0001| SENATE BILL 225
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| CYNTHIA NAVA
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0005|
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0006|
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0007|
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0008| FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO EDUCATION; CHANGING CERTAIN REQUIREMENTS OF PUBLIC
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0012| SCHOOL ACCOUNTING AND BUDGETING; REMOVING A CERTAIN BUDGETING
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0013| REQUIREMENT FOR CAPITAL OUTLAY EXPENDITURE; DECLARING AN
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0014| EMERGENCY.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. Section 22-8-5 NMSA 1978 (being Laws 1967,
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0018| Chapter 16, Section 59, as amended) is amended to read:
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0019| "22-8-5. [MANUAL OF ACCOUNTING AND BUDGETING] RULES--
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0020| PROCEDURES.--
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0021| A. The department shall [compile and publish a
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manual prescribing detailed regulations] establish rules and
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0023| procedures for a uniform system of accounting and budgeting
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0024| of funds for all public schools and school districts of the
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0025| state. The [manual of regulations and any revision or
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amendments thereto] rules, including revisions or
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0002| amendments,
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0003| shall become effective only upon approval by the state board
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0004| [of education and the legislative finance committee] and
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0005| upon filing with the state records center and publication. A
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0006| copy shall also be filed with the department of finance and
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0007| administration and the legislative finance committee.
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0008| B. All public schools and school districts shall
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0009| comply with the [regulations prescribed in the manual of
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accounting and budgeting] rules and procedures prescribed
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0011| and shall, upon request, submit additional reports concerning
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0012| finances to the department. In addition, upon request, all
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0013| public schools and school districts shall file reports with
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0014| the department containing pertinent details regarding
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0015| applications for federal money or federal grants-in-aid or
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0016| regarding federal money or federal grants-in-aid received,
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0017| including but not limited to details of programs, matching
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0018| funds, personnel requirements, salary provisions and program
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0019| numbers, as indicated in the catalog of federal domestic
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0020| assistance, of the federal funds applied for and of those
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0021| received.
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0022| C. Upon request by the department of finance and
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0023| administration, the legislative finance committee or the
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0024| legislative education study committee, the [state]
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0025| department [of public education] shall timely furnish
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0001| information and data obtained from public schools and school
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0002| districts pursuant to Subsection B of this section."
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0003| Section 2. Section 22-8-6 NMSA 1978 (being Laws 1967,
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0004| Chapter 16, Section 60, as amended by Laws 1993, Chapter 224,
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0005| Section 2 and also by Laws 1993, Chapter 227, Section 9) is
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0006| amended to read:
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0007| "22-8-6. BUDGETS--SUBMISSION--FAILURE TO SUBMIT.--
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0008| A. Prior to April 15 of each year, each local
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0009| school board shall submit to the department an [estimated]
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0010| operating budget for the school district for the ensuing
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0011| fiscal year. Upon written approval of the state
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0012| superintendent, the date for the submission of the
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0013| [estimated] operating budget as required by this section
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0014| may be extended to a later date fixed by the state
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0015| superintendent.
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0016| B. The [estimated] operating budget required
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0017| by this section may include:
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0018| (1) estimates of the cost of insurance
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0019| policies for periods up to five years if a lower rate may be
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0020| obtained by purchasing insurance for the longer term; or
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0021| (2) estimates of the cost of contracts for
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0022| the transportation of students for terms extending up to four
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0023| years.
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0024| C. The [estimated] operating budget required
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0025| by this section shall include a proposed breakdown for charter
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0001| schools in the [local] school district, by individual
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0002| charter school, of the membership projected for each charter
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0003| school, the total program units generated at that charter
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0004| school and approximate anticipated disbursements and
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0005| expenditures at each charter school.
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0006| D. If a local school board fails to submit a
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0007| budget pursuant to this section, the department shall prepare
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0008| the [estimated] operating budget for the school district
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0009| for the ensuing fiscal year. A local school board shall be
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0010| considered as failing to submit a budget pursuant to this
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0011| section if the budget submitted exceeds the total projected
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0012| resources of the school district or if the budget submitted
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0013| does not comply with the law or [the manual of accounting and
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budgeting] with rules and procedures of the department."
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0015| Section 3. Section 22-8-7 NMSA 1978 (being Laws 1967,
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0016| Chapter 16, Section 61, as amended) is amended to read:
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0017| "22-8-7. BUDGETS--FORM.--All budgets submitted to the
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0018| [division] department by a school district shall be in a
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0019| form specified by the [manual of accounting and budgeting of
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the division] department."
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0021| Section 4. Section 22-8-10 NMSA 1978 (being Laws 1967,
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0022| Chapter 16, Section 65, as amended) is amended to read:
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0023| "22-8-10. BUDGETS--FIXING THE [ESTIMATED] OPERATING
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0024| BUDGET.--
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0025| A. Prior to June 20 of each year, each local
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0001| school board shall, at a public hearing of which notice has
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0002| been published by the local school board, fix the
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0003| [estimated] operating budget for the school district for
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0004| the ensuing fiscal year. At the discretion of the state
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0005| superintendent or the local school board, the department may
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0006| participate in the public hearing.
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0007| B. Prior to the public hearing held to fix the
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0008| [estimated] operating budget for the school district, the
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0009| local school board shall give notice to parents explaining the
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0010| budget process and inviting parental involvement and input in
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0011| that process prior to the date for the public hearing."
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0012| Section 5. Section 22-8-11 NMSA 1978 (being Laws 1967,
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0013| Chapter 16, Section 66, as amended) is amended to read:
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0014| "22-8-11. BUDGETS--[TEMPORARY--FINAL] APPROVAL OF
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0015| OPERATING BUDGET.--
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0016| A. The department shall:
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0017| (1) on or before July 1 of each year, approve
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0018| and certify to each local school board [a temporary] an
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0019| operating budget for use by the local school board [pending
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approval by the department of a final budget]; and
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0021| (2) make corrections, revisions and
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0022| amendments to the [estimated] operating budgets fixed by
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0023| the local school boards and the state superintendent to
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0024| conform the budgets to the requirements of law and [to the
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manual of accounting and budgeting; and
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(3) before the first Monday of September of
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each year, approve and certify to each local school board and
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to the board of county commissioners of the county in which
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the school district is situated a final budget for use by the
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local school board, based upon the estimated budget fixed by
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the local school board and the state superintendent] to the
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0007| department's rules and procedures.
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0008| B. No school board or officer or employee of a
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0009| school district shall make any expenditure or incur any
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0010| obligation for the expenditure of public funds unless that
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0011| expenditure or [contractual] obligation is made in
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0012| accordance with an operating budget approved by the department
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0013| [but]. This prohibition does not prohibit the transfer of
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0014| funds [between line items within series of a budget]
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0015| pursuant to the department's rules and procedures.
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0016| C. The department shall not approve and certify
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0017| [a temporary] an operating budget of any school district
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0018| that fails to demonstrate that parental involvement in the
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0019| budget process was solicited."
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0020| Section 6. Section 22-8-12 NMSA 1978 (being Laws 1967,
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0021| Chapter 16, Section 67, as amended) is amended to read:
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0022| "22-8-12. [FINAL] OPERATING BUDGETS--[ALTERATIONS
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OR] AMENDMENTS.--[Final] Operating budgets shall not be
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0024| [altered or] amended after approval and certification by the
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0025| department, except [for the following purposes and according
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to the following procedure:
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A.] upon written request of any local school
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0003| board and approval by the state superintendent [may
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authorize transfer within the budget, or provide for items not
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included, when the total amount of the budget will not be
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increased thereby;
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B. upon written request of any local school board,
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the state superintendent, in conformance with the regulations
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of the department, may authorize an increase in any budget if
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the increase is necessary because of the receipt of revenue
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that was not anticipated at the time the budget was fixed and
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if the increase is directly related to a special project or
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program for which the additional revenue was received. The
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state superintendent shall make a written report to the
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legislative finance committee of any such budget increase;
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C. upon written request of any local school board,
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the state superintendent may authorize an increase in a budget
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of not more than one thousand dollars ($1,000); or
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D. upon written request of any local school board,
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the state superintendent, after notice and a public hearing,
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may authorize an increase in a school budget in an amount
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exceeding one thousand dollars ($1,000). The notice of the
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hearing shall designate the school district which proposes to
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alter or amend its budget, together with the time, place and
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date of the hearing. The notice of the hearing shall be
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published at least once a week for two consecutive weeks in a
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newspaper of general circulation in the county in which the
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school district is situated. The last publication of the
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notice shall be at least three days prior to the date set for
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the hearing]."
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0006| Section 7. Section 22-8-12.1 NMSA 1978 (being Laws 1978,
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0007| Chapter 128, Section 5, as amended) is amended to read:
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0008| "22-8-12.1. MEMBERSHIP PROJECTIONS AND BUDGET
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0009| REQUESTS.--
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0010| A. Each local school board shall submit annually,
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0011| on or before October 15, to the department:
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0012| (1) an estimate for the succeeding fiscal
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0013| year of:
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0014| (a) the membership of qualified
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0015| students to be enrolled in the basic program;
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0016| (b) the full-time-equivalent membership
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0017| of students to be enrolled in approved early childhood
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0018| education programs; and
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0019| (c) the membership of students to be
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0020| enrolled in approved special education programs;
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0021| (2) all other information necessary to
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0022| calculate program costs; and
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0023| (3) any other information related to the
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0024| financial needs of the school district as may be requested by
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0025| the department.
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0001| B. All information requested pursuant to
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0002| Subsection A of this section shall be submitted on forms
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0003| prescribed and furnished by the department and shall comply
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0004| with the [manual of accounting and budgeting published by the
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department] department's rules and procedures.
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0006| C. The department shall:
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0007| (1) review the financial needs of each school
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0008| district for the succeeding fiscal year; and
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0009| (2) submit annually, on or before November
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0010| 30, to the secretary of finance and administration the
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0011| recommendations of the state board for:
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0012| (a) amendments to the public school
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0013| finance formula;
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0014| (b) appropriations for the succeeding
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0015| fiscal year to the public school fund for inclusion in the
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0016| executive budget document; and
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0017| (c) appropriations for the succeeding
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0018| fiscal year for pupil transportation and instructional
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0019| materials."
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0020| Section 8. REPEAL.--Section 22-8-12.2 NMSA 1978 (being
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0021| Laws 1978, Chapter 149, Section 1, as amended) is repealed.
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0022| Section 9. EMERGENCY.--It is necessary for the public
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0023| peace, health and safety that this act take effect
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0024| immediately.
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0025|
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