HOUSE BILL 286
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
Thomas C. Taylor
AN ACT
RELATING TO EDUCATION; CREATING THE EDUCATION STABILIZATION FUND; TRANSFERRING TO THE FUND A PORTION OF THE ADDITIONAL DISTRIBUTION FROM THE PERMANENT SCHOOL FUND; PROVIDING RESTRICTIONS ON APPROPRIATIONS FROM THE FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. [NEW MATERIAL] LEGISLATIVE FINDINGS--PURPOSE--FUND CREATED--APPROPRIATIONS FROM FUND RESTRICTED.--
A. The legislature finds that:
(1) the people of this state have recently consented to an amendment to the constitution of New Mexico that temporarily increases distributions from the permanent school fund for the limited purpose of implementing and maintaining educational reforms;
(2) the educational reforms will require that additional public revenues be appropriated after the temporary additional distributions have expired;
(3) the governor has expressed the desire to place a portion of the additional temporary distributions into a "lock box" so that money will be available in the future in order to maintain the level of funding for educational reforms; and
(4) without a mechanism for safeguarding the money for the future use, it is likely that New Mexico will face another education crisis when, under the constitution, the additional distributions cease.
B. The purpose of this section is to create an education stabilization fund into which a portion of the increased distributions from the permanent school fund will be transferred along with such other money as available and necessary to ensure that enough money will be reserved in order to maintain necessary future funding levels for educational reforms.
C. The "education stabilization fund" is created in the state treasury. The fund shall consist of a portion of the temporary additional distributions from the permanent school fund, as provided in Paragraph (1) of Subsection G of Section 7 of Article 12 of the constitution of New Mexico and in Section 22-8-32 NMSA 1978, and such other money as appropriated or transferred to the fund upon a finding by the legislature that the money will be needed in the future to maintain educational reforms. Money in the fund shall be invested by the state investment officer as land grant permanent funds are invested pursuant to Chapter 6, Article 8 NMSA 1978. Income from investment of the fund shall be credited to the fund. Money in the fund shall not revert to any other fund. Money in the fund shall be appropriated only for educational reforms and only as provided in Subsection D of this section.
D. Money in the education stabilization fund shall be subject to appropriation by the legislature pursuant to the following criteria:
(1) in fiscal years 2005 through 2012, no money shall be appropriated from that portion of the fund attributable to the transfers made pursuant to Subsection C of Section 22-8-32 NMSA 1978, including the earnings on the money transferred;
(2) in fiscal years 2013 through 2016, amounts may be appropriated from the fund for educational reforms; provided that the total amount appropriated in those fiscal years from that portion of the fund attributable to the transfers made pursuant to Subsection C of Section 22-8-32 NMSA 1978, including the earnings thereon, shall not exceed thirty-seven and one-half percent of that portion of the fund; and
(3) in fiscal year 2017 and subsequent fiscal years, the remaining balance in the fund may be appropriated for educational reforms.
Section 2. Section 22-8-32 NMSA 1978 (being Laws 1967, Chapter 16, Section 86, as amended) is amended to read:
"22-8-32. CURRENT SCHOOL FUND--RECEIPTS--DISPOSITION.--
A. As they are received, the state treasurer shall deposit into the current school fund revenue received from the following sources:
(1) all fines and forfeitures collected under general laws;
(2) the net proceeds of property that may come to the state by escheat; and
(3) all other revenue which by law is to be credited to the current school fund.
B. At the end of each month, the state treasurer shall transfer the amount in the common school current fund [also known as the common school income fund] to the current school fund.
C. At the end of each month in fiscal years 2005 through 2012, after the transfer authorized in Subsection B of this section, the state treasurer shall transfer an amount from the current school fund to the education stabilization fund equal to one-eighth of the distribution made in that month pursuant to Paragraph (1) of Subsection G of Section 7 of Article 12 of the constitution of New Mexico.
[C.] D. At the end of each month, after the [transfer] transfers authorized in [Subsection B] Subsections B and C of this section, the state treasurer shall transfer any unencumbered balance in the current school fund to the public school fund."
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