0001| SENATE BILL 38 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| LEONARD TSOSIE | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO PUBLIC SCHOOL FUNDING; AMENDING THE STATE | 0012| EQUALIZATION FORMULA; PROVIDING FOR THE DISTRIBUTION OF | 0013| CERTAIN FEDERAL FUNDS. | 0014| | 0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0016| Section 1. Section 22-8-25 NMSA 1978 (being Laws 1981, | 0017| Chapter 176, Section 5, as amended) is amended to read: | 0018| "22-8-25. STATE EQUALIZATION GUARANTEE DISTRIBUTION-- | 0019| DEFINITIONS--DETERMINATION OF AMOUNT.-- | 0020| A. The state equalization guarantee distribution | 0021| is that amount of money distributed to each school district to | 0022| ensure that the school district's operating revenue, including | 0023| its local and federal revenues as defined in this section, is | 0024| at least equal to the school district's program cost. | 0025| B. "Local revenue", as used in this section, means | - 1 - 0001| ninety-five percent of receipts to the school district derived | 0002| from that amount produced by a school district property tax | 0003| applied at the rate of fifty cents ($.50) to each one thousand | 0004| dollars ($1,000) of net taxable value of property allocated to | 0005| the school district and to the assessed value of products | 0006| severed and sold in the school district as determined | 0007| ~[under]~ |pursuant to| the Oil and Gas Ad Valorem Production | 0008| Tax Act and upon the assessed value of equipment in the school | 0009| district as determined ~[under]~ |pursuant to| the Oil and Gas | 0010| Production Equipment Ad Valorem Tax Act. | 0011| C. |As used in this section:| | 0012| |(1)| "federal revenue" ~[as used in this | 0013| section]~ means ninety-five percent of receipts to the school | 0014| district, excluding amounts which, if taken into account in | 0015| the computation of the state equalization guarantee | 0016| distribution, result, under federal law or regulations, in a | 0017| reduction in or elimination of federal school funding | 0018| otherwise receivable by the school district, derived from the | 0019| following: | 0020| ~[(1)]~ |(a)| the school district's | 0021| share of forest reserve funds distributed in accordance with | 0022| Section 22-8-33 NMSA 1978; and | 0023| ~[(2)]~ |(b)| grants from the federal | 0024| government as assistance to those areas affected by federal | 0025| activity authorized in accordance with ~[Sections 236 through | - 2 - 0001| 240]~ |Title 8 of the Elementary and Secondary Education Act, | 0002| Sections 7701 through 7714| of Title 20 of the United States | 0003| Code, commonly known as ~["PL 874 funds" or an amount equal to | 0004| the revenue the district was entitled to receive if no | 0005| application was made for such funds]~ |impact aid and formerly | 0006| known as PL 874 funds,| but deducting from those grants: |1)| | 0007| the ~[additional amounts to which school districts would be | 0008| entitled because of the provisions of Subparagraph (D) of | 0009| Paragraph (2) of Subsection (d) of Section 238 of Title 20 of | 0010| the United States Code]~ |impact aid payments generated by | 0011| that part of a factor in excess of 1.0 for children residing | 0012| on Indian lands within the school district, payments in | 0013| addition to the basic payment for children with disabilities | 0014| for heavily impacted school districts or for school districts | 0015| with high concentrations of children with severe disabilities | 0016| and any other payments that cannot be used to equalize state | 0017| funding to school districts pursuant to federal law or | 0018| regulation; and 2) after deduction of the amount identified in | 0019| Item 1) of this subparagraph, that percent of the remaining | 0020| impact aid generated by children who reside on Indian lands | 0021| that a school district elects to retain for use solely for | 0022| capital improvements on district facilities, provided that the | 0023| amount shall be no more than the product of the percent of | 0024| obligated bonding capacity of the school district as of June | 0025| 30 of the prior fiscal year multiplied by the amount of impact | - 3 - 0001| aid for children who reside on Indian lands received by that | 0002| school district in the current fiscal year that is potentially | 0003| available for use in the state equalization guarantee | 0004| distribution formula if it is not retained for capital | 0005| improvements; and | 0006| (2) "federal revenue" shall not include | 0007| amounts of impact aid generated by children living on Indian | 0008| lands if that inclusion would result in lower funding per | 0009| pupil for a district than for the highest funded school | 0010| district in the state. To determine if that impact aid if | 0011| included as federal revenue would result in lower funding per | 0012| pupil, the funding shall be calculated by the use of basic | 0013| program ADM on the fortieth day and shall include all impact | 0014| aid funds for the school district.| | 0015| D. To determine the amount of the state | 0016| equalization guarantee distribution, the state superintendent | 0017| shall: | 0018| (1) calculate the number of program units to | 0019| which each school district is entitled using the basic program | 0020| membership of the fortieth day for all programs; provided that | 0021| special education program units shall be calculated using the | 0022| membership in special education programs on December 1; or | 0023| (2) calculate the number of program units to | 0024| which a school district operating under an approved year-round | 0025| school calendar is entitled using the basic program membership | - 4 - 0001| on an appropriate date established by the state board; or | 0002| (3) calculate the number of program units to | 0003| which a school district with a basic program MEM of 200 or | 0004| less is entitled by using the basic program membership on the | 0005| fortieth day of either the prior or the current year, | 0006| whichever is greater; provided that special education program | 0007| units shall be calculated using the membership in special | 0008| education programs on December 1 of either the prior or the | 0009| current year; and | 0010| (4) using the results of the calculations in | 0011| Paragraph (1), (2) or (3) of this subsection and the | 0012| instructional staff training and experience index from the | 0013| October report of the prior school year, establish a total | 0014| program cost of the school district; | 0015| (5) calculate the local and federal revenues | 0016| as defined in this section; | 0017| (6) deduct the sum of the calculations made | 0018| in Paragraph (5) of this subsection from the program cost | 0019| established in Paragraph (4) of this subsection; and | 0020| (7) deduct the total amount of guaranteed | 0021| energy savings contract payments that the state superintendent | 0022| determines will be made to the school district from the public | 0023| school energy efficiency fund during the fiscal year for which | 0024| the state equalization guarantee distribution is being | 0025| computed. | - 5 - 0001| E. The amount of the state equalization guarantee | 0002| distribution to which a school district is entitled is the | 0003| balance remaining after the deductions made in Paragraphs (6) | 0004| and (7) of Subsection D of this section. | 0005| F. The state equalization guarantee distribution | 0006| shall be distributed prior to June 30 of each fiscal year. | 0007| The calculation shall be based on the local and federal | 0008| revenues specified in this section received from June 1 of the | 0009| previous fiscal year through May 31 of the fiscal year for | 0010| which the state equalization guarantee distribution is being | 0011| computed. In the event that a district has received more | 0012| state equalization guarantee funds than its entitlement, a | 0013| refund shall be made by the district to the state general | 0014| fund. | 0015| G. Notwithstanding the methods of calculating the | 0016| state equalization guarantee distribution in this section and | 0017| Laws 1974, Chapter 8, Section 22, if a school district | 0018| received funds under Section 2391 of Title 42 USCA and if the | 0019| federal government takes into consideration grants authorized | 0020| by Sections 236 through 240 of Title 20 of the United States | 0021| Code and all other revenues available to the school district | 0022| in determining the level of federal support for the school | 0023| district for the sixty-fourth and succeeding fiscal years, the | 0024| state equalization guarantee distribution for school districts | 0025| receiving funds under this subsection shall be computed as | - 6 - 0001| follows: | 0002| fiscal year program cost prior fiscal year | 0003| excluding special education state equalization | 0004| for the year for which the x guarantee distribution | 0005| state equalization guarantee excluding special | 0006| distribution is being computed education | 0007| ______________________________ | 0008| prior fiscal year program cost | 0009| excluding special education | 0010| plus special education funding in accordance with Paragraphs | 0011| (1), (2) or (3) and (4) of Subsection D of this section and | 0012| Section 22-8-21 NMSA 1978 plus an amount that would be | 0013| produced by applying a rate of eight dollars forty-two and | 0014| one-half cents ($8.425) to each one thousand dollars ($1,000) | 0015| of net taxable value of property as defined in the Property | 0016| Tax Code for property taxation purposes in the school district | 0017| and to each one thousand dollars ($1,000) of the assessed | 0018| value of products severed and sold in the school district as | 0019| determined under the Oil and Gas Ad Valorem Production Tax Act | 0020| and upon the assessed value of equipment in the school | 0021| district as determined under the Oil and Gas Production | 0022| Equipment Ad Valorem Tax Act and then reduced by the total | 0023| amount of guaranteed energy savings contract payments, if any, | 0024| that the state superintendent determines will be made to the | 0025| school district from the public school energy efficiency fund | - 7 - 0001| during the fiscal year for which the state equalization | 0002| guarantee distribution is being computed, equals the fiscal | 0003| year state equalization guarantee distribution for the year | 0004| for which the state equalization guarantee distribution is | 0005| being computed. | 0006| If at any time grants from the federal government as | 0007| assistance to those areas affected by federal activity | 0008| authorized in accordance with Sections 236 through 240 of | 0009| Title 20 of the United States Code (commonly known as "PL 874 | 0010| funds") are reduced or are no longer available, the state | 0011| equalization guarantee distribution shall be computed by the | 0012| formula contained in this subsection plus an increase by fifty | 0013| percent of the amount the prior year's PL 874 funds exceed PL | 0014| 874 funds for the year for which the state equalization | 0015| guarantee distribution is being computed." | 0016|  |