0001| HOUSE BILL 75
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| FRANK BIRD
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO EDUCATION; CHANGING CERTAIN REQUIREMENTS OF PUBLIC
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0012| SCHOOL ACCOUNTING AND BUDGETING TO ESTABLISH LOCAL SCHOOL
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0013| BOARD FUNDING CONTROL.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 22-8-2 NMSA 1978 (being Laws 1978,
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0017| Chapter 128, Section 3, as amended) is amended to read:
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0018| "22-8-2. DEFINITIONS.--As used in the Public School
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0019| Finance Act:
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0020| A. "ADM" or "MEM" means membership;
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0021| B. "membership" means the total enrollment of
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0022| qualified students on the current roll of a class or school on
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0023| a specified day. The current roll is established by the
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0024| addition of original entries and reentries minus withdrawals.
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0025| Withdrawals of students, in addition to students formally
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0001| withdrawn from the public school, include students absent from
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0002| the public school for as many as ten consecutive school days;
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0003| C. "basic program ADM" or "basic program MEM"
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0004| means the MEM of qualified students but excludes the full-
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0005| time-equivalent MEM in early childhood education and three-
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0006| and four-year-old students receiving special education
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0007| services;
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0008| D. "cost differential factor" is the numerical
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0009| expression of the ratio of the cost of a particular segment of
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0010| the school program to the cost of the basic program in grades
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0011| four through six;
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0012| E. "department" or "division" means the state
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0013| department of public education;
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0014| F. "early childhood education ADM" or "early
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0015| childhood education MEM" means the full-time-equivalent MEM of
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0016| students attending approved early childhood education
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0017| programs;
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0018| G. "full-time-equivalent ADM" or "full-time-
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0019| equivalent MEM" is that membership calculated by applying to
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0020| the MEM in an approved public school program the ratio of the
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0021| number of hours per school day devoted to the program to six
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0022| hours or the number of hours per school week devoted to the
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0023| program to thirty hours;
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0024| H. "operating budget" means the annual financial
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0025| plan [required to be submitted] approved by a local school
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0001| board and submitted to the department;
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0002| I. "program cost" is the product of the total
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0003| number of program units to which a school district is entitled
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0004| multiplied by the dollar value per program unit established by
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0005| the legislature;
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0006| J. "program element" is that component of a public
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0007| school system to which a cost differential factor is applied
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0008| to determine the number of program units to which a school
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0009| district is entitled, including but not limited to MEM, full-
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0010| time-equivalent MEM, teacher, classroom or public school;
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0011| K. "program unit" is the product of the program
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0012| element multiplied by the applicable cost differential factor;
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0013| L. "public money" or "public funds" means all
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0014| money from public or private sources received by a local
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0015| school board or officer or employee of a local school board
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0016| for public use;
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0017| M. "qualified student" means a public school
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0018| student who:
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0019| (1) has not graduated from high school;
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0020| (2) is regularly enrolled in one-half or more
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0021| of the minimum course requirements approved by the state board
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0022| for public school students; and
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0023| (3) is at least five years of age prior to
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0024| 12:01 a.m. on September 1 of the school year; or
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0025| (4) is at least three years of age at any
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0001| time during the school year and is receiving special education
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0002| services pursuant to regulation of the state board; or
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0003| (5) has not reached his twenty-second
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0004| birthday on the first day of the school year and is receiving
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0005| special education services pursuant to regulation of the state
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0006| board; and
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0007| N. "state superintendent" means the superintendent
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0008| of public instruction or his designee."
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0009| Section 2. Section 22-8-4 NMSA 1978 (being Laws 1967,
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0010| Chapter 16, Section 58, as amended) is amended to read:
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0011| "22-8-4. DEPARTMENT--DUTIES.--In addition to other
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0012| duties provided by law, the department shall:
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0013| A. [prescribe the forms for and supervise and
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control the preparation of all budgets of all public schools
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and school districts] provide technical assistance to a
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0016| local school board to prepare its budget and the budgets of
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0017| the schools located within the school district; and
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0018| B. compile accurate information concerning public
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0019| school finance and administration."
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0020| Section 3. Section 22-8-5 NMSA 1978 (being Laws 1967,
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0021| Chapter 16, Section 59, as amended) is amended to read:
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0022| "22-8-5. [MANUAL OF ACCOUNTING AND BUDGETING] UNIFORM
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0023| ACCOUNTING.--
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0024| A. The department shall [compile and publish a
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manual prescribing detailed regulations] promulgate rules
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0001| for a uniform system of accounting and budgeting of funds for
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0002| all public schools and school districts of the state. The
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0003| [manual of regulations and any revision or amendments
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thereto] rules, including revisions or amendments, shall
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0005| become effective only upon approval by the state board [of
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education] and the legislative finance committee, filing with
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0007| the state records center and publication. A copy shall also
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0008| be filed with the department of finance and administration.
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0009| B. All public schools and school districts shall
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0010| comply with the [regulations prescribed in the manual of
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accounting and budgeting] rules promulgated by the
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0012| department and shall, upon request, submit additional reports
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0013| concerning finances to the [department. In addition, upon
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request, all public schools and school districts shall file
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reports with the department containing pertinent details
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regarding applications for federal money or federal grants-in-
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aid or regarding federal money or federal grants-in-aid
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received, including but not limited to details of programs,
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matching funds, personnel requirements, salary provisions and
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program numbers, as indicated in the catalog of federal
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domestic assistance, of the federal funds applied for and of
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those received] legislative finance committee and the
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0023| legislative education study committee.
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0024| C. Upon request by the department of finance and
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0025| administration, the legislative finance committee or the
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0001| legislative education study committee, the [state]
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0002| department [of public education] shall timely furnish
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0003| information and data obtained from public schools and school
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0004| districts [pursuant to Subsection B of this section]
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0005| regarding applications for federal money, federal grants or
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0006| other federal funding received."
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0007| Section 4. Section 22-8-6 NMSA 1978 (being Laws 1967,
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0008| Chapter 16, Section 60, as amended by Laws 1993, Chapter 224,
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0009| Section 2 and also by Laws 1993, Chapter 227, Section 9) is
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0010| amended to read:
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0011| "22-8-6. BUDGETS--SUBMISSION--FAILURE TO SUBMIT.--
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0012| A. Prior to April 15 of each year, each local
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0013| school board shall [submit] provide to the department an
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0014| estimated budget for the school district for the ensuing
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0015| fiscal year. Upon written approval of the state
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0016| superintendent, the date for the submission of the estimated
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0017| budget as required by this section may be extended to a later
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0018| date fixed by the state superintendent.
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0019| B. The estimated budget required by this section
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0020| may include:
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0021| (1) estimates of the cost of insurance
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0022| policies for periods up to five years if a lower rate may be
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0023| obtained by purchasing insurance for the longer term; or
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0024| (2) estimates of the cost of contracts for
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0025| the transportation of students for terms extending up to four
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0001| years.
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0002| C. The estimated budget required by this section
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0003| shall include a proposed breakdown for charter schools in the
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0004| [local] school district, by individual charter school, of
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0005| the membership projected for each charter school, the total
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0006| program units generated at that charter school and approximate
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0007| anticipated disbursements and expenditures at each charter
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0008| school.
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0009| D. If a local school board fails to submit a
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0010| budget pursuant to this section, the department shall prepare
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0011| the estimated budget for the school district for the ensuing
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0012| fiscal year. A local school board shall be considered as
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0013| failing to submit a budget pursuant to this section if the
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0014| budget submitted exceeds the total projected resources of the
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0015| school district or if the budget submitted does not comply
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0016| with the law [or the manual of accounting and budgeting of
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the department]."
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0018| Section 5. Section 22-8-6.1 NMSA 1978 (being Laws 1993,
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0019| Chapter 227, Section 8) is amended to read:
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0020| "22-8-6.1. CERTAIN SCHOOL DISTRICT BUDGETS.--
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0021| A. In those school districts with authorized
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0022| charter schools, each charter school shall submit to the local
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0023| school board a school-based budget. The budget shall be based
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0024| upon the projected total MEM at that school and the projected
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0025| number of program units generated by students at that
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0001| individual school.
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0002| B. The budget shall be submitted to the local
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0003| school board for approval or amendment. Charter school
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0004| budgets that are not approved by the local school board may be
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0005| appealed to the state board.
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0006| C. Upon final approval of the budget by the
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0007| local school board, the individual school budget shall be
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0008| included in the budget [submission] provided to the
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0009| department [of education] required pursuant to the Public
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0010| School Finance Act and required pursuant to the Charter
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0011| Schools Act."
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0012| Section 6. Section 22-8-7 NMSA 1978 (being Laws 1967,
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0013| Chapter 16, Section 61, as amended) is amended to read:
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0014| "22-8-7. BUDGETS--FORM.--All budgets [submitted]
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0015| provided to the [division] department by a school
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0016| district shall be in a form specified by [the manual of
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accounting and budgeting of the division] the rules
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0018| promulgated by the department."
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0019| Section 7. Section 22-8-9 NMSA 1978 (being Laws 1967,
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0020| Chapter 16, Section 63, as amended) is amended to read:
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0021| "22-8-9. BUDGETS--MINIMUM REQUIREMENTS.--
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0022| A. [No] A budget for a school district shall
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0023| [be approved by the department that does not] provide for:
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0024| (1) a school year consisting of at least one
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0025| hundred eighty full instructional days or the equivalent
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0001| thereof, exclusive of any release time for in-service
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0002| training; or
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0003| (2) a variable school year consisting of a
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0004| minimum number of instructional hours established by the state
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0005| board; and
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0006| (3) a pupil-teacher ratio or class or
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0007| teaching load as provided in Section 22-2-8.2 NMSA 1978.
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0008| B. The state board shall, by regulation, establish
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0009| the requirements for a teaching day, the standards for an
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0010| instructional hour and the standards for a full-time certified
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0011| classroom instructor and for the equivalent thereof.
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0012| C. The local school board shall [submit]
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0013| provide a plan for the implementation of an alternate school
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0014| year to the [state superintendent for his approval]
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0015| department.
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0016| D. The provisions of Subsection C and Paragraph
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0017| (2) of Subsection A of this section shall apply to school
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0018| districts with a MEM of one thousand or fewer."
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0019| Section 8. Section 22-8-11 NMSA 1978 (being Laws 1967,
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0020| Chapter 16, Section 66, as amended) is amended to read:
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0021| "22-8-11. BUDGETS--[TEMPORARY--FINAL] TECHNICAL
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0022| ASSISTANCE.--
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0023| A. The department shall
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0024| [(1) on or before July 1 of each year,
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approve and certify to each local school board a temporary
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operating budget for use by the local school board pending
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approval by the department of a final budget;
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(2) make] provide technical assistance in
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0004| making corrections, revisions and amendments to the estimated
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0005| budgets fixed by the local school boards [and the state
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superintendent] to conform the budgets to the requirements of
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0007| law [and to the manual of accounting and budgeting; and
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(3) before the first Monday of September of
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each year, approve and certify to each local school board and
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to the board of county commissioners of the county in which
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the school district is situated a final budget for use by the
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local school board, based upon the estimated budget fixed by
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the local school board and the state superintendent].
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0014| B. No school board or officer or employee of a
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0015| school district shall make any expenditure or incur any
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0016| obligation for the expenditure of public funds unless that
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0017| expenditure or [contractual] obligation is made in
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0018| accordance with an operating budget approved by the local
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0019| school board and provided to the department [but]. This
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0020| prohibition does not prohibit the transfer of funds between
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0021| line items within series of a budget.
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0022| [C. The department shall not approve and certify
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a temporary operating budget of any school district that fails
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to demonstrate that parental involvement in the budget process
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was solicited.]"
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0001| Section 9. Section 22-8-12 NMSA 1978 (being Laws 1967,
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0002| Chapter 16, Section 67, as amended) is amended to read:
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0003| "22-8-12. FINAL BUDGETS--ALTERATIONS OR AMENDMENTS.--
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0004| Final budgets shall not be altered or amended after approval
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0005| by the local school board and [certification by]
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0006| submission to the department, except for the following
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0007| purposes and according to the following procedure:
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0008| A. upon [written request of any] approval by
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0009| the local school board, the [state] district
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0010| superintendent may authorize transfer within the budget, or
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0011| provide for items not included, when the total amount of the
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0012| budget will not be increased thereby;
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0013| B. [upon written request of any] the local
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0014| school board [the state superintendent, in conformance with
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the regulations of the department] may authorize an increase
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0016| in any budget if the increase is necessary because of the
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0017| receipt of revenue that was not anticipated at the time the
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0018| budget was fixed and if the increase is directly related to a
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0019| special project or program for which the additional revenue
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0020| was received. The district superintendent shall submit the
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0021| revised budget as approved by the local school board to the
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0022| department. The [state superintendent] department shall
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0023| make a written report to the legislative finance committee of
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0024| any such budget increase;
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0025| C. upon written request of any local school board,
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0001| the state superintendent may authorize an increase in a budget
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0002| of not more than one thousand dollars ($1,000); or
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0003| D. upon written request of any local school board,
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0004| the state superintendent, after notice and a public hearing,
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0005| may authorize an increase in a school budget in an amount
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0006| exceeding one thousand dollars ($1,000). The notice of the
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0007| hearing shall designate the school district which proposes to
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0008| alter or amend its budget, together with the time, place and
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0009| date of the hearing. The notice of the hearing shall be
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0010| published at least once a week for two consecutive weeks in a
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0011| newspaper of general circulation in the county in which the
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0012| school district is situated. The last publication of the
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0013| notice shall be at least three days prior to the date set for
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0014| the hearing."
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0015| Section 10. Section 22-8-12.1 NMSA 1978 (being Laws
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0016| 1978, Chapter 128, Section 5, as amended) is amended to read:
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0017| "22-8-12.1. BUDGET REQUESTS.--
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0018| A. Each local school board shall submit annually,
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0019| on or before October 15, to the department:
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0020| (1) an estimate for the succeeding fiscal
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0021| year of:
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0022| (a) the membership of qualified
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0023| students to be enrolled in the basic program;
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0024| (b) the full-time-equivalent membership
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0025| of students to be enrolled in approved early childhood
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0001| education programs; and
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0002| (c) the membership of students to be
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0003| enrolled in approved special education programs;
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0004| (2) all other information necessary to
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0005| calculate program costs; and
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0006| (3) any other information related to the
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0007| financial needs of the school district as may be requested by
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0008| the department.
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0009| B. All information requested pursuant to
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0010| Subsection A of this section shall be submitted on forms
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0011| prescribed and furnished by the department [and shall comply
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with the manual of accounting and budgeting published by the
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department].
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0014| C. The department shall:
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0015| (1) review the financial needs of each school
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0016| district for the succeeding fiscal year; and
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0017| (2) submit annually, on or before November
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0018| 30, to the secretary of finance and administration the
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0019| recommendations of the state board for:
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0020| (a) amendments to the public school
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0021| finance formula;
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0022| (b) appropriations for the succeeding
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0023| fiscal year to the public school fund for inclusion in the
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0024| executive budget document; and
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0025| (c) appropriations for the succeeding
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0001| fiscal year for pupil transportation and instructional
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0002| materials."
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