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.

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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

State Department of Public Education (SDE)

LFC Files

SUMMARY

Synopsis of SFC Amendment

The Senate Finance Committee amendment strikes the appropriation of $3,000.0.

Synopsis of Bill

Committee Substitute for Senate Bill 173 enacts the Student Alternatives Act which requires Department of Finance and Administration (DFA) to solicit proposals for a pilot program to provide alternative educational opportunities for students.

Significant Issues

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

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

DFA shall solicit proposals and evaluate the proposals and provide recommendations to the board. The department shall also monitor the performance of the schools.

The contract shall contain a provision that provides for a salary increase for any teacher employed at a school alternative whose students show exemplary improvement in academic achievement or attendance. The contract shall also contain a provision that provides more funding to any alternative school whose students, based on an independent analysis, demonstrate exemplary academic achievement and 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. Two public members will be appointed by the Speaker of the House of Representatives, two public members appointed by the President Pro Tempore of the Senate, two representatives of the business community appointed by the Governor, two members of the State Board of Education, and three members from the education community appointed by the Governor.

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 year 2000. 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 2000 shall revert to the general fund. The bill also carries an emergency clause.

ADMINISTRATIVE IMPLICATIONS

The Department of Finance and Administration will administer the program.

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