0001| HOUSE BILL 637
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| LYNDA M. LOVEJOY
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO PUBLIC SCHOOL FINANCE; AMENDING THE DEFINITION OF
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0012| FEDERAL REVENUE FOR PURPOSES OF DETERMINING THE STATE
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0013| EQUALIZATION GUARANTEE DISTRIBUTION TO SCHOOL DISTRICTS.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 22-8-25 NMSA 1978 (being Laws 1981,
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0017| Chapter 176, Section 5, as amended by Laws 1993, Chapter 226,
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0018| Section 23 and also by Laws 1993, Chapter 231, Section 14) is
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0019| amended to read:
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0020| "22-8-25. STATE EQUALIZATION GUARANTEE DISTRIBUTION--
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0021| DEFINITIONS--DETERMINATION OF AMOUNT.--
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0022| A. The state equalization guarantee distribution is
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0023| that amount of money distributed to each school district to
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0024| ensure that the school district's operating revenue, including
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0025| its local and federal revenues as defined in this section, is
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0001| at least equal to the school district's program cost.
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0002| B. "Local revenue", as used in this section, means
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0003| ninety-five percent of receipts to the school district derived
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0004| from that amount produced by a school district property tax
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0005| applied at the rate of fifty cents ($.50) to each one thousand
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0006| dollars ($l,000) of net taxable value of property allocated to
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0007| the school district and to the assessed value of products
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0008| severed and sold in the school district as determined under the
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0009| Oil and Gas Ad Valorem Production Tax Act and upon the assessed
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0010| value of equipment in the school district as determined under
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0011| the Oil and Gas Production Equipment Ad Valorem Tax Act.
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0012| C. "Federal revenue", as used in this section,
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0013| means ninety-five percent of receipts to the school district,
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0014| excluding amounts which, if taken into account in the
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0015| computation of the state equalization guarantee distribution,
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0016| result, under federal law or regulations, in a reduction in or
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0017| elimination of federal school funding otherwise receivable by
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0018| the school district, derived from the following:
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0019| (1) the school district's share of forest
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0020| reserve funds distributed in accordance with Section 22-8-33
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0021| NMSA 1978; and
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0022| (2) the following percent of the grants from
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0023| the federal government as assistance to those areas affected by
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0024| federal activity authorized in accordance with Sections 236
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0025| through 240 of Title 20 of the United States Code (commonly
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0001| known as "PL 874 funds") or the following percent of an
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0002| amount equal to the revenue the district was entitled to
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0003| receive if no application was made for such funds but deducting
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0004| from those grants the additional amounts to which school
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0005| districts would be entitled because of the provisions of
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0006| Subparagraph (D) of Paragraph (2) of Subsection (d) of Section
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0007| 238 of Title 20 of the United States Code:
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0008| (1) fifty percent for fiscal year 1999;
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0009| (2) forty percent for fiscal year 2000;
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0010| (3) thirty percent for fiscal year 2001;
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0011| (4) twenty percent for fiscal year 2002; and
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0012| (5) ten percent for fiscal year 2003.
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0013| D. To determine the amount of the state
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0014| equalization guarantee distribution, the state superintendent
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0015| shall:
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0016| (1) calculate the number of program units to
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0017| which each school district is entitled using the membership of
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0018| the fortieth day of the school year, except for school
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0019| districts with a MEM of 200 or less where the number of program
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0020| units shall be calculated on the fortieth day membership of
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0021| either the prior year or the current year, whichever is
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0022| greater, for all programs except special education, which shall
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0023| be calculated by using the membership on December 1 of the
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0024| school year; or
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0025| (2) calculate the number of program units to
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0001| which a school district operating under an approved [year-
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round] variable school calendar is entitled using the
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0003| membership on an appropriate date established by the state
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0004| board;
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0005| (3) using the results of the calculations in
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0006| Paragraph (1) or (2) of this subsection and the instructional
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0007| staff training and experience index from the October report of
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0008| the prior school year, establish a total program cost of the
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0009| school district;
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0010| (4) calculate the local and federal revenues
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0011| as defined in this section;
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0012| (5) deduct the sum of the calculations made in
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0013| Paragraph (4) of this subsection from the program cost
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0014| established in Paragraph (3) of this subsection; and
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0015| (6) deduct the total amount of guaranteed
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0016| energy savings contract payments that the state superintendent
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0017| determines will be made to the school district from the public
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0018| school energy efficiency fund during the fiscal year for which
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0019| the state equalization guarantee distribution is being
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0020| computed.
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0021| E. The amount of the state equalization guarantee
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0022| distribution to which a school district is entitled is the
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0023| balance remaining after the deductions made in Paragraphs (5)
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0024| and (6) of Subsection D of this section.
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0025| F. The state equalization guarantee distribution
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0001| shall be distributed prior to June 30 of each fiscal year. The
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0002| calculation shall be based on the local and federal revenues
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0003| specified in this section received from June 1 of the previous
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0004| fiscal year through May 31 of the fiscal year for which the
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0005| state equalization guarantee distribution is being computed.
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0006| In the event that a district has received more state
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0007| equalization guarantee funds than its entitlement, a refund
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0008| shall be made by the district to the state general fund.
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0009| G. Notwithstanding the methods of calculating the
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0010| state equalization guarantee distribution in this section and
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0011| Laws 1974, Chapter 8, Section 22, if a school district received
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0012| funds under Section 2391 of Title 42 U.S.C.A. and if the
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0013| federal government takes into consideration grants authorized
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0014| by Sections 236 through 240 of Title 20 of the United States
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0015| Code and all other revenues available to the school district in
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0016| determining the level of federal support for the school
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0017| district for the sixty-fourth and succeeding fiscal years, the
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0018| state equalization guarantee distribution for school districts
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0019| receiving funds under this subsection shall be computed as
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0020| follows:
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0021| fiscal year program cost prior fiscal year
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0022| excluding special education state equalization
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0023| for the year for which the x guarantee distribution
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0024| state equalization guarantee excluding special
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0025| distribution is being computed education
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0001|
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0002| prior fiscal year program cost
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0003| excluding special education
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0004|
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0005| plus special education funding in accordance with Paragraphs
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0006| (1) or (2) and (3) of Subsection D of this section and Section
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0007| 22-8-21 NMSA 1978 plus an amount that would be produced by
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0008| applying a rate of eight dollars forty-two and one-half cents
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0009| ($8.425) to each one thousand dollars ($l,000) of net taxable
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0010| value of property as defined in the Property Tax Code for
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0011| property taxation purposes in the school district and to each
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0012| one thousand dollars ($l,000) of the assessed value of products
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0013| severed and sold in the school district as determined under the
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0014| Oil and Gas Ad Valorem Production Tax Act and upon the assessed
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0015| value of equipment in the school district as determined under
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0016| the Oil and Gas Production Equipment Ad Valorem Tax Act and
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0017| then reduced by the total amount of guaranteed energy savings
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0018| contract payments, if any, that the state superintendent
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0019| determines will be made to the school district from the public
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0020| school energy efficiency fund during the fiscal year for which
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0021| the state equalization guarantee distribution is being
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0022| computed, equals the fiscal year state equalization guarantee
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0023| distribution for the year for which the state equalization
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0024| guarantee distribution is being computed.
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0025| If at any time grants from the federal government as
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0001| assistance to those areas affected by federal activity
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0002| authorized in accordance with Sections 236 through 240 of Title
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0003| 20 of the United States Code (commonly known as "PL 874 funds")
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0004| are reduced or are no longer available, the state equalization
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0005| guarantee distribution shall be computed by the formula
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0006| contained in this subsection plus an increase by fifty percent
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0007| of the amount the prior year's PL 874 funds exceed PL 874 funds
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0008| for the year for which the state equalization guarantee
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0009| distribution is being computed."
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0010| Section 2. Section 22-8-25 NMSA 1978 (being Laws 1981,
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0011| Chapter 176, Section 5, as amended by Laws 1993, Chapter 226,
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0012| Section 23 and also by Laws 1993, Chapter 231, Section 14 and
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0013| as further amended by Section 1 of this act) is repealed and a
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0014| new Section 22-8-25 NMSA 1978 is enacted to read:
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0015| "22-8-25. [NEW MATERIAL] STATE EQUALIZATION GUARANTEE
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0016| DISTRIBUTION--DEFINITIONS--DETERMINATION OF AMOUNT.--
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0017| A. The state equalization guarantee distribution is
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0018| that amount of money distributed to each school district to
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0019| ensure that the school district's operating revenue, including
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0020| its local and federal revenues as defined in this section, is
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0021| at least equal to the school district's program cost.
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0022| B. "Local revenue", as used in this section, means
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0023| ninety-five percent of receipts to the school district derived
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0024| from that amount produced by a school district property tax
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0025| applied at the rate of fifty cents ($.50) to each one thousand
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0001| dollars ($l,000) of net taxable value of property allocated to
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0002| the school district and to the assessed value of products
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0003| severed and sold in the school district as determined under the
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0004| Oil and Gas Ad Valorem Production Tax Act and upon the assessed
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0005| value of equipment in the school district as determined under
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0006| the Oil and Gas Production Equipment Ad Valorem Tax Act.
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0007| C. "Federal revenue", as used in this section,
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0008| means ninety-five percent of receipts to the school district,
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0009| excluding amounts that, if taken into account in the
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0010| computation of the state equalization guarantee distribution,
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0011| result, under federal law or regulations, in a reduction in or
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0012| elimination of federal school funding otherwise receivable by
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0013| the school district, derived from the school district's share
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0014| of forest reserve funds distributed in accordance with Section
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0015| 22-8-33 NMSA 1978.
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0016| D. To determine the amount of the state
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0017| equalization guarantee distribution, the state superintendent
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0018| shall:
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0019| (l) calculate the number of program units to
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0020| which each school district is entitled using the membership of
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0021| the fortieth day of the school year, except for school
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0022| districts with a MEM of 200 or less where the number of program
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0023| units shall be calculated on the fortieth day membership of
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0024| either the prior year or the current year, whichever is
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0025| greater, for all programs except special education, which shall
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0001| be calculated by using the membership on December 1 of the
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0002| school year; or
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0003| (2) calculate the number of program units to
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0004| which a school district operating under an approved variable
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0005| school calendar is entitled using the membership on an
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0006| appropriate date established by the state board;
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0007| (3) using the results of the calculations in
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0008| Paragraph (l) or (2) of this subsection and the instructional
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0009| staff training and experience index from the October report of
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0010| the prior school year, establish a total program cost of the
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0011| school district;
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0012| (4) calculate the local and federal revenues
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0013| as defined in this section;
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0014| (5) deduct the sum of the calculations made in
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0015| Paragraph (4) of this subsection from the program cost
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0016| established in Paragraph (3) of this subsection; and
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0017| (6) deduct the total amount of guaranteed
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0018| energy savings contract payments that the state superintendent
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0019| determines will be made to the school district from the public
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0020| school energy efficiency fund during the fiscal year for which
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0021| the state equalization guarantee distribution is being
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0022| computed.
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0023| E. The amount of the state equalization guarantee
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0024| distribution to which a school district is entitled is the
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0025| balance remaining after the deductions made in Paragraphs (5)
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0001| and (6) of Subsection D of this section.
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0002| F. The state equalization guarantee distribution
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0003| shall be distributed prior to June 30 of each fiscal year. The
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0004| calculation shall be based on the local and federal revenues
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0005| specified in this section received from June l of the previous
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0006| fiscal year through May 31 of the fiscal year for which the
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0007| state equalization guarantee distribution is being computed.
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0008| In the event that a district has received more state
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0009| equalization guarantee funds than its entitlement, a refund
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0010| shall be made by the district to the state general fund.
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0011| G. Notwithstanding the methods of calculating the
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0012| state equalization guarantee distribution in this section and
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0013| Laws 1974, Chapter 8, Section 22, if a school district received
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0014| funds under Section 2391 of Title 42 U.S.C.A. and if the
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0015| federal government takes into consideration grants authorized
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0016| by Sections 236 through 240 of Title 20 of the United States
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0017| Code and all other revenues available to the school district in
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0018| determining the level of federal support for the school
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0019| district for the sixty-fourth and succeeding fiscal years, the
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0020| state equalization guarantee distribution for school districts
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0021| receiving funds under this subsection shall be computed as
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0022| follows:
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0023| fiscal year program cost prior fiscal year
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0024| excluding special education state equalization
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0025| for the year for which the x guarantee
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0001| distribution
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0002| state equalization guarantee excluding special
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0003| distribution is being computed education
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0004| prior fiscal year program cost
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0005| excluding special education
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0006| plus special education funding in accordance with Paragraphs (1)
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0007| or (2) and (3) of Subsection D of this section and Section 22-8-
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0008| 21 NMSA 1978 plus an amount that would be produced by applying a
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0009| rate of eight dollars forty-two and one-half cents ($8.425) to
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0010| each one thousand dollars ($l,000) of net taxable value of
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0011| property as defined in the Property Tax Code for property
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0012| taxation purposes in the school district and to each one thousand
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0013| dollars ($l,000) of the assessed value of products severed and
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0014| sold in the school district as determined under the Oil and Gas
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0015| Ad Valorem Production Tax Act and upon the assessed value of
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0016| equipment in the school district as determined under the Oil and
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0017| Gas Production Equipment Ad Valorem Tax Act and then reduced by
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0018| the total amount of guaranteed energy savings contract payments,
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0019| if any, that the state superintendent determines will be made to
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0020| the school district from the public school energy efficiency fund
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0021| during the fiscal year for which the state equalization guarantee
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0022| distribution is being computed, equals the fiscal year state
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0023| equalization guarantee distribution for the year for which the
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0024| state equalization guarantee distribution is being computed.
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0025| If at any time grants from the federal government as
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0001| assistance to those areas affected by federal activity authorized
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0002| in accordance with Sections 236 through 240 of Title 20 of the
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0003| United States Code (commonly known as "PL 874 funds") are reduced
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0004| or are no longer available, the state equalization guarantee
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0005| distribution shall be computed by the formula contained in this
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0006| subsection plus an increase by fifty percent of the amount the
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0007| prior year's PL 874 funds exceed PL 874 funds for the year for
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0008| which the state equalization guarantee distribution is being
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0009| computed."
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0010| Section 3. EFFECTIVE DATE.--The effective date of the
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0011| provisions of Section 2 of this act is July 1, 2004.
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0012|
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