SENATE BILL 182
53rd legislature - STATE OF NEW MEXICO - first session, 2017
INTRODUCED BY
Mary Kay Papen
AN ACT
RELATING TO PUBLIC FINANCE; ENACTING THE EARLY CHILDHOOD LAND GRANT ACT; CREATING THE EARLY CHILDHOOD LAND GRANT PERMANENT FUND AND THE EARLY CHILDHOOD INCOME FUND; PROVIDING FOR ANNUAL DISTRIBUTIONS FROM THE EARLY CHILDHOOD LAND GRANT PERMANENT FUND AND AUTHORIZING EXPENDITURE OF THOSE DISTRIBUTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Early Childhood Land Grant Act".
SECTION 2. [NEW MATERIAL] FINDINGS AND PURPOSE.--The legislature finds that:
A. New Mexico has the highest rate of child poverty in the United States, according to a study by New Mexico voices for children;
B. brain and biological development during the first years of life is highly influenced by environment, and early childhood experiences may determine health, education, economic and social participation for the rest of a person's life;
C. achievement gaps among children begin extremely early and persist. Science has shown that achievement gaps that exist between children in poverty and their more economically advantaged peers are evident as early as eighteen months;
D. children who start behind in school tend to stay behind, an achievement gap that multiplies over time. To break this cycle, it is important to focus on children when they are very young;
E. the social and financial costs to New Mexico and the United States for failed potential in children are enormous, and these costs could be ameliorated by adequate funding for early childhood services;
F. in its report on early childhood, the world health organization noted that "globally, societies that invest in children and families in early years, whether rich or poor, have the most literate and numerate populations. These are also the societies that have the best health status and lowest levels of health inequality in the world";
G. investing in young children is an essential component for the development of New Mexico, as early opportunities for learning increase the likelihood that a child will attend school and, as an adult, achieve higher income, maintain better health, experience less crime and have lower levels of welfare dependence than those who do not receive early development support;
H. long-term studies have shown that for every one dollar ($1.00) the state invests in early childhood programs, it can receive a return of up to approximately ten dollars ($10.00) over the life of the child, and, because these programs improve academic outcomes, early childhood programs can improve workforce readiness and job productivity;
I. the state of New Mexico does not currently have sufficient resources to address these problems;
J. addressing these issues may reduce both the federal and state need to allocate future resources to remediate the lasting effects on these children's educational and life development;
K. the federal government holds a vast amount of unleased federal subsurface mineral acreage beneath private land within New Mexico; and
L. this unleased federal subsurface mineral acreage beneath private land within New Mexico could be transferred to the state of New Mexico and managed by the state land office to be held in trust for the purpose of raising revenue to specifically support and fund early childhood services.
SECTION 3. [NEW MATERIAL] EARLY CHILDHOOD LAND GRANT PERMANENT FUND--INVESTMENT--DISTRIBUTION.--
A. The "early childhood land grant permanent fund" is created in the state treasury. The state treasurer shall deposit in the early childhood land grant permanent fund all money generated by the commissioner of public lands and the state land office through the management, care, custody, control and disposition of any and all unleased federal subsurface mineral acreage beneath private land transferred to the state of New Mexico after the effective date of the Early Childhood Land Grant Act; provided that none of the lands were granted or could be construed to have been granted under the Enabling Act for New Mexico. Exempted from the provisions of this section is money generated in counties with a population over one hundred forty thousand.
B. Money in the fund shall be invested by the state investment officer as land grant permanent funds are invested pursuant to Chapter 6, Article 8 NMSA 1978. Money in the fund shall not be expended for any purpose, but an annual distribution shall be made to the early childhood income fund in accordance with Subsection C of this section for appropriation by the legislature for early childhood services and for state land office management of any and all unleased federal subsurface mineral acreage beneath private land transferred from the federal government to the state of New Mexico after the effective date of the Early Childhood Land Grant Act for the benefit of early childhood services as provided by law. Earnings from investment of the fund shall be credited to the fund.
C. An annual distribution shall be made from the early childhood land grant permanent fund to the early childhood income fund in an amount equal to the interest, dividends and capital gains of the early childhood land grant permanent fund as generated under the care of the state investment officer. The annual distribution shall be made no later than September 1 of each fiscal year.
SECTION 4. [NEW MATERIAL] EARLY CHILDHOOD INCOME FUND CREATED--PURPOSES.--
A. The "early childhood income fund" is created in the state treasury and shall consist of distributions made to the fund from the early childhood land grant permanent fund. Money in the fund may be appropriated by the legislature solely for the purposes specified in Subsections B and C of this section.
B. Ninety-five percent of the early childhood income fund shall be appropriated annually by the legislature for early childhood services as provided by law. As used in this section, "early childhood services" means nonsectarian services for children from birth until the age of kindergarten eligibility as provided by law.
C. Five percent of the early childhood income fund shall be appropriated annually to the state land office to provide for the costs incurred in generating revenue from the management, care, custody, control and disposition of the lands identified in Section 3 of the Early Childhood Land Grant Act for the benefit of early childhood services.
D. Unexpended or unencumbered balances remaining in the early childhood income fund at the end of any fiscal year shall revert to the early childhood land grant permanent fund.
- 6 -