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

SPONSOR King

ORIGINAL DATE

LAST UPDATED

2/10/06

2/14/06 HB 749/aHEC

SHORT TITLE Estancia Learning Center Charter School

SB

ANALYST Earp

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$400.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of HEC Amendments

The House Education Committee amendments to House Bill 749 provide that PED is to utilize

the appropriation contained in this bill to establish alternative programs to assist youth at risk in

Estancia (rather than create a charter school). The amendments address a technical issue raised

by PED with regard to the original language.

Synopsis of Bill

House Bill 749 appropriates $400,000 from the general fund to the Public Education Department

for the Estancia Municipal Schools to establish the learning center, a charter school.

FISCAL IMPLICATIONS

The appropriation of $400,000 contained in this bill is apparently intended only for first-year

start-up costs for the proposed learning center and, therefore, has been identified as a non-

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 749/aHED/aHEC – Page

2

SIGNIFICANT ISSUES

PED indicates that the Estancia Municipal Schools may not plan to establish the learning center

as a charter school.

ADMINISTRATIVE IMPLICATIONS

The bill appropriates funding to the PED, which would flow the money to the Estancia Munici-

pal Schools. No significant administrative impact is apparent.

TECHNICAL ISSUES

The language in the bill describes the establishment of a “charter” school; however, PED reports

that the district does not intend to open this school as a charter school. If this is the case, the lan-

guage on line 19 should be amended to delete the clause “, a charter school”.

OTHER SUBSTANTIVE ISSUES

PED provided information indicating that:

• Estancia Municipal Schools is interested in creating an alternative school for high school

students.

• Alternative schools and programs serve students who are at risk of dropping out of school

for any number of reasons, including poor grades, truancy, suspension and pregnancy.

• Currently, the district is serving students in an alternative program at the high school, but

demand exceeds capacity.

• The general language of the bill appropriates funding for the establishment of a school

with no restrictions as to its purpose, curriculum or grades it will serve.

• The district intends to use funding for start-up costs including instructional materials,

supplies, and staff; thereafter the district intends to rely on SEG and instructional materials fund-

ing that are based on prior year’s MEM.

• Newly established charter schools in 2005-06 receive an average start-up funding of

$75.0 (additional federal stimulus funds are an additional $150.0 for a total of $225.0 start-up).

DKE/mt