RRPS gets funding increase of over $3 million

Legislative Finance Committee staff reported Wednesday that New Mexico school districts and charter schools will get $71 million more next school year as a result of a legislative-executive collaborative effort to increase the amount distributed to schools through the public school funding formula.

The Public Education Department is increasing the amount paid per funding “unit” — a figure that starts at one for each student and grows based on the needs of the student and the specifics of the student’s school district or charter school — from $6,442.55 to $6,553.75.

PED sets the unit value by dividing the total amount appropriated for funding formula distribution — the state equalization guarantee — by an estimate of the number of units statewide. Each district or charter school then receives an amount based on their total units multiplied by the unit value.

“PED generally takes a cautious approach to setting the unit value and increases it halfway through the year when it has a clearer picture of enrollment. This year, the department was more cautious than ever because the plan to require at least 180 school days a year is in limbo,” state Sen. George Muñoz, committee chair, said. “But schools need that money now. PED’s conservative unit value left many school districts scrambling to cover base costs, let alone the pay raises and other initiatives included as part of the state budget.”

In Sandoval County, these districts and charter schools will receive the following increases:

• Bernalillo, $570,696

• Cuba, $233,807

• Explore Academy - Rio Rancho, $56,405

• Rio Rancho, $3,823,300

• Sandoval Academy of Bilingual Education, $51,055

• The ASK Academy, $113,452

“The funding increase of $3 million will help the district, but it is important to clarify that Rio Rancho Public Schools, along with several other districts across the state, is attempting to navigate a significant budget shortfall going into the 2024-2025 school year,” RRPS Communications Director Wyndham Kemsley said. “Initially we were anticipating a deficit of over $24 million. RRPS is working with the PED, and our legislators, to resolve this issue. This increase will soften the blow, but we are still facing an overwhelming budgetary deficiency moving into the next school year.”

State Rep. Nathan Small, vice chair, said the increase in the unit value will enhance the impact of the state’s investment in education.

“Over the last several years, state lawmakers have used our record revenues to make significant investments in education, not only because it is what our children deserve, but also because it is key to building a brighter future for our state. I am grateful to the Legislative Finance Committee, Public Education Department, Legislative Education Study Committee, Department of Finance and Administration, and governor’s office for working together to increase rates so our investments can have greater impact on students, schools and teachers across New Mexico.”

PED’s decision to increase the unit value came after the deadline for districts and charter schools to submit their budgets to the department for approval. Local school agencies will need to submit a budget adjustment request to access the funds.

LFC, DFA, PED,and LESC discussions with the Public Schools Insurance Authority, which provides risk and health insurance for all schools except those in the Albuquerque district, will also mean school districts and charter schools will save an estimated $26 million on insurance. Health insurance rates were scheduled to increase by 15% and risk insurance rates by 32%. The authority has agreed to reduce health care rates to 10% and risk rates to 15% and spread the increases out over several years. Employees in the health plan will also see some savings as a result of the reduced rates.