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.

SPONSOR   Nava           DATE TYPED 02/25/99 HB           

SHORT TITLE Education Appropriation Act               SB  3/aSEC          

                                                   ANALYST  Fernandez      

Estimated

Appropriation Contained   Additional Impact  Recurring Fund

FY99 FY2000 FY99 FY2000 or Non-Rec Affected

$  . $1,620,976.1 $ . $ . Recurring G/F     

$       .  $  6,276.7 $       .  $        .  Recurring   OSF     

$       .  $  2,513.6 $       .  $        .  Recurring   ISF/IAT

$       .  $255,485.5 $       .  $        .  Recurring  FF      

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to House Bill 3, Companion to Senate Bill 2.

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of SEC Amendment

The Senate Education Committee amendment increases the total general fund appropriation by $123,979.5 for a total increase of $133,903.4 over the FY99 appropriation for public education. The amendment provides the following: funds for a seven percent salary increase for teachers and at least an average five percent salary increase for other certified and non-certified staff, including transportation employees; funds for optional preschool and literacy programs to meet developmental and literacy needs of children age three through grade two; increases the Instructional Materials Fund by $6,447.5; increases funding for educational technology by $4,983.2; includes an additional $16,434.2 to implement the provisions of the Public School Capital Improvement Act at $50 per mill and increases the maximum millage to 2.5; increases the Incentives for School Improvement Fund by $600.0; removes the appropriation of $600.0 for Apprenticeship Assistance; removes the appropriation of $70.0 for continuation of a cost-of-living study; and increases other related education appropriations by $9,533.0 for various other projects.

Synopsis of Bill

Senate Bill 3 appropriates funds for the operation of public schools, State Department of Education (SDE), Adult Basic Education (ABE), Apprenticeship Assistance, and Regional Education Cooperatives.

Significant Issues

The Legislative Finance Committee recommendations are contained in Senate Bill 3 with the exception of Apprenticeship Assistance.

FISCAL IMPLICATIONS

The general fund fiscal impact for public education are: public school support $1,598,495.7; SDE $8,247.4; Adult Basic Education $4,700.0 and $9,533.0 for various education related programs.

The other state funds portion of the budget is $2,000.0 for the state equalization guarantee distribution (drivers' safety program), $366.7 in cash balance and $150.7 in other revenues generated from educator license fees for the State Department of Education and $3,759.3 for the Regional Education Cooperatives.

The internal service funds/interagency transfers are included in the SDE budget for the following: $2,482.5 for funds received from Human Services Department (HSD) to provide before- and after-school programs to children who are participants of the New Mexico Works Act and $31.1 for fees earned by the print shop, and reimbursements from Division of Vocational Rehabilitation for internal audit services.

The federal funds section is for information purposes and includes estimates for FY2000 for the following programs: $2,254.7 for ABE, $6,874.4 for SDE, $8,076.4 for Regional Education Cooperatives and $238,280.0 in flow thru funds for the 89 school districts.

OTHER SUBSTANTIVE ISSUES

Public school funds are primarily allocated to 89 school districts through four funding formulas: State Equalization Guarantee Distribution: Transportation; Instructional Materials; and Education Technology.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

This bill is a companion to SB2 and relates to HB3.

CTF/jsp