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.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to: House Bills 19, 82, 398, and Senate Bills 4, 31, 307, 312, 483, 505.

SOURCES OF INFORMATION

LFC Files

State Department of Education (SDE)

SUMMARY

Synopsis of Bill

House Bill 530 appropriates $750.0 from the general fund to the State Department of Education (SDE) to establish high school dropout prevention programs in Bernalillo, Sandoval, and Valencia counties, and contains an emergency clause.

Significant Issues

The appropriation in this bill would allow the SDE to contract with a private nonprofit organization to establish dropout prevention programs for at-risk students.

FISCAL IMPLICATIONS

The appropriation of $750.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund. This bill contains an emergency clause.

ADMINISTRATIVE IMPACT

Implementation of this bill would require the SDE to develop a contract with an appropriate private nonprofit organization for the establishment of dropout prevention programs to target at risk students.

RELATIONSHIP

Senate Bill 312 and House Bill 398 require the SDE to establish a "dropout prevention pilot program" at ten public high schools with the highest dropout rates.

Related appropriations in Senate Bill 307 and House Bill 82 - Section 7 of these bills makes STUDENT IMPROVEMENT APPROPRIATIONS.--The following amount is appropriated from the general fund to the state department of public education for expenditure in fiscal year 2002:

A. four million sixty-three thousand three hundred dollars ($4,063,300) to pay teachers to teach intensive summer education programs for students in need of assistance.

OTHER SUBSTANTIVE ISSUES

According to the SDE, the overall dropout rate for New Mexico declined from 8.7% in 1994-95 to 7.1% in 1997-98. However, in some school districts, and in some schools within districts, the dropout rate increased.

Information for the three counties targeted in this bill are outlined below:

District 1994-95 Dropout Rate 1997-98 Dropout Rate

Bernalillo County

Albuquerque Public Schools 12.2% 8.8%

Valencia County

Los Lunas 2.6% 8.8%

Belen 3.9% 13.7%

Sandoval County

Bernalillo 8.1% 10.8%

Rio Rancho N/A 4.5%

Cuba 19.8% 5.8%

Jemez Valley 1.9% 14.4%

Jemez Mountain 2.2% .7%

LG/ar