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F I S C A L I M P A C T R E P O R T

SPONSOR:	SEC		DATE TYPED:	03/05/99		HB
SHORT TITLE:		Performance-Based Compensation Pilot				SB	494/SECS
					ANALYST:		Woodlee

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY99	FY2000	FY99	FY2000	Recurring or Non-Rec	Fund Affected
	$ 100.0			Recurring through FY01	General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

Senate Education Committee substitute for Senate Bill 494 requires the State Department of Public Education to develop and conduct a pilot project for teacher compensation based on performance evaluations. The bill also appropriates $100.0 to the State Department of Education from the general fund.

Significant Issues

The bill stipulates that the department will seek no more than 45 teachers from New Mexico high schools to volunteer in the pilot project. The project is to be conducted in two phases: 1) a development process during the first semester of FY00 and 1) an implementation process during the second semester of FY00.

FISCAL IMPLICATIONS

The bill appropriates $100.0 from the general fund to the State Department of Public Education for expenditure in fiscal years 2000 and 2001 to conduct the teacher compensation pilot project.

The bill also stipulates that teachers who are selected for involvement in the evaluation process and who meet the standards for excellence shall receive a $2.0 award.

MW/njw