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

SPONSOR King

DATE TYPED 02/07/05 HB 429

SHORT TITLE Teacher Professional Development

SB

ANALYST Chabot

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$2,500.0

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$2,500.0

Recurring

Teacher Profes-

sional Development

Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

SUMMARY

Synopsis of Bill

House Bill 429 appropriates $2.5 million from the general fund to the teacher professional de-

velopment fund for the purpose of funding teacher professional development.

House Bill 429 -- Page 2

Significant Issues

This bill will provide assistance to teachers in improving their teaching qualifications through

advanced courses. PED states “there are no instructions about how the fund is to be spent and

the money disseminated. It appears that would be determined by the Public Education Depart-

ment.”

PERFORMANCE IMPLICATIONS

This bill relates to PED measures in public school support on the percentage of highly qualified

teachers in classrooms.

FISCAL IMPLICATIONS

The appropriation of $2.5 million contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of any fiscal year shall not re-

vert.

ADMINISTRATIVE IMPLICATIONS

PED states it assesses a 3 percent for administering appropriations requiring a request for pro-

posal, contract and monitoring services.

The LFC assesses that PED should provide administrative services to the school districts through

the department operating budget rather than assess the fund for administration.

TECHNICAL ISSUES

PED suggests the following amendments:

1.

Line 16, insert after the word “to” “the public education department for”; and

2.

Line 18, insert after the word “development.” The public education department may use

up to three percent of the budgeted amount of the fund annually to administer the fund.”

LFC assesses amendment 1 is not required as Section 22-8-45 NMSA 1978 provides for admini-

stration of the fund by PED. As noted above, LFC does not support amendment 2 because the

costs of administration should be included in the agency operating budget.

POSSIBLE QUESTIONS

1.

What is the current balance in the Teacher Professional Development Fund.

2.

How many teachers have received assistance from the Teacher Professional Development

Fund.

3.

How do teachers request assistance from the fund.

4.

What type of expenses is reimbursable from the fund.

5.

Has PED established procedures for administering the fund as the analysis from the de-

partment implies it has not.

6.

Why should PED be allowed to assess a fee from the fund for administration.

GAC/njw