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)

Duplicates SB44 Relates to HB4, HB27, SB2, SB7 and SB10

SOURCES OF INFORMATION

Office of Attorney General

LFC Files

SUMMARY

Synopsis of Bill

This bill enacts a new section of the Public School Code cited as the "Pilot New Mexico Work Voucher Program Act". This bill establishes a 4 year pilot program to provide students in the Albuquerque and Santa Fe Public School Districts with a voucher that may be used in any public or private school located in New Mexico.

Significant Issues

This bill would allow a maximum of 3,000 students from the Albuquerque Public Schools and a maximum of 1,000 from the Santa Fe Public Schools to participate in the voucher pilot program. If more than the maximum number of students allowed to participate apply for a voucher, the vouchers are distributed on a random basis.

A student is eligible to participate, in the program if his family is eligible to receive cash assistance or services pursuant to the New Mexico Works Act.

The pilot program shall begin July 1, 1999 and end June 30, 2003.

Students participating in the pilot program are subject to student assessments required by Section 22-1-6 NMSA 1978. The assessments are to be administered by the school district which provides the student with the voucher.

If a student selects a private school, his parent or legal guardian is responsible for transporting the student to school. However, if a student selects a public school, the Albuquerque and Santa Fe School Districts may promulgate rules in order to provide transportation for those students who select a school in the students' attendance zones within the school district's boundary.

FISCAL IMPLICATIONS

This bill appropriates $13,200.0 from the general fund to the state equalization guarantee distribution for expenditure in fiscal year 2000 to fund only those students counted in membership, pursuant to the Pilot New Mexico Works Voucher Program Act, who were not enrolled in a public school in New Mexico in the prior school year. Any unexpended or unencumbered balance remaining at the end of fiscal year 2000 shall revert to the general fund.

The value of each voucher is $3,100.00. If a student selects an accredited private school, the value of the voucher shall be increased by 10 percent.

Funding for public school students participating in the program who were included in the prior year membership count shall follow the student from either the Albuquerque or Santa Fe district state equalization guarantee distribution.

According to data provided by SDE, there are a