The Gadsden Independent Schools Board held a work session on May 17, 2025, focusing on the critical issue of declining student enrollment and its impact on the district's funding. The meeting highlighted that the average enrollment has decreased by 286 students annually over the past five years, equating to the size of one elementary school. This decline directly affects the district's main revenue source, the State Equalization Guarantee (SEG), which is based on student enrollment counts.

During the session, officials presented a visual representation of a ten-year average of student memberships, illustrating the downward trend. The current average membership stands at 11,251 students, a figure that will be used for the upcoming budget. The SEG formula was explained, detailing how funding is calculated based on last year's enrollment, with adjustments for various factors such as grade levels and special education needs.

The initial unit value for funding, set at $6,008.00, was also discussed. This value is determined by the legislature and can fluctuate, impacting the district's financial resources. Over 50% of the program costs are generated through basic education units, emphasizing the importance of maintaining student enrollment to secure adequate funding.

The meeting concluded with a reminder of New Mexico's requirement for a balanced budget, underscoring the urgency for the district to address enrollment challenges to ensure financial stability moving forward.