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SENATE JOINT MEMORIAL 59

TH LEGISLATURE

- STATE OF NEW MEXICO -

FIRST SESSION

, 2007

INTRODUCED BY

John C. Ryan

A JOINT MEMORIAL

REQUESTING THE LEGISLATIVE FINANCE COMMITTEE, THE OFFICE OF

EDUCATION ACCOUNTABILITY AND THE STATE AUDITOR TO AUDIT THE

ALBUQUERQUE PUBLIC SCHOOL DISTRICT TO DETERMINE HOW MUCH OF THE

DISTRICT'S BUDGET GOES TO ADMINISTRATION AND IF THE DISTRICT IS

CLASSIFYING EXPENDITURES IN THE APPROPRIATE SUBFUNDS OR

FUNCTIONS OF THE NEW UNIFORM CHART OF ACCOUNTS.

WHEREAS, with approximately ninety-four thousand six

hundred students, Albuquerque public schools is the largest

school district in the state and one of the largest in the

country; and

WHEREAS, the public school funding formula is based in

part on the assumption that large school districts can achieve

certain economies of scale; and

WHEREAS, according to national center for education

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statistics data, many districts of similar size and composition

are able to achieve economies of scale that allow them to spend

less on administrative costs; and

WHEREAS, Albuquerque public school district's general fund

net operational subfund expenditures by function reports

consistently show that the district is among the lowest for

expenditures for administrative functions in New Mexico; and

WHEREAS, the district has shown a difference of no more

than two-tenths of one percent in expenditure in the

administration subfund under the former chart of accounts for

the last ten years; and

WHEREAS, during that time, the district modified its

administrative structure to include four superintendents, all

of whom were receiving salaries of over one hundred thousand

dollars ($100,000) plus benefits, the district did not show an

increase in expenditures in the administration subfund; and

WHEREAS, the other four operational subfunds also show

very little movement in the percent of their expenditures over

the same ten-year period; and

WHEREAS, the district reports would seem to indicate that

it is not now spending any more of its state equalization

guarantee distribution in the direct instruction subfund than

it did in 1996-1997;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE

STATE OF NEW MEXICO that the legislative finance committee, the

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office of education accountability and the state auditor be

requested to audit Albuquerque public schools to determine how

much of the school district's budget actually goes to functions

2300, 2500, 2600 and 2900 as specified in the uniform chart of

accounts manual of procedures; and

BE IT FURTHER RESOLVED that the audit determine if

Albuquerque public school district is reporting its

expenditures in the appropriate categories; and

BE IT FURTHER RESOLVED that the audit team report its

findings and recommendations to the legislative finance

committee, the legislative education study committee and the

public education department by November 1, 2007.

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