New Mexico Administrative Code
Title 6 - PRIMARY AND SECONDARY EDUCATION
Chapter 27 - PUBLIC SCHOOL CAPITAL OUTLAY COUNCIL
Part 3 - APPLICATION AND GRANT ASSISTANCE PROCEDURES AND REQUIREMENTS RELATING TO PREVENTIVE MAINTENANCE PLANS
Section 6.27.3.14 - CALCULATION OF GRANT ASSISTANCE

Universal Citation: 6 NM Admin Code 6.27.3.14

Current through Register Vol. 35, No. 18, September 24, 2024

A. The amount of an award for grant assistance for a project shall be determined as follows:

(1) Total project cost means the total amount necessary to complete the public school capital outlay project less:
(a) any insurance reimbursement received by the school district for the project; and

(b) any amount attributable to costs associated with aspects of a project that exceed the statewide adequacy standards.

(2) The final state share amount of the total project cost is determined by:
(a) applying the ratio calculated pursuant to 6.27.3.9 NMAC in accordance with the requirements of Paragraph (5) of Subsection B of Section 22-24-5 NMSA 1978 to the total project cost to produce the state share amount;

(b) subtracting from the state share amount the amount calculated pursuant to Paragraph (6) of Subsection B of Section 22-24-5 NMSA 1978; and

(c) in instances where a project will utilize a lease with option to purchase arrangement, the final state share amount may be in the form of additional lease costs for leasehold improvements.

B. Notwithstanding the requirements of Subsection A of this section:

(1) If the council determines that a district has used all of its local resources and that the district is not expected to have any available local resources by a date determined annually by the council, the council may adjust the amount of local share otherwise required. Before making any adjustment to the local share, the council shall consider whether:
(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 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
(i) has fewer than an average of eight hundred full-time-equivalent students on the fortieth, eightieth and one hundred twentieth days of the prior school year;

(ii) has at least seventy percent of its students eligible for free or reduced fee lunch;

(iii) has a share of the total project cost, as calculated pursuant to provisions of this section, that would be greater than fifty percent; and

(iv) for all educational purposes, 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; or

(c) the school district has:
(i) an enrollment growth rate over the previous school year of at least two and one-half percent;

(ii) pursuant to its five-year facilities plan, will be building a new school within the next two years; and

(iii) for all educational purposes, has a residential property 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.

(2) Allocations from the fund made by the council for the purpose of demolishing abandoned school district facilities provide that 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 reimburse the fund fully or partially for the demolition costs allocated to the district.

C. Amounts awarded to school districts may be adjusted if the council determines that a previous award is insufficient to bring a project to statewide adequacy standards. A school district may apply for an adjustment to a previous award of grant assistance by submitting an application on the current, approved, and designated form detailing the additional state and local match funds necessary to bring the school to adequacy.

D. In instances where the district lacks the additional funds to meet the local share of the project, the award may be adjusted by the council upon approval of an application submitted by the district on the current, approved, and designated form. The authority, in consultation with the public education department shall review the applicant school district's financial position presented in the application and make a recommendation to the council whether an awards adjustment should be considered. The council shall use the criteria provided in Section 22-24-5(B)(8)(a) and (b) NMSA 1978 to determine whether an adjustment be made. An adjustment may include increasing the state share together with an increase for the local match for the project.

E. In addition to considering an adjustment of the local share pursuant to Subsections B or D of this section, the council may consider granting a local share advance if the council determines that a need exists to complete the project in a timely manner and the school district affirms its willingness and ability to repay the advance within 48 months of the granting of the advance.

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