctioned extracurricular ac-

tivities in the public school in the attendance zone in which the student lives if they meet eligibil-

ity requirements other than enrollment in a particular public school. Students enrolled in charter

schools will be allowed to participate if the charter school does not offer such activities sanc-

tioned by the NMAA or any other association. Charters school students will be permitted to par-

ticipate 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.

Under current NMAA guidelines, charter schools must join NMAA on their own and compete

against schools of similar size.

Senate Bill 789/aSEC/aSFC/aSF#1/aHEC-- Page 3

Many charter schools have chosen not to participate in NMAA, but to form their own activity

groups. Several charter schools within the Albuquerque Public Schools have joined together to

compete in team sports. It is reported that several charter schools have lost students to the public

schools because students want to participate in team sports but are unable to under current

NMAA guidelines.

PERFORMANCE IMPLICATIONS

The PED reports the bill supports the PED’s and the Governor’s legislative initiatives.

FISCAL IMPLICATIONS

SB 789 provides for the PED to receive additional program units for charter and home school

students to participate in NMAA sanctioned extracurricular activities.

SB 789 will allow school districts to generate additional program units. There are approximately

6,600 charter school students in grades 7-12 and approximately 6,000 home school students. If

25% of charter school and home school students participate in extracurricular activities at a cost

factor of .1 with the current unit value of $3,068.70, the costs are estimated to be approximately

$966.0. If 10% of charter school and home school students participate, the costs are estimated to

be approximately $387.0.

If the Legislature chooses not to fund the additional units, then it will reduce the unit value by

approximately $2 dollars.

The bill will result in additional costs; such as uniforms, equipment and transportation to allow

home school and charter school students to participate in extracurricular activities.

ADMINISTRATIVE IMPLICATIONS

Portions of the Accountability Data System will have to be reprogrammed to calculate the State

Equalization Guarantee Funding Formula (SEG) for each district and charter school.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to HB 249 which proposes to amend Section 22-8-18 NMSA by correcting the reference

in subsection A to include the additional units generated by the national board for professional

teaching certification.

Relates to HB 668 which requires the local school board of the school district in which a charter

school is located allow charter school students to participate in school district extracurricular ac-

tivities if they meet eligibility requirements other than enrollment in a particular public school.

The bill would further require the NMAA to allow charter school students in grades 7-12 to par-

ticipate in extracurricular activities if they meet eligibility retirements other than enrollment in a

particular public school.

TECHNICAL ISSUES

The bill does not address catastrophic health and accident insurance coverage. It appears that the

Senate Bill 789/aSEC/aSFC/aSF#1/aHEC-- Page 4

public school where the student participates will be required to mandate that the student obtain

insurance and the coverage be offered through the school.

New material in the bill alternates between language that states “…activities sanctioned by

NMAA.”, and “…activities sanctioned by the NMAA or any other association.” The language

may be unclear in its intent.

The bill does not address transportation for students. Students may have to travel far to partici-

pate in a school sport in the attendance zone in which he/she lives.

OTHER SUBSTANTIVE ISSUES

Charter schools do not have attendance areas and often serve students from outside the atten-

dance zone of the school or district. The bill appears to afford charter school students the choice

of participating in the attendance zone of their home or the attendance zone that the physical lo-

cation of the charter school lies within.

If the charter school does not provide sports activities but rather requires students to participate

in other programs (e.g. service learning, work programs, mentorship programs, etc.), the bill may

create a tension between the mission of the school and individual students who choose to avail

themselves of the opportunity to participate in sports.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

By not enacting this bill, school districts and charter schools will continue to receive funding

through the SEG based on the current calculation. In addition, home school students and charter

school students will not be afforded the opportunity to participate in NMAA sanctioned public

school extracurricular activities.

AHO/yr:rs:lg