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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

01/17/08

HB

SHORT TITLE Study School Transportation Funding

SJM 12

ANALYST Escudero

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of Bill

This Joint Memorial requesting The Public Education Department to study how school

transportation funding for salaries and benefits is being spent.

•

Each year, the legislature appropriates money to the public education department to fund

to- and from-school bus transportation in public school districts statewide.

•

Current law allows school districts to provide school bus transportation to students

through the use of school bus service contracts, either with individual owner-operators or

private school bus contractors or both.

•

By public education department rule, a person who owns only one bus and who drives the

bus on a full-time basis is, as a driver, considered an employee of the school district,

while a person who owns more than one bus is considered a self-employed private school

bus contractor who hires the contractor's own employees.

•

Since 1994, the money distributed through school bus service contracts by the public

education department to private school bus contractors has included a thirty-five percent

reimbursement rate for employee benefits paid by a private school bus contractor to

employees.

•

Private school bus contractors may provide up to thirty-five percent employee benefits

for their employees.

Senate Joint Memorial 12 – Page

2

•

The public education department reports that fewer than ten percent of the current private

school bus contractors provide any form of employee benefits for their employees.

•

Now, therefore, be it resolved by the Legislature of the State of New Mexico that the

Public Education Department, the Legislative Education Study Committee and the

Legislative Finance Committee, in collaboration with public school district administrators

and representatives of private school bus contractors, be requested to examine the

funding of school transportation contracts to ensure that the employees of private school

bus contractors have full access to the wages and benefits available to the contractor.

•

Be it further resolved that the public education department report its findings and

recommendations to the Legislative Education Study committee by October 1, 2008.

•

Be it further resolved that copies of this memorial be transmitted to the Secretary of

Public Education and the Directors of the Legislative Education Study Committee and the

Legislative Finance Committee for appropriate distribution.

FISCAL IMPLICATIONS

According to PED, no fiscal impact. The PED can absorb the cost of this study with existing

staff.

SIGNIFICANT ISSUES

•

SJM 12 would require the PED, LESC, LFC, public school district administrators, and

representatives of private school bus contractors to work in consortium to conduct the

requested study.

•

Current national and state trends for school bus driver recruitment and retention illustrate

that school bus driver shortages are becoming more prevalent. School operations rely on

school transportation operations being able to provide timely and consistent services.

While many school districts have driver shortages, this directly impacts the level of

services necessary to ensure that students receive full instructional time as required.

•

New Mexico has qualified 15% more (new) drivers in calendar year 2007 and continues

to have school bus driver shortages.

•

Public school districts who employ school bus drivers may qualify for employee benefits

provided that they meet the minimum hour requirement for educational retirement and/or

health coverage. School bus drivers employed by private school bus operators have

limited benefits.

PME/bb