HOUSE BILL 4
54th legislature - STATE OF NEW MEXICO - second session, 2020
Patricia A. Lundstrom and Brian Egolf and Harry Garcia and Anthony Allison and Eliseo Lee Alcon
RELATING TO PUBLIC SCHOOL FINANCE; CREATING THE FEDERALLY IMPACTED LOCATION SUPPORT PROGRAM TO PROVIDE ANNUAL GRANT AWARDS TO SCHOOL DISTRICTS AND STATE-CHARTERED CHARTER SCHOOLS THAT RECEIVE IMPACT AID; CREATING A FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Public School Finance Act is enacted to read:
"[NEW MATERIAL] FEDERALLY IMPACTED LOCATION SUPPORT PROGRAM CREATED--GRANTS.--
A. As used in this section, "annual award" means a percentage, as provided in this section and as solely determined by the department, of the average amount of impact aid received by a school district or state-chartered charter school for the preceding five school years. The annual award percentage shall be phased in over three years so that the annual award percentage in fiscal year 2021 is twenty-five percent, in fiscal year 2022 is fifty percent and in fiscal year 2023 and subsequent fiscal years is seventy-five percent of the average amount of impact aid received by a school district or state-chartered charter school.
B. The "federally impacted location support program" is created to provide support to school districts and state-chartered charter schools for the additional costs associated with operating in or near federally impacted locations and serving students associated with those locations while maintaining the state's equalized education funding system. The department shall promulgate rules to implement the program.
C. A federally impacted location support grant is available annually to school districts and state-chartered charter schools that received impact aid during the immediately preceding five school years if those funds were included in the calculation of federal revenue as provided in Section 22-8-25 NMSA 1978.
D. A school district or state-chartered charter school that receives an annual award shall:
(1) use the award only for expenditures associated with:
(a) capital expenditures;
(b) debt service;
(c) educating students who: 1) receive special education services; 2) have a disability; 3) are economically disadvantaged; 4) are English language learners; or 5) are participants in gifted education programs;
(d) community services; or
(e) purposes described in department rule;
(2) spend no more than fifty percent of the award for capital expenditures and debt service; and
(3) submit a biannual certification to the department that all expenditures of the annual awards are made in accordance with the provisions of this section and rules promulgated by the department."
SECTION 2. A new section of the Public School Finance Act is enacted to read:
"[NEW MATERIAL] FEDERALLY IMPACTED LOCATION SUPPORT PROGRAM FUND.--The "federally impacted location support program fund" is created as a nonreverting fund in the state treasury. The fund consists of appropriations, gifts, grants, donations and income from investment of the fund. The fund shall be administered by the department to make annual awards to eligible school districts and state-chartered charter schools pursuant to the federally impacted location support program. Money in the fund shall be expended only as provided in the legislative appropriation. Money in the fund shall be disbursed on warrants signed by the secretary of finance and administration pursuant to vouchers signed by the secretary of public education or the secretary's authorized representative."
SECTION 3. APPROPRIATION.--Eighteen million eight hundred sixty-six thousand six hundred sixty-six dollars ($18,866,666) is appropriated from the general fund to the federally impacted location support program fund for expenditure in fiscal year 2021 to carry out the provisions of the federally impacted location support program. Any unexpended or unencumbered balance remaining at the end of the fiscal year shall not revert to the general fund.
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2020.
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