0001| HOUSE BILL 75 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| FRANK BIRD | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO EDUCATION; CHANGING CERTAIN REQUIREMENTS OF PUBLIC | 0012| SCHOOL ACCOUNTING AND BUDGETING TO ESTABLISH LOCAL SCHOOL | 0013| BOARD FUNDING CONTROL. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 22-8-2 NMSA 1978 (being Laws 1978, | 0017| Chapter 128, Section 3, as amended) is amended to read: | 0018| "22-8-2. DEFINITIONS.--As used in the Public School | 0019| Finance Act: | 0020| A. "ADM" or "MEM" means membership; | 0021| B. "membership" means the total enrollment of | 0022| qualified students on the current roll of a class or school on | 0023| a specified day. The current roll is established by the | 0024| addition of original entries and reentries minus withdrawals. | 0025| Withdrawals of students, in addition to students formally | - 1 - 0001| withdrawn from the public school, include students absent from | 0002| the public school for as many as ten consecutive school days; | 0003| C. "basic program ADM" or "basic program MEM" | 0004| means the MEM of qualified students but excludes the full- | 0005| time-equivalent MEM in early childhood education and three- | 0006| and four-year-old students receiving special education | 0007| services; | 0008| D. "cost differential factor" is the numerical | 0009| expression of the ratio of the cost of a particular segment of | 0010| the school program to the cost of the basic program in grades | 0011| four through six; | 0012| E. "department" or "division" means the state | 0013| department of public education; | 0014| F. "early childhood education ADM" or "early | 0015| childhood education MEM" means the full-time-equivalent MEM of | 0016| students attending approved early childhood education | 0017| programs; | 0018| G. "full-time-equivalent ADM" or "full-time- | 0019| equivalent MEM" is that membership calculated by applying to | 0020| the MEM in an approved public school program the ratio of the | 0021| number of hours per school day devoted to the program to six | 0022| hours or the number of hours per school week devoted to the | 0023| program to thirty hours; | 0024| H. "operating budget" means the annual financial | 0025| plan ~[required to be submitted]~ |approved| by a local school | - 2 - 0001| board |and submitted to the department|; | 0002| I. "program cost" is the product of the total | 0003| number of program units to which a school district is entitled | 0004| multiplied by the dollar value per program unit established by | 0005| the legislature; | 0006| J. "program element" is that component of a public | 0007| school system to which a cost differential factor is applied | 0008| to determine the number of program units to which a school | 0009| district is entitled, including but not limited to MEM, full- | 0010| time-equivalent MEM, teacher, classroom or public school; | 0011| K. "program unit" is the product of the program | 0012| element multiplied by the applicable cost differential factor; | 0013| L. "public money" or "public funds" means all | 0014| money from public or private sources received by a local | 0015| school board or officer or employee of a local school board | 0016| for public use; | 0017| M. "qualified student" means a public school | 0018| student who: | 0019| (1) has not graduated from high school; | 0020| (2) is regularly enrolled in one-half or more | 0021| of the minimum course requirements approved by the state board | 0022| for public school students; and | 0023| (3) is at least five years of age prior to | 0024| 12:01 a.m. on September 1 of the school year; or | 0025| (4) is at least three years of age at any | - 3 - 0001| time during the school year and is receiving special education | 0002| services pursuant to regulation of the state board; or | 0003| (5) has not reached his twenty-second | 0004| birthday on the first day of the school year and is receiving | 0005| special education services pursuant to regulation of the state | 0006| board; and | 0007| N. "state superintendent" means the superintendent | 0008| of public instruction or his designee." | 0009| Section 2. Section 22-8-4 NMSA 1978 (being Laws 1967, | 0010| Chapter 16, Section 58, as amended) is amended to read: | 0011| "22-8-4. DEPARTMENT--DUTIES.--In addition to other | 0012| duties provided by law, the department shall: | 0013| A. ~[prescribe the forms for and supervise and | 0014| control the preparation of all budgets of all public schools | 0015| and school districts]~ |provide technical assistance to a | 0016| local school board to prepare its budget and the budgets of | 0017| the schools located within the school district|; and | 0018| B. compile accurate information concerning public | 0019| school finance and administration." | 0020| Section 3. Section 22-8-5 NMSA 1978 (being Laws 1967, | 0021| Chapter 16, Section 59, as amended) is amended to read: | 0022| "22-8-5. ~[MANUAL OF ACCOUNTING AND BUDGETING]~ |UNIFORM | 0023| ACCOUNTING|.-- | 0024| A. The department shall ~[compile and publish a | 0025| manual prescribing detailed regulations]~ |promulgate rules| | - 4 - 0001| for a uniform system of accounting and budgeting of funds for | 0002| all public schools and school districts of the state. The | 0003| ~[manual of regulations and any revision or amendments | 0004| thereto]~ |rules, including revisions or amendments,| shall | 0005| become effective only upon approval by the state board ~[of | 0006| education]~ and the legislative finance committee, filing with | 0007| the state records center and publication. A copy shall also | 0008| be filed with the department of finance and administration. | 0009| B. All public schools and school districts shall | 0010| comply with the ~[regulations prescribed in the manual of | 0011| accounting and budgeting]~ |rules promulgated by the | 0012| department| and shall, upon request, submit additional reports | 0013| concerning finances to the ~[department. In addition, upon | 0014| request, all public schools and school districts shall file | 0015| reports with the department containing pertinent details | 0016| regarding applications for federal money or federal grants-in- | 0017| aid or regarding federal money or federal grants-in-aid | 0018| received, including but not limited to details of programs, | 0019| matching funds, personnel requirements, salary provisions and | 0020| program numbers, as indicated in the catalog of federal | 0021| domestic assistance, of the federal funds applied for and of | 0022| those received]~ |legislative finance committee and the | 0023| legislative education study committee|. | 0024| C. Upon request by the department of finance and | 0025| administration, the legislative finance committee or the | - 5 - 0001| legislative education study committee, the ~[state]~ | 0002| department ~[of public education]~ shall timely furnish | 0003| information and data obtained from public schools and school | 0004| districts ~[pursuant to Subsection B of this section]~ | 0005| |regarding applications for federal money, federal grants or | 0006| other federal funding received|." | 0007| Section 4. Section 22-8-6 NMSA 1978 (being Laws 1967, | 0008| Chapter 16, Section 60, as amended by Laws 1993, Chapter 224, | 0009| Section 2 and also by Laws 1993, Chapter 227, Section 9) is | 0010| amended to read: | 0011| "22-8-6. BUDGETS--SUBMISSION--FAILURE TO SUBMIT.-- | 0012| A. Prior to April 15 of each year, each local | 0013| school board shall ~[submit]~ |provide| to the department an | 0014| estimated budget for the school district for the ensuing | 0015| fiscal year. Upon written approval of the state | 0016| superintendent, the date for the submission of the estimated | 0017| budget as required by this section may be extended to a later | 0018| date fixed by the state superintendent. | 0019| B. The estimated budget required by this section | 0020| may include: | 0021| (1) estimates of the cost of insurance | 0022| policies for periods up to five years if a lower rate may be | 0023| obtained by purchasing insurance for the longer term; or | 0024| (2) estimates of the cost of contracts for | 0025| the transportation of students for terms extending up to four | - 6 - 0001| years. | 0002| C. The estimated budget required by this section | 0003| shall include a proposed breakdown for charter schools in the | 0004| ~[local]~ school district, by individual charter school, of | 0005| the membership projected for each charter school, the total | 0006| program units generated at that charter school and approximate | 0007| anticipated disbursements and expenditures at each charter | 0008| school. | 0009| D. If a local school board fails to submit a | 0010| budget pursuant to this section, the department shall prepare | 0011| the estimated budget for the school district for the ensuing | 0012| fiscal year. A local school board shall be considered as | 0013| failing to submit a budget pursuant to this section if the | 0014| budget submitted exceeds the total projected resources of the | 0015| school district or if the budget submitted does not comply | 0016| with the law ~[or the manual of accounting and budgeting of | 0017| the department]~." | 0018| Section 5. Section 22-8-6.1 NMSA 1978 (being Laws 1993, | 0019| Chapter 227, Section 8) is amended to read: | 0020| "22-8-6.1. CERTAIN SCHOOL DISTRICT BUDGETS.-- | 0021| |A|. In those school districts with authorized | 0022| charter schools, each charter school shall submit to the local | 0023| school board a school-based budget. The budget shall be based | 0024| upon the projected total MEM at that school and the projected | 0025| number of program units generated by students at that | - 7 - 0001| individual school. | 0002| |B|. The budget shall be submitted to the local | 0003| school board for approval or amendment. |Charter school | 0004| budgets that are not approved by the local school board may be | 0005| appealed to the state board.| | 0006| |C|. Upon final approval of the budget by the | 0007| local school board, the individual school budget shall be | 0008| included in the budget ~[submission]~ |provided| to the | 0009| department ~[of education]~ required pursuant to the Public | 0010| School Finance Act and required pursuant to the Charter | 0011| Schools Act." | 0012| Section 6. Section 22-8-7 NMSA 1978 (being Laws 1967, | 0013| Chapter 16, Section 61, as amended) is amended to read: | 0014| "22-8-7. BUDGETS--FORM.--All budgets ~[submitted]~ | 0015| |provided| to the ~[division]~ |department| by a school | 0016| district shall be in a form specified by ~[the manual of | 0017| accounting and budgeting of the division]~ |the rules | 0018| promulgated by the department|." | 0019| Section 7. Section 22-8-9 NMSA 1978 (being Laws 1967, | 0020| Chapter 16, Section 63, as amended) is amended to read: | 0021| "22-8-9. BUDGETS--MINIMUM REQUIREMENTS.-- | 0022| A. ~[No]~ |A| budget for a school district shall | 0023| ~[be approved by the department that does not]~ provide for: | 0024| (1) a school year consisting of at least one | 0025| hundred eighty full instructional days or the equivalent | - 8 - 0001| thereof, exclusive of any release time for in-service | 0002| training; or | 0003| (2) a variable school year consisting of a | 0004| minimum number of instructional hours established by the state | 0005| board; and | 0006| (3) a pupil-teacher ratio or class or | 0007| teaching load as provided in Section 22-2-8.2 NMSA 1978. | 0008| B. The state board shall, by regulation, establish | 0009| the requirements for a teaching day, the standards for an | 0010| instructional hour and the standards for a full-time certified | 0011| classroom instructor and for the equivalent thereof. | 0012| C. The local school board shall ~[submit]~ | 0013| |provide| a plan for the implementation of an alternate school | 0014| year to the ~[state superintendent for his approval]~ | 0015| |department|. | 0016| D. The provisions of Subsection C and Paragraph | 0017| (2) of Subsection A of this section shall apply to school | 0018| districts with a MEM of one thousand or fewer." | 0019| Section 8. Section 22-8-11 NMSA 1978 (being Laws 1967, | 0020| Chapter 16, Section 66, as amended) is amended to read: | 0021| "22-8-11. BUDGETS--~[TEMPORARY--FINAL]~ |TECHNICAL | 0022| ASSISTANCE|.-- | 0023| A. The department shall | 0024| ~[(1) on or before July 1 of each year, | 0025| approve and certify to each local school board a temporary | - 9 - 0001| operating budget for use by the local school board pending | 0002| approval by the department of a final budget; | 0003| (2) make]~ |provide technical assistance in | 0004| making| corrections, revisions and amendments to the estimated | 0005| budgets fixed by the local school boards ~[and the state | 0006| superintendent]~ to conform the budgets to the requirements of | 0007| law ~[and to the manual of accounting and budgeting; and | 0008| (3) before the first Monday of September of | 0009| each year, approve and certify to each local school board and | 0010| to the board of county commissioners of the county in which | 0011| the school district is situated a final budget for use by the | 0012| local school board, based upon the estimated budget fixed by | 0013| the local school board and the state superintendent]~. | 0014| B. No school board or officer or employee of a | 0015| school district shall make any expenditure or incur any | 0016| obligation for the expenditure of public funds unless that | 0017| expenditure or ~[contractual]~ obligation is made in | 0018| accordance with an operating budget approved by the |local | 0019| school board and provided to the| department ~[but]~. |This | 0020| prohibition| does not prohibit the transfer of funds between | 0021| line items within series of a budget. | 0022| ~[C. The department shall not approve and certify | 0023| a temporary operating budget of any school district that fails | 0024| to demonstrate that parental involvement in the budget process | 0025| was solicited.]~" | - 10 - 0001| Section 9. Section 22-8-12 NMSA 1978 (being Laws 1967, | 0002| Chapter 16, Section 67, as amended) is amended to read: | 0003| "22-8-12. FINAL BUDGETS--ALTERATIONS OR AMENDMENTS.-- | 0004| Final budgets shall not be altered or amended after approval | 0005| |by the local school board| and ~[certification by]~ | 0006| |submission to| the department, except for the following | 0007| purposes and according to the following procedure: | 0008| A. upon ~[written request of any]~ |approval by | 0009| the| local school board, the ~[state]~ |district| | 0010| superintendent may authorize transfer within the budget, or | 0011| provide for items not included, when the total amount of the | 0012| budget will not be increased thereby; | 0013| B. ~[upon written request of any]~ |the| local | 0014| school board ~[the state superintendent, in conformance with | 0015| the regulations of the department]~ may authorize an increase | 0016| in any budget if the increase is necessary because of the | 0017| receipt of revenue that was not anticipated at the time the | 0018| budget was fixed and if the increase is directly related to a | 0019| special project or program for which the additional revenue | 0020| was received. |The district superintendent shall submit the | 0021| revised budget as approved by the local school board to the | 0022| department.| The ~[state superintendent]~ |department| shall | 0023| make a written report to the legislative finance committee of | 0024| any such budget increase; | 0025| C. upon written request of any local school board, | - 11 - 0001| the state superintendent may authorize an increase in a budget | 0002| of not more than one thousand dollars ($1,000); or | 0003| D. upon written request of any local school board, | 0004| the state superintendent, after notice and a public hearing, | 0005| may authorize an increase in a school budget in an amount | 0006| exceeding one thousand dollars ($1,000). The notice of the | 0007| hearing shall designate the school district which proposes to | 0008| alter or amend its budget, together with the time, place and | 0009| date of the hearing. The notice of the hearing shall be | 0010| published at least once a week for two consecutive weeks in a | 0011| newspaper of general circulation in the county in which the | 0012| school district is situated. The last publication of the | 0013| notice shall be at least three days prior to the date set for | 0014| the hearing." | 0015| Section 10. Section 22-8-12.1 NMSA 1978 (being Laws | 0016| 1978, Chapter 128, Section 5, as amended) is amended to read: | 0017| "22-8-12.1. BUDGET REQUESTS.-- | 0018| A. Each local school board shall submit annually, | 0019| on or before October 15, to the department: | 0020| (1) an estimate for the succeeding fiscal | 0021| year of: | 0022| (a) the membership of qualified | 0023| students to be enrolled in the basic program; | 0024| (b) the full-time-equivalent membership | 0025| of students to be enrolled in approved early childhood | - 12 - 0001| education programs; and | 0002| (c) the membership of students to be | 0003| enrolled in approved special education programs; | 0004| (2) all other information necessary to | 0005| calculate program costs; and | 0006| (3) any other information related to the | 0007| financial needs of the school district as may be requested by | 0008| the department. | 0009| B. All information requested pursuant to | 0010| Subsection A of this section shall be submitted on forms | 0011| prescribed and furnished by the department ~[and shall comply | 0012| with the manual of accounting and budgeting published by the | 0013| department]~. | 0014| C. The department shall: | 0015| (1) review the financial needs of each school | 0016| district for the succeeding fiscal year; and | 0017| (2) submit annually, on or before November | 0018| 30, to the secretary of finance and administration the | 0019| recommendations of the state board for: | 0020| (a) amendments to the public school | 0021| finance formula; | 0022| (b) appropriations for the succeeding | 0023| fiscal year to the public school fund for inclusion in the | 0024| executive budget document; and | 0025| (c) appropriations for the succeeding | - 13 - 0001| fiscal year for pupil transportation and instructional | 0002| materials." |