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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

State Department of Education (SDE)

SUMMARY

Synopsis

HB 329 will provide an appropriation of $2 million to the State Department of Education to establish a native New Mexican teacher incentive pay program through the 2009-2010 school year at schools where eighty-five percent or more of the students are ethnic minorities. A teacher hired to fill a vacancy pursuant to this program would receive incentive pay of $3,000 above the existing training and experience salary standards of the school district and the elementary school where the teacher is hired to teach.

Significant Issues

The purpose of HB 329 is to help address New Mexico's teacher shortage by providing qualified teachers with incentives to teach at schools with more than eighty-five percent ethnic minorities. To be eligible:

• The teacher must hold a master's degree plus fifteen additional credit hours;
• The teacher must sign a five-year employment contract with the school; and
• The teacher must be a "native New Mexican," a person who holds a valid New Mexico birth certificate.

The Native New Mexican Teacher Incentive Pay Program authorizes the hiring of teachers during the 2001-2202, 2005-2006 and 2009-2010 school years.

A teacher recipient who failed to complete five years of service as provided in the employment contract with a school would be required either to repay to the state all incentive pay or to establish with the SDE alternative terms of repayment or service deemed sufficient by the SDE.

FISCAL IMPLICATIONS

HB329 appropriates $2,000.0 in general fund. Any unexpended or unencumbered balance at the end of FY02 shall revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

HB 329 does not provide any funding for administration of the program. The SDE would have to administer this program with existing staff.

POSSIBLE QUESTIONS

Why does HB 329 only offer incentives to the"elementary school where the teacher is hired to teach?" Why not include middle and high school teachers?

DW/ar/njw