District responds to $1.2M Title 1 budget error from PED

The Las Cruces Public Schools Finance Committee convened on June 16, 2025, to address significant budgetary adjustments related to Title 1 funding. The meeting focused on the implications of a recent recalibration of funding amounts by the New Mexico Public Education Department (PED), which resulted in a $1.2 million reduction in the district's budget.

The discussion began with a report from a committee member who explained that an initial award letter from PED had indicated a total of over $13 million in Title 1 funding. However, after further review, PED acknowledged that the correct amount was approximately $11 million. This discrepancy necessitated a budget adjustment, as the district had to reduce its available funds by $1.2 million. The committee member emphasized that this reduction did not equate to a loss of already allocated funds, as Title 1 operates on a reimbursement basis.

Concerns were raised regarding the timing of PED's error, which took nearly a year to rectify. The committee expressed frustration over the lack of accurate guidance from PED, which had previously assured the district of the higher funding amount. Despite these challenges, the finance team, led by Mr. Lou, is collaborating to ensure that the district can manage its Title 1 budget effectively moving forward.

Another committee member highlighted the hardship caused by the inaccurate funding information and noted that a request to hold the district harmless from the financial impact was denied by PED. The committee agreed on the importance of being cautious with future budget projections and not relying solely on PED's guidance.

In response to inquiries about potential service reductions due to the budget cuts, the superintendent reassured the committee that adjustments would be made to maintain services. The district plans to avoid adding more full-time employees to the Title 1 budget and will explore contracted services to continue supporting students effectively.

The meeting concluded with a consensus on the need for vigilance in budget management and a commitment to ensuring that students receive the necessary support despite the financial adjustments. The committee will continue to monitor the situation closely as they prepare for the upcoming fiscal year.