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

SPONSOR Gardner

ORIGINAL DATE

LAST UPDATED

1/25/08

1/31/08 HB 234/aHEC

SHORT TITLE New Mexico Activities Association Programs

SB

ANALYST Haug

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$50.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplication

Senate Bill 322

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of HEC Amendment

The House Education Committee removes references to the New Mexico Activities Association

and clarifies that costs incurred must be for school activities.

Synopsis of Original Bill

House Bill 234 appropriates $50.0 from the general fund to the Public Education Department to

defray costs incurred by the New Mexico Activities Association for printing and trophies related

to athletics and other activities.

FISCAL IMPLICATIONS

The appropriation of $50.0 contained in this bill is a recurring expense to the general fund. Any

unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert to the

general fund.

House Bill 234/aHEC – Page

2

SIGNIFICANT ISSUES

The PED states:

•

A consequence of this bill would be the substitution of state monies for private monies.

•

Currently the NMAA is absorbing the cost of printing, trophies and medals with the fees

that are assessed to schools for being members of the NMAA, ticket sales at the

extracurricular events and corporate sponsorships.

•

Every student athlete on a championship team receives a medal commemorating the

achievement. For example: Mayfield High School’s championship football team had 75

members on the team; costs would vary from year to year depending on the number of

athletes on championship teams.

ADMINISTRATIVE IMPLICATIONS

The PED notes that HB 234 creates PED oversight responsibilities for the distribution of the

funds; maintaining fund accounting; and monitoring to ensure that the funds are expended in

accordance with the intentions of the Legislature. It is estimated that it would take

approximately 40 hours of time by an Education Administrator O ($22.74 x 40 + 30% Benefits =

$1,182) to develop, administer and monitor either a Joint Powers Agreement or Memorandum of

Understanding between PED and NMAA for distribution of the funding.

DUPLICATION

House Bill 234 and Senate Bill 322 are duplicates.

GH/nt