A. The teacher cost index for each school district or charter school shall be calculated in accordance with instructions issued by the department. The teacher cost index for a school district in its first year of operations is 1.0. The teacher cost index for a school district or charter school in its second or subsequent year of operations is the greater of 1.0 or the average of the licensure-experience factors of all full-time- equivalent teachers on the school district’s or charter school’s payroll in October of that year who are assigned classroom teaching responsibilities. The licensure-experience factor of a teacher corresponds to the teacher’s licensure level and years of experience and is as follows:

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Licensure Level                                                     Years of Experience 0 to 2             3 to 5             6 to 8             9 to 15            Over 15 1                     0.755             0.785             0.800 2                                            0.994             1.023             1.050             1.123 3                                                                    1.184             1.208             1.277.

B. Beginning in 2021, the department, legislative education study committee staff and legislative finance committee staff shall jointly prepare and submit a report by November 1 of each year to the governor, the legislative education study committee and the legislative finance committee that includes:

costs;

(1)     data on the relationship of licensure-experience factors to actual teacher (2)     an analysis of the relationships among a teacher’s licensure level, educational attainment, years of experience and salary; and

(3)     recommended changes, if any, to this section of the Public School Finance Act.

C. As used in this section:

(1)     “licensure level” is the teaching licensure level as defined in the School Personnel Act [N.M. Stat. Ann. Chapter 22, Article 10A]; and

(2)     “years of experience” is as defined by department rule.