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

SPONSOR Sanchez

DATE TYPED 3/17/05

HB

SHORT TITLE Public Peace, Health, Safety and Welfare

SB 1099/SECS

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$0.1

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Substitute Bill

The Senate Education Committee Substitute for SB 1099 amends Section 22-8-11 NMSA 1978

relating to the Public Education Departments operating budget approval process to require school

districts in which an Indian Education Committee is established pursuant to federal law to dem-

onstrate that the involvement of the Committee in the budget process was solicited. The substi-

tute bill also replaces the State Superintendent with the Secretary of Education in the budget

process.

Significant Issues

The bill empowers Indian Education Committees to participate in how education funds are spent.

Neither State statute nor regulation currently recognizes the existence of local school district In-

dian Education Committees.

PED assesses that Section 22-23A-5(7) requires a “school district to obtain a signature of ap-

proval by the tribal governments or tribal government designees residing within the school dis-

trict boundaries, verifying that the tribes agree to Indian education polices and procedures pursu-

ant to federal requirements.” In addition, federal regulation also prescribes procedures for school

districts to obtain input and provide an opportunity for consultation with tribes regarding impact

aid funds.

DIA states “several New Mexico Indian tribes and parents have expressed serious concerns that

school districts are not spending funds appropriately or equitably among the schools within the

district.

Senate Bill 1099/SECS-- Page 2

FISCAL IMPLICATIONS

The state takes a credit of 75 percent of impact aid revenues flowing to local districts, except for

special education and Indian set-aside funds when calculating the State Equalization Guarantee

(SEG). Of the remaining 25 percent, 20 percent is used for public school capital outlay projects

and 5 percent for operational purposes. The National Education Association reports Federal Im-

pact Aid Basic Support Payments to the state is $84.9 million for 2005.

Federal law provides for withholding of federal impact aid funds if it is determined that a school

district’s Indian policies and procedures have not been developed and implemented according to

federal regulation. The review of a school district’s Indian policies and procedures and subse-

quent determination of compliance is made by the Federal Director of the Impact Aid Program.

Any additional costs will be determined by how the Department solicits the Committee’s in-

volvement and any recommendations made by the Committee that impact education services.

ADMINISTRATIVE IMPLICATIONS

Districts will have to amend procedures to allow for consultation with Indian Education Commit-

tees in establishing budgets.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

PED identifies the following related statutes and Code of Federal Regulations (CFR)

•

Section 22-23A-5-(7) NMSA 1978 requires a school district to obtain a signature of ap-

proval by the tribal governments or tribal government designees residing within the

school district boundaries, verifying that the tribes agree to Indian education policies and

procedures pursuant to federal requirements.

•

Section 22-8-10 NMSA 1978 requires school districts to invite parental involvement and

input in the budgetary process.

•

34 CFR Section 222.102 provides a remedy for tribes to file a complaint about a local

school district’s Indian polices and procedures.

•

34 CFR Section 222.94 requires the involvement of tribal officials and parents of Indian

children in the planning and development of the local education authority’s education

programs and activities and spells out procedures on how districts can involve tribal offi-

cials and Indian parents.

TECHNICAL ISSUES

Suggest the new language added to paragraph C be entered as a new paragraph D.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

There will not be recognition in State statute nor regulation relating to the existence and partici-

pation of local school district Indian Education Committees in the education budget process.

AHO/lg