HOUSE JOINT MEMORIAL 1

49th legislature - STATE OF NEW MEXICO - first special session, 2009

INTRODUCED BY

Gloria C. Vaughn

A JOINT MEMORIAL

REQUESTING THE OBAMA ADMINISTRATION, THE GOVERNOR AND THE PUBLIC EDUCATION DEPARTMENT TO IMPROVE TIMELINESS OF EDUCATIONAL REIMBURSEMENT TO SCHOOL ENTITIES.

     WHEREAS, the public education department processes over two hundred seventy million dollars ($270,000,000) annually in reimbursements to local school districts and other related entities; and

     WHEREAS, reimbursement timeliness will be especially important in fiscal year 2010 because New Mexico will receive an estimated three hundred sixty-nine million dollars ($369,000,000) from the federal American Recovery and Reinvestment Act of 2009 that will flow through the public education department reimbursement process; and

     WHEREAS, the public education department estimates that it will receive two hundred five million dollars ($205,000,000) in stimulus funds that flow through existing distribution mechanisms and one hundred sixty-four million dollars ($164,000,000) in fiscal stabilization funds from the American Recovery and Reinvestment Act of 2009; and

     WHEREAS, the total average processing time in fiscal year 2009 to complete state reimbursements was forty-four working days, and federal reimbursements required thirty-three working days to complete; and

     WHEREAS, delayed reimbursements continue to impact cash management operations for school entities; and

     WHEREAS, school entities must maintain enough cash on hand to fulfill operational expenses while waiting for reimbursements; and

     WHEREAS, infrequent or untimely reimbursement requests

compound cash-flow issues; and

     WHEREAS, federal and state oversight requirements provide a natural incentive for the public education department to conduct a thorough review of operational practices, but do not have similar incentives to conduct a timely review; and

     WHEREAS, the excessive money that school entities are required to carry in their accounts while waiting for reimbursements can be put to better use;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that it request the Obama administration, the governor and the public education department to improve the timeliness of educational reimbursements to school entities; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the president of the United States, the governor and the secretary of public education.

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