Rio Rancho schools budget includes salary increases, RioTECH funding

RIO RANCHO — Officials with Rio Rancho Public Schools are breathing a sigh of relief as they won’t have to make cuts to next year’s budget and can instead enjoy an $11 million funding increase, thanks in part to a state bill signed into law earlier this year that changes the funding formula for public schools.

The $253.3 million operating budget was submitted May 13 by the district to the New Mexico Department of Education following the RRPS Board of Education’s approval May 12.

“I’m relieved,” said Mike Baker, chief operations officer for RRPS, noting a significant funding cut impacting this school year’s budget that has since been restored.

The district’s budget is up $11.7 million from last year, Baker said. Most of that increase stems from the state equalization guarantee, which creates a funding formula for public schools. Changes to the formula came under House Bill 63, which was supported by RRPS Superintendent Sue Cleveland and the five-member school board during the 2025 general legislative session.

“We’re thankful for our legislative delegation and (RRPS officials) who pushed for that bill to be approved — and it was,” Baker said. “If it was not, we would have seen some pretty significant cuts this year.”

SEG funding accounts for $230.3 million of the district’s budget, according to a draft provided to school board members. That funding goes toward the majority of RRPS operations, Baker said.

Of the $196 million allotted in salary and benefit costs, $6.8 million will go toward a 4% increase in mandatory budget additions established by the Legislature in House Bill 2, according to the draft budget.

But there will also be a 9.5% and 4% increase in medical and dental premiums, respectively — something Baker noted may be hard on employees but is necessary at this time due to the rising cost of health care.

A marquee item in next school year’s budget includes a $3 million one-time legislative appropriation for RioTECH, the district’s career-technical education school in partnership with Central New Mexico Community College that is set to open in August.

If the appropriation had not come through, Baker said the district would have to reduce the budget at all the schools in order to pay for RioTECH.

Baker said the legislative funding for RioTECH is the most significant budget appropriation impacting students next year.

“All the other funding, essentially, preserves current programming,” Baker said.

He is not worried the impacts of tariffs or a potential recession since most of the district’s funding comes from state government, not federal. Baker’s chief ongoing concern is the post-pandemic impacts on education, including student absenteeism.

“Whatever the case may be, we will find a way to provide programs and education to our students,” Baker said.

During the board meeting, Cleveland praised Baker and his team “trying to do the very best we can with what we have and using the money wisely.”

Once submitted by RRPS, PED can approve or deny the district’s budget, Baker said. The school board can make amendments, but that may also require PED approval, he said.