45th legislature - STATE OF NEW MEXICO - first session, 2001

PROPOSING AN AMENDMENT TO THE CONSTITUTION OF NEW MEXICO TO INCREASE THE DISTRIBUTION FROM A STATE PERMANENT FUND FOR THE PURPOSE OF FUNDING NEEDED PUBLIC SCHOOL CONSTRUCTION PROJECTS.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. It is proposed to amend Article 8, Section 10 of the constitution of New Mexico to read:

"A. There shall be deposited in a permanent trust fund known as the "severance tax permanent fund" that part of state revenue derived from excise taxes that have been or shall be designated severance taxes imposed upon the severance of natural resources within this state, in excess of that amount that has been or shall be reserved by statute for the payment of principal and interest on outstanding bonds to which severance tax revenue has been or shall be pledged. Money in the severance tax permanent fund shall be invested as provided by law. [Distributions from the fund shall be appropriated by the legislature as other general operating revenue is appropriated for the benefit of the people of the state.]

B. All additions to the fund and all earnings, including interest, dividends and capital gains from investment of the fund, shall be credited to the corpus of the fund.

C. The annual distributions from the fund shall be:

(1) to the general fund to be appropriated by the legislature as other general operating revenue is appropriated for the benefit of the people of this state, one hundred two percent of the amount distributed to the general fund in the immediately preceding fiscal year until the annual distributions to the general fund equal four and seven-tenths percent of the average of the year-end market values of the fund for the immediately preceding five calendar years. Thereafter, the amount of the annual distributions to the general fund shall be four and seven-tenths percent of the average of the year-end market values of the fund for the immediately preceding five calendar years;

(2) to the public school capital outlay fund to be used exclusively for public school capital outlay projects, one percent of the average of the year-end market values of the fund for the immediately preceding five calendar years; provided that:

(a) each school district shall be eligible to apply for assistance for public school capital outlay projects; and

(b) no project shall be determined ineligible for funding solely because of the level or amount of school district indebtedness.

D. The frequency and the time of the distributions made pursuant to Paragraph (1) of Subsection C of this section shall be as provided by law. The distributions pursuant to Paragraph (2) of Subsection C of this section shall be made monthly in an amount equal to one-twelfth of the required annual distribution for that year."

Section 2. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the next general election or at any special election prior to that date which may be called for that purpose.