0001|                           SENATE BILL 818
    |
0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
    |
0003|                            INTRODUCED BY
    |
0004|                         TIMOTHY Z. JENNINGS
    |
0005|     
    |
0006|                                   
    |
0007|     
    |
0008|                                   
    |
0009|     
    |
0010|                                AN ACT
    |
0011|     RELATING TO PUBLIC SCHOOL FINANCE; AMENDING SECTIONS OF THE
    |
0012|     PUBLIC SCHOOL FINANCE ACT PERTAINING TO THE DATES ON WHICH
    |
0013|     MEMBERSHIP COUNTS ARE CONDUCTED AND USED FOR PROGRAM UNIT
    |
0014|     CALCULATION.
    |
0015|     
    |
0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0017|          Section 1.  Section 22-8-13 NMSA 1978 (being Laws 1974,
    |
0018|     Chapter 8, Section 3, as amended) is amended to read:
    |
0019|          "22-8-13.  REPORTS.--
    |
0020|               A.  Each local school board shall require each
    |
0021|     public school in its school district to keep accurate records
    |
0022|     concerning membership in the public school.  The superintendent
    |
0023|     of each school district shall maintain the following reports
    |
0024|     for each twenty-day reporting period:
    |
0025|                    (1)  the basic program MEM by grade in each
    |
0001|     public school;
    |
0002|                    (2)  the early childhood education MEM;
    |
0003|                    (3)  the special education MEM in each public
    |
0004|     school in class C and class D programs as defined in Section
    |
0005|     22-8-21 NMSA 1978;
    |
0006|                    (4)  the number of class A and class B programs
    |
0007|     as defined in Section 22-8-21 NMSA 1978 <u>and the membership in
</u>    |
<u></u>0008| <u>    those programs</u>; and
    |
0009|                    (5)  the full-time-equivalent MEM for bilingual
    |
0010|     multicultural education programs.
    |
0011|               B.  The superintendent of each school district shall
    |
0012|     furnish to the department reports of the information required
    |
0013|     in Paragraphs (1) through (5) of Subsection A of this section
    |
0014|     for the <s>[first forty days of]</s> <u>fortieth day and the one
</u>    |
<u></u>0015| <u>    hundred twentieth day of</u> the school year.  The <s>[forty-day
</s>    |
<s></s>0016| <s>    report]</s> <u>membership reports</u> and all other reports required by
    |
0017|     law or by the state board shall be furnished within five days
    |
0018|     of the close of the reporting period.
    |
0019|               C.  All information required pursuant to this
    |
0020|     section shall be on forms prescribed and furnished by the
    |
0021|     department.  A copy of any report made pursuant to this section
    |
0022|     shall be kept as a permanent record of the school district and
    |
0023|     shall be subject to inspection and audit at any reasonable
    |
0024|     time.
    |
0025|               D.  The department shall withhold allotments of
    |
0001|     funds to any school district where the superintendent has
    |
0002|     failed to comply until the superintendent complies with and
    |
0003|     agrees to continue complying with requirements of this section.
    |
0004|               E.  The provisions of this section may be modified
    |
0005|     or suspended by the department for any school district or
    |
0006|     school operating under the Variable School Calendar Act.  The
    |
0007|     department shall require MEM reports consistent with the
    |
0008|     calendar of operations of such school district or school and
    |
0009|     shall calculate an equivalent <u>average</u> MEM for use in pro-
    |
0010|     
    |
0011|     jecting school district revenue."
    |
0012|          Section 2.  Section 22-8-25 NMSA 1978 (being Laws 1981,
    |
0013|     Chapter 176, Section 5, as amended by Laws 1993, Chapter 226,
    |
0014|     Section 23 and also by Laws 1993, Chapter 231, Section 14) is
    |
0015|     amended to read:
    |
0016|          "22-8-25.  STATE EQUALIZATION GUARANTEE DISTRIBUTION--
    |
0017|     DEFINITIONS--DETERMINATION OF AMOUNT.--
    |
0018|               A.  The state equalization guarantee distribution is
    |
0019|     that amount of money distributed to each school district to
    |
0020|     ensure that the school district's operating revenue, including
    |
0021|     its local and federal revenues as defined in this section, is
    |
0022|     at least equal to the school district's program cost.
    |
0023|               B.  "Local revenue", as used in this section, means
    |
0024|     ninety-five percent of receipts to the school district derived
    |
0025|     from that amount produced by a school district property tax
    |
0001|     applied at the rate of fifty cents ($.50) to each one thousand
    |
0002|     dollars ($l,000) of net taxable value of property allocated to
    |
0003|     the school district and to the assessed value of products
    |
0004|     severed and sold in the school district as determined under the
    |
0005|     Oil and Gas Ad Valorem Production Tax Act and upon the assessed
    |
0006|     value of equipment in the school district as determined under
    |
0007|     the Oil and Gas Production Equipment Ad Valorem Tax Act.
    |
0008|               C.  "Federal revenue", as used in this section,
    |
0009|     means ninety-five percent of receipts to the school district,
    |
0010|     excluding amounts which, if taken into account in the
    |
0011|     computation of the state equalization guarantee distribution,
    |
0012|     result, under federal law or regulations, in a reduction in or
    |
0013|     elimination of federal school funding otherwise receivable by
    |
0014|     the school district, derived from the following:
    |
0015|                    (l)  the school district's share of forest
    |
0016|     reserve funds distributed in accordance with Section 22-8-33
    |
0017|     NMSA 1978; and
    |
0018|                    (2)  grants from the federal government as
    |
0019|     assistance to those areas affected by federal activity
    |
0020|     authorized in accordance with Sections 236 through 240 of Title
    |
0021|     20 of the United States Code (commonly known as "PL 874 funds")
    |
0022|     or an amount equal to the revenue the district was entitled to
    |
0023|     receive if no application was made for such funds but deducting
    |
0024|     from those grants the additional amounts to which school
    |
0025|     districts would be entitled because of the provisions of
    |
0001|     Subparagraph (D) of Paragraph (2) of Subsection (d) of Section
    |
0002|     238 of Title 20 of the United States Code.
    |
0003|               D.  To determine the amount of the state
    |
0004|     equalization guarantee distribution, the state superintendent
    |
0005|     shall:
    |
0006|                    (l)  calculate the number of program units to
    |
0007|     which each school district is entitled using the <u>average of
</u>    |
<u></u>0008| <u>    the</u> membership <s>[of]</s> <u>on</u> the fortieth day <u>and the one
</u>    |
<u></u>0009| <u>    hundred twentieth day</u> of the school year, except for school
    |
0010|     districts with a MEM of 200 or less where the number of program
    |
0011|     units shall be calculated on the <s>[fortieth day membership]</s>
    |
0012|     <u>average of the membership of the fortieth day and the one
</u>    |
<u></u>0013| <u>    hundred twentieth day</u> of either the prior year or the current
    |
0014|     year, whichever is greater, for all programs except special
    |
0015|     education, which shall be calculated by using the membership on
    |
0016|     December 1 of the school year; or
    |
0017|                    (2)  calculate the number of program units to
    |
0018|     which a school district operating under an approved year-round
    |
0019|     school calendar is entitled using the <u>average</u> membership on
    |
0020|     <s>[an]</s> appropriate <s>[date]</s> <u>dates</u> established by the state
    |
0021|     board;
    |
0022|                    (3)  using the results of the calculations in
    |
0023|     Paragraph (l) or (2) of this subsection and the instructional
    |
0024|     staff training and experience index from the October report of
    |
0025|     the prior school year, establish a total program cost of the
    |
0001|     school district;
    |
0002|                    (4)  calculate the local and federal revenues
    |
0003|     as defined in this section;
    |
0004|                    (5)  deduct the sum of the calculations made in
    |
0005|     Paragraph (4) of this subsection from the program cost
    |
0006|     established in Paragraph (3) of this subsection; and
    |
0007|                    (6)  deduct the total amount of guaranteed
    |
0008|     energy savings contract payments 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
    |
0012|     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 l of the previous
    |
0021|     fiscal year through May 31 of the fiscal year for which the
    |
0022|     state equalization guarantee distribution is being computed. 
    |
0023|     In the event that a <u>school</u> district has received more state
    |
0024|     equalization guarantee funds than its entitlement, a refund
    |
0025|     shall be made by the <u>school</u> district to the state general
    |
0001|     fund.
    |
0002|               G.  Notwithstanding the methods of calculating the
    |
0003|     state equalization guarantee distribution in this section and
    |
0004|     Laws 1974, Chapter 8, Section 22, if a school district received
    |
0005|     funds under Section 2391 of Title 42 U.S.C.A. and if the
    |
0006|     federal government takes into consideration grants authorized
    |
0007|     by Sections 236 through 240 of Title 20 of the United States
    |
0008|     Code and all other revenues available to the school district in
    |
0009|     determining the level of federal support for the school
    |
0010|     district for the sixty-fourth and succeeding fiscal years, the
    |
0011|     state equalization guarantee distribution for school districts
    |
0012|     receiving funds under this subsection shall be computed as
    |
0013|     follows:
    |
0014|          fiscal year program cost           prior fiscal year
    |
0015|          excluding special education        state equalization
    |
0016|          for the year for which the         x    guarantee distribution 
    |
0017|          state equalization guarantee       excluding special
    |
0018|          <u>distribution is being computed</u>        education 
    |
0019|          
    |
0020|          prior fiscal year program cost
    |
0021|          excluding special education
    |
0022|     plus special education funding in accordance with Paragraphs
    |
0023|     (1) or (2) and (3) of Subsection D of this section and Section
    |
0024|     22-8-21 NMSA 1978 plus an amount that would be produced by
    |
0025|     applying a rate of eight dollars forty-two and one-half cents
    |
0001|     ($8.425) to each one thousand dollars ($l,000) of net taxable
    |
0002|     value of property as defined in the Property Tax Code for
    |
0003|     property taxation purposes in the school district and to each
    |
0004|     one thousand dollars ($l,000) of the assessed value of products
    |
0005|     severed and sold in the school district as determined under the
    |
0006|     Oil and Gas Ad Valorem Production Tax Act and upon the assessed
    |
0007|     value of equipment in the school district as determined under
    |
0008|     the Oil and Gas Production Equipment Ad Valorem Tax Act and
    |
0009|     then reduced by the total amount of guaranteed energy savings
    |
0010|     contract payments, if any, that the state superintendent
    |
0011|     determines will be made to the school district from the public
    |
0012|     school energy efficiency fund during the fiscal year for which
    |
0013|     the state equalization guarantee distribution is being
    |
0014|     computed, equals the fiscal year state equalization guarantee
    |
0015|     distribution for the year for which the state equalization
    |
0016|     guarantee distribution is being computed.
    |
0017|          If at any time grants from the federal government as
    |
0018|     assistance to those areas affected by federal activity
    |
0019|     authorized in accordance with Sections 236 through 240 of Title
    |
0020|     20 of the United States Code (commonly known as "PL 874 funds")
    |
0021|     are reduced or are no longer available, the state equalization
    |
0022|     guarantee distribution shall be computed by the formula
    |
0023|     contained in this subsection plus an increase by fifty percent
    |
0024|     of the amount the prior year's PL 874 funds exceed PL 874 funds
    |
0025|     for the year for which the state equalization guarantee
    |
0001|     distribution is being computed."
    |
0002|                                    
    |
0003|   
    |
0004|                      FORTY-THIRD LEGISLATURE
    |
0005|                        FIRST SESSION, 1997
    |
0006|   
    |
0007|   
    |
0008|                                                   March 5, 1997
    |
0009|   
    |
0010|   Mr. President:
    |
0011|   
    |
0012|       Your EDUCATION COMMITTEE, to whom has been referred
    |
0013|   
    |
0014|                          SENATE BILL 818
    |
0015|   
    |
0016|   has had it under consideration and reports same with
    |
0017|   recommendation that it DO PASS, and thence referred to the
    |
0018|   FINANCE COMMITTEE.
    |
0019|   
    |
0020|                                Respectfully submitted,
    |
0021|   
    |
0022|   
    |
0023|   
    |
0024|                                
    |
0025|   __________________________________
    |
0001|                                Cynthia Nava, Chairman 
    |
0002|   
    |
0003|   
    |
0004|   
    |
0005|   Adopted_______________________   Not
    |
0006|   Adopted_______________________
    |
0007|             (Chief Clerk)                          (Chief Clerk)
    |
0008|   
    |
0009|   
    |
0010|                     Date ________________________
    |
0011|   
    |
0012|   
    |
0013|   The roll call vote was <u> 6 </u> For <u> 0 </u> Against
    |
0014|           Yes:    6
    |
0015|           No:     0
    |
0016|                Excused:     Duran, Garcia, Gorham, Pinto
    |
0017|           Absent: None
    |
0018|   
    |
0019|   
    |
0020|   S0818ED1
    |
0021|   
    |
0022|     
    |
0023|   
    |
0024|                      FORTY-THIRD LEGISLATURE
    |
0025|                        FIRST SESSION, 1997
    |
0001|   
    |
0002|   
    |
0003|                                                   March 8, 1997
    |
0004|   
    |
0005|   Mr. President:
    |
0006|   
    |
0007|       Your FINANCE COMMITTEE, to whom has been referred
    |
0008|   
    |
0009|                          SENATE BILL 818
    |
0010|   
    |
0011|   has had it under consideration and reports same with
    |
0012|   recommendation that it DO PASS.
    |
0013|   
    |
0014|                                Respectfully submitted,
    |
0015|   
    |
0016|   
    |
0017|   
    |
0018|                                
    |
0019|   __________________________________
    |
0020|                                Ben D. Altamirano, Chairman 
    |
0021|   
    |
0022|   
    |
0023|   
    |
0024|   Adopted_______________________   Not
    |
0025|   Adopted_______________________
    |
0001|             (Chief Clerk)                          (Chief Clerk)
    |
0002|   
    |
0003|   
    |
0004|   
    |
0005|                     Date ________________________
    |
0006|   
    |
0007|   
    |
0008|   The roll call vote was <u> 7 </u> For <u> 0 </u> Against
    |
0009|           Yes:    7
    |
0010|           No:     None
    |
0011|                Excused:     Aragon, Altamirano, Ingle, McKibben, 
    |
0012|           Absent: None
    |
0013|   
    |
0014|   
    |
0015|   S0818FC1
    |