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

SPONSOR Boitano

DATE TYPED 2/26/05

HB

SHORT TITLE Career Pathways Student Pilot Project

SB 996

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$500.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

($500.0)

($500.0) Recurring

Career Pathways

Pilot Project Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 996 appropriates $500 thousand from the general fund to the career pathways pilot

project fund, to be created by the bill, for the purpose of funding projects at up to five high

schools that have programs and up to seven additional high schools to determine if the career

pathways model improves the following: attendance; retention; grade point average; standard-

ized test performance; graduation rates; transition to post secondary education and subsequent

graduation rates; adequate yearly progress; and the skilled work force.

Senate Bill 996 -- Page 2

PED will determine application requirements, procedures and criteria for evaluation. In addition

it will establish reporting and evaluation criteria for participating schools. The department will

provide interim and a final summary report to the Governor and Legislature.

Significant Issues

According to DFA, career pathways are clusters of specific occupations or careers grouped to-

gether because they share similar interests, strengths and skills. PED will determine application

requirements, procedures for participating schools to include student and program assessment;

and reporting to the Governor and Legislature on the efficacy of the pilot project and potential

for application at high schools statewide.

PED summarizes the key points of the program and these are included at attachment 1.

PED states “in a telephone conversation with Senator Boitano, this bill is supported by the busi-

ness community in Albuquerque. This bill is being introduced to support a pathways initiative

(the academy model) at Albuquerque High School know as the Academy of Advanced Technol-

ogy.

PERFORMANCE IMPLICATIONS

This pilot project is related to the mathematics and reading and language arts proficiency per-

formance measure for 11

th

grade students.

FISCAL IMPLICATIONS

The appropriation of $500 thousand contained in this bill is a recurring expense to the general

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

not revert.

PED estimates its costs to oversee the project at $70.8 thousand. LFC assesses these costs may

be paid out of the appropriation.

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 may require the expenditures of at least an additional $26 million in FY07 as

follows: $16 million for raising minimum salaries of level 3-A teachers to $45,000; $4 million

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

costs for opening the doors (fixed costs, insurance, enrollment growth, and increased employer

contributions to the educational retirement fund) which could be another $35 million. In addi-

tion, $4 million is needed for increased employer contributions to educational retirement fund

from higher education institutions. It may be prudent to avoid additional commitments to recur-

ring appropriations in future fiscal years.

Senate Bill 996 -- Page 3

Continuing Appropriations

This bill creates a new fund and provides for continuing appropriations. The LFC objects to in-

cluding continuing appropriation language in the statutory provisions for newly created funds.

Earmarking reduces the ability of the legislature to establish spending priorities.

ADMINISTRATIVE IMPLICATIONS

PED will have to administer the fund, and approve payments. It will have to seek other revenue

from other sources which in include writing grant proposals and seeking donations.

TECHNICAL ISSUES

Page 3, line 19 and 20, strike “to the department” and insert in lieu “by the legislature”.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

The Academy of Advanced Technology may not be funded.

POSSIBLE QUESTIONS

1.

What five high schools currently have approved career pathways pilots and how were

they funded.

2.

What student outcomes have resulted in the five high schools with career pathways pi-

lots.

3.

How is student success measured at the Academy of Advance Technology.

GAC/yr