HB0228

RELATING TO PUBLIC SCHOOLS; PROVIDING A NEW PUBLIC SCHOOL FUNDING FORMULA; PROVIDING FOR MAINTENANCE AND PERIODIC RECALIBRATION OF THE FORMULA; REQUIRING PERFORMANCE-BASED BUDGETS; REQUIRING ACCOUNTABILITY; USING A CENSUS-BASED SPECIAL EDUCATION IDENTIFICATION RATE FOR SCHOOL DISTRICTS; SETTING THE MAXIMUM AGE FOR STUDENTS; PROVIDING FOR LEGISLATIVE APPROVAL OF NEW CHARTER SCHOOLS; PROVIDING FOR FIRST-YEAR FUNDING; CREATING FUNDS; RECONCILING MULTIPLE AMENDMENTS TO THE SAME SECTIONS OF LAW IN LAWS 1999; AMENDING, REPEALING, ENACTING AND RECOMPILING SECTIONS OF THE NMSA 1978; MAKING AN APPROPRIATION.

A. The legislature finds that the state, school districts and charter schools would be better served by a new funding formula that incorporates:

(1) a smaller and simplified set of student-needs weighting factors to achieve a more equitable distribution of the state's equalization guarantee;

(2) a simplified set of programmatic weights that accounts for grade level composition for elementary, middle and high school students; and

(3) a weighting schedule that accounts separately for the scale of school district and charter school operations.

(1) avoids unnecessary complexity by focusing directly on the factors associated with student needs and scale;

(2) appropriately promotes and preserves both vertical and horizontal equity across school districts;

(3) minimizes incentives to pursue funding not directly linked to student needs; and

(4) captures components in the pre-2012 funding formula and is more precise in measuring student need and scale.

C. The legislature finds further that the cost factors used in the 2012 funding formula better measure need by addressing special cost differentials associated with students that have special educational needs as well as particular types of local educational agency. The poverty, English language learner and special education cost factors measure those federally recognized attributes that unambiguously reflect the special educational needs of students. The cost factor for mobility recognizes the significant impact of disruption on students' educational experience. The cost factors for grade level enrollment address the knowledge gained from educational research and experience that educating students becomes more expensive as they progress through the educational system from elementary through secondary school. Total school district or charter school enrollment is included as a cost factor that accounts for relative economies of scale in the delivery of educational services.

D. The legislature finds further that the federal No Child Left Behind Act of 2001 requires states to employ highly qualified teachers to teach students in core academic subjects. The federal Individuals with Disabilities Education Act requires highly qualified personnel to provide holistic services for students in need of special education, as well as staff who are qualified to intervene before students are classified as needing special education. To carry out these mandates, and to continue encouraging school districts to hire and retain highly qualified teachers and instructional support providers, the 2012 funding formula replaces the training and experience index with an index of staff qualifications to provide the means to cover the costs associated with increased academic qualifications and experience for these personnel."

SECTION 2. Section 22-8-2 NMSA 1978 (being Laws 1978, Chapter 128, Section 3, as amended) is repealed and a new Section 22-8-2 NMSA 1978 is enacted to read:

A. "adjusted per-student cost" means the base per-student cost multiplied by the applicable formula adjustments;

B. "base per-student cost" means the reference value cost of providing an educational program to a qualified student attending the average size district with the average composition of enrollment across grade ranges kindergarten through five, six through eight and nine through twelve and with no formula adjustments applied;

C. "cost factor" means a measure of student need, grade level composition, scale of operations or staff qualifications;

D. "cost factor demographic data" means a school district's or charter school's student-need data pertaining to poverty, English language learners, special education and mobility;

E. "educational plan" means the educational plan for student success of a school district or charter school;

F. "enrollment" means the number of qualified students on the current roll of a class or public school on a specified day;

G. "formula adjustment" means a component of the funding formula that accounts for a differential cost associated with a cost factor;

I. "growth" means that a school district's or charter school's current-year October total enrollment is greater than its prior-year October total enrollment;

J. "head administrator" means the person responsible for the day-to-day operations of a charter school;

K. "mobility rate" means the district-level student-weighted average percentage of total enrollment that entered or left the school over the school year;

L. "operating budget" means the annual financial plan required to be submitted to the department by a local school board or governing body;

M. "public money" or "public funds" means all money from public or private sources received by a school district or charter school or officer or employee of a school district or charter school for public use;

(2) is regularly enrolled full time in the minimum course requirements approved by the department for public school students; and

(a) is at least five years of age prior to 12:01 a.m. on September 1 of the school year or will be five years of age prior to 12:01 a.m. on September 1 of the school year if the student is enrolled in a public school extended-year kindergarten program that begins prior to the start of the regular school year;

(b) is at least three years of age at any time during the school year and is receiving special education pursuant to rules of the department; or

O. "total enrollment" means the number of qualified students on a school's or charter school's roll on a specified day in all grade levels and in programs for three- and four-year-old developmentally disabled qualified students; and

P. "total program cost" means the adjusted per-student cost multiplied by the number of students in a school district or charter school."

"[NEW MATERIAL] ESTABLISHMENT OF ENROLLMENT.--The current roll of a class, public school and school district or charter school is established by the addition of original entries and re-entries minus withdrawals. Withdrawals of qualified students, in addition to qualified students formally withdrawn from the public school, include qualified students absent from the public school for as many as ten consecutive school days; provided that withdrawals do not include students in need of early intervention and habitual truants with whom the school district or charter school is required to intervene and keep in an educational setting as provided in Section 22-12-9 NMSA 1978."

SECTION 4. Section 22-8-6 NMSA 1978 (being Laws 1967, Chapter 16, Section 60, as amended by Laws 1999, Chapter 281, Section 21 and by Laws 1999, Chapter 291, Section 2) is amended to read:

A. Prior to April 15 of each year, each local school board shall submit to the department [an] a proposed operating budget for the school district [and any charter schools in the district] for the ensuing fiscal year. Upon written approval of the [state superintendent] secretary, the date for the submission of the proposed operating budget as required by this section may be extended to a later date fixed by the [state superintendent] secretary.

(1) estimates of the cost of insurance policies for periods up to five years if a lower rate may be obtained by purchasing insurance for the longer term; or

(2) estimates of the cost of contracts for the transportation of students for terms extending up to four years.

[C. The operating budget required by this section shall include a budget for each charter school of the membership projected for each charter school, the total program units generated at that charter school and approximate anticipated disbursements and expenditures at each charter school.

D.] C. If a local school board fails to submit a budget pursuant to this section, the department shall prepare the operating budget for the school district for the ensuing fiscal year. [A local school board shall be considered as failing to submit a]

D. The department shall not approve an operating budget pursuant to this section if the budget submitted:

(1) exceeds the total projected resources of the school district [or if the budget submitted];

(2) does not comply with the law or with rules and procedures of the department; or

(3) is not aligned with the school district's approved educational plan and, beginning with the 2013-2014 school year, performance measures pursuant to the Accountability in Government Act."

SECTION 5. Section 22-8-6.1 NMSA 1978 (being Laws 1993, Chapter 227, Section 8, as amended) is repealed and a new Section 22-8-6.1 NMSA 1978 is enacted to read:

A. Prior to April 15 of each year, the governing body of each state-chartered charter school shall submit its proposed operating budget to the charter schools division of the department for its approval or amendment pursuant to the Public School Finance Act and the Charter Schools Act. In order to receive final budget approval, the operating budget must be aligned to the school's approved educational plan.

B. Prior to April 15 of each year, the governing body of each locally chartered charter school shall submit its proposed operating budget at the same time to the department and the school district that chartered it. In order to be approved, the operating budget must be aligned to the school's approved educational plan. Beginning with the 2013-2014 school year, all charter schools shall submit performance-based budgets that comply with the requirements of the Accountability in Government Act on forms prescribed by the department. The local school board may comment on the operating budget and whether the operating budget is within the allotted resources of the charter school, but the local school board shall have no veto authority over the operating budget.

C. Upon written approval of the secretary, the date for submission of a proposed operating budget may be extended to a later date fixed by the secretary. If the governing body fails to submit its proposed operating budget pursuant to this section, the department shall prepare the operating budget for the charter school for the ensuing fiscal year. A governing body shall be considered as failing to submit an operating budget pursuant to this section if the operating budget submitted:

(2) does not comply with the law or with rules and procedures of the department; or

(3) is not aligned with the charter school's approved educational plan and performance measures.

D. For the second and subsequent years of operation, the proposed operating budget of a charter school shall be based on the charter school's cost factor demographic data and index of staff qualifications."

SECTION 6. Section 22-8-11 NMSA 1978 (being Laws 1967, Chapter 16, Section 66, as amended) is amended to read:

(1) [on or before July 1 of each year] approve and certify to each [local] school [board] district and [governing body of a state-chartered] charter school an operating budget for use by the school district or [state-chartered] charter school;

(2) make corrections, revisions and amendments to the operating budgets fixed by the local school boards or governing bodies [of state-chartered charter schools and the secretary] to conform the operating budgets to the requirements of law and to the department's rules and procedures; and

(3) ensure that a local school board or governing body [of a charter school] is prioritizing resources of a public school rated D or F toward proven programs and methods that are linked to improved student achievement until the public school earns a grade of C or better for two consecutive years.

B. No school district or [state-chartered] charter school or officer or employee of a school district or

[state-chartered] charter school shall make any expenditure or incur any obligation for the expenditure of public [funds] money unless that expenditure or obligation is made in accordance with an operating budget approved by the department. This prohibition does not prohibit the transfer of [funds] money pursuant to the department's rules and procedures.

C. The department shall not approve and certify an operating budget of any school district or [state-chartered] charter school that [fails to] does not align with the educational plan and, beginning with the operating budget for the 2013-2014 school year, the performance measures pursuant to the Accountability in Government Act and does not demonstrate that parental involvement in the budget process was solicited."

SECTION 7. Section 22-8-12.1 NMSA 1978 (being Laws 1978, Chapter 128, Section 5, as amended) is amended to read:

"22-8-12.1. [MEMBERSHIP] ADJUSTED PER-STUDENT COST PROJECTIONS AND BUDGET REQUESTS.--

A. Beginning with projections for the 2013-2014 school year, each [local school board or governing body of a state-chartered] school district and charter school shall submit annually, on or before October 15, to the department:

(a) the [membership of qualified students to be enrolled in the basic program] enrollment by grade level;

(b) the full-time-equivalent [membership of students to be enrolled] enrollment in approved early childhood education programs; [and]

(2) all other information necessary to calculate total program [costs] cost; and

(3) any other information related to the financial needs of the school district or [state-chartered] charter school as may be requested by the department.

B. All information requested pursuant to Subsection A of this section shall be submitted on forms prescribed and furnished by the department and shall comply with the department's rules and procedures.

(1) review the financial needs of each school district [or state-chartered] and charter school for the succeeding fiscal year; and

(2) submit annually, on or before November 30, to the secretary of finance and administration the recommendations of the department for:

(b) appropriations for the succeeding fiscal year to the public school fund for inclusion in the executive budget document; and

SECTION 8. Section 22-8-17 NMSA 1978 (being Laws 1974, Chapter 8, Section 7, as amended) is amended to read:

A. The department shall calculate the total program cost for each school district and charter school [shall be determined by the department] in accordance with the provisions of the Public School Finance Act.

B. The department [is authorized to] may require from each school district and charter school the information necessary to make an accurate determination of the district's or charter school's total program cost."

SECTION 9. Section 22-8-18 NMSA 1978 (being Laws 1974, Chapter 8, Section 8, as amended by Laws 2007, Chapter 347, Section 1 and by Laws 2007, Chapter 348, Section 2 and also by Laws 2007, Chapter 365, Section 1) is repealed and a new Section 22-8-18 NMSA 1978 is enacted to read:

"22-8-18. [NEW MATERIAL] PROJECTED ADJUSTED PER-STUDENT COST CALCULATION FOR SCHOOL DISTRICTS AND CHARTER SCHOOLS--LOCAL RESPONSIBILITY.--

(2) "exp" means the exponential function with its base being the mathematical constant e; and

B. The cost factors used to determine the adjusted per-student cost for a school district or charter school are:

(1) poverty, which is measured by the percentage of qualified students in a school who qualified for free or reduced-price lunch as of September 30 of the prior school year;

(2) English language learners, which is measured by the percentage of qualified students designated as English language learners based on a department-approved English language proficiency assessment;

(3) special education, which is measured by sixteen percent of the number of qualified students for school districts and by the percentage of qualified students who are required by the federal Individuals with Disabilities Education Act to have an individualized education program for the delivery of special education and includes developmentally disabled three- and four-year-old qualified students for charter schools;

(4) mobility, which is the mobility rate determined by the following formula: 1-(1÷(1+ statewide mobility ratio)), where the mobility ratio is determined annually by the department;

C. The adjusted per-student cost for school districts is determined by multiplying the base per-student cost by a series of formula adjustments as follows:

weighted index of staff qualifications formula adjustment determined pursuant to Section 22-8-24 NMSA 1978".

D. The funding formula equation used to determine the adjusted per-student cost for charter schools is determined by multiplying the base per-student cost by a series of formula adjustments as follows:

weighted index of staff qualifications adjustment as determined pursuant to Section 22-8-24 NMSA 1978".

E. The total adjusted per-student cost for a charter school shall not exceed that of the school district in which it is located.

F. The exponents and denominators used in the formula adjustments shall remain constant until they are redetermined after the required periodic funding formula study.

G. Except as otherwise provided in this section, cost factor demographic data and total enrollment are based on the average of the prior year's total enrollment reported in December and February and the prior-year cost factor demographic data.

H. A school district or charter school that is experiencing growth may elect to use the greater of the prior-year average December and February total enrollment or the current-year October total enrollment, as determined by the difference in the prior-year October total enrollment and the current-year October total enrollment.

I. The legislature shall provide categorical funding for the first year of operation for a school district or charter school that has received final authorization.

J. The special education formula adjustment for a school district is calculated using sixteen percent of the number of qualified students in the school district.

K. The special education formula adjustment for a charter school is calculated using the actual number of appropriately identified special education qualified students who are receiving special education on the October enrollment report. The legislature finds that charter schools are designed for unique populations and the range of variation in special education in charter schools is wider and often well below school district averages; therefore, it is rational and reasonable to differentiate between school districts and charter schools in the special education cost factor.

(1) update the cost factors of each school district and charter school to determine their respective formula adjustments for that year; and

M. The department shall undertake a thorough funding formula study every ten years, or more frequently if the legislature determines a need, to update the current funding formula to determine the formula's equation exponents and denominators."

SECTION 10. Section 22-8-24 NMSA 1978 (being Laws 1974, Chapter 8, Section 15, as amended by Laws 1993, Chapter 91, Section 1 and also by Laws 1993, Chapter 237, Section 3) is repealed and a new Section 22-8-24 NMSA 1978 is enacted to read:

A. For the purpose of calculating the index of staff qualifications, the following definitions and limitations apply:

(2) the number of instructional staff to be counted in calculating the index of staff qualifications is the actual number of full-time-equivalent instructional staff on the October payroll of the prior year;

(3) the number of years of experience to be used in calculating the index of staff qualifications is the number of years of experience as determined by the department; and

(4) the academic degree and additional credit hours to be used in calculating the index of staff qualifications are the degree and additional semester credit hours allowed for salary increment purposes on the salary schedule of the school district or charter school.

B. The factors for each classification of academic training by years of experience are as follows:

	Years of Experience
	Level I			Level II				Level III
Academic Classification	0-1	2-3	4-5	4-6	7-8	9-15	Over 15	7-8	9-15	Over 15
Bachelor's degree	0.64	0.67	0.71	0.76	0.82	0.93	1.04	0.90	1.02	1.17
Master's degree or national board certification	0.68	0.72	0.76	0.81	0.88	1.00	1.11	0.96	1.09	1.25
Master's degree plus 45 credit hours or post-master's degree	0.71	0.75	0.79	0.85	0.92	1.05	1.16	1.01	1.14	1.31

C. The index of staff qualifications for each school district and charter school shall be calculated in accordance with instructions issued by the department. The following calculation shall be made to compute the value of the index of staff qualifications:

(1) multiply the number of full-time-equivalent teachers in each academic classification and level in the matrix by the numerical factor in the appropriate "years of experience" column provided in Subsection B of this section;

(2) add the adjusted full-time-equivalent teachers calculated in Paragraph (1) of this subsection; and

(3) divide the total obtained in Paragraph (2) of this subsection by the total number of full-time-equivalent instructional staff.

D. If the result of the calculation of the index of staff qualifications for a school district or charter school is less than 1.0, its factor shall be 1.0.

E. If a new school district is created, the index of staff qualifications for that school district for the first year of operation shall be 1.0.

F. If a school district's or charter school's index of staff qualifications is greater than 1.0, the index of staff qualifications formula adjustment used to determine the adjusted per-student cost is equal to the amount determined in Subsection C of this section multiplied by the percentage of the prior year's budget for instructional staff salaries and benefits plus a factor equal to one hundred percent minus the percentage of the prior year's budget for instructional staff salaries and benefits."

SECTION 11. Section 22-8-25 NMSA 1978 (being Laws 1981, Chapter 176, Section 5, as amended) is amended to read:

A. The state equalization guarantee distribution is that amount of money distributed to each school district to ensure that its operating revenue, including its local and federal revenues as defined in this section, is at least equal to the school district's total program cost. For [state-chartered] charter schools, the state equalization guarantee distribution is the difference between the [state-chartered] charter school's total program cost and the two percent withheld by the school district or the department for administrative services.

B. "Local revenue", as used in this section, means seventy-five percent of receipts to the school district derived from that amount produced by a school district property tax applied at the rate of fifty cents ($.50) to each one thousand dollars ($1,000) of net taxable value of property allocated to the school district and to the assessed value of products severed and sold in the school district as determined under the Oil and Gas Ad Valorem Production Tax Act and upon the assessed value of equipment in the school district as determined under the Oil and Gas Production Equipment Ad Valorem Tax Act.

C. "Federal revenue", as used in this section, means receipts to the school district, excluding amounts that, if taken into account in the computation of the state equalization guarantee distribution, result, under federal law or regulations, in a reduction in or elimination of federal school funding otherwise receivable by the school district, derived from the following:

(1) seventy-five percent of the school district's share of forest reserve funds distributed in accordance with Section 22-8-33 NMSA 1978; and

(2) seventy-five percent of grants from the federal government as assistance to those areas affected by federal activity authorized in accordance with Title 20 of the United States Code, commonly known as "PL 874 funds" or "impact aid".

D. To determine the amount of the state equalization guarantee distribution, the department shall

[(1) calculate the number of program units to which each school district or charter school is entitled using an average of the MEM on the second and third reporting dates of the prior year; or

(2) calculate the number of program units to which a school district or charter school operating under an approved year-round school calendar is entitled using an average of the MEM on appropriate dates established by the department; or

(3) calculate the number of program units to which a school district or charter school with a MEM of two hundred or less is entitled by using an average of the MEM on the second and third reporting dates of the prior year or the fortieth day of the current year, whichever is greater; and

(4) using the results of the calculations in Paragraph (1), (2) or (3) of this subsection and the instructional staff training and experience index from the October report of the prior school year, establish a total program cost of the school district or charter school;

(5) for school districts, calculate the local and federal revenues as defined in this section;

(6) deduct the sum of the calculations made in Paragraph (5) of this subsection from the program cost established in Paragraph (4) of this subsection;

(7)] determine the total program cost for each school district and charter school and subtract the local and federal revenue. The department shall deduct the total amount of guaranteed energy savings contract payments that the department determines will be made to the school district from the public school utility conservation fund during the fiscal year for which the state equalization guarantee distribution is being computed and [(8)] deduct ninety percent of the amount certified for the school district by the department pursuant to the Energy Efficiency and Renewable Energy Bonding Act.

E. Reduction of a school district's state equalization guarantee distribution pursuant to the Energy Efficiency and Renewable Energy Bonding Act shall cease when the school district's cumulative reductions equal its proportional share of the cumulative debt service payments necessary to service the bonds issued pursuant to [the Energy Efficiency and Renewable Energy Bonding] that act.

[F. The amount of the state equalization guarantee distribution to which a school district is entitled is the balance remaining after the deductions made in Paragraphs (6) through (8) of Subsection D of this section.

G.] F. The state equalization guarantee distribution shall be distributed prior to June 30 of each fiscal year. The calculation shall be based on the local and federal revenues specified in this section received from June 1 of the previous fiscal year through May 31 of the fiscal year for which the state equalization guarantee distribution is being computed. In the event that a school district or charter school has received more state equalization guarantee funds than its entitlement, a refund shall be made by the school district or charter school to the state general fund."

"[NEW MATERIAL] SPECIAL EDUCATION CATASTROPHIC AID FUND--CREATED--DISTRIBUTION--LOCAL EFFORT.--

A. As used in this section, "high-cost special education" means the provision of special education and related services to a qualified student, the cost of which exceeds the established threshold amount above the base per-student cost.

B. The "special education catastrophic aid fund" is created in the state treasury. The fund consists of appropriations, gifts, grants, donations and any other money credited to the fund. Money in the fund shall revert to the general fund at the end of a fiscal year. The fund shall be administered by the department, and money in the fund is appropriated to the department to provide grants to school districts to assist them in paying costs associated with high-cost special education students.

C. A school district may apply to the department for a grant from the fund to help defray the cost of providing high-cost special education. The application shall be in a form approved by the department and shall include the documentation required by the department. A single grant shall not exceed seventy-five percent of the projected cost of providing the high-cost special education for a given school year.

D. Based on the legislative appropriation each year, the department shall determine the threshold amount for high-cost special education."

"[NEW MATERIAL] NEW PUBLIC SCHOOL FUNDING FORMULA FUND--GENERAL FUND RESERVES.--The "new public school funding formula fund" is created in the state treasury as part of the general fund reserves. The fund is a nonreverting fund and shall consist of money from the separate account of the appropriation contingency fund that represented a distribution from the permanent fund pursuant to Paragraph (1) of Subsection G of Section 7 of Article 12 of the constitution of New Mexico that was made in Laws 2004, Chapter 114, Section 12 and any other appropriations made to the fund. The new public school funding formula fund is subject to appropriation by the legislature to hold school districts and charter schools harmless in the implementation of the new public school funding formula in the 2013-2014 school year."

"[NEW MATERIAL] NEW CHARTER SCHOOLS--FISCAL IMPACT STUDY--LEGISLATIVE APPROVAL FOR FUNDING PRIOR TO FINAL AUTHORIZATION.--

A. The chartering authority shall conduct a fiscal impact study before approving a new charter school, including the fiscal impact of a new charter school on the school district in which it is located and the fiscal impact on the public school funding formula and the state equalization guarantee distribution for all public schools. The fiscal impact study shall be reviewed and approved by the department prior to issuance. The costs of a charter school's planning year and its first year of operation are subject to the availability of funds appropriated by the legislature.

B. A charter school shall not receive final authorization for establishment until the legislature has approved funding for the charter school. After final authorization for establishment by the chartering authority and after the charter school's planning year, the legislature shall fund the charter school through categorical funding and the charter school shall not receive a state equalization guarantee distribution for its first year of operation."

SECTION 15. Section 22-30-6 NMSA 1978 (being Laws 2007, Chapter 292, Section 6 and Laws 2007, Chapter 293, Section 6) is amended to read:

A. A student must be enrolled in a public school or a state-supported school and must have the permission of the student's local distance education learning site to enroll in a distance learning course. A distance learning student shall only be counted in the student's primary enrolling district for the purpose of determining the [membership] enrollment used to calculate a school district's state equalization guarantee. A student shall have only one primary enrolling district.

B. A home school [student] school-age person may participate in the statewide cyber academy by enrolling for one-half or more of the minimum course requirements approved by the department for public school students in the school district in which the student resides; or, if the student is enrolled for less than one-half of the minimum course requirements, the student may participate in the statewide cyber academy by paying not more than thirty-five percent of the current [unit value per curricular unit] base per-student cost.

C. A student enrolled in a nonpublic school may participate in the statewide cyber academy if the school in which the student is enrolled enters into a contract with the school district in which the nonpublic school is located to pay required tuition.

D. A student who is detained in or committed to a juvenile detention facility or a facility for the long-term care and rehabilitation of delinquent children may participate in the statewide cyber academy if the facility in which the student is enrolled enters into a contract with the school district in which the facility is located."

SECTION 16. TEMPORARY PROVISION--ENROLLMENT REPORTS--MEM--STATUTORY REFERENCES.--

A. References in the Public School Code to the fortieth day membership shall be deemed to be references to the total enrollment on the second Wednesday in October.

B. References in the Public School Code to the eightieth day membership shall be deemed to be references to the total enrollment on the second Wednesday in December.

C. References in the Public School Code to the one hundred twentieth day membership shall be deemed to be references to the total enrollment on the second Wednesday in February.

D. References in the Public School Code to MEM or membership shall be deemed to be references to enrollment.

A. Forty million dollars ($40,000,000) is appropriated from the separate account of the appropriation contingency fund that represented a distribution from the permanent fund pursuant to Paragraph (1) of Subsection G of Section 7 of Article 12 of the constitution of New Mexico and that was created in Laws 2004, Chapter 114, Section 12 to the new public school funding formula fund in fiscal year 2013 to carry out the purposes of the fund.

B. Two hundred thousand dollars ($200,000) is appropriated from the general fund to the public education department for expenditure in fiscal years 2013 and 2014 to plan and implement the new public school funding formula, including data collection and reporting. Any unexpended or unencumbered balance remaining at the end of fiscal year 2014 shall revert to the general fund.

SECTION 18. REPEAL.--Sections 22-8-3, 22-8-7.1, 22-8-19, 22-8-20 through 22-8-23.8 and 22-8-25.1 NMSA 1978 (being Laws 1988, Chapter 64, Section 14; Laws 1993, Chapter 224, Section 1; Laws 1974, Chapter 8, Section 9; Laws 1991, Chapter 85, Section 3; Laws 1974, Chapter 8, Section 11; Laws 1974, Chapter 8, Section 13; Laws 1975, Chapter 119, Section 1; Laws 1990 (1st S.S.), Chapter 3, Sections 7 and 8; Laws 1993, Chapter 237, Section 2; Laws 1997, Chapter 40, Section 7; Laws 2003, Chapter 144, Section 2 and Laws 2003, Chapter 152, Section 9; Laws 2003, Chapter 144, Section 3 and Laws 2003, Chapter 152, Section 8; Laws 2006, Chapter 94, Section 15; Laws 2007, Chapter 348, Section 1; Laws 2007, Chapter 365, Section 2; and Laws 1985 (1st S.S.), Chapter 15, Section 17, as amended) are repealed.

A. The effective date of the provisions of Sections 1, 4 through 7, 13, 14 and 17 of this act is July 1, 2012.

B. The effective date of the provisions of Sections 2, 3, 8 through 12, 15, 16 and 18 of this act is July 1, 2013.