NOTE: As provided in LFC policy, this report is
intended only 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 for
other purposes.
The most recent FIR
version (in HTML & Adobe PDF formats) is available on the Legislative
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SPONSOR: |
Altamirano |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Transfer Adult Basic Education to CHE |
SB |
691/aSEC |
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ANALYST: |
Williams |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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(See
Text For Discussion of Issues) |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to SB 845
HB 3, HJM 65
LFC Files
State Department of Education (SDE)
Commission on Higher Education (CHE)
SUMMARY
Synopsis
of SEC Amendment
The amendment expands the language authorizing
CHE to perform planning and budgeting functions. The amendment addresses planning and
budgeting, adoption and promulgation of rules along with establishment of a
“uniform protocol for identifying, communicating with and providing direct and
equitable access to funding for eligible agencies…” These agencies are identified in the
amendment. Further, the amendment
removes authority for the State Board of Education to establish standards and
promulgate regulations. Finally, the
amendment clarifies language regarding transfer of the program from SDE to CHE.
Synopsis
of Original Bill
Senate Bill 691 adds a
new section of statute to authorize the CHE to perform planning and budgeting
functions for the state’s adult basic education (ABE) centers. The CHE, rather than the State Board of
Education, is authorized to create the ABE fund distribution formula and distribute
funds. The formula and associated
proposed changes are to be reviewed with ABE administrative sites. Instructional materials are to be provided
free to students through the instructional material bureau of the SDE. The State Board of Education is no longer
authorized to direct ABE programs in schools and would not develop rules and
regulations regarding all ABE programs.
Finally, the bill transfers all personnel, appropriations, money,
records, property, equipment, supplies, contracts and agreements along with the
centers for adult basic education to the CHE.
The bill carries an
emergency clause.
Significant
Issues
State Department of Education Position.
SDE notes “due to administrative problems
experienced by SDE in the past, over the last three years, it has developed
systems and processes to address the problems of its internal administration…
and the provision of services by 29 providers.”
New processes include the Reimbursement Program Claim Process and the
New Mexico Literacy and Educational Service System.
The Reimbursement Program Claim Process is a
tool to monitor expenditures. The system
involves a 30-day timeframe for claims and payments, along with associated
procedures, approval and program reconciliation by the SDE grant monitor, and
processing of claims by the SDE fiscal monitor.
Finally, payment procedures were developed for federal and state
funds.
The New Mexico Literacy and Educational Service
System is a tool to comply with a federal mandate to provide “transparent and
accountable data.” The system is used to
gather accountability data on federal literacy levels and federal goals from
each program. SDE tracks data provided
by centers and provides a quality control function. SDE then merges data and creates a master database,
which in part generates the state’s annual report. Quarterly performance reports are available
to both SDE and service centers.
Further, service centers can also create individualized reports.
Further, SDE notes its Internal Audit Unit
audited ABE records in Fall/Winter 2002, and subsequently an action plan was
developed to ensure all findings are addressed.
The SDE Office of Inspector General is conducting oversight.
In a February 2003 letter from SDE
Superintendent Davis to CHE Acting Director Jenkins, an audit by SDE’s Internal
Audit Unit disclosed “substantial amounts of state and federal funds returned
to the SDE, unused by the providers and their agencies for such needed services
to our clients.”
SDE notes the need for
the development of a “transparent and accountable procurement policy that
fosters greater collegiality among all advocates of adult learners and assists
these learners in attaining the goals they have set.”
Commission on Higher Education Position.
In January 2003, the CHE adopted resolutions to
recommend a transfer contingent upon adequate staffing and funding as well as a
resolution to request a state agency to audit state and provider ABE records to
reconcile federal and state fund balances by program site. This audit proposal would encompass FY00 to
FY03.
CHE notes the Post-Secondary Educational
Planning Act defines post-secondary education to include adult basic education
and high school equivalency education.
Further, current law requires CHE to approve the formula for
distributing ABE funds to the Adult Basic Education Fund.
FISCAL IMPLICATIONS
No Fiscal Impact. The bill does not include an
appropriation.
SDE currently receives
General Fund appropriation flowthrough monies for the
centers with no administrative resources.
Fiscal and personnel resources for the ABE program are funded by five
percent of federal Title II grants for Adult Education and Family Literacy. SDE notes its current practice of
supplementing the program with other agency funds.
CHE expressed concerns the bill does not
transfer the budget, administrative and support FTE, New Mexico Literacy and
Educational Services System (NMLESS) database and technical support.
The LFC budget
recommendation includes $4,790.5 of recurring General Fund appropriation for
FY04 for the ABE program within SDE.
According to the LFC budget document, in the fall 2002, presidents and
chief executive officers, and the New Mexico Association of Community Colleges
presented the CHE with a list of concerns regarding the administration of the
program at SDE. The stakeholders cited
issues such as lack of leadership and poor program management, lack of communication
between SDE and ABE program directors, errors in the allocation of state and
federal funding, lack of staff development and no clear strategy to address
unmet need. At its November 2002
meeting, the CHE voted to not pursue transferring administrative authority to
CHE during the 2003 Legislature due to “excessive workload for existing staff”
and possible restructuring of workforce training programs.
The LFC budget recommendation suggests the 2003 Legislature and the governor consider reorganization efforts that would move ABE under the oversight of the CHE or a workforce development agency. The LFC budget recommendation did not include a transfer of the program.
If the program
transferred to CHE, the CHE policy development and institutional financial oversight
program would need to be expanded.
Further, the agency would need to develop and implement appropriate
planning, accountability and management systems including performance
measures. Development of these measures
should take into consideration the federal performance measurement guidelines
as well as legislative intent for the program and its outcomes.
ADMINISTRATIVE IMPLICATIONS
SDE notes the
potential transfer of 1.0 FTE, education administrator for ABE and all records
to CHE. CHE believes SDE utilizes 2.0
FTE for the program along with a portion of a career technical and Adult
Services Division Director as well as contractual agreements for database development,
data collection and performance analysis.
LFC files indicate $8.0 and 1.0 permanent FTE from the SDE operating
budget dedicated to the ABE program which should be transferred to CHE if this
legislation is adopted.
CHE expresses the view
that the bill “does not address the administrative infrastructure necessary to
administer the state ABE program.”
Further, CHE expresses concern the emergency clause would result in
significant increases in CHE workload prior to the next federal funding award
cycle.
TECHNICAL ISSUES
SDE notes this bill would require an amendment
to the currently approved State Plan as the “eligible agency” as defined in the
Adult Education and Family Literacy Act. This amendment would be submitted by
the authorized agency to the federal Department of Education.
CHE notes designation of CHE as the “eligible
agency” would require a letter from the Governor prior to the next federal
award cycle.
OTHER SUBSTANTIVE ISSUES
The LFC budget
document notes the benefits of education for both individuals and society as a
whole and emphasizes ABE’s role in economic stability and development. SDE notes the importance and implications of
literacy. Further, SDE notes an on-going
Human Services Department/Maximus study of the
movement from welfare to work of Temporary Assistance for Needy Families (TANF)
recipients. The study notes higher
levels of education resulting in less time on welfare and associated
recidivism. The 2000 Census reflects
239,981 individuals of at least 25 years of age do not have a General
Educational Development (GED) or high school diploma. Also, 162,619 adults reported speaking
English less than “very well”. These two
groups are eligible for ABE services; however, only 30,219 adults received
these services in 2001-2002. In a
February 2003 letter to CHE Acting Director Jenkins, SDE Superintendent Davis
noted, “there are not the necessary resources to meet the needs of more than
230,000 eligible clients. The present
program is serving approximately 13% or 30,219 of the eligible (full and part
time).”
SDE notes its
participation in
Attached is a brief history from New Mexico
Coalition for Literacy.
AW/prr:sb:yr