SENATE EDUCATION COMMITTEE SUBSTITUTE FOR

SENATE BILL 317

54th legislature - STATE OF NEW MEXICO - second session, 2020

 

 

 

 

 

 

 

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; CREATING THE FEDERALLY IMPACTED LOCATION SUPPORT FUND; PROVIDING ANNUAL GRANTS TO CERTAIN SCHOOL DISTRICTS AND STATE-CHARTERED CHARTER SCHOOLS.

 

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 FUND-- ANNUAL GRANTS.--

          A. The "federally impacted location support fund" is created as a nonreverting fund in the state treasury. The fund consists of appropriations, gifts, grants and donations. The fund shall be administered by the department to provide grants to federally impacted school districts and state-chartered charter schools as provided in this section. Money in the fund shall be expended only as provided by legislative appropriation. Money in the fund shall be disbursed on warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of public education or the secretary's authorized representative.

          B. Grants made pursuant to this section shall not exceed an amount equal to the average amount of federal revenue calculated pursuant to Paragraph (2) of Subsection C of Section 22-8-25 NMSA 1978 that was included in the calculation of the school district's or state-chartered charter school's state equalization guarantee distribution for the immediately preceding five fiscal years, not including the immediately preceding fiscal year; provided that if sufficient funding is not available in the federally impacted location support fund to make a distribution to each school district and state-chartered charter school in that average amount, the secretary shall reduce each school district's and state-chartered charter school's grant proportionately.

          C. The department shall not make a grant to any school district or state-chartered charter school in any fiscal year in which the department has not received final certification from the United States department of education that the state has in effect a program of state aid that equalizes expenditures for free public education among local education agencies in the state pursuant to 20 U.S.C. 7709.

          D. A school district or state-chartered charter school that receives a grant from the federally impacted location support fund shall:

                (1) use the grant only for:

                     (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; or

                     (d) community services;

                (2) spend no more than fifty percent of the annual grant for capital expenditures and debt service; and

                (3) submit a detailed report by October 1 of each year to the department, the legislative education study committee and the legislative finance committee of all expenditures of the annual grant in the previous fiscal year and data on how use of the grant has affected student outcomes.

          E. As appropriated by the legislature and upon application by school districts and state-chartered charter schools, the department may make annual grants each fiscal year from the fund to school districts and state-chartered charter schools that received federal impact aid for which the department took credit as provided in Section 22-8-25 NMSA 1978 in the immediately preceding five fiscal years, not including the immediately preceding fiscal year, and is receiving federal impact aid in the current fiscal year. Applications for grants shall be due to the department by March 1. The department shall notify applicants of a preliminary award no later than April 15.

          F. Prior to May 1 of each year, each school district or state-chartered charter school that has applied for a grant pursuant to this section shall submit to the department a budget for the grant consistent with Subsection D of this section. If a school district or state-chartered charter school fails to submit a grant budget by May 1 of any year, the department shall not award a grant to that school district or state-chartered charter school. A school district or state-chartered charter school shall be considered as failing to submit a budget pursuant to this section if the budget submitted exceeds the total projected grant pursuant to Subsection B of this section.

          G. On or before July 1 of each year, the department shall approve and certify to each applicable school district and state-chartered charter school a grant budget for use by the school district or state-chartered charter school if the budget it submitted was approved and complies with the requirements of Subsection D of this section."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2020.

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