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 identical to

SOURCES OF INFORMATION

LFC files

State Department of Education (SDE)

SUMMARY

Synopsis of Bill

Senate Joint Memorial 1, introduced for the LESC, requests that SDE and the Educational Retirement Board (ERB) study the feasibility and financial implications of alternatives that would encourage teachers eligible to retire or nearing eligibility to retire to continue on job, to examine potential impact on the actuarial soundness of the Educational Retirement Association (ERA) fund and to report their findings to the Legislative Education Study Committee on November 1, 2000.

Significant Issues

All states are facing a shortage of trained, licensed teachers and it is projected that the shortage will worsen over the next five years. The shortage is intensified by the increasing number of those now eligible who recently chose to leave the profession. Some states are pursuing alternatives to encourage teachers to delay their retirements or, in at least one state, to come out of retirement (California) without loss of benefits as one alternative to temporarily ameliorate the teacher shortage.

SJM 11, according to the SDE analysis, is consistent with the SBE's initiatives to "to improve and enhance" New Mexico's Teaching force. SDE and CHE (Commission on Higher Education) are already addressing the teacher shortage cited in the memorial.

FISCAL IMPLICATIONS

None anticipated. SDE and CHE are already addressing the issue.

LB/gm