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

SPONSOR Nava

ORIGINAL DATE

LAST UPDATED

1/22/2007

HB

SHORT TITLE New School Operation Costs

SB 74

ANALYST Aguilar

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$1,000.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

$1,000.0

Recurring

New School

Development

Fund

(Parenthesis ( ) Indicate Revenue Decreases)

LFC Files

Responses Not Received From

Public Education Department (PED)

SUMMARY

Synopsis of Bill

Senate Bill 74 appropriates $1 million from the General Fund for expenditure in FY07 and sub-

sequent years to the New School Development Fund for the purpose of making distributions to

school districts to pay costs unique to the first year of operation of new schools.

FISCAL IMPLICATIONS

The appropriation of $1 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert

to the general fund

Senate Bill 74 – Page

2

This bill provides for continuing appropriations. The LFC has concerns with including continu-

ing appropriation language in the statutory provisions, as earmarking reduces the ability of the

legislature to establish spending priorities.

SIGNIFICANT ISSUES

School districts have complained that they have insufficient funding at the end of a school con-

struction project to pay for supplies, equipment and other operating costs unique to the first year

of operation of a new school. Provisions contained in the enabling legislation for the new school

development fund would make funds available to school districts for these costs provided that

before distributions are approved, PED determines that there are no other reasonably available

federal, private or other public sources for the funding needed.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Recommendations for this appropriation are contained in the LESC budget recommendations for

categorical public school support but have not been rolled into introduced legislation.

PA/mt