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

SPONSOR HEC

DATE TYPED 2/17/05

HB 260/HECS

SHORT TITLE Tribal Literacy Programs

SB

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$500.0

General Fund Recurring

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 481

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Department of Indian Affairs (DIA)

General Services Department (GSD)

Public Education Department (PED)

SUMMARY

Synopsis of Bill

House Bill 260 appropriates $500 thousand from the general fund to PED for expenditure in

FY06 for the purpose of establishing literacy programs on six tribal sites integrating in-school,

after-school and school programs in grades kindergarten through eight. The bill requires con-

tracting with a nonprofit sponsorship organization with more than fifty years experience working

with Native American children and is already working in New Mexico on the integrated literacy

program and is willing to match the appropriation with $550 thousand.

Significant Issues

The DFA analysis is that the contract would go to Save the Children, a nonprofit sponsorship

organization that meets the specifications in the bill. The organization is willing to provide the

match specified. Save the Children has been providing literacy programs to underserved chil-

House Bill 260/HECS -- Page 2

dren in rural American since 1932. Presently this organization is providing after school, in

school and summer school literacy support programs at eleven tribal sites in the state.

DIA states children lacking preparation in basic literacy skills will be ill-prepared for secondary

and post-secondary levels. Literacy programs that are tailored to the educational needs of Native

American children may help to fill the gap in literacy development and increase educational per-

formance of Native American students. Save the Children plans to serve six sites in 2006. Each

program is estimated at $183.2 thousand.

PERFORMANCE IMPLICATIONS

Improved performance in schools relates to PED performance measures on mathematics and

reading and language arts proficiency. PED should specify performance specifications in the

contract.

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 fiscal year 2006 shall

revert to the general fund.

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.

ADMINISTRATIVE IMPLICATIONS

PED would have to request permission to administer the contract on a sole source basis.

POSSIBLE QUESTIONS

1.

What specific services are envisioned by this bill.

2.

Have all competent bidders for this contract been considered.

GAC/njw:yr