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

SPONSOR Moore

ORIGINAL DATE

LAST UPDATED

1-27-06

2-3-06 HB 306/aHEC

SHORT TITLE Distance Learning Pilot Program

SB

ANALYST Surdi/Baca

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$1,000.0

Recurring

General Funds

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of HEC Amendment

The House Education Committee Amendments add “Declaring an Emergency” to the title and

the bill and clarifies the bill to specify that the appropriation is to provide grants to public

schools through an application process for distance learning and cyber academy pilot programs.

Synopsis of Original Bill

House Bill 306 appropriates $1,000.0 from the general fund to the Public Education Department

(PED) for expenditure in fiscal year 2007 for distance learning pilot program grants.

FISCAL IMPLICATIONS

The appropriation of $1,000.0 is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert

to the general fund.

The estimated fiscal impact on PED for RFP development, contract oversight, monitoring of ap-

House Bill 306/aHEC – Page 2

provals and implementation would require 200 hours of staff time per year as follows: Educa-

tion Administrator-A at $25.495 per hour plus benefits (30%) for 140 hours and Office & Ad-

ministrative Support-A at $13.605 per hour plus benefits (30%) for 60 hours at total a cost of

$5,701.28.

SIGNIFICANT ISSUES

Distance Learning has been identified as a crucial element to the survival of rural schools. With-

out the means to deliver a complete range of courses, students encounter significant obstacles to

pursuing curriculum that implements recommendations of the High School Initiative. Without

access to more students, and the funding they bring, rural schools can’t support the budgets re-

quired to attract and retain highly qualified teachers in required subject areas.

ADMINISTRATIVE IMPLICATIONS

PED is researching the required statutory and policy changes to make distance learning a viable

choice for all New Mexico schools. Every aspect of school operation is impacted:

•

What does “enrollment”, “maximum class size” and “highly qualified teacher” mean in con-

text of online learning.

•

What are the implications for funding formula, when students may receive part of their instruc-

tion on-site and part online.

•

What are the criteria for effective curriculum, instruction and assessment for online learning.

•

What policies are required when online instruction originates from sources outside of New

Mexico.

•

What policies are required when students outside of New Mexico receive online instruction

from New Mexico sources.

OTHER SUBSTANTIVE ISSUES

This funding will allow PED to develop reliable data about what works, as well as practices to

avoid. It will also allow a coordinated effort to ensure that funds are used in the most prudent and

effective manner.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Schools will continue to individually fund their distance learning programs with available state

and federal educational technology funds, without standard measures in place to assess effec-

tiveness.

GS/yr