Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Sanchez, B.
ORIGINAL DATE
LAST UPDATED
2/9/06
HB
SHORT TITLE Public School Capital Outlay Act Changes
SB 247
ANALYST Aguilar
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$300,000.0
Nonrecurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to SB-211, SB-450, HB-432
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Finance and Administration (DFA)
New Mexico Finance Authority (NMFA)
Public Education Department (PED)
SUMMARY
Synopsis of Bill
Senate Bill 247 appropriates $300 million from the general fund to the public schools capital out-
lay fund for the purpose of funded new or expanded school facilities in high growth areas of the
state.
The bill makes technical changes to language and declares an emergency.
FISCAL IMPLICATIONS
The appropriation of $300 million contained in this bill is a nonrecurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall
revert to the general fund.
pg_0002
Senate Bill 247 Page 2
SIGNIFICANT ISSUES
Provisions in the bill allow for allocations from the fund for the construction of new or expanded
school facilities in high growth areas without regard for local effort or indebtedness. The Elev-
enth Judicial District Court in response to the Zuni lawsuit ordered the state to establish and im-
plement a uniform funding system for capital improvements of New Mexico school districts. In
response to the judge's order, New Mexico changed the way in which the state funds public
school capital outlay expenditures by making extensive amendments to the Public School Capital
Outlay Act. One of the changes was to implement a state-share formula based upon a local
school district's property tax wealth and its local effort. Provisions contained in this bill appear
to minimize the local effort component. Whenever a subset of districts is created for the pur-
poses of special funding, the equity and uniformity of the funding system may be in jeopardy.
Since the court has not completed its oversight, SB-247 could potentially reopen the entire case.
TECHNICAL ISSUES
The bill appropriates funds from the general fund to the public school capital outlay fund. Re-
version language requires unexpended or unencumbered funds remaining at the end of fiscal year
2009 to revert to the general fund. The public school capital outlay fund is a non-reverting fund.
PA/yr