SB 82 — PUBLIC SCHOOL CAPITAL OUTLAY CHANGES

SENATEAN BILLACT 82RELATING 57THTO LEGISLATUREPUBLIC -SCHOOL STATEOFNEWMEXICO-CAPITAL FIRSTOUTLAY; SESSION, 2025 INTRODUCED BY William P.

SoulesEXTENDING ThisTHROUGH documentFISCAL mayYEAR incorporate2027 amendmentsTHE proposedPROVISION byTHAT aREDUCES committee,LOCAL butSHARES notBY yetONE-THIRD adopted,FOR asSOME wellSCHOOL asDISTRICTS amendmentsAND thatONE-HALF haveFOR beenCERTAIN adoptedSMALL duringSCHOOL theDISTRICTS; current legislative session.

TheELIMINATING documentSOME isOF aTHE toolCRITERIA toTHE showPUBLIC amendmentsSCHOOL inCAPITAL contextOUTLAY andCOUNCIL cannotIS beREQUIRED usedTO forCONSIDER theBEFORE purposeMAKING ofAN addingADJUSTMENT amendmentsTO toA legislation.SCHOOL DISTRICT'S LOCAL SHARE;

FORMAKING THECONFORMING PUBLICAMENDMENTS. SCHOOL CAPITAL OUTLAY OVERSIGHT TASK FORCE AND THE LEGISLATIVE EDUCATION STUDY COMMITTEE h AN ACT g o RELATING TO PUBLIC SCHOOL CAPITAL OUTLAY;

EXTENDINGBE THROUGHIT tENACTED hrBY gTHE eLEGISLATURE iOF k FISCAL YEAR 2027 THE PROVISIONSTATE THATOF REDUCESNEW LOCALMEXICO: SHARES BY h r i s ONE-THIRD FOR SOME SCHOOL DISTRICTS AND ONE-HALF FOR CERTAIN h , t, SMALL SCHOOL DISTRICTS;

ELIMINATING SOME OF THE CRITERIA THE e u g e b l e e h PUBLIC SCHOOL CAPITAL OUTLAY COUNCIL IS REQUIRED TO CONSIDER n d d i = = o h BEFORE MAKING AN ADJUSTMENT TO A SCHOOL DISTRICT'S LOCAL SHARE;

l ] b ,d i a º e MAKING CONFORMING AMENDMENTS.

r i = r t e w d m a n o d m :

b e d s º o t n = .228682.1AIC March 16, 2025 (2:25pm) s k m e e a n e d r e l u [ A d BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

(1) all school districts are eligible to apply for funding from the fund, regardless of percentage of SB 82 Page 1 indebtedness;

(2) priorities for funding shall be determined h g by using the statewide adequacy standards developed pursuant to o t hr Subsection C of this section;

g e i k (a) the council shall apply the h r i s h standards to charter schools to the same extent that they are , t, e u g applied to other public schools;

e b l e e h (b) the council may award grants n d d i = = o h annually to school districts for the purpose of repairing, l ] b ,d i a º e r i = r renovating or replacing public school building systems in t e w d m a n o existing buildings as identified in Section 22-24-4.6 dNMSA m1978; :

b e d s º o t n = .228682.1AIC March 16, 2025 (2:25pm) s k m e - 2 - e a n e d r e l u [ A d NMSA 1978;

In establishing the criteria, the council shall SB 82 Page 2 consider:

h g (b) the potential use of more durable o t hr construction materials that may reduce long-term operating g e i k costs;

h r i s (c) concepts that promote efficient but h , t, e u g flexible utilization of space;

and e b l e e h (d) any other financing or construction n d d i = = o h concept that may maximize the dollar effect of the state grant l ] b ,d i a º e r i = r assistance;

t e w d m a n o (4) no more than ten percent of the combined dtotal mof :grants in a funding cycle shall be used for retrofitting existing facilities for technology infrastructure;

b e d s º o t n = .228682.1AIC March 16, 2025 (2:25pm) s k m e - 3 - e a n e d r e l u [ A d total of grants in a funding cycle shall be used for retrofitting existing facilities for technology infrastructure;

(b) the maximum allowable gross square SB 82 Page 3 foot per student multiplied by the replacement cost per square foot divided by forty-five is calculated for each school district;

h (d) in those instances in which the u » r t h calculation pursuant to Subparagraph (c) of this paragraph g e l i yields a value equal to or greater than one, the phase two h r i s formula value shall be zero for the subject school district;

h , e h t u g (e) in those instances in which the e b l e e , gh calculation pursuant to Subparagraph (c) of this paragraph n d d i = = o h yields a value of ninety-hundredths or more but less than one, l ] b ,d i a º r the phase two formula value shall be one minus the value e r = t e w d m a n o calculated in Subparagraph (c) of this paragraph;

and d(f) min :those instances in which the calculation pursuant to Subparagraph (c) of this paragraph yields a value less than ninety-hundredths, the phase two formula value shall be one minus the value calculated in Subparagraph (c) of this paragraph plus the school district population density factor;

b r e t º o t n = .228682.1AIC March 16, 2025 (2:25pm) s k m e - 4 - e a n e d r e l u [ A d (f) in those instances in which the calculation pursuant to Subparagraph (c) of this paragraph yields a value less than ninety-hundredths, the phase two formula value shall be one minus the value calculated in Subparagraph (c) of this paragraph plus the school district population density factor;

Except as SB 82 Page 4 provided in 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 case shall the state share be less than six percent:

(a) for fiscal year 2024 through fiscal year [2026 ] 2027, the percentage shall be the phase two formula h g value plus a percentage equal to one-third of the difference o t hr between one and the phase two formula value;

provided that, for g e i k school districts with fewer than 200 MEM, the percentage shall h r i s be the phase two formula value plus a percentage equal to one-one-half h , t, e u g half of the difference between one and the phase two formula;

e b l e e h and n d d i = = o h (b) for fiscal year [2027 ] 2028 and l ] b ,d i a º e r i = r thereafter, the percentage shall be the phase two formula t e w d m a n o value;

d(7) mas :used in this subsection:

b e d s º o t n = .228682.1AIC March 16, 2025 (2:25pm) s k m e - 5 - e a n e d r e l u [ A d (7) as used in this subsection:

SB 82 Page 5 (c) "subject school district" means the school district that has submitted the application for funding and in which the approved public school capital outlay project will be located;

(8) the amount calculated pursuant to h g Paragraph (6) of this subsection may be increased by an o t hr additional five percent if the council finds that the subject g e i k school district has been exemplary in implementing and h r i s maintaining a preventive maintenance program.

The council h , t, e u g shall adopt such rules as are necessary to implement the e b l e e h provisions of this paragraph;

n d d i = = o h (9) the council may adjust the amount of a l ] b ,d i a º e r i = r school district's local share otherwise required if it t e w d m a n o determines that [a ] the school district has made a good-faith deffort mto :use all of its local resources.

b e d s º o t n = .228682.1AIC March 16, 2025 (2:25pm) s k m e - 6 - e a n e d r e l u [ A d effort to use all of its local resources.

(a) the school district has insufficient bonding capacity over the next four years to provide the local match necessary to complete the project and, for all educational purposes, has a residential property SB 82 Page 6 tax rate of at least ten dollars ($10.00) on each one thousand dollars ($1,000) of taxable value, as measured by the sum of all rates imposed by resolution of the local school board plus rates set to pay interest and principal on outstanding school district general obligation bonds;

or (b) the school district [1)] has fewer than an average of Hfl1ºeightone hundred»Hfl1 Hfl1ºone thousand five hundred»Hfl1hundred full-time-equivalent students on the second and third reporting dates of the prior school year [2)and, for all educational purposes, has a residential property tax rate of at least seventyseven percentdollars ($7.00) on each one thousand dollars ($1,000) of itstaxable studentsvalue, eligibleas formeasured freeby orthe hsum reduced-feeof lunch;all rates imposed by resolution of the local school board plus rates set to pay interest and principal on outstanding school district general obligation bonds;

3)(10) hasthe alocal phasematch twofor formulathe valueconstitutional calculatedspecial uschools »shall rbe tset hat pursuantfifty topercent Paragraphfor (5)projects ofthat thisqualify subsectionunder thatthe wouldeducational beadequacy gcategory eand lone ihundred greaterpercent thanfor fiftyprojects percent;that qualify in the support spaces category;

andprovided 4)]that and,the forcouncil allmay educationaladjust hor rwaive i s purposes, has a residential property tax rate of at least seven h , e h t u g dollars ($7.00) on each one thousand dollars ($1,000) of e b l e e , gh taxable value, as measured by the sumamount of allany ratesdirect imposedappropriation byoffset nto dor dlocal ishare =required =for o h resolution of the localconstitutional schoolspecial boardschools plusif ratesan setapplicant toconstitutional payspecial l ] b ,d i a º r e r = interest and principal on outstanding school districthas generalinsufficient tor eno wlocal dresources mavailable; a n o obligation bonds;