HOUSE BILL 3

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Mimi Stewart

AN ACT

RELATING TO EDUCATION; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.

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

     SECTION 1. SHORT TITLE.--This act may be cited as the "Education Appropriation Act".

     SECTION 2. DEFINITIONS.--As used in the Education Appropriation Act:

          A. "federal funds" means any payments by the United States government to state government or state agencies for specific purposes or in lieu of taxes, including grants, reimbursements and payments made in accordance with contracts or cooperative agreements, and shared revenue except those payments made in accordance with the federal Mineral Leasing Act (30 USCA 181, et seq.) and the State and Local Fiscal Assistance Act of 1972 (31 USCA 1221-1264), as amended;

          B. "general fund" means that fund created by Section 6-4-2 NMSA 1978 and includes federal Mineral Leasing Act receipts; and

          C. "other state funds" means:

                (1) unencumbered nonreverting balances in state agency accounts, other than in internal service funds accounts, appropriated by the Education Appropriation Act;

                (2) all revenue available to state agencies from sources other than the general fund, internal service funds, interagency transfers and federal funds; and

                (3) all revenue, the use of which is restricted by statute or agreement.

     SECTION 3. FORMAT.--The general format of the appropriations set forth in the Education Appropriation Act with respect to symbols used, column headings and amounts stated are those used in the General Appropriation Act of 2013.

     SECTION 4. APPROPRIATIONS.--

PUBLIC SCHOOL SUPPORT:

     Except as otherwise provided, unexpended balances of appropriations made in this subsection shall not revert at the end of fiscal year 2015.

(1) State equalization guarantee: 2,510,153.4  1,500.0                           2,511,653.4

     The purpose of public school support is to carry out the mandate to establish and maintain a uniform system of free public schools sufficient for the education of, and open to, all of the children of school age in the state.

     The rate of distribution of the state equalization guarantee distribution shall be based on a program unit value determined by the secretary of public education. The secretary of public education shall establish a preliminary unit value to establish budgets for the 2014-2015 school year and then, on verification of the number of units statewide for fiscal year 2015, but no later than January 31, 2015, may adjust the program unit value once.

     The general fund appropriation to the state equalization guarantee distribution includes five million seven hundred sixty-one thousand six hundred dollars ($5,761,600) to create a factor in the funding formula for school districts with fewer than two hundred students, contingent on enactment of House Bill 35 or similar legislation during the second session of the fifty-first legislature.

     The general fund appropriation to the state equalization guarantee distribution includes fifty-six million forty-two thousand nine hundred dollars ($56,042,900) to provide a three percent average salary increase for all teachers, other instructional staff and other licensed and unlicensed staff effective the first full pay period after July 1, 2014. This amount does not include and is in addition to salary increases due to licensure advancement pursuant to the School Personnel Act. Prior to the approval of each school district's or charter school's budget, the secretary of public education shall verify that the school district or charter school is providing a three percent average salary increase for all teachers and other licensed school employees and a three percent average salary increase for all unlicensed school employees.

     The general fund appropriation to the state equalization guarantee distribution includes sufficient funds to provide an additional three percent average salary increase for all licensed education assistants, and the compensation shall be effective the first full pay period after July 1, 2014. Prior to the approval of each school district's or charter school's budget, the secretary of public education shall verify that the school district or charter school is providing an additional three percent average salary increase for all education assistants.

     The general fund appropriation to the state equalization guarantee distribution includes sufficient funds to increase the minimum salary of level one teachers from thirty thousand dollars ($30,000) to thirty-two thousand dollars ($32,000), of level two teachers from forty thousand dollars ($40,000) to forty-two thousand dollars ($42,000) and of level three personnel from fifty thousand dollars ($50,000) to fifty-two thousand dollars ($52,000). Notwithstanding the provisions of the School Personnel Act or other substantive law, the secretary of public education shall ensure that no full-time level one teacher receives a base salary less than thirty-two thousand dollars ($32,000), that no full-time level two teacher receives a base salary less than forty-two thousand dollars ($42,000) and that no full-time level three employee receives a base salary less than fifty-two thousand dollars ($52,000) during fiscal year 2015.

     The general fund appropriation to the state equalization guarantee distribution includes twenty million dollars ($20,000,000) for reinstituting requirements of the Public School Code and rules promulgated in accordance with that code pertaining to individual class load, teaching load and staffing patterns. Prior to the approval of each school district's budget, the secretary of public education shall verify that the school district is in compliance with Section 22-10A-20 NMSA 1978 and other sections of the Public School Code or rules promulgated in accordance with that code pertaining to individual class load, teaching load and staffing patterns.

     After considering those elementary physical education programs eligible for state financial support and the amount of state funding available for elementary physical education, the secretary of public education shall annually determine the programs and the consequent numbers of students in elementary physical education that will be used to calculate the number of elementary physical education program units.

     For the 2014-2015 school year, the state equalization guarantee distribution includes sufficient funding for school districts and charter schools to implement a new formula-based program. Those districts and charter schools shall use current-year membership in the calculation of program units for the new formula-based program.

     The general fund appropriation to the state equalization guarantee distribution reflects the deduction of federal revenue pursuant to Paragraph (2) of Subsection C of Section 22-8-25 NMSA 1978 that includes payments commonly known as "impact aid funds" pursuant to 20 USCA 7701, et seq., and formerly known as "PL874 funds".            

     The general fund appropriation to the public school fund shall be reduced by the amounts transferred to the public school fund from the current school fund and from the federal Mineral Leasing Act receipts otherwise unappropriated.

     Any unexpended balances in the authorized distributions remaining at the end of fiscal year 2015 from appropriations made from the general fund shall revert to the general fund.

(2) Transportation distributions:

     Appropriations:               102,070.8                                       102,070.8

     The general fund appropriation to the transportation distribution includes one million seven hundred seventy-two thousand dollars ($1,772,000) to provide a three percent average salary increase for transportation employees effective the first full pay period after July 1, 2014. Prior to the approval of each school district's or charter school's budget, the secretary of public education shall verify that the school district or charter school is providing a three percent average salary increase for all transportation employees.

(3) Supplemental distributions:

     (a) Out-of-state tuition         300.0                                           300.0

     (b) Emergency supplemental     2,000.0                                         2,000.0

Subtotal                              2,300.0                                         2,300.0

     The secretary of public education shall not distribute any emergency supplemental funds to a school district or charter school that is not in compliance with the Audit Act. Emergency supplemental funds shall not be distributed to any school district or charter school having cash and invested reserves, or other resources or any combination thereof, equaling five percent or more of its operating budget.

     Any unexpended or unencumbered balance in the supplemental distributions to the public education department remaining at the end of fiscal year 2015 from appropriations made from the general fund shall revert to the general fund.

INSTRUCTIONAL MATERIAL FUND:         20,364.6                                        20,364.6

     The appropriation to the instructional material fund is made from the federal Mineral Leasing Act (30 USCA 181, et seq.) receipts.

DUAL CREDIT INSTRUCTIONAL MATERIALS:    857.0                                           857.0

     The general fund appropriation to the public education department for dual credit instructional materials shall be used by the department to reimburse school districts, charter schools, state-supported schools and bureau of Indian education high schools in New Mexico for the cost of required textbooks and other course supplies for students enrolled in the dual credit program to the extent of the available funds.

INDIAN EDUCATION FUND:                2,500.0                                         2,500.0

K-3 PLUS FUND:                       19,281.5                                        19,281.5

     In setting the reimbursement amount for the summer 2014 K-3 plus program, the secretary of public education shall use the final unit value set for school year 2013-2014 as the basis for funding June, July and August 2014 K-3 plus programs.

PUBLIC SCHOOL READING

  PROFICIENCY FUND:                   11,500.0                                        11,500.0

     Notwithstanding the provisions of Section 22-8-43 NMSA 1978 or other substantive law, the general fund appropriation to the public school reading proficiency fund for fiscal year 2015 may be used by the secretary of public education to distribute awards to public elementary schools that implement innovative, scientifically based reading programs. The general fund appropriation of eleven million five hundred thousand dollars ($11,500,000) to the public school reading proficiency fund for fiscal year 2015 is contingent on enactment of legislation regarding early literacy during the second session of the fifty-first legislature.

SCHOOLS IN NEED OF IMPROVEMENT FUND:  4,000.0                                         4,000.0

     The general fund appropriation to the schools in need of improvement fund is contingent on the public education department allocating the funds to schools rated D or F for both the 2012-2013 and 2013-2014 school years pursuant to the A-B-C-D-F Schools Rating Act. Notwithstanding the provisions of Section 22-2C-10 NMSA 1978 or other substantive law, for fiscal year 2015 the secretary of public education shall allocate one million dollars ($1,000,000) from the balance of the schools in need of improvement fund to two or more New Mexico universities for a collaborative school principal leadership program involving one or more colleges of education and one or more business colleges.

TEACHER PROFESSIONAL

  DEVELOPMENT FUND:                    2,500.0                                         2,500.0

FEDERAL FLOW THROUGH:                                                   414,202.3   414,202.3

TOTAL PUBLIC SCHOOL SUPPORT:      2,675,527.3   1,500.0                 414,202.3 3,091,229.6

PUBLIC EDUCATION DEPARTMENT:                                      

(1) Administration:

     (a) Personal services                                                    

           and employee benefits      9,857.6   2,323.4        36.0       7,008.9    19,225.9

     (b) Contractual services       1,100.2     828.3         0        19,993.5    21,922.0

     (c) Other                        862.0     656.3         0           992.1     2,510.4

Subtotal                             11,819.8   3,808.0        36.0      27,994.5    43,658.3

     Authorized FTE: 145.9 Permanent; 93.9 Term; 1.0 Temporary

     The general fund appropriation to the public education department includes seven hundred fifty thousand dollars ($750,000) for operating and maintaining the operating budget management system and student teacher accountability reporting system, contingent on the department granting access to these systems to the legislative finance committee and the legislative education study committee.

PUBLIC EDUCATION DEPARTMENT SPECIAL APPROPRIATIONS:

     (a)  Advanced placement         1,000.0                                         1,000.0

     (b)  After-school enrichment                                              

           and summer programs        2,000.0                                         2,000.0

     (c)  Breakfast for

           elementary students        1,924.6                                         1,924.6

     (d)  Graduation, reality and                                              

           dual-role skills             200.0                                           200.0

     (e)  Mock trial                   102.1                                           102.1

     (f)  New Mexico cyber academy     890.0                                           890.0

     (g)  Pre-kindergarten          19,289.6                                        19,289.6

     (h)  Regional education                                                   

           cooperative operations       938.2                                           938.2

     (i)  Science, technology,

engineering and

           mathematics initiative     2,000.0                                         2,000.0     (j)  Teaching support in schools                                          

           with a high proportion

           of low-income students       500.0                                           500.0

     Subtotal                       28,844.5                                        28,844.5

     Notwithstanding the provisions of Section 32A-23-9 NMSA 1978 or other substantive law, the general fund appropriation to the public education department for the pre-kindergarten program includes no more than one million two hundred sixty-one thousand dollars ($1,261,000) for administrative and program support and no less than fifteen million three hundred eighteen thousand dollars ($15,318,000) to fund direct student participation.

     The general fund appropriation of two million dollars ($2,000,000) to the public education department for the science, technology, engineering and mathematics initiative includes five hundred thousand dollars ($500,000) for professional development of mathematics and science teachers statewide.

     The general fund appropriation to the public education department for teaching support in schools with a high proportion of low-income students includes five hundred thousand dollars ($500,000) for a nonprofit organization with the primary purpose of recruiting recent college graduates and professionals who have a record of demonstrated achievement to teach for two years in low-income urban and rural public schools to provide teaching support in schools with at least sixty percent of the enrolled students eligible for free or reduced-fee lunch, with a priority for schools with eighty-five percent or more of the students enrolled in the school eligible for free or reduced-fee lunch. The public education department shall enter into a contract with a nonprofit organization no later than September 1, 2014.

     A regional education cooperative may submit an application to the public education department for an allocation from the nine-hundred-thirty-eight-thousand-two-hundred-dollar ($938,200) appropriation. The public education department may allocate amounts to one or more regional education cooperatives; provided that a regional education cooperative's application has adequately justified the need for the allocation and the department finds that the regional education cooperative submitted timely quarterly financial reports, is in compliance with state and federal reporting requirements, including the annual audit requirement pursuant to the Audit Act, and is otherwise financially stable. An allocation made to a regional education cooperative may only be used for current-year operating expenses. 

     Any unexpended or unencumbered balance in the authorized distributions remaining at the end of fiscal year 2015 from appropriations made from the general fund shall revert to the general fund.

REGIONAL EDUCATION COOPERATIVES:

(1)  Northwest 2 (Gallina)                      674.6                                 674.6

(2)  Northeast 4 (Las Vegas)                                            1,412.1     1,412.1

(3)  Lea county 7 (Hobbs)                       535.1                     365.2       900.3

(4)  Pecos valley 8 (Artesia)                 1,507.3                     599.4     2,106.7

(5)  Southwest 10 (Truth or                                                   

      Consequences)                            1,275.4                               1,275.4

(6)  Central 5 (Albuquerque)                  2,231.6       114.2         415.4     2,761.2

(7)  High plains 3 (Raton)                    2,662.3                     355.8     3,018.1

(8)  Clovis 6 (Portales)                      1,168.2                      28.4     1,196.6

(9)  Ruidoso 9 (Ruidoso)                      3,439.0                   1,182.6     4,621.6

Subtotal                                     13,493.5       114.2       4,358.9    17,966.6

PUBLIC EDUCATION DEPARTMENT:         7,000.0                                         7,000.0

     The general fund appropriation to the public education department is for school districts experiencing shortfalls. All requirements for distribution of funds shall be in accordance with Section 22-8-30 NMSA 1978.

     SECTION 5. SEVERABILITY.--If any part or application of this act is held invalid, the remainder or its application to other situations or persons shall not be affected.

     SECTION 6. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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