A. Prior to April 15 of each year, each local school board shall submit to the department an operating budget for the school district and any locally chartered charter school in the school district for the ensuing fiscal year. B. The date for the submission of the operating budget for each school district and each charter school as required by this section may be extended to a later date fixed by the secretary. C. The operating budget required by this section may include: (1) estimates of the cost of insurance policies for periods up to five years if a lower rate may be obtained by purchasing insurance for the longer term; or (2) estimates of the cost of contracts for the transportation of students for terms extending up to four years. D. The operating budget required by this section shall include a budget for each charter school of the membership projected for each charter school, the total program units generated at that charter school and approximate anticipated disbursements and expenditures at each charter school. E. For fiscal year 2021 and subsequent fiscal years, each school district's and each locally chartered or state-chartered charter school's educational plan shall include: (1) information on the instructional time offered by the school district or charter school, including the number of instructional days by school site and the number of hours in each instructional day and the frequency of early-release days; (2) a narrative explaining the identified services to improve the academic success of at-risk students; (3) a narrative explaining the services provided to students enrolled in the following programs: (a) extended learning time programs, including a report of how the extended learning time is used to improve the academic success of students and professional learning of teachers; and (b) K-5 plus programs; (4) a narrative explaining the school district's or charter school's beginning teacher mentorship programs as well as class size and teaching load information; (5) a narrative explaining supplemental programs or services offered by the school district or charter school to ensure that the Bilingual Multicultural Education Act [Chapter 22, Article 23 NMSA 1978], the Indian Education Act [Chapter 22, Article 23A NMSA 1978] and the Hispanic Education Act [Chapter 22, Article 23B NMSA 1978] are being implemented by the school district or charter school; (6) a narrative describing the amount of program cost generated for services to students with disabilities and the spending of these revenues on services to students with disabilities, which shall include the following: (a) program cost generated for students enrolled in approved special education programs; (b) budgeted expenditures of program cost, for students enrolled in approved special education programs, on students with disabilities; (c) the amount of program cost generated for personnel providing ancillary and related services to students with disabilities; (d) budgeted expenditures of program cost for personnel providing ancillary and related services to students with disabilities, on special education ancillary and related services personnel; and (e) a description of the steps taken to ensure that students with disabilities have access to a free and appropriate public education; and (7) a common set of performance targets and performance measures, as determined by the department in consultation with the department of finance and administration, the legislative finance committee and the legislative education study committee. F. In addition to the requirements of Subsection E of this section, a school district or charter school that receives federal or local revenue shall include in its educational plan a narrative explaining how the school district or charter school will use the federal or local revenue to improve outcomes for students or to improve the condition of a school building. No later than October 1 of each year, a school district or charter school that received federal or local revenue in the prior fiscal year shall report to the department on the actual uses of that revenue, including a comprehensive evaluation of how the programs and services provided with that revenue improved outcomes for students or how capital projects undertaken improved the condition of a school building. A school district or charter school that is required under federal law to consult with tribal entities as a condition of receiving impact aid funds shall include in its educational plan a detailed narrative of its consultations with tribal entities and the results of those consultations. The school district or charter school shall transmit the October 1 spending and outcomes report to the appropriate tribal authorities. No later than November 15 of each year, the department shall compile the federal and local revenue outcomes reports into a statewide report to the legislative education study committee and the legislative finance committee that includes an analysis and identification of effective programs and strategies that improve outcomes for students. G. A school district or charter school operating budget and educational plan shall prioritize federal and local revenue for purposes relating to the Indian Education Act [Chapter 22, Article 23A NMSA 1978]; for capital expenditures authorized by the Public School Capital Outlay Act [Chapter 22, Article 24 NMSA 1978], the Public School Capital Improvements Act [Chapter 22, Article 25 NMSA 1978] or the Public School Buildings Act [Chapter 22, Article 26 NMSA 1978]; or for research-based or evidence-based social, emotional or academic interventions for which at-risk program units may be used. H. If a local school board or governing board of a charter school fails to submit an operating budget pursuant to this section, the department shall prepare the operating budget for the school district or charter school for the ensuing fiscal year. A local school board or governing board of a charter school shall be considered as failing to submit an operating budget pursuant to this section if the budget submitted exceeds the total projected resources of the school district or charter school or if the budget submitted does not comply with the law or with rules and procedures of the department. I. As used in this section: (1) "federal revenue" means seventy-five percent of the revenue derived from: (a) federal forest reserve funds distributed in accordance with Section 22-8-33 NMSA 1978; or (b) federal assistance to those areas affected by federal activity authorized in accordance with Title 20 of the United States Code, commonly known as "PL 874 funds" or "impact aid funds"; and (2) "local revenue" means seventy-five percent of the revenue from a school district one-half mill school district property tax and revenue from the Oil and Gas Ad Valorem Production Tax Act [Chapter 7, Article 32 NMSA 1978 ] and the Oil and Gas Production Equipment Ad Valorem Tax Act [Chapter 7, Article 34 NMSA 1978]. History: 1953 Comp., § 77-6-6, enacted by Laws 1967, ch. 16, § 60; 1988, ch. 64, § 17; 1993, ch. 224, § 2; 1993, ch. 227, § 9; 1999, ch. 281, § 21; 1999, ch. 291, § 2; 2019, ch. 206, § 8; 2019, ch. 207, § 8; 2021, ch. 52, § 3. Cross references. — For transfer of powers and duties of the former state superintendent, see 9-24-15 NMSA 1978. The 2021 amendment, effective July 1, 2021, required school districts and charter schools that receive federal or local revenue to include proposed uses of the federal or local revenue in their educational plans, required school districts and charter schools to report to the public education department the actual uses of the federal or local revenue and report the student outcomes from the use of federal or local revenue, provided additional reporting duties for school districts and charter schools, and defined certain terms used in this section; in the section heading, after "submission", added "certain reports"; added new Subsections F and G and redesignated former Subsection F as Subsection H; and added Subsection I. The 2019 amendment, effective June 14, 2019, provided additional requirements for the content of each school district's and each locally chartered or state-chartered school's education plan; in the section heading, added "Operating" and "educational plans"; added new subsection designation "B" and redesignated former Subsections B and C as Subsections C and D, respectively; in Subsection B, after "operating budget", added "for each school district and each charter school"; added Subsection E and redesignated former Subsection D as Subsection F; and in Subsection F, after each occurrence of "school board", added "or governing board of a charter school" and after each occurrence of "school district", added "or charter school". Laws 2019, ch. 206, § 8 and Laws 2019, ch. 207, § 8, both effective June 14, 2019, enacted identical amendments to this section. The section was set out as amended by Laws 2019, ch. 207, § 8. See 12-1-8 NMSA 1978. Applicability. — Laws 2019, ch. 207, § 29 provided that the provisions of Section 2 through 19 of this act apply to the program cost calculation in fiscal year 2020 and subsequent fiscal years. 1999 Amendments. — Laws 1999, ch. 291, § 2, effective April 8, 1999, substituted "operating budget" for "estimated budget" throughout the section; deleted "local" before "school district" in Subsection C; and substituted "with rules and procedures" for "the manual of accounting and budgeting" at the end of Subsection D. Laws 1999, ch. 281, § 21, effective June 18, 1999, inserted "and any charter schools in the district" in the first sentence of Subsection A; and rewrote Subsection C. 1993 amendments. — Laws 1993, ch. 227, § 9, effective June 18, 1993, added a new Subsection C and redesignated former Subsection C as Subsection D The 1988 amendment, effective May 18, 1988, substituted "department" for "division" and "state superintendent" for "chief" throughout the section. Legislative intent. — The legislature obviously intended that a school board may purchase insurance policies not to exceed five years and, if prepayment of the entire premium in the initial policy year is necessary in order to obtain the insurance, then the school board may legally do so. 1975 Op. Att'y Gen. No. 75-03.
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