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F I S C A L I M P A C T R E P O R T
SPONSOR Ryan
ORIGINAL DATE
LAST UPDATED
2/15/2007
HB
SHORT TITLE School Operating Budget for Administration
SB 706
ANALYST Schuss
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Public Education Department (PED)
SUMMARY
Synopsis of Bill
Senate Bill 706 limits the percentage of operating expenditures that can go for administration in
school districts with a student enrollment of more than 35,000 and provides that no more than 15
percent of the operating budget shall be budgeted under functions 2300 (Support Services –
General Administration), 2500 (Central Services), 2600 (Operations and Maintenance of Plant)
and 2900 (Other Support Services).
FISCAL IMPLICATIONS
PED notes that Senate bill 706 indicates that the limit of operating expenditures that can go to
administration only applies to school districts with a student enrollment of more than 35,000.
Currently, this would only apply to the Albuquerque Public Schools (APS). Based on
Albuquerque’s 2006-2007 final approved budget, functions 2300, 2500, 2600 and 2900 equal
15.75 percent of the total operating budget.
SIGNIFICANT ISSUES
APS would be the only district that would have to comply with this requirement.