SB 220 SCHOOL DISTRICT BUDGET GROWTH

Sen Shannon Pinto

Actions: [4] SCC/SEC/SFC-SCC

Scheduled: Not Scheduled

 Senate Bill 220, relating to public school finance, limits the growth of administrative expenditures by school districts and charter schools. 

 Senate Bill 220 (SB 220) limits the growth of administrative expenditures by school districts and charter schools.
SECTION 1 adds a new section of the Public School Finance Act titled LIMITING THE GROWTH OF ADMINISTRATIVE EXPENDITURES.
A. Beginning with the 2025-2026 school year operating budget, a school district or charter school shall not submit an operating budget for the ensuing fiscal year that includes budgeted administrative expenditures that exceed the expenditures in the current year plus the lesser of a percentage of the consumer price index from the prior year or a percentage less than or equal to the increase in program cost.

B. The department may waive the limitation on growth of administrative expenditures for a school district or charter school that has lower administrative expenditures per student than similar districts or schools; is highly ranked for student performance; or has been newly authorized.

D. Except for a school district or charter school receiving a waiver under Subsection B, the department shall not: 
(1) approve an operating budget of a school district or charter school that does not limit the growth of administrative expenditures; and
(2) approve a budget adjustment request to increase administrative expenditures if the adjusted budget would provide for an increase in the budgeted year's administrative expenditures above the amount allowed.

SECTION 2 amends Public Schools Section 22-8-2 NMSA 1978 (being Laws 1978, Chapter 128, Section 3, as amended by Laws 2019, Chapter 206, Section 6 and by Laws 2019, Chapter 207, Section 6) to add to definitions as used in the Public School Finance Act. Subsection B defining “administrative expenditures” and Subsection E defining “consumer price index” are inserted and the section relettered.