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

SPONSOR:	Boitano		DATE TYPED:	3/13/03		HB
SHORT TITLE:		Tuition Scholarships for Teachers’ Kids				SB	77
					ANALYST:		Segura

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
			**Unknown	REC	Lottery Fund

** Please Refer to Fiscal Impact Summary

SOURCES OF INFORMATION

State Department of Education (SDE)

New Mexico Commission of Higher Education (CHE)

New Mexico Lottery

SUMMARY

Synopsis of Bill

Senate Bill 77 provides lottery tuition scholarships for students who did not graduate from a New Mexico high school and whose parents are teachers certified by the National Board of Professional Teaching Standards and are teaching at New Mexico public schools.

Significant Issues

Senate Bill 77 proposes to allow those students to be eligible for lottery scholarships upon completion of :

· A high school curriculum at a public or accredited private high school outside New Mexico; or

· A graduate equivalent diploma.

According to SDE, allowing children of Board certified out-of state-teachers to apply for lottery tuition scholarships could create a larger pool of qualified applicants for lottery scholarships and, at the same time, could attract more highly qualified teachers to the state.

FISCAL IMPLICATIONS

According to CHE, it is not known the extent of the fiscal impact if SB 77 were enacted on the Lottery Tuition Fund. There are 107 NBPTS –certified teachers in New Mexico. It is not known how many of these transferred from out of state or if, given the low teacher salaries in New Mexico, a tuition-only scholarship for dependents would serve as an effective recruitment tool.

Current LSS budget projections indicate that the Fund will support 100% tuition scholarships through 2010. If lottery eligibility is expanded, as proposed in many bills during the 2003 Legislative session, the CHE would have to reevaluate the percentage of tuition paid in the near future.

ADMINISTRATIVE IMPLICATIONS

CHE would have to develop a consistent process for verification of NBPTS- certification status that would be followed at all institutions.

RELATIONSHIP

SB-77 relates to HB 81, and HB 171.

RS/njw