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

SPONSOR SEC

ORIGINAL DATE

LAST UPDATED

2/17/2007

2/20/2007 HB

SHORT TITLE Educational Technology Deficiency Correction

SB 78/SECS

ANALYST Aguilar

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$59,000.0

Recurring

Computer Systems

Enhancement Fund

$2,650.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB 62.

Relates to HB 584 and SB 561

Relates to appropriations in the General Appropriation Act

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

FY09

$27,000.0

Recurring

Educational

Technology Deficiency

Correction Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of Educational Accountability (OEA)

Department of Public Education (DFA)

Senate Bill 78/SECS – Page

2

SUMMARY

Synopsis of Bill

The Senate Education Committee Substitute for Senate Bill 78 makes appropriations from the

Computer systems Enhancement Fund to correct educational technology deficiencies and to

replace obsolete computers and network devices in public schools.

The Senate Education Committee Substitute for Senate Bill 78 makes appropriations from the

General Fund to support a sustainable statewide support system for distance learning.

FISCAL IMPLICATIONS

The Senate Education Committee Substitute for Senate Bill 78 appropriates $27 million from the

computer systems enhancement fund to the educational technology deficiency correction fund

for the purpose of correcting serious deficiencies in educational technology infrastructure. Funds

remaining at the end of a fiscal year do not revert.

The Senate Education Committee Substitute for Senate Bill 78 appropriates $24 million from the

computer systems enhancement fund to the Public Education Department for the purpose of

making distributions .to school districts to replace functionally obsolete computers and network

devices. Funds remaining at the end of fiscal year 2008 shall revert to the computer systems

enhancement fund.

The Senate Education Committee Substitute for Senate Bill 78 appropriates $8.5 million from

the computer systems enhancement fund to the Public Education Department for the purpose of

funding infrastructure for a sustainable statewide support system for distance learning. Funds

remaining at the end of fiscal year 2008 shall revert to the computer systems enhancement fund.

The Senate Education Committee Substitute for Senate Bill 78 appropriates $1.45 million from

the general fund to the Higher Education Department for program administration, information

technology services and maintenance costs. Funds remaining at the end of fiscal year 2008 shall

revert to the general fund.

The Senate Education Committee Substitute for Senate Bill 78 appropriates $630 thousand from

the general fund to the Public Education Department for initial program costs for the statewide

cyber academy, $120 thousand for distribution to REC’s three, eight and nine for a distance

learning network, $50 thousand for the Rio Rancho Cyber Academy and $400 thousand for

distribution to school districts to support distance learning. Funds remaining at the end of fiscal

year 2008 shall revert to the general fund.

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

continuing appropriation language in the statutory provisions, as earmarking reduces the ability

of the legislature to establish spending priorities. Funds remaining at the end of fiscal year 2008

shall revert to the general fund.

Senate Bill 78/SECS – Page

3

SIGNIFICANT ISSUES

The Computer Systems Enhancement Fund only receives sufficient appropriations to fund

approved projects. At present, the General Appropriations Act include $7.4 million for the

IDEAL system which is included as subsection 3 on page 2, line 14 of the committee substitute.

Most recent estimates of ongoing costs of the activities included in the bill are available in

testimony provided by PED and CTE to the LESC last year in support of similar bills: $94.3

million to correct deficiencies in educational infrastructure in public schools statewide and $24.2

million to replace obsolete computers and network devices statewide over a five-year period

based on a ratio of three students to one computer. This estimate, according to the LESC, “was

based on a survey conducted by CTE and sent to school districts who self-reported their costs in

meeting the minimum educational technology standards."

TECHNICAL SSUES

DFA notes that either SEC C/S SB-209 or HEC C/S HB-201 would need to be enacted in order

to establish the statewide cyber academy and education technology program for which SEC C/S

78 provides funds.

PA/csd