FORTY-THIRD LEGISLATURE
                          SECOND SESSION
  
  
                                                February 17, 1998
  
  
  SENATE FLOOR AMENDMENT number _______ to SENATE BILL 38, as
                                         amended
  
  Amendment sponsored by Senator Leonard Tsosie 
  
  
      1.  Strike Senate Finance Committee Amendment 8.
  
      2.  On page 3, line 18, after the semicolon strike the
  remainder of the line and insert in lieu thereof:
  
  "provided that a school district generating impact aid may elect
  in any given fiscal year to retain that amount of impact aid in
  excess of the amount of impact aid considered to be federal
  revenue for purposes of the state equalization guarantee
  distribution for that school district for the period beginning
  June 1, 1997 and ending May 31, 1998 for expenditure by that
  school district for capital improvements except that five percent
  of the impact aid received by a school district that is used in
  the calculation to determine the amount of federal revenue
  credited to the state equalization guarantee formula may be used
  by the school district for any purpose.  Any impact aid in excess
  of the amount of aid considered to be federal revenue for purposes
  of the state equalization guarantee distribution for that school
  district for the period beginning June 1, 1997 and ending May 31,
  1998 not elected to be retained by a school district shall be
  transferred to the public school capital outlay fund.  If
  retention of the impact aid in excess of that amount considered to 
  
  
  
  
  
  
  be federal revenue would result in the state being unable to take
  credit for impact aid to New Mexico's school districts pursuant to
  Title 20 of the United States Code, as that code applies to impact
  aid, no school shall be permitted to elect to retain impact aid
  funds.".
  
  
  
  
  
  
                                      __________________________
                                      Leonard Tsosie
  
  
  
  Adopted ___________________   Not Adopted _______________________
           (Chief Clerk)                    (Chief Clerk)
  
  
                   Date _________________