Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Balderas, H.

ORIGINAL DATE

LAST UPDATED

1/31/06

2/5/06 HB 391/aHEC

SHORT TITLE Cimarron Schools Online Education Program

SB

ANALYST Hoffmann

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$236.6

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

Higher Education Department (HED)

SUMMARY

Synopsis of HEC Amendment

The House Education Committee amendment changes the appropriation from the Higher Educa-

tion Department to the Public Education Department.

Synopsis of Original Bill

House Bill 391 appropriates $263,600 from the general fund to the Higher Education Department

for an online educational program for kindergarten through twelfth grade in the Cimarron mu-

nicipal school district.

FISCAL IMPLICATIONS

The appropriation of $263,600 contained in this bill 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.

House Bill 391/aHEC – Page

2

SIGNIFICANT ISSUES

This proposal was not submitted to NMHED through research, public service, and special pro-

gram requests by the school district. This request was not included in the Department’s funding

recommendation for FY07.

While distance learning is well developed around the state within the higher education environ-

ment, few online programs exist within the K-12 school system throughout the State of New

Mexico. Albuquerque, Santa Fe, and Rio Rancho are in the development stages of online educa-

tion programs and this bill proposes a similar program for the remote, northeastern Cimarron

Municipal School District.

RELATIONSHIPS

This bill is related to HB 284, which appropriates $5,000,000 to the Public Education Depart-

ment for a web browser-based that targets students in the lowest 20% achievement level.

This bill is also related to House Bill 466, which appropriates $305,000 to the Raton public

schools for a distance learning and virtual learning school curriculum.

Senate Bill 481 is also related. It appropriates $250,000 to the Eastern New Mexico University

Roswell to pay the start-up costs incurred by the Loving municipal, Lake Arthur municipal,

Hagerman municipal and Dexter consolidated school districts in implementing distance learning

technologies.

OTHER SUBSTANTIVE ISSUES

According to the Public Education Department, distance learning has been identified as a crucial

element to the survival of rural schools. Without the means to deliver a complete range of

courses, students encounter significant obstacles to pursuing curriculum that implements recom-

mendations of the High School Initiative and Math/Science Town Halls (which call for curricu-

lum that is rigorous, relevant and builds relationships). Without access to more students, and the

funding they bring, rural schools cannot support the budgets required to attract and retain highly

qualified teachers in required subject areas.

The Higher Education Department notes that proper network infrastructure must be in place for

effective online learning. User support and technical support are also required for the success of

this program.

CH/yr