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

SPONSOR Campos

ORIGINAL DATE

LAST UPDATED

1/26/2008

HB

SHORT TITLE School Computer Hardware Loan Fund

SB 290

ANALYST Aguilar

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$2,500.0*

Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

*See Narrative

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

$2,500.0

Recurring

Computer

Hardware Loan

Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

Department of Information Technology (DOIT)

SUMMARY

Synopsis of Bill

Senate Bill 290 transfers the appropriation of $2.5 million originally appropriated to the Public

Education Department in Laws 2007, Section 442 of Section 55 of Chapter 42 that was to be

used for providing computers to nonpublic schools owned by entities which operated five or

more schools within the state to a new Computer Hardware Loan Fund.

Senate Bill 290 – Page

2

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 fiscal year shall not revert to

the general fund but remain in the computer hardware loan fund.

This bill creates a new fund and provides for continuing appropriations. The LFC has concerns

with including continuing appropriation language in the statutory provisions for newly created

funds, as earmarking reduces the ability of the legislature to establish spending priorities.

SIGNIFICANT ISSUES

This bill directs that applications from private schools demonstrate a critical need for the

classroom use of the loaned computers and how they will support the private school’s

nonsectarian curriculum; it directs that loan agreements will make the private school responsible

for the insurance and safekeeping of the loaned computers, restrict computer use to qualified

students of the school, provide that the computers will not be used for sectarian or religious

purposes, and allows for monitoring visits by the department; and authorizes private schools to

hold students or parents responsible for damage or destruction. The Legislature may wish to

consider adding language requiring the school to demonstrate how its curriculum aligns with the

state standards and benchmarks.

The bill reauthorizes a prior year appropriation which was considered to have constitutional

issues by providing funding directly to private schools for purchasing computer equipment. This

bill appears to deal with this issue by providing for the loan of equipment.

Under the provisions of the 2007 bill it appears that the original appropriations would be directed

to schools operated by the Archdiocese of Santa Fe. This bill expands the number of eligible

schools.

PA/bb