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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Bailey

 

DATE TYPED:

02/05/02

 

HB

 

 

SHORT TITLE:

Charter School Stimulus Fund for Planning

 

SB

208

 

 

ANALYST:

Segura

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

NFI

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

State Department of Education (SDE)

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 208 amends the 1999 Charter School Act, Section 22-8B-12 NMSA 1978, Laws 1999, Chapter 281, Section 12.   The bill proposes to change the approval period from five to six years, provided that year one is used for planning purposes. The bill keeps the renewal for successive

periods and approvals to five years.

 

     Significant Issues

 

The bill proposes to expand the use of the charter schools stimulus fund for planning.  Currently, the fund  can be used for financial support to charter schools, whether start-up or conversion, start-up costs, initial costs associated with renovating or remodeling existing buildings and structures.

 

FISCAL IMPLICATIONS

 

Senate Bill 208 does not contain an appropriation. The House Appropriations and Finance Committee substitute for House Bill 2, includes $500.0  for  the Charter Schools Stimulus Fund.

 

 

 

 

OTHER SUBSTANTIVE ISSUES

 

According to SDE, if Section 22-8B –12A is amended to allow a charter school to be approved for six years, then the timeline for use of the charter school stimulus fund must be increase to 24 months.

 

The SDE suggests the following amendment: “ If the charter school receives an initial grant and fails to begin operating a charter school within the next twenty-four months, the charter school shall immediately reimburse the fund.”

 

RS/njw:ar

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