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





SPONSOR: Beam DATE TYPED: 5/7/99 HB 24
SHORT TITLE: Program Cost Calculation SB
ANALYST: Fernandez

APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 250.0 Recurring GF

(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



State Department of Public Education (SDE)



SUMMARY



Synopsis of Bill



House Bill 24 amends the public school funding formula to recognize a new category and cost differential, National Board for Professional Teaching Standards (NBPTS) certification, in the calculation of total program costs.

Significant Issues



This new category will generate one and one half additional program units for school districts that employ teachers that have been certified by the National Board for Professional Teaching Standards. The additional units will then require funds which will be used to pay teachers that have been certified by the National Board for Professional Teaching Standards, a one-time salary differential. The amount of the salary differential must be equal to or greater than the amount generated by the program units multiplied by the program unit value during the fiscal year.



The number of program units for districts will be determined by multiplying the number of certified school instructors employed by the school district by one and one half. SDE must verify the number of teachers who are certified by the national board for professional teaching standards. Under this proposal, each teacher would receive a $3,516.14 increase each year as long as the teacher is generating program units. With this salary differential, if a teacher is certified for 20 years, they may potentially receive over $70.3 during that time period. Since the salary differential is dependent upon the unit value, the differential will increase with the unit value.



According to the Legislative Education Study Committee (LESC), nationwide, 1,836 teachers have completed the NBPTS process which includes 193 teachers from New Mexico. Currently, 67 teachers in New Mexico are board certified, representing 15 school districts.



FISCAL IMPLICATIONS



This bill appropriates $250.0 from the general fund to SDE for expenditure in fiscal year 2000. Any unexpended or unencumbered balance remaining at the end of fiscal year 2000 shall revert to the general fund. This bill also carries an emergency clause.



According to SDE, 67 teachers are currently certified and based on the current unit value of $2,344.09, each NBPTS certified teacher would receive a one-time salary increase of $3,516.14 for a total cost of $235.6. SDE also indicates that the additional salary adjustment would not become part of a qualifying teacher's base salary. Teachers are required to maintain certification in order to receive the one-time salary increase.



ADMINISTRATIVE IMPLICATIONS



SDE will be required to verify NBPTS certified teachers during the budget and audit process.



OTHER SUBSTANTIVE ISSUES



History

1994-95 - NM Legislature appropriated $400.0 for staff development of which $327.9 was allocated to support teachers seeking NBPTS certification.



1995-97 NM Legislature appropriated funds to support teachers seeking NBPTS certification, however the appropriations were vetoed by the Governor.



1995-99 School districts have supported the program with funding from the Goals 2000 federal grant or with operational funds.



SDE reports that two school districts are utilizing operational funds to support NBPTS candidates and the associated fees. This option is available to all districts.



CTF/njw