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