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(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 173

SOURCES OF INFORMATION

State Department of Public Education (SDE)

LFC Files

SUMMARY

Synopsis of Bill

House Bill 476 enacts the Student Alternatives Act which requires Department of Finance and Administration (DFA) to develop a pilot program to provide alternative educational opportunities for students.

Significant Issues

House Bill 476 will enable governmental entities to enter into joint powers agreements with DFA to provide alternative educational services for students. The eligible applicants could include the New Mexico Youth Conservation Corps, charter schools, public schools, and nonprofit or for-profit corporations.

The alternative schools will target students between the ages of fourteen and eighteen who have been disenrolled from a public school for any reason in the prior school year or whose attendance or conduct indicates they he or she may not meet graduation requirements.

The joint powers agreement or contract shall contain a provision that provides for a salary increase for any teacher employed at a school alternative whose students show improvement in academic achievement or attendance.

School alternative programs shall not operate on the same site with another public school.

School alternative programs are exempt from the School Personnel Act.

The student alternatives board is created consisting of 11 members appointed by the Speaker of the House of Representatives, the President Pro Tempore of the Senate, the Governor, and the State Board of Education.

The duties of the board are: review proposals submitted by applicants; allocate funding and ensure that no more than 25 percent is allocated to any one student alternative program; and evaluate the performance of the alternative education programs. The board is required to report annually to the Legislative Finance Committee, the Legislative Education Study Committee and the Governor prior to October 15^th .

FISCAL IMPLICATIONS

This bill appropriates $3,000.0 from the general fund to DFA for expenditure in fiscal years 2000 through 2005. No more than 25 percent of the appropriation may be used to contract with any one school alternative. Any unexpended or unencumbered balance remaining at the end of fiscal year 2005 shall revert to the general fund. The bill also carries an emergency clause.

The bill does not provide an appropriation for mileage and per diem for board members.

The bill requires Department of Finance and Administration to request funding for the Student Alternatives Act in the annual budget request.

ADMINISTRATIVE IMPLICATIONS

The Department of Finance and Administration will administer the program.

DUPLICATION

This bill nearly duplicates SB 173.

TECHNICAL ISSUES

Page 2, Line 15 state that the pilot program shall run until June 1, 2004, however, page 5 line 10 allows expenditure of the funds in fiscal years 2000 through 2005 which also conflicts with the

emergency clause on lines 16 through 18.

In order to avoid constitutional challenges, membership of the board should be reconsidered.

OTHER SUBSTANTIVE ISSUES

SDE is concerned that oversight of this educational program will reside with an agency that does not have professional staff specifically trained to handle education issues.

CTF/njw