SM 124 — CENTRAL CONSOLIDATED SCHOOL DISTRICT IMPACTS

SENATE MEMORIAL 124 54TH LEGISLATURE- STATE OF NEW MEXICO - FIRST SESSIO, 2019 INTRODUCED BY Mimi Stewart 6 8 10 A MEMORIAL REQUESTING THE PUBLIC EDUCATION DEPARTMENT TO CONVENE A TASK FORCE TO IDENTIFY POTENTIAL IMPACTS TO THE CENTRAL CONSOLIDATED SCHOOL DISTRICT.

156 WHEREAS, the central consolidated school district in San Juan county issued school bonds for its facilities;

and e t 17 WHEREAS, the central consolidated school district w l n d 18 currently is obligated to repay the bonds;

and = = 19 a l WHEREAS, a large percentage of the funds used by the i a e r 20 central consolidated school district to repay the outstanding a t m m 21 bonds comes from property tax paid by the owners of the San d r e 22 Juan generating station;

and c e s k 23 WHEREAS, the owners of ninety-five percent of the San Juan e a n b 24 generating station have indicated their intent not to continue u [ their participation in the San Juan generating station after .214983.2 mid-2022, and the public service company of New Mexico has indicated that it will file an application to abandon the San Juan generating station in 2022;

and WHEREAS, it is critical that the central consolidated school district have a plan to obtain sufficient funds to SM 124 Page 1 repay the bonds if property tax revenues are lost;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the public education department be requested to convene, by August 1, 2019, a task force to study the potential changes to the central consolidated school district's property tax base and potential changes related to mill levies and bonding capacity to determine if the school district will e e 17 have a potential deficit in funds to repay the bonds;

and e e n d 18 BE IT FURTHER RESOLVED that the task force be composed of:

= = l ] 19 A.

a l r i 20 B.

the chair of the public school capital outlay t e a t council;

m m 21 e d r e 22 C.

the director of the legislative finance c e r c 23 committee;

e a n b 24 D.

the director of the legislative education study u [ committee;

.214983.2 - 2 - E.

a resident residing in San Juan county SM 124 Page 2 appointed by the central consolidated school district board;

possible reductions in property tax funds e e 17 provided to the central consolidated school district due to the e e n d 18 closure of the San Juan generating station and estimated new = = l ] 19 property tax revenue from new resources anticipated to be built a l r i 20 in the area;

t e a t B.

the availability of state funds provided to the m m 21 e d r e 22 central consolidated school district to repay the bonds;

c e r c 23 C.

the estimated amount of additional funding e a n b 24 needed for the central consolidated school district to be able u [ to make the bond payments;

.214983.2 - 3 - D.

recommendations regarding options to provide the central consolidated school district with sufficient SM 124 Page 3 funds to be able to repay the bonds and maintain its facilities;

-SM 4124 -Page e4 e25 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .214983.2