0001| SENATE BILL 400 | 0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, | 0003| 1996 | 0004| INTRODUCED BY | 0005| MANNY M. ARAGON | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO PUBLIC SCHOOL FINANCE; AMENDING A CERTAIN SECTION OF | 0013| THE NMSA 1978 PERTAINING TO THE METHODS OF CALCULATING THE STATE | 0014| EQUALIZATION GUARANTEE DISTRIBUTION. | 0015| | 0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0017| Section 1. Section 22-8-25 NMSA 1978 (being Laws 1981, | 0018| Chapter 176, Section 5, as amended by Laws 1993, Chapter 226, | 0019| Section 23 and also by Laws 1993, Chapter 231, Section 14) is | 0020| amended to read: | 0021| "22-8-25. STATE EQUALIZATION GUARANTEE DISTRIBUTION-- | 0022| DEFINITIONS--DETERMINATION OF AMOUNT.-- | 0023| A. The state equalization guarantee distribution is | 0024| that amount of money distributed to each school district to | 0025| ensure that the school district's operating revenue, including | 0001| its local and federal revenues as defined in this section, is at | 0002| least equal to the school district's program cost. | 0003| B. "Local revenue", as used in this section, means | 0004| ninety-five percent of receipts to the school district derived | 0005| from that amount produced by a school district property tax | 0006| applied at the rate of fifty cents ($.50) to each one thousand | 0007| dollars ($1,000) of net taxable value of property allocated to | 0008| the school district and to the assessed value of products | 0009| severed and sold in the school district as determined under the | 0010| Oil and Gas Ad Valorem Production Tax Act and upon the assessed | 0011| value of equipment in the school district as determined under | 0012| the Oil and Gas Production Equipment Ad Valorem Tax Act. | 0013| C. "Federal revenue", as used in this section, means | 0014| ninety-five percent of receipts to the school district, | 0015| excluding amounts which, if taken into account in the | 0016| computation of the state equalization guarantee distribution, | 0017| result, under federal law or regulations, in a reduction in or | 0018| elimination of federal school funding otherwise receivable by | 0019| the school district, derived from the following: | 0020| (1) the school district's share of forest | 0021| reserve funds distributed in accordance with Section 22-8-33 | 0022| NMSA 1978; and | 0023| (2) grants from the federal government as | 0024| assistance to those areas affected by federal activity | 0025| authorized in accordance with Sections 236 through 240 of Title | 0001| 20 of the United States Code (commonly known as "PL 874 funds") | 0002| or an amount equal to the revenue the district was entitled to | 0003| receive if no application was made for such funds but deducting | 0004| from those grants the additional amounts to which school | 0005| districts would be entitled because of the provisions of | 0006| Subparagraph (D) of Paragraph (2) of Subsection (d) of Section | 0007| 238 of Title 20 of the United States Code. | 0008| D. To determine the amount of the state equalization | 0009| guarantee distribution, the state superintendent shall: | 0010| (1) calculate the number of program units to | 0011| which each school district is entitled using the membership of | 0012| the fortieth day of the school year, except for school districts | 0013| with a MEM of [200] two hundred or less where the number of | 0014| program units shall be calculated on the fortieth day membership | 0015| of either the prior year or the current year, whichever is | 0016| greater, for all programs except special education, which shall | 0017| be calculated by using the membership on December 1 of the | 0018| school year; or | 0019| (2) calculate the number of program units to | 0020| which a school district operating under an approved year-round | 0021| school calendar is entitled using the membership on an | 0022| appropriate date established by the state board; | 0023| (3) using the results of the calculations in | 0024| Paragraph (1) or (2) of this subsection and the instructional | 0025| staff training and experience index from the October report of | 0001| the prior school year, establish a total program cost of the | 0002| school district; | 0003| (4) calculate the local and federal revenues as | 0004| defined in this section; | 0005| (5) deduct the sum of the calculations made in | 0006| Paragraph (4) of this subsection from the program cost | 0007| established in Paragraph (3) of this subsection; and | 0008| (6) deduct the total amount of guaranteed | 0009| energy savings contract payments that the state superintendent | 0010| determines will be made to the school district from the public | 0011| school energy efficiency fund during the fiscal year for which | 0012| the state equalization guarantee distribution is being computed. | 0013| E. The amount of the state equalization guarantee | 0014| distribution to which a school district is entitled is the | 0015| balance remaining after the deductions made in Paragraphs (5) | 0016| and (6) of Subsection D of this section. | 0017| F. The state equalization guarantee distribution | 0018| shall be distributed prior to June 30 of each fiscal year. The | 0019| calculation shall be based on the local and federal revenues | 0020| specified in this section received from June 1 of the previous | 0021| fiscal year through May 31 of the fiscal year for which the | 0022| state equalization guarantee distribution is being computed. In | 0023| the event that a district has received more state equalization | 0024| guarantee funds than its entitlement, a refund shall be made by | 0025| the district to the state general fund. | 0001| [G. Notwithstanding the methods of calculating the | 0002| state equalization guarantee distribution in this section and | 0003| Laws 1974, Chapter 8, Section 22, if a school district received | 0004| funds under Section 2391 of Title 42 U.S.C.A. and if the federal | 0005| government takes into consideration grants authorized by | 0006| Sections 236 through 240 of Title 20 of the United States Code | 0007| and all other revenues available to the school district in | 0008| determining the level of federal support for the school district | 0009| for the sixty-fourth and succeeding fiscal years, the state | 0010| equalization guarantee distribution for school districts | 0011| receiving funds under this subsection shall be computed as | 0012| follows: | 0013| fiscal year program cost prior fiscal year | 0014| excluding special education state equalization | 0015| for the year for which the x guarantee distribution | 0016| state equalization guarantee excluding special | 0017| distribution is being computed education | 0018| prior fiscal year program cost | 0019| excluding special education | 0020| plus special education funding in accordance with Paragraphs (1) | 0021| or (2) and (3) of Subsection D of this section and Section | 0022| 22-8-21 NMSA 1978 plus an amount that would be produced by | 0023| applying a rate of eight dollars forty-two and one-half cents | 0024| ($8.425) to each one thousand dollars ($1,000) of net taxable | 0025| value of property as defined in the Property Tax Code for | 0001| property taxation purposes in the school district and to each | 0002| one thousand dollars ($1,000) of the assessed value of products | 0003| severed and sold in the school district as determined under the | 0004| Oil and Gas Ad Valorem Production Tax Act and upon the assessed | 0005| value of equipment in the school district as determined under | 0006| the Oil and Gas Production Equipment Ad Valorem Tax Act and then | 0007| reduced by the total amount of guaranteed energy savings | 0008| contract payments, if any, that the state superintendent | 0009| determines will be made to the school district from the public | 0010| school energy efficiency fund during the fiscal year for which | 0011| the state equalization guarantee distribution is being computed, | 0012| equals the fiscal year state equalization guarantee distribution | 0013| for the year for which the state equalization guarantee | 0014| distribution is being computed. | 0015| If at any time grants from the federal government as | 0016| assistance to those areas affected by federal activity | 0017| authorized in accordance with Sections 236 through 240 of Title | 0018| 20 of the United States Code (commonly known as "PL 874 funds") | 0019| are reduced or are no longer available, the state equalization | 0020| guarantee distribution shall be computed by the formula | 0021| contained in this subsection plus an increase by fifty percent | 0022| of the amount the prior year's PL 874 funds exceed PL 874 funds | 0023| for the year for which the state equalization guarantee | 0024| distribution is being computed.]" | 0025|  | 0001| | 0002| | 0003| | 0004| FORTY-SECOND LEGISLATURE | 0005| SECOND SESSION, 1996 | 0006| | 0007| | 0008| JANUARY 29, 1996 | 0009| | 0010| Mr. President: | 0011| | 0012| Your COMMITTEES' COMMITTEE, to whom has been referred | 0013| | 0014| SENATE BILL 400 | 0015| | 0016| has had it under consideration and finds same to be GERMANE, PURSUANT | 0017| TO CONSTITUIONAL PROVISIONS, and thence referred to the EDUCATION | 0018| COMMITTEE. | 0019| | 0020| Respectfully submitted, | 0021| | 0022| | 0023| | 0024| | 0025| __________________________________ | 0001| SENATOR MANNY M. ARAGON, Chairman | 0002| | 0003| | 0004| | 0005| Adopted_______________________ Not Adopted_______________________ | 0006| (Chief Clerk) (Chief Clerk) | 0007| | 0008| | 0009| Date ________________________ | 0010| | 0011| | 0012| | 0013| S0400CC1 FORTY-SECOND LEGISLATURE | 0014| SECOND SESSION | 0015| | 0016| | 0017| February 6, 1996 | 0018| | 0019| | 0020| SENATE FLOOR AMENDMENT number _______ to SENATE BILL 400 | 0021| | 0022| Amendment sponsored by Senator Manny M. Aragon | 0023| | 0024| | 0025| 1. On page 2, line 21, strike "and". | 0001| | 0002| 2. On page 3, line 6, strike the period and insert in lieu thereof | 0003| "; and". | 0004| | 0005| 3. On page 3, between lines 6 and 7, insert the following to read: | 0006| | 0007| "(3) grants from the federal government received by a | 0008| school district pursuant to Section 2391 of Title 42 U.S.C.A.". | 0009| | 0010| | 0011| | 0012| __________________________ | 0013| Manny M. Aragon | 0014| | 0015| | 0016| | 0017| Adopted ___________________ Not Adopted _____________________ | 0018| (Chief Clerk) (Chief Clerk) | 0019| | 0020| | 0021| Date _________________ | 0022| State of New Mexico | 0023| House of Representatives | 0024| | 0025| FORTY-SECOND LEGISLATURE | 0001| SECOND SESSION, 1996 | 0002| | 0003| | 0004| February 14, 1996 | 0005| | 0006| | 0007| Mr. Speaker: | 0008| | 0009| Your EDUCATION COMMITTEE, to whom has been referred | 0010| | 0011| SENATE BILL 400, as amended | 0012| | 0013| has had it under consideration and reports same with | 0014| recommendation that it DO PASS, and thence referred to the | 0015| APPROPRIATIONS AND FINANCE COMMITTEE. | 0016| | 0017| Respectfully submitted, | 0018| | 0019| | 0020| | 0021| | 0022| Samuel F. Vigil, Chairman | 0023| | 0024| | 0025| Adopted Not Adopted | 0001| (Chief Clerk) (Chief Clerk) | 0002| | 0003| Date | 0004| | 0005| The roll call vote was 6 For 4 Against | 0006| Yes: 6 | 0007| No: Charley, Dolliver, Nicely, WC Williams | 0008| Excused: Weeks, SM Williams | 0009| Absent: None | 0010| | 0011| | 0012| | 0013| S0400EC1 |