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.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

State Department of Public Education (SDE)

SUMMARY

Synopsis of SFl#1 Amendment

The Senate Floor amendment would not require the Public Transportation Program Bureau to ensure that the transferred school buses meet federal requirements for maintenance and safety.

Synopsis of SEC Amendment

The Senate Education Committee Amendment would allow SDE to identify only available buses that are no longer needed by the school bus contractor to transport participants enrolled in New Mexico Works Act programs to work-related activities.

Synopsis of Bill

This bill enacts a new section of the New Mexico Works Act to require the state transportation director of the State Department of Public Education to identify school buses that have completed a twelve-year cycle so they may be donated to the New Mexico State Highway and Transportation Department for use in transporting participants of the New Mexico Works Act to work related activities.

Significant Issues

According to SDE, school buses are not traded in after they have completed a twelve-year cycle. Most school districts keep buses on average, approximately fifteen-years rather than twelve-years and utilize the buses as spares in the district. As written, this bill would require all buses that have completed their twelve-year use to be donated to the New Mexico State Highway and Transportation Department and would have a negative impact on the number of spare buses districts would be allowed to maintain in their fleet.

FISCAL IMPLICATIONS

Currently, school districts receive credit or a trade-in allowance of approximately $2.0 per bus toward the purchase of a new bus. The trade-in allowance results in a reduction in the amount of general fund that is transferred to school districts by SDE for the purchase of a new bus. At the end of the fiscal year, the department reverts all excess funds appropriated for the purchase of new buses to the general fund.

SDE estimates approximately 10-20 buses per year will be available for donation to NMSHTD. This would result in a lower general fund reversion at the end of the year from the transportation fund by approximately $40.0.

TECHNICAL ISSUES

SDE recommends striking the words twelve-year on page 1 line 21.

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