SB 76 — SCHOOL LOCAL SHARE ADJUSTMENT WAIVER

SENATE BILL 76 56TH LEGISLATURE -STATEOFNEWMEXICO- SECOND SESSION , 2024 INTRODUCED BY Mimi Stewart 6 8 FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE 10 AN ACT RELATING TO PUBLIC SCHOOL CAPITAL OUTLAY;

145 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e t 17 "22-24-5.

PUBLIC SCHOOL CAPITAL OUTLAY PROJECTS-- w l n d 18 APPLICATION--GRANT ASSISTANCE.-- = = 19 a l A.

Applications for grant assistance, approval of i a e r 20 applications, prioritization of projects and grant awards shall a t m m 21 be conducted pursuant to the provisions of this section.

d r e 22 B.

Except as provided in Sections 22-24-4.3, c e s k 23 22-24-5.4 and 22-24-5.6 NMSA 1978, the following provisions e a n b 24 govern grant assistance from the fund for a public school u [ capital outlay project not wholly funded pursuant to Section .226854.1 22-24-4.1 NMSA 1978:

provided SB 76 that:

Page 1 (a) the council shall apply the standards to charter schools to the same extent that they are applied to other public schools;

(c) the council shall adopt and apply e t 17 adequacy standards appropriate to the unique needs of the w l n d 18 constitutional special schools;

and = = 19 a l (d) in an emergency in which the health i a e r 20 or safety of students or school personnel is at immediate risk a t m m 21 or in which there is a threat of significant property damage, d r e 22 the council may award grant assistance for a project using c e s k 23 criteria other than the statewide adequacy standards;

e a n b 24 (3) the council shall establish criteria to be u [ used in public school capital outlay projects that receive .226854.1 - 2 - grant assistance pursuant to the Public School Capital Outlay Act.

(b) the potential use of more durable SB 76 Page 2 construction materials that may reduce long-term operating costs;

(4) no more than ten percent of the combined total of grants in a funding cycle shall be used for e t 17 retrofitting existing facilities for technology infrastructure;

w l n d 18 (5) no later than May 1 of each calendar year, = = 19 a l the phase two formula value shall be calculated for each school i a e r 20 district in accordance with the following procedure:

a t m m 21 (a) the sum of the final prior five d r e 22 years net taxable value for a school district multiplied by c e s k 23 nine ten-thousandths for that school district is calculated for e a n b 24 each school district;

u [ (b) the maximum allowable gross square .226854.1 - 3 - foot per student multiplied by the replacement cost per square foot divided by forty-five is calculated for each school district;

(c) the value calculated pursuant to Subparagraph (a) of this paragraph divided by the value SB 76 Page 3 calculated pursuant to Subparagraph (b) of this paragraph is calculated for each school district;

and e t 17 (f) in those instances in which the w l n d 18 calculation pursuant to Subparagraph (c) of this paragraph = = 19 a l yields a value less than ninety-hundredths, the phase two i a e r 20 formula value shall be one minus the value calculated in a t m m 21 Subparagraph (c) of this paragraph plus the school district d r e 22 population density factor;

c e s k 23 (6) the state share of a project approved by e a n b 24 the council shall be funded within available resources pursuant u [ to the provisions of this paragraph.

Except as provided in .226854.1 - 4 - Section 22-24-5.7 NMSA 1978 and except as adjusted pursuant to Paragraph (8), (9) or (10) of this subsection, the amount to be distributed from the fund for an approved project shall equal the total project cost multiplied by the following percentage, except that in no SB 76 Page 4 case shall the state share be less than six percent:

e t 17 (a) "governmental entity" includes an w l n d 18 Indian nation, tribe or pueblo;

= = 19 a l (b) "phase two formula value" for a i a e r 20 state-chartered charter school means the phase two formula a t m m 21 value calculated pursuant to Paragraph (5) of this subsection d r e 22 for the school district in which the state-chartered charter c e s k 23 school is physically located;

e a n b 24 (c) "subject school district" means the u [ school district that has submitted the application for funding .226854.1 - 5 - and in which the approved public school capital outlay project will be located;

and (d) "total project cost" means the SB 76 Page 5 total amount necessary to complete the public school capital outlay project less any insurance reimbursement received by the school district for the project;

(9) the council may adjust the amount of local share otherwise required if it determines that a school district has made a good-faith effort to use all of its local e t 17 resources.

Before making any adjustment to the local share, w l n d 18 the council shall consider whether:

= = 19 a l (a) the school district has insufficient i a e r 20 bonding capacity over the next four years to provide the local a t m m 21 match necessary to complete the project and, for all d r e 22 educational purposes, has a residential property tax rate of at c e s k 23 least ten dollars ($10.00) on each one thousand dollars e a n b 24 ($1,000) of taxable value, as measured by the sum of all rates u [ imposed by resolution of the local school board plus rates set .226854.1 - 6 - to pay interest and principal on outstanding school district general obligation bonds;

1) has fewer SB 76 Page 6 than an average of eight hundred full-time-equivalent students on the second and third reporting dates of the prior school year;

3) has a [share of the total project cost, as calculated pursuant to provisions of this section] phase two formula value calculated pursuant to Paragraph (5) of this subsection that would be greater than fifty percent;

or e t 17 (c) the school district:

1) has an w l n d 18 enrollment growth rate over the previous school year of at = = 19 a l least two and one-half percent;

2) pursuant to its five-year i a e r 20 facilities plan, will be building a new school within the next a t m m 21 two years;

and 3) for all educational purposes, has a d r e 22 residential property tax rate of at least ten dollars ($10.00) c e s k 23 on each one thousand dollars ($1,000) of taxable value, as e a n b 24 measured by the sum of all rates imposed by resolution of the u [ local school board plus rates set to pay interest and principal .226854.1 - 7 - on outstanding school district general obligation bonds;

(10) the local match for the constitutional special schools shall be set at fifty percent for projects SB 76 Page 7 that qualify under the educational adequacy category and one hundred percent for projects that qualify in the support spaces category;

(a) the public school capital outlay project is needed and included in the school district's five-five-year year facilities plan among its top priorities;

(b) the school district has used its e t 17 capital resources in a prudent manner;

w l n d 18 (c) the school district has provided = = 19 a l insurance for buildings of the school district in accordance i a e r 20 with the provisions of Section 13-5-3 NMSA 1978;

a t m m 21 (d) the school district has submitted a d r e 22 five-year facilities plan that includes:

1) enrollment c e s k 23 projections;