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

SPONSOR Arnold-Jones

DATE TYPED 10/08/05 HB 15

SHORT TITLE

PUBLIC SCHOOLS INFRASTRUCTURE REPAIR

SB

ANALYST Weber

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$100,000.0

Non-Rec

General

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Schools Facilities Authority

SUMMARY

Synopsis of Bill

House Bill 15 appropriates $100 million from the general fund to the Public Education Depart-

ment for the purpose of public school infrastructure. An emergency clause is included. The

funds may be expended in FY06 and FY07.

Significant Issues

The Public Schools Facilities Authority comments.

New Mexico has over $2.4 billion in public school facilities needs. School projects are funded

by the State under the new Standards-Base Process, in answer to a court ruling requiring equita-

ble distribution. The legislature assigned the distribution of capital to the Public School Capital

Outlay Council (PSCOC). The legislature also created the Public School Facilities Authority

(PSFA) to act as PSFA is staff to the PSCOC. Through a system designed to equitably distrib-

ute capital funds based upon a ranking systems where the worst needs are addressed first, annu-

ally projects are awarded based upon available funds from the permanent reserve fund. The

PSFA, as staff to the PSCOC, provide oversight and technical accountability to the spending of

House Bill 15 -- Page 2

funds and to the design and construction process. The deadline of 2007 would be a short time

frame to get projects out to bid.

House Bill 15 is stating to distribute the funds through the PED which would not have the

mechanism to administer and provide oversight of those funds. Further, this would not be in

keeping with previous legislation designed to ensure equitable distribution of capital

funds intended for school facilities through the Standards-Based Process

FISCAL IMPLICATIONS

The appropriation of $100 million contained in this bill is a NON-RECURRING expense to the

general fund. Any unexpended or unencumbered balance remaining at the end of FY07 shall

revert to the general fund.

POSSIBLE QUESTIONS

What is the definition of "infrastructure repair".

How would the PED prioritize the projects.

Why would the funds go to PED instead of PSCOC.

MW/sb