0001| HOUSE BILL 609 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| JEANNETTE WALLACE | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO PUBLIC SCHOOL FINANCE; REGARDING THE STATE | 0012| EQUALIZATION GUARANTEE DISTRIBUTION; AMENDING SECTION 22-8-25 | 0013| NMSA 1978 (BEING LAWS 1981, CHAPTER 176, SECTION 5, AS AMENDED | 0014| BY LAWS 1993, CHAPTER 226, SECTION 23 AND ALSO BY LAWS 1993, | 0015| CHAPTER 231, SECTION 14). | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. Section 22-8-25 NMSA 1978 (being Laws 1981, | 0019| Chapter 176, Section 5, as amended by Laws 1993, Chapter 226, | 0020| Section 23 and also by Laws 1993, Chapter 231, Section 14) is | 0021| amended to read: | 0022| "22-8-25. STATE EQUALIZATION GUARANTEE DISTRIBUTION-- | 0023| DEFINITIONS--DETERMINATION OF AMOUNT.-- | 0024| A. The state equalization guarantee distribution is | 0025| that amount of money distributed to each school district to | 0001| ensure that the school district's operating revenue, including | 0002| its local and federal revenues as defined in this section, is | 0003| at least equal to the school district's program cost. | 0004| B. "Local revenue", as used in this section, means | 0005| ninety-five percent of receipts to the school district derived | 0006| from that amount produced by a school district property tax | 0007| applied at the rate of fifty cents ($.50) to each one thousand | 0008| dollars ($1,000) of net taxable value of property allocated to | 0009| the school district and to the assessed value of products | 0010| severed and sold in the school district as determined under the | 0011| Oil and Gas Ad Valorem Production Tax Act and upon the assessed | 0012| value of equipment in the school district as determined under | 0013| the Oil and Gas Production Equipment Ad Valorem Tax Act. | 0014| C. "Federal revenue", as used in this section, | 0015| means ninety-five percent of receipts to the school district, | 0016| excluding amounts which, if taken into account in the | 0017| computation of the state equalization guarantee distribution, | 0018| result, under federal law or regulations, in a reduction in or | 0019| elimination of federal school funding otherwise receivable by | 0020| the school district, derived from the following: | 0021| (1) the school district's share of forest | 0022| reserve funds distributed in accordance with Section 22-8-33 | 0023| NMSA 1978; and | 0024| (2) grants from the federal government as | 0025| assistance to those areas affected by federal activity | 0001| authorized in accordance with Sections 236 through 240 of Title | 0002| 20 of the United States Code (commonly known as "PL 874 funds") | 0003| or an amount equal to the revenue the district was entitled to | 0004| receive if no application was made for such funds but deducting | 0005| from those grants the additional amounts to which school | 0006| districts would be entitled because of the provisions of | 0007| Subparagraph (D) of Paragraph (2) of Subsection (d) of Section | 0008| 238 of Title 20 of the United States Code. | 0009| D. To determine the amount of the state | 0010| equalization guarantee distribution, the state superintendent | 0011| shall: | 0012| (1) calculate the number of program units to | 0013| which each school district is entitled using the membership of | 0014| the fortieth day of the school year, except for school | 0015| districts with a MEM of 200 or less where the number of program | 0016| units shall be calculated on the fortieth day membership of | 0017| either the prior year or the current year, whichever is | 0018| greater, for all programs except special education, which shall | 0019| be calculated by using the membership on December 1 of the | 0020| school year; or | 0021| (2) calculate the number of program units to | 0022| which a school district operating under an approved year-round | 0023| school calendar is entitled using the membership on an | 0024| appropriate date established by the state board; | 0025| (3) using the results of the calculations in | 0001| Paragraph (1) or (2) of this subsection and the instructional | 0002| staff training and experience index from the October report of | 0003| the prior school year, establish a total program cost of the | 0004| school district; | 0005| (4) calculate the local and federal revenues | 0006| as defined in this section; | 0007| (5) deduct the sum of the calculations made in | 0008| Paragraph (4) of this subsection from the program cost | 0009| established in Paragraph (3) of this subsection; and | 0010| (6) deduct the total amount of guaranteed | 0011| energy savings contract payments that the state superintendent | 0012| determines will be made to the school district from the public | 0013| school energy efficiency fund during the fiscal year for which | 0014| the state equalization guarantee distribution is being | 0015| computed. | 0016| E. The amount of the state equalization guarantee | 0017| distribution to which a school district is entitled is the | 0018| balance remaining after the deductions made in Paragraphs (5) | 0019| and (6) of Subsection D of this section. | 0020| F. The state equalization guarantee distribution | 0021| shall be distributed prior to June 30 of each fiscal year. The | 0022| calculation shall be based on the local and federal revenues | 0023| specified in this section received from June 1 of the previous | 0024| fiscal year through May 31 of the fiscal year for which the | 0025| state equalization guarantee distribution is being computed. | 0001| In the event that a district has received more state | 0002| equalization guarantee funds than its entitlement, a refund | 0003| shall be made by the district to the state general fund. | 0004| G. Notwithstanding the methods of calculating the | 0005| state equalization guarantee distribution in this section and | 0006| Laws 1974, Chapter 8, Section 22, if a school district received | 0007| funds under [Section 2391 of Title] 42 USCA 2391 or 42 USCA | 0008| 7256 and if the federal government takes into consideration | 0009| grants authorized by Sections 236 through 240 of Title 20 of | 0010| the United States Code and all other revenues available to the | 0011| school district in determining the level of federal support for | 0012| the school district for the sixty-fourth and succeeding fiscal | 0013| years, the state equalization guarantee distribution for school | 0014| districts receiving funds under this subsection shall be | 0015| computed as follows: | 0016| fiscal year program cost prior fiscal year | 0017| excluding special education state equalization | 0018| for the year for which the x guarantee | 0019| distribution | 0020| state equalization guarantee excluding special | 0021| distribution is being computed education | 0022| prior fiscal year program cost | 0023| excluding special education | 0024| plus special education funding in accordance with Paragraphs (1) | 0025| or (2) and (3) of Subsection D of this section and Section 22-8- | 0001| 21 NMSA 1978 plus an amount that would be produced by applying a | 0002| rate of eight dollars forty-two and one-half cents ($8.425) to | 0003| each one thousand dollars ($1,000) of net taxable value of | 0004| property as defined in the Property Tax Code for property | 0005| taxation purposes in the school district and to each one thousand | 0006| dollars ($1,000) of the assessed value of products severed and | 0007| sold in the school district as determined under the Oil and Gas | 0008| Ad Valorem Production Tax Act and upon the assessed value of | 0009| equipment in the school district as determined under the Oil and | 0010| Gas Production Equipment Ad Valorem Tax Act and then reduced by | 0011| the total amount of guaranteed energy savings contract payments, | 0012| if any, that the state superintendent determines will be made to | 0013| the school district from the public school energy efficiency fund | 0014| during the fiscal year for which the state equalization guarantee | 0015| distribution is being computed, equals the fiscal year state | 0016| equalization guarantee distribution for the year for which the | 0017| state equalization guarantee distribution is being computed. | 0018| If at any time grants from the federal government as | 0019| assistance to those areas affected by federal activity authorized | 0020| in accordance with Sections 236 through 240 of Title 20 of the | 0021| United States Code (commonly known as "PL 874 funds") are reduced | 0022| or are no longer available, the state equalization guarantee | 0023| distribution shall be computed by the formula contained in this | 0024| subsection plus an increase by fifty percent of the amount the | 0025| prior year's PL 874 funds exceed PL 874 funds for the year for | 0001| which the state equalization guarantee distribution is being | 0002| computed." | 0003|  |