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 Sharer

ORIGINAL DATE

LAST UPDATED

2/13/2007

2/26/2007 HB

SHORT TITLE Public School Accountability & Assessment

SB 287/aSEC/aSJC

ANALYST Schuss

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$0.1

Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HB 34

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

Office of Educational Accountability (OEA)

SUMMARY

Synopsis of SJC Amendment

The Senate Judiciary Committee amendment removes Section 3 in its entirety. Section 3

amended 22-2C-4 and inserted the words assessment, assess and standards-based assessments.

Removal of Section 3 will reinstate previously used language.

Synopsis of SEC Amendment

The amendment proposed by the Senate Education Committee does the following:

•

clarifies the intent to collect community input into the recommendation to reopen a

school as a state-chartered charter school.

•

acknowledges that the community and state are jointly responsible for resources needed

to reopen a school. The PED is authorized to review and approve the recommendation.

•

affirms the executive role and responsibilities of the Secretary of Education.

•

clarifies important steps in the extensive planning and preparation that are needed to

reopen a school as a state-chartered charter school. Language ensures that these steps are

included in the reopening process.

Senate Bill 287/aSEC/aSJC – Page

2

•

clarifies that community input and information is considered.

•

specifies that the board members appointed to govern the State-chartered charter school

will serve in an interim capacity for the reopened school.

Synopsis of Original Bill

Senate Bill 287 defines academic proficiency and distinguishes student academic proficiency

from the adequate yearly progress (AYP) of schools and school districts. The bill aligns the

identification and status of schools failing to achieve AYP with federal requirements, mandates

that student achievement data be disaggregated by gender and provides a process for re-opening

failing schools as state-chartered charter schools. Additionally, the bill makes technical

corrections to language.

FISCAL IMPLICATIONS

While Senate Bill 287 does not contain an appropriation, under provisions contained in the bill

approximately 52 schools would become immediately eligible to open as state-chartered charter

schools with additional schools expected to be eligible annually. It is estimated this would have

a significant impact on PED in overseeing the implementation of the program as well as

providing direct oversight of these schools.

SIGNIFICANT ISSUES

Under provisions contained in SB 287, the term “academic proficiency" for students would for

the first time be defined as “mastery of subject matter knowledge and skills specified in state

academic content and performance standards for a student’s grade level."

The Office of Educational Accountability notes that by removing the requirement that students

make “adequate yearly progress" and instead require that students “demonstrate academic

proficiency" is an important distinction. Adequate yearly progress (AYP) is based on the percent

of students in disaggregated subgroups (ethnicity, disability, economically disadvantaged and

English language learners) who meet proficiency and participation targets on the yearly

standards-based assessment. The annual measurable objective used in calculating AYP is a

moving target and is not appropriate in measuring a child’s academic proficiency.

The bill provides that when determining academic proficiency of students, a number of

measurement tools be used and for students requiring academic remediation, a number of

interventions be considered.

The bill makes technical changes to statute aligning the identification and status of schools

failing to achieve AYP with the federal No Child Left Behind Act (NCLB). Further, the bill

provides for delay status for a school when it makes AYP for one year and removal as a school

in need of improvement when it achieves AYP for two consecutive years.

In addition to reporting achievement date by subgroups required by NCLB, the bill requires that

proficiency data be disaggregated and be reported by gender. OEA raises a concern that if

gender is added to the reporting structure, it might be interpreted that New Mexico commits to

adding an additional eight indicators to the existing 37 bringing the total number of indicators

that may be used to determine AYP for a school up to 45.

Senate Bill 287/aSEC/aSJC – Page

3

SB 287 provides that for those schools failing to make AYP for five consecutive years and

whose interventions have not been successful, PED may take the steps necessary to have the

school re-open as a state-chartered charter school and specifies the steps to be taken; the Public

Education Commission (PEC) must approve the charter, there must be a governing body of at

least five qualified persons, the governing body must employ an administrator and must qualify

as a board of finance and the governing body must develop a written plan detailing how it will

operate the new charter school. The bill also provides that if a school is unable to have its

charter approved within 90 days or is unable to meet other requirement, the school will not be

reopened as a charter school. Portions of these requirements appear to be in conflict with Laws

2006, Chapter 94 (Charter Schools Act) which takes effect July 1, 2007. The Charter Schools

Act provides that a governing board of a charter school provide written notice of intent to submit

an application 180 days prior to submission and that the first year would be used as a planning

year also the Charter Schools Act eliminated the conversion of schools to charter status.

DUPLICATION

Duplicates HB 34

TECHNICAL ISSUES

The Legislature may wish to consider the following:

A second provision for delay status specified in NCLB is not included in the bill, and is not in

the current statute. NCLB also specifies that a public school or district is in delay status “if its

failure to make Adequate Yearly Progress is due to exceptional or uncontrollable circumstances,

such as natural disaster or precipitous and unforeseen decline in financial resources of the local

educational agency or school (HR1, Title1, Part A, Subpart 1, Sect. 1116, 7, D)."

On Page 23, Line 17 after “gender" insert “,which shall be used for reporting purposes only".

BS/mt