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

SPONSOR Nava

ORIGINAL DATE

LAST UPDATED

1/24/06

2/9/06 HB

SHORT TITLE Study Public School Capital Outlay Changes

SB SJM 4/SFL#1

ANALYST Kehoe

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

NFI

NFI

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Public Education Department (PED)

SUMMARY

Synopsis of SFLR Amendment 1

Senate Floor Amendment 1 requests the Department of Finance and Administration (DFA), in

consultation with the Public Education Department (PED), to also consider all proposals before

the 2006 Legislature in their study that would move all charter schools under a new division

within PED and the affect it will have on charter school capital outlay, including the impact of

direct legislative appropriations.

Synopsis of Original Bill

Senate Joint Memorial 4 requests the Department of Finance and Administration, in consultation

with the Public Education Department, to study the funding of capital improvements for charter

schools and other public schools and to make recommendations on reforming the public school

capital outlay process.

SIGNIFICANT ISSUES

Senate Joint Memorial 4 requests the Department of Finance and Administration, in consultation

with the Public Education Department, to study the problems of adequate capital outlay funding

Senate Joint Memorial 4/SFL#1– Page

2

for charter schools. The departments are further requested to make recommendations on sys-

temic reforms that will make the public school capital outlay process fair and equitable for char-

ter schools and other public schools.

In response to the Zuni litigation, it should be noted that the Public School Capital Outlay Over-

sight Task Force (PSCOOTF) and the Public School Capital Outlay Council have worked dili-

gently over the last several years to reform the public school capital outlay process in order to

provide a more equitable allocation of funds to all public schools statewide, including charter

schools situated in public-owned buildings. The task force is recommending legislation during

the 2006 that may address funding issues relevant to charter schools.

However, the legislation was not available at the time of this writing to include the task force

recommendations. According to PED, the executive is also recommending legislation during the

2006 Legislature that would place all charter schools under a single state authorizer, and the leg-

islation may contain provisions for affording charter schools greater access to capital outlay

funding. However, neither of the proposals for available for analysis at the time of this writing

to determine if the recommendations were in conflict with the study proposed by Senate Joint

Memorial 4..

LMK/mt