HB0003

HOUSE BILL 3

50th legislature - STATE OF NEW MEXICO - second session, 2012

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .INTRODUCED BYRick Miera

AN ACT

RELATING TO EDUCATION; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. SHORT TITLE.--This act may be cited as the "Education Appropriation Act".

SECTION 2. DEFINITIONS.--As used in the Education Appropriation Act:

A. "federal funds" means any payments by the United States government to state government or state agencies for specific purposes or in lieu of taxes, including grants, reimbursements and payments made in accordance with contracts or cooperative agreements, and shared revenue except those payments made in accordance with the federal Mineral Leasing Act (30 USCA 181, et seq.) and the State and Local Fiscal Assistance Act of 1972 (31 USCA 1221-1264), as amended;

B. "general fund" means that fund created by Section 6-4-2 NMSA 1978 and includes federal Mineral Leasing Act receipts; and

C. "other state funds" means:

(1) unencumbered nonreverting balances in state agency accounts, other than in internal service funds accounts, appropriated by the Education Appropriation Act;

(2) all revenue available to state agencies from sources other than the general fund, internal service funds, interagency transfers and federal funds; and

(3) all revenue, the use of which is restricted by statute or agreement.

SECTION 3. FORMAT.--The general format of the appropriations set forth in the Education Appropriation Act with respect to symbols used, column headings and amounts stated are those used in the General Appropriation Act of 2012.

SECTION 4. APPROPRIATIONS.--

PUBLIC SCHOOL SUPPORT:

Except as otherwise provided, unexpended balances of appropriations made in this subsection shall not revert at the end of fiscal year 2013.

(1) State equalization guarantee: 2,276,086.2 850.0 2,276,936.2

The purpose of public school support is to carry out the mandate to establish and maintain a uniform system of free public schools sufficient for the education of, and open to, all of the children of school age in the state.

The rate of distribution of the state equalization guarantee distribution shall be based on a program unit value determined by the secretary of public education. The secretary of public education shall establish a preliminary unit value to establish budgets for the 2012-2013 school year and then, on verification of the number of units statewide for fiscal year 2013, but no later than January 31, 2013, the secretary of public education may adjust the program unit value. The secretary of public education in collaboration with the office of education accountability of the department of finance and administration shall ensure that all teachers have been evaluated under the tiered licensure evaluation system and have the professional competencies of the appropriate level. The secretary of public education shall withhold from the public school distribution funding the minimum salary of any teacher who has not been evaluated. The secretary of public education in collaboration with the office of education accountability of the department of finance and administration shall ensure that all principals and assistant school principals have been evaluated under the highly objective uniform statewide standards of evaluation and have the professional competencies to serve as a principal or assistant principal. The secretary of public education shall withhold from the public school distribution funding the minimum salary of any principal or assistant principal who has not been evaluated.

After considering those elementary physical education programs eligible for state financial support and the amount of state funding available for elementary physical education, the secretary of public education shall annually determine the programs and the consequent numbers of students in elementary physical education that will be used to calculate the number of elementary physical education program units.

For the 2012-2013 school year, the state equalization distribution includes sufficient funding for school districts to implement a new formula-based program. Those districts shall use current year membership in the calculation of program units for the new formula-based program.

The general fund appropriation to the state equalization guarantee distribution reflects the deduction of federal revenue pursuant to Paragraph (2) of Subsection C of Section 22-8-25 NMSA 1978 that includes payments commonly known as “impact aid funds” pursuant to 20 USCA 7701 et seq., and formerly known as “PL874 funds”.

The general fund appropriation to the public school fund shall be reduced by the amounts transferred to the public school fund from the current school fund and from the federal Mineral Leasing Act receipts otherwise unappropriated.

Any unexpended balances in the authorized distributions remaining at the end of fiscal year 2013 from appropriations made from the general fund shall revert to the general fund.

(2) Transportation distributions:

Appropriations: 96,897.3 93,897.3

(3) Supplemental distributions:

(a) Out-of-state tuition 346.0 346.0

(b) Emergency supplemental 4,500.0 4,500.0

Subtotal 4,846.0 4,846.0

Prior to the distribution of emergency supplemental funds to any public school district or charter school, the secretary of public education shall verify with the state auditor that the school district or charter school is in compliance with all the provisions of Section 12-6-12 NMSA 1978. No emergency supplemental distributions shall be made to any school district or charter school not current with its audits.

Prior to the distribution of any emergency supplemental funds, the secretary of public education shall provide the legislative finance committee and the legislative education study committee with a report outlining: (1) the criteria used to qualify for funds; (2) the financial status of recipients, including the status of recipients’ financial audits; and (3) any cost savings measures recipients implemented before applying funds. In no event shall money be distributed to any school district or charter school having cash and invested reserves, or other resources or any combination thereof, equaling five percent or more of its operating budget.

Any unexpended balances in the authorized distributions remaining at the end of fiscal year 2013 from appropriations made from the general fund shall revert to the general fund.

Any unexpended or unencumbered balance in the supplemental distributions to the public education department remaining at the end of fiscal year 2013 from appropriations made from the general fund shall revert to the general fund.

INSTRUCTIONAL MATERIAL FUND: 28,502.6 28,502.6

The appropriation to the instructional material fund is made from the federal Mineral Leasing Act (30 USCA 181, et seq.) receipts.

DUAL CREDIT INSTRUCTIONAL MATERIALS: 857.0 857.0

INDIAN EDUCATION FUND: 1,824.6 1,824.6

The general fund appropriation to the public education department for the Indian Education Act includes four hundred thousand dollars ($400,000) for a nonprofit organization that provides teaching support in schools with a high proportion of Native American students.

FEDERAL FLOW THROUGH: 414,202.3 414,202.3

TOTAL PUBLIC SCHOOL SUPPORT: 2,409,013.7 850.0 414,202.3 2,824,066.7

PUBLIC EDUCATION DEPARTMENT:

(1) Administration:

(a) Personal services

and employee benefits 9,384.2 1,543.8 7,206.8 18,134.8

(b) Contractual services 450.0 442.0 16,547.9 17,439.9

Subtotal 10,739.6 2,490.2 27,003.2 40,233.0

Authorized FTE: 158.2 Permanent; 97.6 Term; 1.0 Temporary

PUBLIC EDUCATION DEPARTMENT SPECIAL APPROPRIATIONS:

(a) Advanced placement 541.8 541.8

(b) Apprenticeship assistance 192.4 192.4

elementary students 1,924.6 1,924.6

(d) Early reading initiative 7,500.0 7,500.0

(e) Teaching support in schools

with a high proportion

of low-income students 500.0 500.0

(f) Mock trial 87.1 87.1

(g) Graduation, reality and

dual-role skills 200.0 200.0

(h) Regional education

cooperative operations 834.0 834.0

(i) Kindergarten-three plus 11,000.0 11,000.0

(j) New Mexico cyber academy 890.0 890.0

(k) Operating budget and management

system and student, teacher

accountability and reporting

system 750.0 750.0

(l) Pre-kindergarten 11,000.0 11,000.0

Subtotal 35,419.9 35,419.9

The general fund appropriation to the public education department for the pre-kindergarten program and the kindergarten-three plus program shall be used only for direct instruction, transportation and approved administrative costs.

The general fund appropriation to the public education department for teaching assistance for low-income students includes five hundred thousand dollars ($500,000) for a nonprofit organization that provides teaching support in schools with at least sixty percent of the enrolled students eligible for free or reduced-fee lunch, with a priority for schools with eighty-five percent or more of the students enrolled in the school eligible for free or reduced-fee lunch.

The appropriation for the operating budget management system and student teacher accountability reporting system is contingent on the public education department granting the legislative finance committee and the legislative education study committee access to these systems.

A regional education cooperative may submit an application to the public education department for an allocation from the eight-hundred-thirty-four-thousand-dollar ($834,000) appropriation. The public education department may allocate amounts to one or more regional education cooperatives provided that the regional education cooperative's application has adequately justified a need for the allocation and that the department finds that the regional education cooperative has submitted timely quarterly financial reports, is in compliance with state and federal reporting requirements, including annual audit requirements pursuant to the Audit Act, and is otherwise financially stable. Prior to making an allocation to a regional education cooperative, the public education department shall provide a detailed report to the legislative education study committee and the legislative finance committee on the effectiveness of the technical assistance and other services provided to members of the regional education cooperative and any nonmember public and private entities to which the cooperative provided educational services. An allocation made to a regional education cooperative may only be used for current year operating expenses.

Any unexpended or unencumbered balance in the authorized distributions remaining at the end of fiscal year 2013 from appropriations made from the general fund shall revert to the general fund.

REGIONAL EDUCATION COOPERATIVES:

(1) Northwest 2 (Gallina) 681.1 681.1

(2) Northeast 4 (Las Vegas) 284.6 284.6

(3) Lea county 7 (Hobbs) 268.4 411.4 679.8

(4) Pecos valley 8 (Artesia) 1,673.9 613.2 2,287.1

(5) Southwest 10 (Truth or

Consequences) 1,422.4 1,422.4

(6) Central 5 (Albuquerque) 2,574.0 295.3 2,869.3

(7) High plains 3 (Raton) 2,688.2 330.4 3,018.6

(8) Clovis 6 (Portales) 922.9 320.4 1,243.3

(9) Ruidoso 9 (Ruidoso) 2,341.1 1,017.9 3,359.0

Subtotal 12,572.0 3,273.2 15,845.2

SECTION 5. SEVERABILITY.--If any part or application of this act is held invalid, the remainder or its application to other situations or persons shall not be affected.

SECTION 6. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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