SB 31 — CORE ADMIN FUNCTIONS EXPENDITURES FORMULA

TheI. fund may be expended annually by the council a l r i 20 for grants to school districts for the purpose of making lease t e a t payments for classroom facilities, including facilities leased m m 21 e d r e 22 by charter schools.

The grantsfund shallmay be madeexpended uponannually applicationby cthe ecouncil rfor cgrants 23to by the school districts andfor pursuantthe topurpose rulesof adoptedmaking bylease thepayments efor aclassroom nfacilities, bincluding 24facilities council;leased by charter schools.

providedThe thatgrants an application on behalf of a charter u [ school shall be made byupon theapplication schoolby district, but, if the school .215907.1districts -and 4pursuant - district fails to makerules anadopted applicationby on behalf of a charter school, the chartercouncil; school may submit its own application.

provided that an application on behalf of a charter school shall be made by the school district, but, if the school district fails to make an application on behalf of a charter school, the charter school may submit its own application.

or h (b) seven hundred dollars ($700) u » r multiplied by the MEM using the leased classroom facilities;

t h g e l i provided that in fiscal year 2009 and in each subsequent fiscal h r i s year, this amount shall be adjusted by the percentage change h , e h between the penultimate calendar year and the immediately t u g e b l e e , gh preceding calendar year of the consumer price index for the n d d i = = o h United States, all items, as published by the United States l ] b ,d i a º r department of labor;

e er 17= (2)t a grant received for the lease payments of e ew n d 18m a chartern schoolo may(2) be used by that charter school as a stategrant =received =for l ] 19 match necessary to obtain federal grants [pursuant to the alease lpayments rof id 20m federal: Every Student Succeeds Act];

tb r e at º o t (3)n at= the.215907.1AIC endFebruary of19, each2020 fiscal(9:04am) year,s anyk m me 21- 5 - e a n e d r e 22l unexpendedu or[ unencumberedA balanced ofa thecharter appropriationschool shallmay cbe eused rby cthat 23charter revertschool as a state match necessary to obtain federal grants [pursuant to the fund;federal Every Student Succeeds Act];

e(3) aat nthe bend 24of (4)each nofiscal grantyear, shallany beunexpended madeor forunencumbered leasebalance paymentsof u [ due pursuant to a financing agreement under which the .215907.1appropriation -shall 5revert - facilities may be purchased for a price that is reduced according to the leasefund; payments made unless:

(4) no grant shall be made for lease payments due pursuant to a financing agreement under which the facilities may be purchased for a price that is reduced according to the lease payments made unless:

(5) if the lease payments are made pursuant to h a financing agreement under which the facilities may be u » r purchased for a price that is reduced according to the lease t h g e l i payments made, neither a grant nor any provision of the Public h r i s School Capital Outlay Act creates a legal obligation for the h , e h school district or charter school to continue the lease from t u g e b l e e , gh year to year or to purchase the facilities nor does it create a n d d i = = o h legal obligation for the state to make subsequent grants l ] b ,d i a º r pursuant to the provisions of this subsection;

and e r = t e 17w d m a n o (6) as used in this subsection:

e e n d 18m (a): "MEM" means:

1)b ther averagee full-t =º o t n = l.215907.1AIC ]February 1919, time-equivalent2020 enrollment(9:04am) usings leasedk classroomm facilitiese on- a6 l- re ia 20n thee secondd andr thirde reportingl datesu of[ theA priord school(a) year;"MEM" means:

t1) e a t or 2) in the caseaverage offull- antime-equivalent approved charter school that has not m m 21 e d r e 22 commenced classroom instruction, the estimated full-time- c e r c 23 equivalent enrollment thatusing will use leased classroom facilities eon athe nsecond band 24third inreporting thedates first year of instruction, as shown in the approvedprior u [ charter school application;year;

providedor that,2) afterin the secondcase .215907.1of -an 6approved -charter reportingschool datethat ofhas thenot schoolcommenced year,classroom instruction, the MEMestimated shallfull-time- beequivalent adjustedenrollment tothat reflectwill use leased classroom facilities in the full-time-equivalentfirst enrollmentyear onof thatinstruction, date;as shown in the approved charter school application;

provided that, after the second reporting date of the school year, the MEM shall be adjusted to reflect the full-time-equivalent enrollment on that date;

In addition to other authorized expenditures from the fund, up to one percent of the average grant h assistance authorized from the fund during the three previous u » r fiscal years may be expended in each fiscal year by the t h g e l i authority to pay the state fire marshal, the construction h r i s industries division of the regulation and licensing department h , e h and local jurisdictions having authority from the state to t u g e b l e e , gh permit and inspect projects for expenditures made to permit and n d d i = = o h inspect projects funded in whole or in part under the Public l ] b ,d i a º r School Capital Outlay Act.

The authority may enter into e er 17= contractst withe thew stated firem marshal,a the construction e e n do 18contracts industrieswith division or the appropriatestate localfire authoritiesmarshal, to = = l ] 19 carry out the provisionsconstruction ofd thism subsection.:

Suchb ar contracte at lº ro it 20n may= provide.215907.1AIC forFebruary initial19, estimated2020 payments(9:04am) froms thek fundm prior t e a- t7 to- thee expendituresa ifn the contract also provides for m m 21 e d r e 22l additionalu payments[ fromA thed fundindustries ifdivision theor actual expenditures c e r c 23 exceed the initialappropriate paymentslocal andauthorities for repayments back to thecarry fundout e a n b 24 if the initialprovisions paymentsof exceedthis thesubsection. actual expenditures.

MoneySuch ua [contract distributedmay provide for initial estimated payments from the fund prior to the stateexpenditures fireif marshalthe orcontract thealso .215907.1provides -for 7additional -payments constructionfrom industriesthe divisionfund pursuantif tothe thisactual subsectionexpenditures shallexceed bethe usedinitial payments and for repayments back to supplement,the ratherfund thanif supplant,the appropriationsinitial topayments thoseexceed entities.the actual expenditures.

Money distributed from the fund to the state fire marshal or the construction industries division pursuant to this subsection shall be used to supplement, rather than supplant, appropriations to those entities.

h (1) no allocation shall be made unless the u » r council determines that the school district is willing and able t h g e l i to pay the portion of the total cost of developing or updating h r i s the plan that is not funded with the allocation from the fund.

h , e h Except as provided in Paragraph (2) of this subsection, the t u g e b l e e , gh portion of the total cost to be paid with the allocation from n d d i = = o h the fund shall be determined pursuant to [the methodology in l ] b ,d i a º r Subsection B of] Section 22-24-5 NMSA 1978;

or e r = t e 17w d m a n o (2) the allocation from the fund may be used e e n d 18m to: pay the total cost of developing or updating the plan if:

=b =r le ]t 19º (a)o thet schooln district= has.215907.1AIC fewerFebruary than19, a2020 l(9:04am) rs ik 20m ane average- of8 six- hundrede full-time-equivalenta studentsn one thed tr e al tu second[ andA thirdd reportingto datespay the total cost of thedeveloping prioror schoolupdating year;the plan if:

or(a) mthe mschool 21district ehas dfewer rthan ean 22average (b)of thesix schoolhundred districtfull-time-equivalent meetsstudents allon of the csecond eand rthird creporting 23dates followingof requirements:the prior school year;

1)or (b) the school district hasmeets fewerall than e a n b 24 an average of one thousand full-time-equivalent students on the ufollowing [requirements: second and third reporting dates of the prior school year;

2)1) .215907.1 - 8 - the school district has atfewer leastthan seventyan percentaverage of itsone thousand full-time-equivalent students eligibleon forthe freesecond orand reduced-feethird lunch;reporting dates of the prior school year;

2) the school district has at least seventy percent of its students eligible for free or reduced-fee lunch;

and 4) for all educational purposes, the school district has a residential property tax rate of at least seven dollars ($7.00) on each one thousand dollars ($1,000) of taxable value, as measured by the sum of h all rates imposed by resolution of the local school board plus u » r rates set to pay interest and principal on outstanding school t h g e l i district general obligation bonds.

h r i s L.

Upon application by a school district, h , e h allocations from the fund may be made by the council for the t u g e b l e e , gh purpose of demolishing abandoned school district facilities;

n d d i = = o h provided that:

l ] b ,d i a º r (1) the costs of continuing to insure an e r = t e 17w d m a n o abandoned facility outweigh any potential benefit when and if a e e n d 18m new: facility is needed by the school district;

=b r e t º o t n = l.215907.1AIC ]February 1919, (2)2020 there(9:04am) iss nok practicalm usee for- the9 - e a ln re id 20r abandonede facilityl withoutu the[ expenditureA ofd substantialnew tfacility eis aneeded tby renovationthe costs;school district;

and(2) mthere m 21 e d r e 22 (3) the council may enter into an agreement c e r c 23 with the school district under which an amount equal to the e a n b 24 savings to the district in lower insurance premiums [are ] is uno [practical useduse tofor reimburse the fundabandoned fullyfacility orwithout partially for the .215907.1expenditure -of 9substantial -renovation demolitioncosts; costs allocated to the district.

and (3) the council may enter into an agreement with the school district under which an amount equal to the savings to the district in lower insurance premiums [are ] is used to reimburse the fund fully or partially for the demolition costs allocated to the district.

For each fiscal year from 2018 through 2022, h twenty-five million dollars ($25,000,000) of the fund is u » r reserved for appropriation by the legislature to the t h g e l i instructional material fund or to the transportation h r i s distribution of the public school fund.

The secretary shall h , e h certify the need for the issuance of supplemental severance tax t u g e b l e e , gh bonds to meet an appropriation from the public school capital n d d i = = o h outlay fund to the instructional material fund or to the l ] b ,d i a º r transportation distribution of the public school fund.

Any e r = t e 17w d m a n o portion of an amount of the public school capital outlay fund e e n d 18m that: is reserved for appropriation by the legislature for a = = l ] 19 fiscal year, but that is not appropriated before the first day a l r i 20 of that fiscal year, may be expended by the council as provided t e a t in this section.

mb r e t º o t n = .215907.1AIC February 19, 2020 (9:04am) s k m 21e - 10 - e a n e d r e 22l O.u [ A d that is reserved for appropriation by the legislature for a fiscal year, but that is not appropriated before the first day of that fiscal year, may be expended by the council as provided in this section.

UpO. to ten million dollars ($10,000,000) of the c e r c 23 fund may be expended in each of fiscal years 2019 through 2022 e a n b 24 for school security system project grants made in accordance u [ with Section 22-24-4.7 NMSA 1978.

.215907.1Up -to 10ten -million P.dollars ($10,000,000) of the fund may be expended in each of fiscal years 2019 through 2022 for school security system project grants made in accordance with Section 22-24-4.7 NMSA 1978.

TheP. fund may be expended in each of fiscal years 2020 through 2024 for a pre-kindergarten classroom facilities initiative in accordance with Section [1 of this 2019 act ] 22-24-12 NMSA 1978 .

The fund may be expended in each of fiscal years through 2024 for a pre-kindergarten classroom facilities initiative in accordance with Section [1 of this 2019 act ] 22-24-12 NMSA 1978 .

provided that pre-kindergarten classroom space shall not be included in the project prioritization calculation adopted by the council h pursuant to Section 22-24-5 NMSA 1978.

The council shall g o t hr develop pre-kindergarten classroom standards to use when fundingg pre-kindergarten space." - 11 - 14 16 e ei 17k efunding epre-kindergarten nspace." dh 18 = = l ] 19 a l r i 20s tHTRCº eSECTION a2. t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .215907.1

A new section of the Public School h , t, Finance Act is enacted to read:

e u g e b l e e h "[NEW MATERIAL] FEDERALLY IMPACTED LOCATION SUPPORT n d d i = = o h PROGRAM CREATED--ANNUAL AWARD.-- l ] b ,d i a º e A.

The "federally impacted location support r i = r t e w d m a n o program" is created in the department to provide annual awards d m :

b e d s º o t n = .215907.1AIC February 19, 2020 (9:04am) s k m e - 11 - e a n e d r e l u [ A d to school districts and state-chartered charter schools that receive impact aid.

The department shall make an annual award from the federally impacted location support program fund to a school district or state-chartered charter school in the following amounts if that impact aid was included in the calculation of federal revenue as provided in Section 22-8-25 NMSA 1978 for each of the preceding five fiscal years, not including the immediately preceding fiscal year, as follows:

(1) in fiscal year 2021, in an amount equal to one-third of the average amount of federal revenue included in Paragraph (2) of Subsection C of Section 22-8-25 NMSA 1978 that was included in the calculation of the school district's or state-chartered charter school's state equalization guarantee distribution for the preceding five fiscal years, not including the immediately preceding fiscal year;

(2) in fiscal year 2022, in an amount equal to h two-thirds of the average amount of federal revenue included in u » r t h Paragraph (2) of Subsection C of Section 22-8-25 NMSA 1978 that g e l i was included in the calculation of the school district's or h r i s state-chartered charter school's state equalization guarantee h , e h t u g distribution for the preceding five fiscal years, not including e b l e e , gh the immediately preceding fiscal year;

and n d d i = = o h l ] b ,d (3) in fiscal year 2023 and subsequent fiscal i a º r e r = years, an amount equal to the average amount of federal revenue t e w d m a n o d m :

b r e t º o t n = .215907.1AIC February 19, 2020 (9:04am) s k m e - 12 - e a n e d r e l u [ A d included in Paragraph (2) of Subsection C of Section 22-8-25 NMSA 1978 that was included in the calculation of the school district's or state-chartered charter school's state equalization guarantee distribution for the preceding five fiscal years, not including the immediately preceding fiscal year.

B.

A school district or state-chartered charter school that receives an annual award from the federally impacted location support program fund shall:

(1) use the award only for expenditures associated with:

(a) capital expenditures;

(b) debt service;

(c) educating students who:

1) receive special education services;

2) have a disability;

3) are economically disadvantaged;

4) are English language learners;

h g or 5) are participants in gifted education programs;

or o t hr (d) community services;

g e i k (2) spend no more than fifty percent of the h r i s h annual award for capital expenditures and debt service;

and , t, e u g (3) submit a detailed report by October 1 of e b l e e h each year to the department, the legislative education study n d d i = = o h l ] b ,d committee and the legislative finance committee of all actual i a º e r i = r expenditures of the annual award in the previous fiscal year.

t e w d m a n o d m :

b e d s º o t n = .215907.1AIC February 19, 2020 (9:04am) s k m e - 13 - e a n e d r e l u [ A d C.

Each school district and state-chartered charter school that receives an annual award from the federally impacted location support program shall engage in meaningful consultation with Indian nations, tribes and pueblos located in New Mexico whose enrolled members are students in that school district or state-chartered charter school.

The department shall verify that each school district and state-chartered charter school has consulted with the one or more applicable Indian nations, tribes or pueblos and shall submit a verification report by October 1 of each year to the legislative education study committee and the legislative finance committee."»HTRC - 14 - h u » r t h g e l i h r i s h , e h t u g e b l e e , gh n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .215907.1AIC February 19, 2020 (9:04am) s k m e e a n e d r e l u [ A d