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)

Relates to HB32; SB36, SB104

SOURCES OF INFORMATION

Commission on Higher Education (CHE)

State Department of Education (SDE)

SUMMARY

Synopsis of HEC Amendment

This amendment adds State Board of Education (SBE) approval of teacher training institutions and SBE approved private school settings. Also added is language on repayment of the teacher scholarships.

Synopsis of Bill

This bill creates the Student Teacher Scholarship program, administered by the Commission on Higher Education. The CHE shall develop eligibility criteria; distribute scholarship funds; verify recipient teaching obligations; and ensure that recipients comply with all rules promulgated for the program.

An appropriation of $700.0 is made from the general fund to the Student Teacher Scholarship Fund created in the State Treasury. Income from investment of the fund shall be credited to the fund. The CHE shall use no more than 3% of money in the fund for administration.

Significant Issues

According to the SDE, this scholarship will assist students as they fulfill their full-time student teaching requirement, enabling them to become licensed teachers. It is difficult for students to forego income during the semester when they are student teaching.

FISCAL IMPLICATIONS

The appropriation of $700.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY01 shall not revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

The CHE notes that staff time would be required to promulgate rules/regulations for the program.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

This bill relates to House Bill 32 and Senate Bills 36 and 104.

TECHNICAL ISSUES

The CHE notes that the program described in this bill is a loan-for-service program and not a scholarship program. The bill should be amended to change the program from a scholarship to a loan-for-service which includes a maximum award amount and penalties to recipients for failure to provide service obligations. On page 1, line 25, the following amendment should be made: "public, post-secondary accredited teacher training institutions in New Mexico."

The SDE suggests the bill be clarified to specify that awards be used only for field experiences where the student has full-time responsibility. Also, clarification should be made whether "accredited" institutions are ones approved by the State Board of Education or nationally.

OTHER SUBSTANTIVE ISSUES

The CHE references an existing loan-for-service program, the purpose of which to increase the number of minority and physically disabled teachers in the southeastern part of the state.

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