2006 New Mexico Statutes - Section 22-24-4 — Fund created; use.

22-24-4. Fund created; use.

A.     There is created the "public school capital outlay fund".  Balances remaining in the fund at the end of each fiscal year shall not revert.  

B.     Except as provided in Subsections G through L of this section, money in the fund may be used only for capital expenditures deemed by the council necessary for an adequate educational program.  

C.     The council may authorize the purchase by the public school facilities authority of portable classrooms to be loaned to school districts to meet a temporary requirement.  Payment for these purchases shall be made from the fund.  Title and custody to the portable classrooms shall rest in the public school facilities authority.  The council shall authorize the lending of the portable classrooms to school districts upon request and upon finding that sufficient need exists.  Application for use or return of state-owned portable classroom buildings shall be submitted by school districts to the council.  Expenses of maintenance of the portable classrooms while in the custody of the public school facilities authority shall be paid from the fund; expenses of maintenance and insurance of the portable classrooms while in the custody of a school district shall be the responsibility of the school district.  The council may authorize the permanent disposition of the portable classrooms by the public school facilities authority with prior approval of the state board of finance.  

D.     Applications for assistance from the fund shall be made by school districts to the council in accordance with requirements of the council.  Except as provided in Subsection K of this section, the council shall require as a condition of application that a school district have a current five-year facilities plan, which shall include a current preventive maintenance plan to which the school adheres for each public school in the school district.  

E.     The council shall review all requests for assistance from the fund and shall allocate funds only for those capital outlay projects that meet the criteria of the Public School Capital Outlay Act [ 22-24-1 NMSA 1978].  

F.     Money in the fund shall be disbursed by warrant of the department of finance and administration on vouchers signed by the secretary of finance and administration following certification by the council that an application has been approved or an expenditure has been ordered by a court pursuant to Section 22-24-5.4 NMSA 1978.  At the discretion of the council, money for a project shall be distributed as follows: 

(1)     up to ten percent of the portion of the project cost funded with distributions from the fund or five percent of the total project cost, whichever is greater, may be paid to the school district before work commences with the balance of the grant award made on a cost-reimbursement basis; or 

(2)     the council may authorize payments directly to the contractor.  

G.     Balances in the fund may be annually appropriated for the core administrative functions of the public school facilities authority pursuant to the Public School Capital Outlay Act and, in addition, balances in the fund may be expended by the public school facilities authority, upon approval of the council, for project management expenses; provided that: 

(1)     the total annual expenditures from the fund pursuant to this subsection shall not exceed five percent of the average annual grant assistance authorized from the fund during the three previous fiscal years; and 

(2)     any unexpended or unencumbered balance remaining at the end of a fiscal year from the expenditures authorized in this subsection shall revert to the fund.  

H.     Up to thirty million dollars ($30,000,000) of the fund may be allocated annually by the council in fiscal years 2006 and 2007 for a roof repair and replacement initiative with projects to be identified by the council pursuant to Section 22-24-4.3 NMSA 1978; provided that all money allocated pursuant to this subsection shall be expended prior to September 1, 2008.  

I.     Up to seven million five hundred thousand dollars ($7,500,000) from the fund may be expended annually by the council in fiscal years 2006 through 2010 for grants to school districts for the purpose of making lease payments for classroom facilities, including facilities leased by charter schools.  The grants shall be made upon application by the school districts and pursuant to rules adopted by the council; 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.  The following criteria shall apply to the grants: 

(1)     the amount of a grant to a school district shall not exceed: 

(a)     the actual annual lease payments owed for leasing classroom space for schools, including charter schools, in the district; or 

(b)     six hundred dollars ($600) multiplied by the number of MEM using the leased classroom facilities; provided that, if the total grants awarded pursuant to this paragraph would exceed the total annual amount available, the rate specified in this subparagraph shall be reduced proportionately; 

(2)     a grant received for the lease payments of a charter school may be used by that charter school as a state match necessary to obtain federal grants pursuant to the federal No Child Left Behind Act of 2001; 

(3)     at the end of each fiscal year, any unexpended or unencumbered balance of the appropriation shall revert to the fund; and 

(4)     as used in this subsection, "MEM" means: 

(a)     the average full-time-equivalent enrollment using leased classroom facilities on the eightieth and one hundred twentieth days of the prior school year; or  

(b)     in the case of an approved charter school that has not commenced classroom instruction, the estimated full-time-equivalent enrollment that will use leased classroom facilities in the first year of instruction, as shown in the approved charter school application; provided that, after the eightieth day of the school year, the MEM shall be adjusted to reflect the full-time-equivalent enrollment on that date.  

J.     In addition to other authorized expenditures from the fund, up to one percent of the average grant assistance authorized from the fund during the three previous fiscal years may be expended in each fiscal year by the public school facilities authority to reimburse the state fire marshal, the construction industries division of the regulation and licensing department and local jurisdictions having authority from the state to permit and inspect projects for expenditures made to permit and inspect projects funded in whole or in part under the Public School Capital Outlay Act.  The authority shall enter into contracts with the state fire marshal, the construction industries division or the appropriate local authorities to carry out the provisions of this subsection.  

K.     Pursuant to guidelines established by the council, allocations from the fund may be made to assist school districts in developing and updating five-year facilities plans required by the Public School Capital Outlay Act; provided that: 

(1)     no allocation shall be made unless the council determines that the school district is willing and able to pay the portion of the total cost of developing or updating the plan that is not funded with the allocation from the fund.  Except as provided in Paragraph (2) of this subsection, the portion of the total cost to be paid with the allocation from the fund shall be determined pursuant to the methodology in Paragraph (5) of Subsection B of Section  22-24-5 NMSA 1978; or 

(2)     the allocation from the fund may be used to pay the total cost of developing or updating the plan if: 

(a)     the school district has fewer than an average of six hundred full-time-equivalent students on the eightieth and one hundred twentieth days of the prior school year; or 

(b)     the school district meets all of the following requirements:  1) the school district has fewer than an average of one thousand full-time-equivalent students on the eightieth and one hundred twentieth days of the prior school year; 2) the school district has at least seventy percent of its students eligible for free or reduced-fee lunch; 3) the state share of the total cost, if calculated pursuant to the methodology in Paragraph (5) of Subsection B of Section 22-24-5 NMSA 1978, would be less than fifty percent; 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 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.  

L.     Upon application by a school district, allocations from the fund may be made by the council for the purpose of demolishing abandoned school district facilities provided that: 

(1)     the costs of continuing to insure an abandoned facility outweigh any potential benefit when and if a new facility is needed by the school district; 

(2)     there is no practical use for the abandoned facility without the expenditure of substantial renovation costs; 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 used to fully or partially reimburse the fund for the demolition costs allocated to the district.  
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