Legislation recoups money
for NMPED budget
By Molly Ann Howell
Managing Editor
Gallup-McKinley County Schools has denied responsibility for a budget gap within the New Mexico Public Education Department as lawmakers advance Senate Bill 19 to reassess school funding for fiscal year 2026. Gov. Michelle Lujan Grisham signed the bill into law Jan. 31, putting it into effect immediately.
The bill orders NMPED to consult with the state Department of Finance and Administration, the Legislative Finance Committee and the Legislative Education Study Committee to revisit allocations made under the current fiscal year’s budget.
It provides NMPED and the Legislature more time “to consider potential statutory changes to address” this issue during the 2026 session, according to a Legislative Education Study Committee analysis of the bill.
Lawmakers became aware of the PED’s shortfalls when Secretary Mariana Padilla informed them of a $35 million shortfall in her agency’s budget in December. Padilla and lawmakers claim the shortfall traces back to May, when GMCS ended its contract with Stride K12, a virtual learning provider.
When the school district canceled their contract, 3,000 students were left without virtual learning options. Two other districts, Santa Rosa Consolidated Schools and the Chama Valley Schools District took on those students and entered into contracts with Stride K12 for the 2025-2026 school year.
However, since school districts receive funding based on the prior year’s enrollment numbers, GMCS continued to use funds for the services provided during the previous school year.
Sen. George Muñoz, D-Gallup, co-sponsored SB 19. He voiced his displeasure with GMCS on the Senate floor during the Jan. 28 vote on the bill.
“This was caused by one school district. I was so pissed off,” he said. “They should have returned the money.”
In a Dec. 13 press release, GMCS called lawmakers’ assertions “misguided and inconsistent with state law.” Legislators had suggested that funding received by the district for the 2024-25 school year should have been redirected to Santa Rosa or Chama Valley for the 2025-26 school year.
GMCS administration officials said it was unclear why PED did not brief legislators on virtual learning programs and potential funding implications before the December meeting. They also questioned why the agency failed to clarify how the public school funding formula operates.
In all, the district blamed the state’s accounting timeline for the budget issues.
Historically, PED has sought additional legislative appropriations to address funding shortfalls, including $19.9 million in House Bill 2 in 2024 and $11.1 million in 2025. As discussed during the December meeting, the agency is now seeking approximately $20 million for enrollment growth at Santa Rosa and Chama Valley, along with $14 million for K-12 Plus funding.
“Recent references to a $35 million statewide funding ‘shortfall’ reflect the timing of Education Department funding calculations and adjustments, not any action taken by Gallup-McKinley,” the district said.
The statement added that inaccurate claims about online programs have led to “unfounded allegations” that have caused unnecessary public concern.
Regardless of blame or legislative opposition, the district says they support the bill.
In showing his support for SB 19, McKinley County Federation of United School Employees President Sawyer Masonjones said he’s looking forward to seeing the corrections the bill would make.
“My hope is that this is done carefully with regard to all districts involved as to do what is best for the students,” he said.
