2023 New Mexico Statutes › Chapter 22 - Public Schools › Article 24 - Public School Capital Outlay › Section 22-24-5 - Public school capital outlay projects; application; grant assistance.

A. Applications for grant assistance, approval of applications, prioritization of projects and grant awards shall be conducted pursuant to the provisions of this section.
B. Except as provided in Sections 22-24-4.3, 22-24-5.4 and 22-24-5.6 NMSA 1978, the following provisions govern grant assistance from the fund for a public school capital outlay project not wholly funded pursuant to Section 22-24-4.1 NMSA 1978:
(1) all school districts are eligible to apply for funding from the fund, regardless of percentage of indebtedness;
(2) priorities for funding shall be determined by using the statewide adequacy standards developed pursuant to Subsection C of this section; provided that:
(a) the council shall apply the standards to charter schools to the same extent that they are applied to other public schools;
(b) the council may award grants annually to school districts for the purpose of repairing, renovating or replacing public school building systems in existing buildings as identified in Section 22-24-4.6 NMSA 1978;
(c) the council shall adopt and apply adequacy standards appropriate to the unique needs of the constitutional special schools; and
(d) in an emergency in which the health or safety of students or school personnel is at immediate risk or in which there is a threat of significant property damage, the council may award grant assistance for a project using criteria other than the statewide adequacy standards;
(3) the council shall establish criteria to be used in public school capital outlay projects that receive grant assistance pursuant to the Public School Capital Outlay Act. In establishing the criteria, the council shall consider:
(a) the feasibility of using design, build and finance arrangements for public school capital outlay projects;
(b) the potential use of more durable construction materials that may reduce long-term operating costs;
(c) concepts that promote efficient but flexible utilization of space; and
(d) any other financing or construction concept that may maximize the dollar effect of the state grant assistance;
(4) no more than ten percent of the combined total of grants in a funding cycle shall be used for retrofitting existing facilities for technology infrastructure;
(5) no later than May 1 of each calendar year, the phase two formula value shall be calculated for each school district in accordance with the following procedure:
(a) the sum of the final prior five years net taxable value for a school district multiplied by nine ten-thousandths for that school district is calculated for each school district;
(b) the maximum allowable gross square foot per student multiplied by the replacement cost per square foot divided by forty-five is calculated for each school district;
(c) the value calculated pursuant to Subparagraph (a) of this paragraph divided by the value calculated pursuant to Subparagraph (b) of this paragraph is calculated for each school district;
(d) in those instances in which the calculation pursuant to Subparagraph (c) of this paragraph yields a value equal to or greater than one, the phase two formula value shall be zero for the subject school district;
(e) in those instances in which the calculation pursuant to Subparagraph (c) of this paragraph yields a value of ninety-hundredths or more but less than one, the phase two formula value shall be one minus the value calculated in Subparagraph (c) of this paragraph; and
(f) in those instances in which the calculation pursuant to Subparagraph (c) of this paragraph yields a value less than ninety-hundredths, the phase two formula value shall be one minus the value calculated in Subparagraph (c) of this paragraph plus the school district population density factor;
(6) the state share of a project approved by the council shall be funded within available resources pursuant to the provisions of this paragraph. Except as provided in Section 22-24-5.7 NMSA 1978 and except as adjusted pursuant to Paragraph (8), (9) or (10) of this subsection, the amount to be distributed from the fund for an approved project shall equal the total project cost multiplied by the following percentage, except that in no case shall the state share be less than six percent:
(a) for fiscal year 2024 through fiscal year 2026, the percentage shall be the phase two formula value plus a percentage equal to one-third of the difference between one and the phase two formula value; provided that, for school districts with fewer than 200 MEM, the percentage shall be the phase two formula value plus a percentage equal to one-half of the difference between one and the phase two formula; and
(b) for fiscal year 2027 and thereafter, the percentage shall be the phase two formula value;
(7) as used in this subsection:
(a) "governmental entity" includes an Indian nation, tribe or pueblo;
(b) "phase two formula value" for a state-chartered charter school means the phase two formula value calculated pursuant to Paragraph (5) of this subsection for the school district in which the state-chartered charter school is physically located;
(c) "subject school district" means the school district that has submitted the application for funding and in which the approved public school capital outlay project will be located; and
(d) "total project cost" means the total amount necessary to complete the public school capital outlay project less any insurance reimbursement received by the school district for the project;
(8) the amount calculated pursuant to Paragraph (6) of this subsection may be increased by an additional five percent if the council finds that the subject school district has been exemplary in implementing and maintaining a preventive maintenance program. The council shall adopt such rules as are necessary to implement the provisions of this paragraph;
(9) the council may adjust the amount of local share otherwise required if it determines that a school district has made a good-faith effort to use all of its local resources. 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;
(b) the school district: 1) has fewer than an average of eight hundred full-time-equivalent students on the second and third reporting dates of the prior school year; 2) has at least seventy percent of its students eligible for free or reduced-fee lunch; 3) has a share of the total project cost, as calculated pursuant to provisions of this section, that would be greater than fifty percent; and 4) 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: 1) has an enrollment growth rate over the previous school year of at least two and one-half percent; 2) pursuant to its five-year facilities plan, will be building a new school within the next two years; and 3) 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;
(10) the local match for the constitutional special schools shall be set at fifty percent for projects that qualify under the educational adequacy category and one hundred percent for projects that qualify in the support spaces category; provided that the council may adjust or waive the amount of any direct appropriation offset to or local share required for the constitutional special schools if an applicant constitutional special school has insufficient or no local resources available; and
(11) no application for grant assistance from the fund shall be approved unless the council determines that:
(a) the public school capital outlay project is needed and included in the school district's five-year facilities plan among its top priorities;
(b) the school district has used its capital resources in a prudent manner;
(c) the school district has provided insurance for buildings of the school district in accordance with the provisions of Section 13-5-3 NMSA 1978;
(d) the school district has submitted a five-year facilities plan that includes: 1) enrollment projections; 2) a current preventive maintenance plan that has been approved by the council pursuant to Section 22-24-5.3 NMSA 1978 and that is followed by each public school in the district; 3) the capital needs of charter schools located in the school district; and 4) projections for the facilities needed in order to maintain a full-day kindergarten program;
(e) the school district is willing and able to pay any portion of the total cost of the public school capital outlay project that, according to Paragraph (6), (8) or (9) of this subsection, is not funded with grant assistance from the fund;
(f) the application includes the capital needs of any charter school located in the school district or the school district has shown that the facilities of the charter school have a smaller deviation from the statewide adequacy standards than other district facilities included in the application; and
(g) the school district has agreed, in writing, to comply with any reporting requirements or conditions imposed by the council pursuant to Section 22-24-5.1 NMSA 1978.
C. After consulting with the public school capital outlay oversight task force and other experts, the council shall regularly review and update statewide adequacy standards applicable to all school districts. The standards shall establish the acceptable level for the physical condition and capacity of buildings, the educational suitability of facilities, the need for career-technical education facilities or classrooms and the need for education technology infrastructure. Except as otherwise provided in the Public School Capital Outlay Act, the amount of outstanding deviation from the standards shall be used by the council in evaluating and prioritizing public school capital outlay projects.
D. The acquisition of a facility by a school district or charter school pursuant to a financing agreement that provides for lease payments with an option to purchase for a price that is reduced according to lease payments made may be considered a public school capital outlay project and eligible for grant assistance under this section pursuant to the following criteria:
(1) no grant shall be awarded unless the council determines that, at the time of exercising the option to purchase the facility by the school district or charter school, the facility will equal or exceed the statewide adequacy standards and the building standards for public school facilities;
(2) no grant shall be awarded unless the school district and the need for the facility meet all of the requirements for grant assistance pursuant to the Public School Capital Outlay Act;
(3) the total project cost shall equal the total payments that would be due under the agreement if the school district or charter school would eventually acquire title to the facility;
(4) the portion of the total project cost to be paid from the fund may be awarded as one grant, but disbursements from the fund shall be made from time to time as lease payments become due;
(5) the portion of the total project cost to be paid by the school district or charter school may be paid from time to time as lease payments become due; and
(6) neither a grant award nor any provision of the Public School Capital Outlay Act creates a legal obligation for the school district or charter school to continue the lease from year to year or to purchase the facility.
E. In order to encourage private capital investment in the construction of public school facilities, the purchase of a privately owned school facility that is, at the time of application, in use by a school district may be considered a public school capital outlay project and eligible for grant assistance pursuant to this section if the council finds that:
(1) at the time of the initial use by the school district, the facility to be purchased equaled or exceeded the statewide adequacy standards and the building standards for public school facilities;
(2) at the time of application, attendance at the facility to be purchased is at seventy-five percent or greater of design capacity and the attendance at other schools in the school district that the students at the facility would otherwise attend is at eighty-five percent or greater of design capacity; and
(3) the school district and the capital outlay project meet all of the requirements for grant assistance pursuant to the Public School Capital Outlay Act; provided that, when determining the deviation from the statewide adequacy standards for the purposes of evaluating and prioritizing the project, the students using the facility shall be deemed to be attending other schools in the school district.
F. It is the intent of the legislature that grant assistance made pursuant to this section allows every school district to meet the standards developed pursuant to Subsection C of this section; provided, however, that nothing in the Public School Capital Outlay Act or the development of standards pursuant to that act prohibits a school district from using other funds available to the district to exceed the statewide adequacy standards.
G. Upon request, the council shall work with, and provide assistance and information to, the public school capital outlay oversight task force.
H. The council may establish committees or task forces, not necessarily consisting of council members, and may use the committees or task forces, as well as existing agencies or organizations, to conduct studies, conduct surveys, submit recommendations or otherwise contribute expertise from the public schools, programs, interest groups and segments of society most concerned with a particular aspect of the council's work.
I. Upon the recommendation of the authority, the council shall develop building standards for public school facilities and shall promulgate other such rules as are necessary to carry out the provisions of the Public School Capital Outlay Act.
J No later than December 15 of each year, the council shall prepare a report summarizing its activities during the previous fiscal year. The report shall describe in detail all projects funded, the progress of projects previously funded but not completed, the criteria used to prioritize and fund projects and all other council actions. The report shall be submitted to the public education commission, the governor, the legislative finance committee, the legislative education study committee and the legislature.
K. For any school district that received a standards- or systems-based award from the council in fiscal year 2023, the state share for any future phase of the project for which funding has not yet been awarded shall be the amount calculated pursuant to Subsection B of this section for fiscal year 2024, regardless of the state share at the time of the initial award.
L. As used in this section:
(1) "MEM" means membership; and
(2) "membership" means the total enrollment of qualified students on the current roll of a class or school on a specified day. The current roll is established by the addition of original entries and reentries minus withdrawals. Withdrawals of students, in addition to students formally withdrawn from the public school, include students absent from the public school for as many as ten consecutive school days; provided that withdrawals do not include students in need of early intervention and habitual truants the school district is required to intervene with and keep in an educational setting.
History:
1953 Comp., § 77-24-13, enacted by Laws 1975, ch. 235, § 5; 1977, ch. 247, § 205; 1978, ch. 152, § 5; 1987, ch. 326, § 1; 1994, ch. 88, § 3; 2000 (2nd S.S.), ch. 19, § 2; 2001, ch. 338, § 8; 2003, ch. 147, § 10; 2004, ch. 125, § 9; 2005, ch. 274, § 8; 2006, ch. 95, § 5; 2007, ch. 366, § 6; 2008, ch. 90, § 2; 2009, ch. 258, § 5; 2010, ch. 104, § 2; 2012, ch. 53, § 2; 2014, ch. 28, § 3; 2015, ch. 93, § 4.; 2018, ch. 66, § 2; 2019, ch. 180, § 5; 2021, ch. 52, § 8; 2023, ch. 98, § 3.
ANNOTATIONS
Cross references.
— For PL 874 funds,
see
20 USCS § 7701 et seq.
The 2023 amendment,
effective July 1, 2023, revised provisions governing grant assistance from the public school capital outlay fund, temporarily reduced the local match by one-third for some school districts, and defined "MEM" and "membership"; in Subsection B, deleted former Subparagraph B(2)(d) and redesignated former Subparagraph B(2)(e) as Subparagraph B(2)(d), deleted former Paragraph B(5) and redesignated former Paragraphs B(6) through B(8) as Paragraphs B(5) through B(7), respectively, in Paragraph B(5), deleted Subparagraph (b) and redesignated former Subparagraphs (c) through (g) as Subparagraphs B(5)(b) through B(5)(f), in Subparagraph B(5)(c), deleted "in fiscal years 2022 through 2024", after "Subparagraph", changed "(c)" to "(b)", and deleted "and in fiscal year 2025 and subsequent fiscal years, the value calculated pursuant to Subparagraph (b) of this paragraph divided by the value calculated pursuant to Subparagraph (c) of this paragraph is calculated for each school district", in Subparagraphs B(5)(d) through B(5)(d), after "Subparagraph", changed "(d)" to "(c)", in Paragraph B(6), changed "(9), (10), (11) or (12)" to "(8), (9) or (10)", and deleted Subparagraphs (a) through (e) and redesignated former Subparagraph (f) as Subparagraph B(6)(a), and added Subparagraph B(6)(b), in Paragraph B(7), deleted Subparagraph (b) and redesignated former Subparagraphs (c) through (e) as Subparagraphs B(7)(b) through B(7)(d), respectively, in Subparagraph B(7)(b), changed "(6)" to "(5)", deleted Paragraph B(9) and redesignated former Paragraphs B(10) through B(13) as Paragraphs B(8) through B(11), respectively, in Paragraph B(8), changed "(7)" to "(6)", and after "subsection", deleted "after any reduction pursuant to Paragraph (9) of this subsection", in Paragraph B(11), Subparagraph B(11)(e), changed "(7), (9), (10) or (11)" to "(6), (8) or (9)"; in Subsection C, after "suitability of facilities", added "the need for career-technical education facilities or classrooms"; and deleted former Subsection K and added new Subsections K and L.
Temporary provisions.
— Laws 2023, ch. 98, § 8 provided that all current outstanding offsets held against school districts or charter schools for a direct legislative appropriation shall be eliminated on July 1, 2023, the effective date of Laws 2023, ch. 98.
The 2021 amendment,
effective July 1, 2021, changed the phase two formula value calculation when determining the local and state match for capital outlay projects, and defined the term "unrestricted revenue used for capital expenditures" as used in this section; in Subsection B, added new Subparagraph B(6)(b) and redesignated former Subparagraphs B(6)(b) through B(6)(f) as Subparagraphs B(6)(c) through B(6)(g), respectively, in Subparagraph B(6)(d), added "in fiscal year 2022 through 2024", after the second occurrence of "Subparagraph", changed "(b)" to "(c)", and after "each school district", added the remainder of the subparagraph, in Subparagraph B(6)(e), B(6)(f), B(6)(g), after "Subparagraph", changed "(c)" to "(d)"; and added Subsection K.
The 2019 amendment,
effective July 1, 2019, provided that the public school capital outlay council may award school security system project grants to school districts, and clarified the calculation of state and local shares of projects funded from the public school capital outlay fund; in Subsection B, Paragraph B(2), added new Subparagraph B(2)(d) and redesignated former Subparagraph B(2)(d) as Subparagraph B(2)(e), in Paragraph B(5), after "formula", added "value", in Subparagraph B(5)(p), deleted "except as provided in Section 22-24-5.7 NMSA 1978 and except as adjusted pursuant to Paragraph (6), (10), (11) or (12) of this subsection, the amount to be distributed from the fund for an approved project shall equal the total project cost multiplied by" and added "the phase one formula value shall equal", and after each occurrence of "value", deleted "calculated", in Subparagraph B(5)(q), deleted subparagraph designation "1)", after "district on the", deleted "eightieth and one hundred twentieth days" and added "second and third reporting dates", and deleted Subparagraphs B(5)(q)2) and B(5)(q)3), deleted former Paragraph B(6) and redesignated former Paragraph B(7) as Paragraph B(6), in Paragraph B(6), in the introductory clause, after "formula", added "value", deleted paragraph designation "(8)" and deleted "except as provided in Paragraph (6), (10), (11) or (12) of this subsection", added new paragraph designations "(7)" and "(8)", in Paragraph B(7), rewrote this paragraph to the extent that a detailed comparison is impracticable, in Paragraph B(8), added new Subparagraphs B(8)(b) and B(8)(c), new subparagraph designation "(d)" and new Subparagraph B(8)(e), added new Paragraph B(9), in Paragraph B(10), after "pursuant to", deleted "Subparagraph (p) of", after the next occurrence of "Paragraph", deleted "(5)" and added "(7)", and after the next occurrence of "Paragraph", deleted "(6)" and added "(9)", in Subparagraph B(11)(b), after "students on the", deleted "eightieth and one hundred twentieth days" and added "second and third reporting dates", in Subparagraph B(13)(e), after "Paragraph", deleted "(5), (6), (7), (9)", and after "from the fund;" deleted "provided that school district funds used for a project that was initiated after September 1, 2002 when the statewide adequacy standards were adopted, but before September 1, 2004 when the standards were first used as the basis for determining the state and school district share of a project, may be applied to the school district portion required for that property".
The 2018 amendment,
effective May 16, 2018, changed the capital outlay funding formula for determination of state-local matches, and made stylistic and conforming changes; in Subsection B, Subparagraph B(2)(b), after "identified in Section", deleted "3 of this 2015 act" and added "22-24-4.6 NMSA 1978", in Paragraph B(5), in the introductory clause, deleted "except as provided in Paragraph (6), (8), (9) or (10) of this subsection, the state share of a project approved and ranked by the council shall be funded within available resources pursuant to the provisions of this paragraph", and after "calendar year", deleted "a value" and added "the phase one formula"; in Subparagraph B(5)(p), after "Paragraph (6)", deleted "(8), (9) or" and after "(10)", added "(11) or (12)"; added new Paragraphs B(7) and B(8) and redesignated former Paragraphs B(7) through B(11) as Paragraphs B(9) through B(13), respectively; in Subparagraph B(13)(e), after "Paragraph (5), (6)", deleted "(8) or (9)" and added "(10) or (11)"; and in Subsection I, after "recommendation of the", deleted "public school facilities".
The 2015 amendment,
effective July 1, 2015, authorized the public school capital outlay council to award grants to school districts for the purpose of repairing, renovating or replacing public school building systems; added Subsection B, Paragraph (2)(b) and redesignated the succeeding subparagraphs accordingly; and in Subsection B, Paragraph (6)(a), after "public education department that the", added "school".
The 2014 amendment,
effective March 6, 2014, permitted the public school outlay council to adjust the amount of the local share if it determines that a school district has made a good-faith effort to use all of its local resources; in Subsection B, Paragraph (6), Subparagraph (a), after "2) the total shall exclude any", deleted "educational" and added "education"; in Subsection B, Paragraph (9), in the introductory sentence, after "school district has", deleted "used" and added "made a good-faith effort to use"; and in Subsection C, in the second sentence, after "and the need for", deleted "technological" and added "education technology".
The 2012 amendment,
effective May 16, 2012, made the school for the blind and visually impaired and the school for the deaf, including facilities that are necessary for their educational missions, eligible for public school capital outlay funding; permitted the council to waive local matching if the schools have insufficient or no local resources available; and in Subsection B, in Paragraph (2), added Subparagraph (b); in Paragraph (5), in the first sentence, after the paragraph number "(9)", added "or (10)"; in Paragraph (5), in Subparagraph (p), after the paragraph number "(9)", added "or (10)"; in Paragraph (6), deleted former Subparagraph (b), which required that the amount to be distributed for a project be reduced by the amount of federal money received by the school district for nonoperating purposes; in Paragraph (6), deleted former Subparagraph (c), which required that the amount to be distributed for a project be reduced by the amount of state appropriations to the school district for nonoperating purposes; and added Paragraph (10).
Laws 2010, ch. 104, § 2,
effective March 9, 2010, would have amended 22-24-5 NMSA 1978 as follows: in Subsection B(5), after "Paragraph (6), (8), (9)", added "or (11)"; in Subsection B(5)(p), after "Paragraph (6), (8), (9)", added "or (11)"; and added Subsection B(11), including Subparagraphs (a) and (b). These changes were line-item vetoed by the governor.
The 2009 amendment,
effective April 8, 2009, in Paragraph (5) of Subsection B, added the reference to Paragraph (11); in Subparagraph (p) of Paragraph (5) of Subsection B, added the reference to Paragraph (11); added Subparagraphs (b) and (c) of Paragraph (6) of Subsection B; added Paragraph (11) of Subsection B; in Paragraph (1) of Subsection D, after "awarded unless the council", deleted "finds that, prior to the purchase of" and added "determines that, at the time of exercising the option to purchase"; and in Subsection F, after "prohibits a school district from using" changed "local funds to exceed" to "other funds available to the district to exceed".
The 2008 amendment,
effective May 14, 2008, added the reference to Paragraph (9) of Subsection B in Paragraph (5), Subparagraph (p) of Paragraph (5) and Subparagraph (e) of Paragraph (10) of Subsection B; added item 5) of Subparagraph (a) of Paragraph (6) of Subsection B; and added Subparagraph (a) of Paragraph (7) and Paragraph (8) of Subsection B.
The 2007 amendment,
effective July 1, 2007, amended Subsection B to: add Subparagraph (c) of Paragraph (3); add item (3) of Subparagraph (q) of Paragraph (5) of Subsection B to define "value calculated for the subject school district"; and add items (2) through (5) of Subparagraph (a) of Paragraph (6); and, added new Subsections D and E.
The 2006 amendment,
effective March 6, 2006, deleted the provision in Subsection A that provided an order of priority and funding of projects in the two years beginning July 1, 2004; in Subsection B, deleted the reference to Subsection A of this section; in Subparagraph (p) of Paragraph (5) of Subsection B, added the exception in Section 22-24-5.7 NMSA 1978 and deleted the provision that provided for a formula to determine the distribution for calendar year 2005; and in Subparagraph (b) of Paragraph (7) of Subsection B, deleted "fortieth" before "eightieth".
The 2005 amendment,
effective April 6, 2005, changed "three years" to "two years" and changed "projects" to "specific projects" in Subsection A; provided in Subsection A that the order of projects that were partially funded shall exclude any expansion of the scope of the projects; changed the statutory reference in Subsection B and revised the funding priorities in Subsection B.
The 2004 amendment,
effective May 19, 2004, replaced Subsections A and B with new Subsection A; designated former Subsection C as the last sentence of new Subsection A and added new language prior to Paragraph (1) of former Subsection C, now Subsection B; redesignated former Subsection D as Subsection C; redesignated former Subsections E through I as Subsections D through H; amended Subsection G to add the requirement of recommendation of the authority at the beginning of the subsection; and in Subsection H, changed "state board" to "public education commission" and deleted "each member of" preceding "the legislature".
The 2003 amendment,
effective April 4, 2003, inserted Paragraph B(2) and redesignated former Paragraph B(2) as B(3); rewrote Paragraph C(5); inserted present Paragraphs C(6) and C(7), and redesignated the remaining paragraphs accordingly; substituted "that has been approved by the council pursuant to Section 22-24-5.3 NMSA 1978 and that is followed by" for "to which the school adheres for" in Subparagraph C(9)(d); substituted "(6) or (8) of this subsection" for "established by law" in Subparagraph C(9)(e); and in Subsection D, deleted "no later than September 1, 2002"; inserted "and regularly review and update" preceding "statewide adequacy standards" in the first sentence and substituted "December 15" for "December 1" in Subsection I.
The 2001 amendment,
effective April 5, 2001, rewrote the section.
The 2000 amendment,
effective April 12, 2000, inserted "school" at the beginning of Subsection A(4) and in the second sentence of Subsection B; in Subsection A(6), added "unless a determination and certification have been made pursuant to Subsection D of this section" to the preliminary language, designated the exisitng provisions of the subsection as Subparagraph (a) and added Subparagraph (b); in Subsection B, added Subsection B(1) and designated part of former Subsection B as Paragraph (2); and added Subsections D and E.
The 1994 amendment,
effective May 18, 1994, deleted "all" preceding "available resources" in Paragraph A(2) and added Paragraphs A(6) and A(7), making related stylistic changes.