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Committee advances bill to lower local match for school capital outlay from 10 to 8 mills
Summary
House Bill 277 would amend the Public School Capital Outlay Act waiver criteria by reducing the required local levy from 10 mills to 8 mills, a change sponsors and school officials said would expand eligibility for state capital funds to roughly 19 districts that currently lack bonding capacity.
House Bill 277, which would reduce one pathway’s local tax levy requirement under the Public School Capital Outlay Act from 10 mills to 8 mills, received a due pass from the House Education Committee after supporters described how the change would expand eligibility for state capital funding to rural and high-poverty districts.
Representative Madiba Moya, the bill sponsor, told the committee the measure "would amend criteria A by reducing the mills that a school district is required to levy against a local tax base from 10 mills to 8 mills." Rebecca Barto, school board secretary for the Truth or Consequences School District, testified that the current waiver system is “a bit restrictive” and said about 19 districts would benefit.
Supporters said the change targets districts that meet enrollment or other criteria but lack the taxable base or voter willingness to raise millage sufficient to meet the state’s local match for PSCOC funding. Testimony described one district with more than 40-year-old school buildings, failing plumbing and leaking roofs and estimated repair costs of $20,000,000 or a $32,000,000 cost to build a new facility. Barto also described the district’s student population and community context: “our school district serves 72% poverty or low income, 80% population of Hispanic, 20% ELL learners, and 20% SPED population” and an 88% retiree population in the voter base that has repeatedly voted down mill levies.
Witnesses included the New Mexico School Board Association, Central Consolidated School District, and the Coalition of Educational Leaders; they urged the committee to advance the bill so more districts could access capital funds. Committee members asked how reducing the levy would help a district that lacks bonding capacity; presenters said lowering the required levy to 8 mills would enable some districts to meet bonding capacity and qualify for multiple bond programs (EdTech, GEO bonds) and thereby leverage additional funding.
A due-pass motion was moved by Representative Chatfield and seconded by Representative Cullen; the chair announced no opposition and the bill was advanced.
The transcript does not include a roll-call tally. The bill will proceed to the next committee steps in the legislative process.
