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)

Relates to SB 246

SOURCES OF INFORMATION

State Department of Public Education (SDE)

SUMMARY

Synopsis of Bill

Senate Bill 246 creates the Native American Education Fund and requires fifty percent the total amount of money submitted to the State by the Indian nations, tribes or pueblos pursuant to gaming revenue-sharing agreements be transferred to the Native American Education Fund on January 1 and fifty percent to be transferred to the Public School Capital Outlay Fund. This bill appropriates $15,816.4 from the general fund to the Native American Education Fund for projects selected by the Legislature and appropriates $15,816.4 from the general fund to the Public School Capital Outlay Fund for projects selected by the legislature.

Significant Issues

The money in the Native American Education Fund will fund the following: infrastructure for schools, including post-secondary schools, provided that they have been established in the state by the federal government or an Indian nation, tribe or pueblo to provide education to tribal members or are public schools in which the total Native American student membership is ten percent or greater; scholarships for students attending post-secondary educational institutions in New Mexico that were established by the federal government or an Indian nation, tribe or pueblo located in whole or in part in the state; to augment the state funding of schools to allow programs or further the cultural competency of Native American students; and to improve school bus routes on tribal lands within the school district.

Each year, the Legislature shall designate projects to be funded from the Native American Education Fund and the Public School Capital Outlay Fund.

The Public School Capital Outlay Act provides state funds for critical school district capital outlay needs that cannot be met by school districts after they have exhausted other sources of funding. Pursuant to the Public School Capital Outlay Act, the Public School Capital Council reviews all applications for assistance from the fund and distributes available funding.

FISCAL IMPLICATIONS

Senate Bill 246 appropriates $15,816.4 from the general fund to the Native American Education Fund for expenditure in fiscal year 2000 and subsequent fiscal years. This will be a non-reverting fund. All interest or earnings made from investments shall accrue to the fund and be available for appropriation by the Legislature.

Senate Bill 246 appropriates $15,816.4 from the general fund to the Public School Capital Outlay Fund for expenditure in fiscal year 2000 and subsequent fiscal years.

Based on current revenue projections, it is estimated that approximately $32.0 million dollars per year will be realized from gaming compacts.

ADMINISTRATIVE IMPLICATIONS

SDE indicates that agency personnel must establish a monitoring and review process for programs funded by the Native American Education Fund and this bill includes no allowance for administrative costs. The State Department of Public Education currently provides staff support to the Public School Capital Outlay Council.

DUPLICATION

This bill partially duplicates HB 279.

TECHNICAL ISSUES

Page 1, Lines 19 through 24, it is unclear as to what is meant by "prior to the transfer by Indian nations, tribes or pueblos".

Language in this bill requires the legislature to fund projects from the Public School Capital Outlay fund. This conflicts with language currently in 22-24-1 through 22-24-6 NMSA 1978 which requires the Public School Capital Outlay Council to review the applications for assistance from the fund, prioritize projects, and approve applications.

OTHER SUBSTANTIVE ISSUES

According to SDE, some individual public schools in districts that serve Native American students would not meet the 10 percent requirement in this bill.

CTF/njw