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Gallup-McKinley Board approves FY2025–26 operating budget amid federal funding uncertainty
Summary
The Gallup-McKinley County Schools board approved the district—s fiscal year 2025—26 operating budget after a presentation by deputy superintendent Joanna Hanks that highlighted flat federal funding, a state-mandated 4% raise the legislature did not fully fund, and rising insurance and transportation costs.
Gallup — The Gallup-McKinley County Schools Board of Education on a roll-call vote approved the district—s operating budget for fiscal year 2025—26 after a detailed presentation from Deputy Superintendent Joanna Hanks on state and federal funding pressures.
Hanks told the board the state is "heavily federally dependent," noting that "for about every dollar we send in taxes, we receive in grants and awards about $3.21," and warned that federal budget uncertainty could reduce grants the district relies on. Her presentation said the legislature mandated a 4% pay increase for staff but did not supply full funding, and that medical premiums are projected to rise about 10% while liability insurance statewide could increase roughly 16%, costing the district about $7.8 million.
The nut graf: The budget approval locks in pay increases and day-to-day operations while the district braces for possible decreases or flat funding in federal programs including Impact Aid, Title I and special education, which Hanks and other staff said could force the state or districts to backfill grants if federal dollars are cut.
Board members heard a line-by-line review of revenues and expenditures, federal grant outlooks and local priorities. Hanks said the district will keep a focus on direct classroom instruction, student supports such as counseling and credit recovery, and maintenance and construction projects already under contract. She also reported that the district had increased participation in career and technical national competitions (41 students this year vs. 11 last year) and ran more than 300 paid student internships.
Board discussion touched on staffing and negotiations: Superintendent Mike Hyatt summarized that the board previously moved to a 90/10 premium split (district pays 90% of employee health premiums) and said staff had expressed thanks. Hanks and Hyatt reiterated that while the board is proposing the 4% raise required by statute, the unions are seeking larger increases; Hanks said only a few districts statewide are providing more than the mandated 4% because most did not receive additional funding from the legislature.
Hanks laid out construction and capital items the budget supports, including completion timelines for Red Rock and Tallahatchie projects, teacher housing awards, and ongoing repairs (roofs, fire panels, drainage). She warned that delays raise project costs and that some awards and federal grant letters were still pending from the New Mexico Public Education Department.
The board voted to approve the FY2025—26 operating budget in a roll-call vote. The motion carried with the members present recorded as voting yes.
Votes at a glance: The meeting included several additional formal approvals: consent agenda items (fleet and routine contracts), execution authority for Public School Facilities Authority documents, several board-travel authorizations, and two permanent cash transfers (one to cover revenue bond debt service and a $3,606 transfer to the Universal Free School Fund). All were approved in separate motions by recorded roll call.
