SENATE MEMORIAL 124

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Mimi Stewart

A MEMORIAL

REQUESTING THE PUBLIC EDUCATION DEPARTMENT TO CONVENE A TASK FORCE TO IDENTIFY POTENTIAL IMPACTS TO THE CENTRAL CONSOLIDATED SCHOOL DISTRICT.

     WHEREAS, the central consolidated school district in San Juan county issued school bonds for its facilities; and

     WHEREAS, the central consolidated school district currently is obligated to repay the bonds; and

     WHEREAS, a large percentage of the funds used by the central consolidated school district to repay the outstanding bonds comes from property tax paid by the owners of the San Juan generating station; and

     WHEREAS, the owners of ninety-five percent of the San Juan generating station have indicated their intent not to continue their participation in the San Juan generating station after mid-2022, and the public service company of New Mexico has indicated that it will file an application to abandon the San Juan generating station in 2022; and

     WHEREAS, the abandonment of the San Juan generating station may have a large impact on the property tax revenues available for the central consolidated school district to repay the bonds; and

     WHEREAS, it is critical that the central consolidated school district have a plan to obtain sufficient funds to repay the bonds if property tax revenues are lost;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the public education department be requested to convene, by August 1, 2019, a task force to study the potential changes to the central consolidated school district's property tax base and potential changes related to mill levies and bonding capacity to determine if the school district will have a potential deficit in funds to repay the bonds; and

     BE IT FURTHER RESOLVED that the task force be composed of:

          A. the secretary of public education;

          B. the chair of the public school capital outlay council;

          C. the director of the legislative finance committee;

          D. the director of the legislative education study committee;

          E. the secretary of taxation and revenue;

          F. the San Juan county assessor;

          G. the superintendent of the central consolidated school district;

          H. the president of the Navajo Nation;

          I. the chair of the public regulation commission;

          J. a resident residing in San Juan county appointed by the central consolidated school district board; and

          K. a parent of a child attending a school in the central consolidated school district appointed by the central consolidated school district board; and

     BE IT FURTHER RESOLVED that the task force be requested to present a report no later than October 1, 2019 to the governor, the speaker of the house of representatives and the president pro tempore of the senate on its findings regarding:

          A. possible reductions in property tax funds provided to the central consolidated school district due to the closure of the San Juan generating station and estimated new property tax revenue from new resources anticipated to be built in the area;

          B. the availability of state funds provided to the central consolidated school district to repay the bonds;

          C. the estimated amount of additional funding needed for the central consolidated school district to be able to make the bond payments;

          D. the estimated amount of additional funding needed for the central consolidated school district to be able to maintain facilities into the future; and

          E. recommendations regarding options to provide the central consolidated school district with sufficient funds to be able to repay the bonds and maintain its facilities; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the secretary of public education, the chair of the public school capital outlay council, the director of the legislative finance committee, the director of the legislative education study committee, the secretary of taxation and revenue, the San Juan county assessor, the board president of the central consolidated school district, the speaker of the Navajo Nation council and the chair of the public regulation commission.

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