Senate Bill text for SB0403

SENATE BILL 403

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Cynthia Nava

FOR THE PUBLIC SCHOOL CAPITAL OUTLAY OVERSIGHT TASK FORCE

AN ACT

RELATING TO PUBLIC SCHOOLS; CREATING THE PUBLIC SCHOOL FACILITY OPPORTUNITY FUND; AUTHORIZING GRANTS FROM THE FUND TO CERTAIN SCHOOL DISTRICTS FOR CERTAIN PURPOSES; PROVIDING THAT UNEXPENDED BALANCES OF CERTAIN CAPITAL PROJECT APPROPRIATIONS SHALL REVERT TO THE FUND; PROVIDING THAT A PORTION OF THE UNENCUMBERED BALANCE OF CERTAIN GENERAL FUND APPROPRIATIONS SHALL REVERT TO THE FUND; PROVIDING THAT A PORTION OF EACH SPECIAL APPROPRIATION FOR A PUBLIC SCHOOL SHALL BE SET ASIDE AND TRANSFERRED TO THE FUND; PROVIDING FOR A DISTRIBUTION TO THE FUND OF A PORTION OF GROSS RECEIPTS TAX REVENUE DERIVED FROM PUBLIC SCHOOL CONSTRUCTION PROJECTS; MAKING AN APPROPRIATION.

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

Section 1. A new section of the Public School Capital Outlay Act, Section 22-24-12 NMSA 1978, is enacted to read:

"22-24-12. [NEW MATERIAL] PUBLIC SCHOOL FACILITY OPPORTUNITY FUND--PURPOSE--GRANTS FROM THE FUND.--

A. The legislature finds that, even under the current program to bring all public school facilities up to a minimum statewide adequacy standard, because of a continuing shortage in available local resources, some school districts will not be able to exceed that minimum in the foreseeable future and, therefore, will not have the opportunity to provide their students with the same quality of educational facilities as students in school districts that have sufficient local resources to surpass the minimum standards. The purpose of this section is to provide a program of state support to certain school districts so that their school facilities may, in certain circumstances, exceed the minimum statewide adequacy standard.

B. The "public school facility opportunity fund" is created in the state treasury. The fund shall consist of transfers, distributions, appropriations, reversions, gifts, grants, donations and bequests made to the fund. Income from the fund shall be credited to the fund, and money in the fund shall not revert or be transferred to any other fund at the end of a fiscal year. Money in the fund is appropriated to the council for the purposes of making grants so that the facilities of qualifying school districts may, pursuant to the requirements of this section, exceed statewide adequacy standards. Expenditures from the fund shall be made on warrant of the secretary of finance and administration pursuant to vouchers signed by the director of the public school facilities authority.

C. A school district may apply for a grant from the public school facility opportunity fund if the council determines that:

(1) the school district meets all qualifications to apply for a grant pursuant to Section 22-24-5 NMSA 1978;

(2) the value calculated for the school district pursuant to Subparagraph (k), (m), (n) or (o) of Paragraph (5) of Subsection B of Section 22-24-5 NMSA 1978 is equal to or greater than seven-tenths;

(3) currently and at all times during the previous four years, the school district has a residential property tax rate of at least nine dollars ($9.00) on each one thousand dollars ($1,000) of taxable value, as measured by the sum of all rates imposed by resolution of the local school board plus rates set to pay interest and principal on outstanding school district general obligation bonds;

(4) at least seventy percent of the students in the school district are eligible for free or reduced-fee lunch; and

(5) for the next four years, any local resources of the school district will be expended for the local match required for public school capital outlay projects and, therefore, the school district will have no available local resources to expend on school district facilities for the purpose of exceeding the statewide adequacy standards.

D. Applications for grant assistance from the public school facility opportunity fund shall be made by school districts to the council in accordance with the requirements of the council. Using criteria developed by the council, the council shall evaluate applications and prioritize those applications most in need of a grant from the fund. To the extent that money in the fund is available, the council may award grants for those prioritized applications.

E. All provisions of the Public School Capital Outlay Act relating to the expenditure of grants awarded from the public school capital outlay fund, including those relating to reporting, oversight, project access and accountability, apply to the use and expenditure of grants made pursuant to this section. In addition, in awarding grants pursuant to this section, the council may require conditions and procedures necessary to ensure that the money is expended in the most prudent manner."

Section 2. A new section of the Tax Administration Act is enacted to read:

"[NEW MATERIAL] DISTRIBUTION--PUBLIC SCHOOL FACILITY OPPORTUNITY FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the public school facility opportunity fund in an amount equal to two percent of the taxable gross receipts attributable to the sale of construction services to school districts or to the public school facilities authority, as determined by the department."

Section 3. Section 6-5-10 NMSA 1978 (being Laws 1994, Chapter 11, Section 1, as amended) is amended to read:

"6-5-10. STATE AGENCY REVERSIONS--DIRECTOR POWERS--COMPLIANCE WITH FEDERAL RULES.--

A. Except as provided in Subsections B and C of this section, all unreserved undesignated fund balances in reverting funds and accounts as reflected in the central financial reporting and accounting system as of June 30 shall revert by September 30 to the general fund. The division may adjust the reversion within forty-five days of release of the audit report for that fiscal year.

B. The director of the division may modify a reversion required pursuant to Subsection A of this section if the reversion would violate federal law or rules pertaining to supplanting of state funds with federal funds or other applicable federal provisions.

C. One-half of all unreserved undesignated balances in reverting funds and accounts as of the end of each fiscal year from fiscal year 2007 through fiscal year 2011 shall not revert to the general fund but shall be transferred to the public school facility opportunity fund to be used for grants to school districts pursuant to Section 22-24-12 NMSA 1978."

Section 4. [NEW MATERIAL] PUBLIC SCHOOL APPROPRIATIONS FOR NONOPERATING PURPOSES--SET ASIDE FOR PUBLIC SCHOOL FACILITY OPPORTUNITY FUND.--Except for appropriations to or from the public school capital outlay fund, two percent of each appropriation made by the legislature on or after July 1, 2007 for nonoperating purposes, either directly to a school district or a public school or to another governmental entity for the purpose of passing the money through directly to a school district or a public school, shall be set aside and transferred to the public school facility opportunity fund, provided that the amount set aside and transferred pursuant to this section shall not be included in a reduction in the amount of a state grant calculated pursuant to Paragraph (6) of Subsection B of Section 22-24-5 NMSA 1978. The amount shall be set aside and transferred by the secretary of finance and administration:

A. if the appropriation is from severance tax bond proceeds, at the time the severance tax bonds are issued by the state board of finance; or

B. if the appropriation is from the general fund, at such time during the first fiscal year that the appropriation may be expended as deemed appropriate by the secretary.

Section 5. Laws 2003, Chapter 385, Section 1 is amended to read:

"Section 1. GENERAL FUND APPROPRIATIONS FROM FISCAL YEAR 2003--LIMITATIONS--REVERSIONS.--

A. The general fund appropriations in this act are from fiscal year 2003 and may be expended through fiscal year 2008 except as otherwise provided in this section.

B. Unless otherwise provided, the unexpended balance of an appropriation made in this act from the general fund, including changes to prior appropriations, shall revert [to the originating fund, as follows] according to the following schedule. Unless otherwise provided, the reversion shall be made to the originating fund, except that, on or after July 1, 2007, a reversion of a general fund appropriation that would otherwise revert to the general fund shall not be made to the general fund but shall be made to the public school facility opportunity fund and shall be used for grants to school districts pursuant to Section 22-24-12 NMSA 1978:

(1) for projects for which appropriations were made to match federal grants, six months after completion of the project;

(2) for projects for which appropriations were made to purchase vehicles, heavy equipment, educational technology or equipment or furniture that is not related to a more inclusive construction or renovation project, at the end of the fiscal year following the fiscal year in which the appropriation was made for the purchase;

(3) for projects for which appropriations were made to purchase emergency vehicles or other vehicles that require special equipment, at the end of the fiscal year two years following the fiscal year in which the [severance tax bonds were issued] appropriation was made for the purchase; and

(4) for all other projects for which appropriations were made, within six months of completion of the project, but no later than the end of fiscal year 2008.

C. Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.

D. For the purpose of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses covered by binding written obligations to third parties."

Section 6. Laws 2003, Chapter 429, Section 2 is amended to read:

"Section 2. GENERAL FUND AND OTHER FUND APPROPRIATIONS-- LIMITATIONS--REVERSIONS.--

A. The general fund appropriations in this act are from fiscal year 2003 and may be expended through fiscal year 2008 except as otherwise provided in this section.

B. Unless otherwise provided, the unexpended balance of an appropriation made in this act from the general fund or other state fund, including changes to prior appropriations, shall revert [to the originating fund, as follows] according to the following schedule. Unless otherwise provided, the reversion shall be made to the originating fund, except that, on or after July 1, 2007, a reversion of a general fund appropriation that would otherwise revert to the general fund shall not be made to the general fund but shall be made to the public school facility opportunity fund and shall be used for grants to school districts pursuant to Section 22-24-12 NMSA 1978:

(1) for projects for which appropriations were made to match federal grants, six months after completion of the project;

(4) for all other projects for which appropriations were made, within six months of completion of the project, but no later than the end of fiscal year 2008.

C. Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.

Section 7. Laws 2004, Chapter 126, Section 2 is amended to read:

"Section 2. GENERAL FUND AND OTHER FUND APPROPRIATIONS-- LIMITATIONS--REVERSIONS.--

A. Except as otherwise provided in this section, [or] another section of this act or another law, the unexpended balance of an appropriation made in this act from the general fund or other state fund, including changes to prior appropriations, shall revert [to the originating fund, as follows] according to the following schedule. Unless otherwise provided, the reversion shall be made to the originating fund, except that, on or after July 1, 2007, a reversion of a general fund appropriation that would otherwise revert to the general fund shall not be made to the general fund but shall be made to the public school facility opportunity fund and shall be used for grants to school districts pursuant to Section 22-24-12 NMSA 1978:

(1) for projects for which appropriations were made to match federal grants, six months after completion of the project;

(3) for projects for which appropriations were made to purchase emergency vehicles or other vehicles that require special equipment, at the end of the fiscal year two years following the fiscal year in which the severance tax bonds were issued for the purchase; and

(4) for all other projects for which appropriations were made, within six months of completion of the project, but no later than the end of fiscal year 2009.

B. Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.

C. For the purpose of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses covered by binding written obligations to third parties."

Section 8. Laws 2005, Chapter 347, Section 2 is amended to read:

"Section 2. GENERAL FUND AND OTHER FUND APPROPRIATIONS--

LIMITATIONS--REVERSIONS.--

(1) for projects for which appropriations were made to match federal grants, six months after completion of the project;

(3) for projects for which appropriations were made to purchase emergency vehicles or other vehicles that require special equipment, at the end of the fiscal year two years following the fiscal year in which the severance tax bonds were issued for the purchase; and

(4) for all other projects for which appropriations were made, within six months of completion of the project, but no later than the end of fiscal year 2010.

B. Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.

Section 9. Laws 2006, Chapter 107, Section 2 is amended to read:

"Section 2. GENERAL FUND AND OTHER FUND APPROPRIATIONS-- LIMITATIONS--REVERSIONS.--

A. Except as otherwise provided in another section of this act or another law, the unexpended balance of an appropriation from the general fund or other state fund that has been changed in this act shall revert [to the originating fund, as follows] according to the following schedule. Unless otherwise provided, the reversion shall be made to the originating fund, except that, on or after July 1, 2007, a reversion of a general fund appropriation that would otherwise revert to the general fund shall not be made to the general fund but shall be made to the public school facility opportunity fund and shall be used for grants to school districts pursuant to Section 22-24-12 NMSA 1978:

(1) for projects for which appropriations were made to match federal grants, six months after completion of the project;

(2) for projects for which appropriations were made to purchase vehicles, including emergency vehicles and other vehicles that require special equipment; heavy equipment; educational technology; or equipment or furniture that is not related to a more inclusive construction or renovation project, at the end of the fiscal year two years following the fiscal year in which the appropriation was made for the purchase; and

(3) for all other projects for which appropriations were made, within six months of completion of the project, but no later than the end of fiscal year 2009.

B. For the purpose of this section, "unexpended balance" means the remainder of an appropriation after reserving for unpaid costs and expenses covered by binding written obligations to third parties."

Section 10. Laws 2006, Chapter 111, Section 2 is amended to read:

"Section 2. GENERAL FUND AND OTHER FUND APPROPRIATIONS-- LIMITATIONS--REVERSIONS.--

(1) for projects for which appropriations were made to match federal grants, six months after completion of the project;

(2) for projects for which appropriations were made to purchase vehicles, emergency vehicles or other vehicles that require special equipment, heavy equipment, educational technology or equipment or furniture that is not related to a more inclusive construction or renovation project, at the end of the fiscal year two years following the fiscal year in which the appropriation was made for the purchase; and

(3) for all other projects for which appropriations were made, within six months of completion of the project, but no later than the end of fiscal year 2010.

B. Upon certification by an agency that money from the general fund is needed for a purpose specified in this act, the secretary of finance and administration shall disburse [such] an amount of the appropriation for that project as is necessary to meet that need.

C. Except for appropriations to the capital program fund, money from appropriations made in this act shall not be used to pay indirect project costs.

Section 11. Laws 2006, Chapter 109, Section 3 is amended to read:

"Section 3. GENERAL PROVISIONS.--

A. Amounts set out under column headings are expressed in thousands of dollars.

B. Amounts set out under column headings are appropriated from the source indicated by the column heading. All amounts set out under the column heading "Internal Service Funds/Interagency Transfers" are intergovernmental transfers and do not represent a portion of total state government appropriations. All information designated as "Total" or "Subtotal" is provided for information and amounts are not appropriations.

C. Amounts set out in Section 4 of the General Appropriation Act of 2006, or so much as may be necessary, are appropriated from the indicated source for expenditure in fiscal year 2007 for the objects expressed.

D. Unencumbered balances in agency accounts remaining at the end of fiscal year 2006 shall revert to the general fund by October 1, 2006, unless otherwise indicated in the General Appropriation Act of 2006 or otherwise provided by law.

E. [Unencumbered balances in agency accounts remaining at the end of fiscal year 2007 shall revert to the general fund by October 1, 2007] Unless otherwise indicated in the General Appropriation Act of 2006 or otherwise provided by law, by October 1, 2007, fifty percent of the unencumbered balances in agency accounts remaining at the end of fiscal year 2007 shall revert to the general fund and the remaining unencumbered balances shall be transferred to the public school facility opportunity fund.

F. The state budget division shall monitor revenue received by agencies from sources other than the general fund and shall reduce the operating budget of any agency whose revenue from such sources is not meeting projections. The state budget division shall notify the legislative finance committee of any operating budget reduced pursuant to this subsection.

G. Except as otherwise specifically stated in the General Appropriation Act of 2006, appropriations are made in that act for the expenditures of agencies and for other purposes as required by existing law for fiscal year 2007. If any other act of the second session of the forty-seventh legislature changes existing law with regard to the name or responsibilities of an agency or the name or purpose of a fund or distribution, the appropriation made in the General Appropriation Act of 2006 shall be transferred from the agency, fund or distribution to which an appropriation has been made as required by existing law to the appropriate agency, fund or distribution provided by the new law.

H. The department of finance and administration will regularly consult with the legislative finance committee staff to compare fiscal year 2007 revenue collections with the revenue estimate. If the analyses indicate that revenues and transfers to the general fund are not expected to meet appropriations, then the department shall present a plan to the legislative finance committee that outlines the methods by which the administration proposes to address the deficit.

I. Pursuant to Sections 6-3-23 through 6-3-25 NMSA 1978, agencies whose revenue from state board of finance loans, from revenue appropriated by other acts of the legislature, or from gifts, grants, donations, bequests, insurance settlements, refunds or payments into revolving funds exceeds specifically appropriated amounts may request budget increases from the state budget division. If approved by the state budget division, such money is appropriated.

[L.] J. Except for gasoline credit cards used solely for operation of official vehicles, telephone credit cards used solely for official business and procurement cards used as authorized by Section 6-5-9.1 NMSA 1978, none of the appropriations contained in the General Appropriation Act of 2006 may be expended for payment of agency-issued credit card invoices.

[M.] K. To prevent unnecessary spending, expenditures from the General Appropriation Act of 2006 for gasoline for state-owned vehicles at public gasoline service stations shall be made only for self-service gasoline provided that a state agency head may provide exceptions from the requirement to accommodate disabled persons or for other reasons the public interest may require.

[N.] L. For the purpose of administering the General Appropriation Act of 2006, the state of New Mexico shall follow the modified accrual basis of accounting for governmental funds in accordance with the manual of model accounting practices issued by the department of finance and administration.

[O.] M. When approving budgets based on appropriations in the General Appropriation Act of 2006, the state budget division is specifically authorized to approve budgets in accordance with generally accepted accounting principles and the authority to extend the availability period of an appropriation through the use of an encumbrance shall follow the modified accrual basis of accounting for governmental funds in accordance with the manual of model accounting practices issued by the department of finance and administration."

Section 12. EFFECTIVE DATE.--The effective date of the provisions of Section 2 of this act is July 1, 2007.

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