NOTE: As provided in LFC policy, this report is intended 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 in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 310

SOURCES OF INFORMATION

State Department of Education

LFC

SUMMARY

Synopsis of HEC Amendment

The House Education Committee amendment strikes language that would have provided a minimum of $250.00 to each school and replaces with language to provide the funds to each community.

Synopsis of Bill

The bill appropriates $985.0 from the general fund to the State Department of Education for expenditure in FY 2000 for the purpose of paying for character counts programs statewide. The appropriation shall be expended as follows:

• Development and maintenance of and electronic clearing-house
• Training, material procurement and distribution, consultation services, community start up initiatives
• Development of a Request for Proposal

Schools and communities shall be eligible for:

• $1.50 per student for character development programs, activities, and materials, except that a minimum of $500 shall be made available to each school.
• communities on a matching fund basis of $.75 per student, except that a minimum of $250 shall be made available to each school

Any funds not disbursed within 6 months shall be allocated by SDE after seeking recommendations from a statewide character counts organization.

Significant Issues

SDE reports that NM has been funded under the Secretary's Fund to establish a pilot using CHARACTER COUNTS. The pilot project has been very successful and has provided communities around the state with a model of school/community partnership for moving the language of character throughout all learning environments. Other communities are at various stages of developing and implementing programs using the CHARACTER COUNTS framework .

The design of the program which involves partnering with youth organization, business and civic organizations, local governments, and schools, has made positive changes within communities. Communities around the state support the need for a statewide network to coordinate resources on the CHARACTER COUNTS concept.

NM is currently writing a one-year grant application to access remaining dollars in the USDOE Character Education Partnership Grant monies.

FISCAL IMPLICATIONS

This legislation will create a new project for SDE to oversee which involves an increase in programmatic duties and fiscal accountability.

ADMINISTRATIVE IMPLICATIONS

SDE notes that staff time will be required to initiate a contract, review and verify reimbursement claims and process voucher payments. SDE indicates that the current staff can handle the project.

RELATIONSHIP

Relates to SB 310

TECHNICAL ISSUES

In Section 1, C. (2), page 2, replace the word " school" with "community"

OTHER SUBSTANTIVE ISSUES

Many communities are embracing character development with existing resources but a need exists for more formalization and networking to build capacity within the communities.

CF:BD/njw:gm