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

SPONSOR Robinson

DATE TYPED 2/19/05

HB

SHORT TITLE Permanent School Fund Distribution, CA

SB SJR 15

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

(See Narrative)

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Joint Resolution 15 amends Article 12, Section 7 of the state constitution to require a dis-

tribution from the permanent school fund, in fiscal years 2007 through 2012,directly to the Albu-

querque Public School District for a pilot project at the Manzano and Highland high school clus-

ters to ensure compliance with the federal No Child Left Behind (NCLB) Act of 2001 and to en-

sure children of Kirtland Air Force Base personnel are adequately educated to satisfy the educa-

tion requirement of the federal base realignment and closure plans. The distribution is to be suf-

ficient to double the number of teachers at each cluster above the level in the 2004-2005 school

year. The distribution is to be in addition to any distribution received through the state equaliza-

tion guarantee. The Secretary, PED is to certify the amount of the distribution no later than No-

vember 2006 and June 1 of the subsequent years.

Significant Issues

DFA assess the two clusters consist of a total of 26 schools with 1,105 teachers.

DFA states “the proposed amendment would alter long-established precedent in the distribution

Senate Joint Resolution 15 -- Page 2

of state funds for education guided by the State Equalization Guarantee (SEG)…the SEG repre-

sents an attempt to assure all public school students access to programs and services. Naming

specific school clusters in a specific district in the state constitution would be in opposition to

this precedent and would likely expose the state to lawsuits by other school districts.

PED points out that all schools must comply with NCLB requirements and there is the potential

of disequalizing the funding formula for other districts.

FISCAL IMPLICATIONS

DFA estimates the cost of hiring new teachers at $49 million and facilities would probably not be

available to have new classrooms. In addition, the additional distribution would reduce growth

in the Land Grant Permanent Fund.

CONFLICT

PED states the resolution may conflict with Article IV, Section 24 and Article XXI Section 1 of

the New Mexico Constitution.

DFA legal counsel states the amendment would violate Article IV, Section 31 of the New Mex-

ico Constitution.

POSSIBLE QUESTIONS

1.

Not all military families reside on Kirtland AFB and are found throughout the surround-

ing area, should school clusters attended by those families be included.

2.

Should this amendment be expanded to cover the other three military installations in New

Mexico.

GAC/sb