NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of HEC Amendment

The House Education Committee amendment increases the total general fund appropriation by $71,288.9 for a total increase of $81,339.1 over the FY99 appropriation for public education. The amendment provides for the following: funds to provide a statewide average five and one-half percent salary increase to all public school and transportation employees; funds for optional preschool and literary programs to meet developmental and literacy needs of children age three through grade two; increases the Instructional Materials Fund by $6,447.5; removes the appropriation of $6,595.5 for the Public School Capital Improvement Fund; removes the appropriation of $70.0 for continuation of cost-of-living study; includes $2,000.0 for local plans for student success; and moves the appropriation for student assessment and testing from the state equalization guarantee to other education and increases the appropriation by $293.2 for contractual services incurred by SDE and for curriculum analysis of test results for teachers.

Synopsis of Bill

House Bill 3 appropriates funds for the operation of public schools, State Department of Education (SDE), Adult Basic Education (ABE), Apprenticeship Assistance, and Regional Education Cooperatives.

FISCAL IMPLICATIONS

The general fund fiscal impact for public education are: public school support $1,483,379.2; SDE $8,247.4; Adult Basic Education $4,700.0; Apprenticeship Assistance $660.0; and $1,433.2 for student assessment and testing.

The other state funds portion of the budget is $2,000.0 for the state equalization guarantee distribution (drivers' safety program), $366.7 in cash balance and $150.7 in other revenues generated from educator license fees for the State Department of Education and $3,759.3 for the Regional Education Cooperatives.

The internal service funds/interagency transfers are included in the SDE budget for the following: $2,482.5 for funds received from Human Services Department (HSD) to provide before- and after-school programs to children who are participants of the New Mexico Works Act and $31.1 for fees earned by the print shop, and reimbursements from Division of Vocational Rehabilitation for internal audit services.

The federal funds section is for information purposes and includes estimates for FY2000 for the following programs: $2,254.7 for ABE, $6,874.4 for SDE, $8,076.4 for Regional Education Cooperatives and $238,280.0 in flow thru funds for the 89 school districts.

OTHER SUBSTANTIVE ISSUES

Public school funds are primarily allocated to 89 school districts through four funding formulas: State Equalization Guarantee Distribution: Transportation; Instructional Materials; and Education Technology.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

This bill is a companion to HB2 and duplicates SB3.

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