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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 2/25/05

HB

SHORT TITLE Gallup-McKinley County School District Split

SB 1019

ANALYST Baca

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$100.0

Recurring General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to Appropriation in the General Appropriation Act

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 1019 appropriates $100 thousand from the general fund to the Department of Indian

Affairs for expenditure in FY06 to study the feasibility of creating two or more school districts

from the Gallup-McKinley County school district.

Significant Issues

According to the PED website, the Gallup-McKinley County school district covers a 4,957

square mile area. For the 2004-05 school year, the district has an approved operating budget of

approximately $72 million ($52.8 million state and $19 million federal) to provide services to

13, 191 students. These students are served in 35 schools: 20 elementary schools, 5 middle

schools, 1 junior high school, 7 high schools and 1 charter school.

The district serves six distinct communities: Gallup, Crownpoint, Ramah, Pueblo Pintado, Tho-

reau and Tohatchi. According to a district transportation official, transportation of students in

this district is a large operation as school buses travel nearly 9,000 miles each school day with

Senate Bill 1019 -- Page 2

the yearly miles traveled approaching the 4 million mile mark. One-way distances from Gallup,

where the district’s central administration offices are located, to the outlying communities are as

follows: Crownpoint 58 miles, Ramah 45 miles, Pueblo Pintado 98 miles, Thoreau 32 miles and

Tohatchi 29miles.

The district’s student population is nearly 7% Anglo, 11% Hispanic, 81% Native American and

less than .5% each Afro-American and Asian. These students are served in 35 schools: 20 ele-

mentary schools, 5 middle schools, 1 junior high school, 7 high schools and 1 charter school. Of

these, 68.7% receive free lunches and 8.9% are on reduced lunch schedules. Nearly 78% of the

student population is on free and\or reduced school lunches.

FISCAL IMPLICATIONS

The appropriation of $100 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the

general fund.

OTHER SUBSTANTIVE ISSUES

A major question that should be considered in the study is whether learning opportunities for

students will be improved and whether additional costs if any, associated with “splitting” the dis-

trict can be justified. Also, while the state provides a high percent of a school district’s operating

budget and in many cases almost all of the revenue needed for capital outlay projects, a district’s

property tax base can assume a significant role in how a district can provide services to students.

This aspect of the feasibility study also warrants scrutiny attention.

The PED notes that:

Section 22-23A-5 NMSA 1978 established the Indian Education Division within the

PED. Section 22-23A-6 NMSA 1978 established the Indian Education Advisory Council

and provides that on a semiannual basis, representatives from all tribes, the Governor’s

Office, the New Mexico Indian Affairs Department, the Legislature, the Secretary of

Education and members of the Indian Education Advisory Council shall meet to assist in

evaluating, consolidating and coordinating all activities relating to the education of

American Indian students. SB 1019 does not provide a role for either the Indian Educa-

tion Division or the Indian Education Advisory Council in the proposed study.

TECHNICAL ISSUES

The appropriation and the study are assigned to the DIA. The sponsor may wish to consider hav-

ing the study and appropriation directed to the PED, an agency whose staff has some experience

in the conduct and\of contracting for feasibility studies of education related issues.

LB/lg