0001| SENATE BILL 38
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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| LEONARD TSOSIE
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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 PUBLIC SCHOOL FUNDING; AMENDING THE STATE
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0012| EQUALIZATION FORMULA; PROVIDING FOR THE DISTRIBUTION OF
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0013| CERTAIN FEDERAL FUNDS.
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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 22-8-25 NMSA 1978 (being Laws 1981,
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0017| Chapter 176, Section 5, as amended) is amended to read:
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0018| "22-8-25. STATE EQUALIZATION GUARANTEE DISTRIBUTION--
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0019| DEFINITIONS--DETERMINATION OF AMOUNT.--
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0020| A. The state equalization guarantee distribution
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0021| is that amount of money distributed to each school district to
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0022| ensure that the school district's operating revenue, including
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0023| its local and federal revenues as defined in this section, is
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0024| at least equal to the school district's program cost.
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0025| B. "Local revenue", as used in this section, means
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0001| ninety-five percent of receipts to the school district derived
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0002| from that amount produced by a school district property tax
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0003| applied at the rate of fifty cents ($.50) to each one thousand
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0004| dollars ($1,000) of net taxable value of property allocated to
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0005| the school district and to the assessed value of products
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0006| severed and sold in the school district as determined
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0007| [under] pursuant to the Oil and Gas Ad Valorem Production
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0008| Tax Act and upon the assessed value of equipment in the school
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0009| district as determined [under] pursuant to the Oil and Gas
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0010| Production Equipment Ad Valorem Tax Act.
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0011| C. As used in this section:
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0012| (1) "federal revenue" [as used in this
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section] means ninety-five percent of receipts to the school
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0014| district, excluding amounts which, if taken into account in
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0015| the computation of the state equalization guarantee
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0016| distribution, result, under federal law or regulations, in a
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0017| reduction in or elimination of federal school funding
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0018| otherwise receivable by the school district, derived from the
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0019| following:
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0020| [(1)] (a) the school district's
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0021| share of forest reserve funds distributed in accordance with
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0022| Section 22-8-33 NMSA 1978; and
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0023| [(2)] (b) grants from the federal
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0024| government as assistance to those areas affected by federal
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0025| activity authorized in accordance with [Sections 236 through
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240] Title 8 of the Elementary and Secondary Education Act,
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0002| Sections 7701 through 7714 of Title 20 of the United States
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0003| Code, commonly known as ["PL 874 funds" or an amount equal to
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the revenue the district was entitled to receive if no
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application was made for such funds] impact aid and formerly
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0006| known as PL 874 funds, but deducting from those grants: 1)
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0007| the [additional amounts to which school districts would be
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entitled because of the provisions of Subparagraph (D) of
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Paragraph (2) of Subsection (d) of Section 238 of Title 20 of
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the United States Code] impact aid payments generated by
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0011| that part of a factor in excess of 1.0 for children residing
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0012| on Indian lands within the school district, payments in
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0013| addition to the basic payment for children with disabilities
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0014| for heavily impacted school districts or for school districts
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0015| with high concentrations of children with severe disabilities
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0016| and any other payments that cannot be used to equalize state
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0017| funding to school districts pursuant to federal law or
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0018| regulation; and 2) after deduction of the amount identified in
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0019| Item 1) of this subparagraph, that percent of the remaining
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0020| impact aid generated by children who reside on Indian lands
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0021| that a school district elects to retain for use solely for
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0022| capital improvements on district facilities, provided that the
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0023| amount shall be no more than the product of the percent of
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0024| obligated bonding capacity of the school district as of June
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0025| 30 of the prior fiscal year multiplied by the amount of impact
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0001| aid for children who reside on Indian lands received by that
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0002| school district in the current fiscal year that is potentially
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0003| available for use in the state equalization guarantee
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0004| distribution formula if it is not retained for capital
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0005| improvements; and
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0006| (2) "federal revenue" shall not include
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0007| amounts of impact aid generated by children living on Indian
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0008| lands if that inclusion would result in lower funding per
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0009| pupil for a district than for the highest funded school
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0010| district in the state. To determine if that impact aid if
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0011| included as federal revenue would result in lower funding per
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0012| pupil, the funding shall be calculated by the use of basic
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0013| program ADM on the fortieth day and shall include all impact
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0014| aid funds for the school district.
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0015| D. To determine the amount of the state
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0016| equalization guarantee distribution, the state superintendent
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0017| shall:
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0018| (1) calculate the number of program units to
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0019| which each school district is entitled using the basic program
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0020| membership of the fortieth day for all programs; provided that
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0021| special education program units shall be calculated using the
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0022| membership in special education programs on December 1; or
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0023| (2) calculate the number of program units to
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0024| which a school district operating under an approved year-round
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0025| school calendar is entitled using the basic program membership
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0001| on an appropriate date established by the state board; or
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0002| (3) calculate the number of program units to
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0003| which a school district with a basic program MEM of 200 or
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0004| less is entitled by using the basic program membership on the
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0005| fortieth day of either the prior or the current year,
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0006| whichever is greater; provided that special education program
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0007| units shall be calculated using the membership in special
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0008| education programs on December 1 of either the prior or the
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0009| current year; and
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0010| (4) using the results of the calculations in
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0011| Paragraph (1), (2) or (3) of this subsection and the
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0012| instructional staff training and experience index from the
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0013| October report of the prior school year, establish a total
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0014| program cost of the school district;
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0015| (5) calculate the local and federal revenues
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0016| as defined in this section;
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0017| (6) deduct the sum of the calculations made
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0018| in Paragraph (5) of this subsection from the program cost
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0019| established in Paragraph (4) of this subsection; and
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0020| (7) deduct the total amount of guaranteed
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0021| energy savings contract payments that the state superintendent
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0022| determines will be made to the school district from the public
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0023| school energy efficiency fund during the fiscal year for which
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0024| the state equalization guarantee distribution is being
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0025| computed.
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0001| E. The amount of the state equalization guarantee
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0002| distribution to which a school district is entitled is the
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0003| balance remaining after the deductions made in Paragraphs (6)
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0004| and (7) of Subsection D of this section.
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0005| F. The state equalization guarantee distribution
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0006| shall be distributed prior to June 30 of each fiscal year.
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0007| The calculation shall be based on the local and federal
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0008| revenues specified in this section received from June 1 of the
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0009| previous fiscal year through May 31 of the fiscal year for
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0010| which the state equalization guarantee distribution is being
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0011| computed. In the event that a district has received more
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0012| state equalization guarantee funds than its entitlement, a
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0013| refund shall be made by the district to the state general
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0014| fund.
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0015| G. Notwithstanding the methods of calculating the
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0016| state equalization guarantee distribution in this section and
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0017| Laws 1974, Chapter 8, Section 22, if a school district
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0018| received funds under Section 2391 of Title 42 USCA and if the
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0019| federal government takes into consideration grants authorized
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0020| by Sections 236 through 240 of Title 20 of the United States
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0021| Code and all other revenues available to the school district
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0022| in determining the level of federal support for the school
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0023| district for the sixty-fourth and succeeding fiscal years, the
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0024| state equalization guarantee distribution for school districts
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0025| receiving funds under this subsection shall be computed as
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0001| follows:
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0002| fiscal year program cost prior fiscal year
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0003| excluding special education state equalization
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0004| for the year for which the x guarantee distribution
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0005| state equalization guarantee excluding special
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0006| distribution is being computed education
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0007| ______________________________
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0008| prior fiscal year program cost
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0009| excluding special education
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0010| plus special education funding in accordance with Paragraphs
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0011| (1), (2) or (3) and (4) of Subsection D of this section and
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0012| Section 22-8-21 NMSA 1978 plus an amount that would be
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0013| produced by applying a rate of eight dollars forty-two and
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0014| one-half cents ($8.425) to each one thousand dollars ($1,000)
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0015| of net taxable value of property as defined in the Property
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0016| Tax Code for property taxation purposes in the school district
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0017| and to each one thousand dollars ($1,000) of the assessed
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0018| value of products severed and sold in the school district as
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0019| determined under the Oil and Gas Ad Valorem Production Tax Act
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0020| and upon the assessed value of equipment in the school
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0021| district as determined under the Oil and Gas Production
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0022| Equipment Ad Valorem Tax Act and then reduced by the total
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0023| amount of guaranteed energy savings contract payments, if any,
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0024| that the state superintendent determines will be made to the
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0025| school district from the public school energy efficiency fund
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0001| during the fiscal year for which the state equalization
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0002| guarantee distribution is being computed, equals the fiscal
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0003| year state equalization guarantee distribution for the year
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0004| for which the state equalization guarantee distribution is
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0005| being computed.
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0006| If at any time grants from the federal government as
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0007| assistance to those areas affected by federal activity
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0008| authorized in accordance with Sections 236 through 240 of
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0009| Title 20 of the United States Code (commonly known as "PL 874
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0010| funds") are reduced or are no longer available, the state
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0011| equalization guarantee distribution shall be computed by the
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0012| formula contained in this subsection plus an increase by fifty
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0013| percent of the amount the prior year's PL 874 funds exceed PL
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0014| 874 funds for the year for which the state equalization
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0015| guarantee distribution is being computed."
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0016|
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