45th legislature - STATE OF NEW MEXICO - first session, 2001
RELATING TO EDUCATIONAL FUNDING; CAPPING IMPACT AID REVENUE THAT CAN BE CONSIDERED AS FEDERAL REVENUE FOR PURPOSES OF THE STATE EQUALIZATION GUARANTEE DISTRIBUTION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 22-8-25 NMSA 1978 (being Laws 1981, Chapter 176, Section 5, as amended) is amended to read:
"22-8-25. STATE EQUALIZATION GUARANTEE DISTRIBUTION--
DEFINITIONS--DETERMINATION OF AMOUNT.--
A. The state equalization guarantee distribution is that amount of money distributed to each school district to ensure that the school district's operating revenue, including its local and federal revenues as defined in this section, is at least equal to the school district's program cost.
B. "Local revenue", as used in this section, means
seventy-five percent of receipts to the school district
derived from that amount produced by a school district
property tax applied at the rate of fifty cents ($.50) to each
one thousand dollars ($1,000) of net taxable value of property
allocated to the school district and to the assessed value of
products severed and sold in the school district as determined
under the Oil and Gas Ad Valorem Production Tax Act and upon
the assessed value of equipment in the school district as
determined under the Oil and Gas Production Equipment Ad
Valorem Tax Act. The school district shall budget and expend
twenty percent of the total revenue receipts for capital
outlay [as defined in the manual of accounting and budgeting
provided in Section 22-8-5 NMSA 1978].
C. "Federal revenue", as used in this section,
means receipts to the school district, excluding amounts
[which] that, if taken into account in the computation of the
state equalization guarantee distribution, result, under
federal law or regulations, in a reduction in or elimination
of federal school funding otherwise receivable by the school
district, derived from the following:
(1) seventy-five percent of the school
district's share of forest reserve funds distributed in
accordance with Section 22-8-33 NMSA 1978. The school
district shall budget and expend twenty percent of the total
forest reserve receipts for capital outlay [as defined in the
manual of accounting and budgeting provided in Section 22-8-5
NMSA 1978]; and
(2) seventy-five percent of grants from the
federal government as assistance to those areas affected by
federal activity authorized in accordance with Title 20 of the
United States Code, commonly known as "PL 874 funds" or
"impact aid"; provided, however, that the amount of impact aid
considered in any year to be federal revenue from a school
district for purposes of the state equalization guarantee
distribution shall not exceed the amount considered to be
federal revenue from that school district in fiscal year 2001.
Increases in impact aid above that amount received in fiscal
year 2001 by a school district shall be retained by the school
district and shall not be considered to be federal revenue for
purposes of the state equalization guarantee distribution.
The school district shall budget and expend twenty percent of
the grant receipts for capital outlay [as defined in the
manual of accounting and budgeting provided in Section 22-8-5
NMSA 1978].
D. To determine the amount of the state equalization guarantee distribution, the state superintendent shall:
(1) effective July 1, 1999, calculate the number of program units to which each school district is entitled using the basic program membership of the fortieth day of the prior year for all programs; provided that special education program units shall be calculated using the membership in special education programs on December 1 of the prior year; effective July 1, 2000, calculate the number of program units to which each school district is entitled using an average of the membership on the fortieth, eightieth and one hundred twentieth days of the prior year; or
(2) calculate the number of program units to which a school district operating under an approved year-round school calendar is entitled using the basic program membership on an appropriate date established by the state board; or
(3) calculate the number of program units to which a school district with a basic program MEM of two hundred or less is entitled by using the basic program membership on the fortieth day of either the prior or the current year, whichever is greater; provided that special education program units shall be calculated using the membership in special education programs on December 1 of either the prior or the current year; and
(4) using the results of the calculations in Paragraph (1), (2) or (3) of this subsection and the instructional staff training and experience index from the October report of the prior school year, establish a total program cost of the school district;
(5) calculate the local and federal revenues as defined in this section;
(6) deduct the sum of the calculations made in Paragraph (5) of this subsection from the program cost established in Paragraph (4) of this subsection; and
(7) deduct the total amount of guaranteed energy savings contract payments that the state superintendent determines will be made to the school district from the public school utility conservation fund during the fiscal year for which the state equalization guarantee distribution is being computed.
E. The amount of the state equalization guarantee distribution to which a school district is entitled is the balance remaining after the deductions made in Paragraphs (6) and (7) of Subsection D of this section.
F. The state equalization guarantee distribution shall be distributed prior to June 30 of each fiscal year. The calculation shall be based on the local and federal revenues specified in this section received from June 1 of the previous fiscal year through May 31 of the fiscal year for which the state equalization guarantee distribution is being computed. In the event that a school district has received more state equalization guarantee funds than its entitlement, a refund shall be made by the district to the state general fund."
Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2001.