Board hears budget overview: enrollment decline, formula changes and recurring-cost concerns top the agenda

The Santa Fe Public Schools Board of Education heard a detailed budget overview and priorities presentation on April 24 from Superintendent (Dr.) Garcia and interim Chief Financial Officer Beverly Aguilar that outlined enrollment-driven revenue loss, recent state funding formula changes and requests for site- and department-level staffing.

Garcia and Aguilar said the district'level enrollment used for funding changed from 10,709 (FY24) to 10,199 (FY25), creating an estimated revenue impact of roughly $2.7 million to $2.79 million for the coming year if funding formula changes do not fully offset the drop. Aguilar said the district's State Equalization Guarantee (SEG) unit value increased to $6,801.35 (an increase of about $247.60) and described multiple adjustments to the state funding formula.

Key formula and funding changes cited by presenters included: - An English language learner (ELL) "stand-alone" program multiplier (a 0.30 weight) that, according to the district SCG tool used in the presentation, produced an estimated ELL funding increase of $6,241,000 and a total projected SEG impact of $7,772,000. - Cost-differential factor increases for certain grade bands (example figures shown during the presentation). - Changes to the at-risk index: the analyst replaced a previous 3-year average that included mobility and EL counts with a 3-year family income index and increased that multiplier from 0.33 to 0.40.

Projected expense pressures and district requests included: - A 4% salary increase for all public school personnel, estimated in the presentation at about $3,345,000. - Estimated increases to meet new minimums for teacher tiers and salary floor adjustments (presenters cited an estimated $924,000 to align tier minimums). - A N.M. insurance risk premium increase (NIMCA) noted by presenters as a 19.0149% change, producing roughly $1,000,000 of additional cost in the presenter's summary and higher total insurance and benefit pressures shown elsewhere in the presentation. - ESSER-funded positions and expenses previously treated as nonrecurring were shown in the operational base; presenters said that represented about $3,700,000 of recurring-seeming expenditures that the board must consider whether to keep or reduce.

District staffing requests and site priorities presented to the board included requests for additional site FTEs tied to enrollment and statutory class-size requirements, a request for school nurses aligned to teacher tiers (with nurse adjustments occurring at the 40-day count), and a package of counseling, arts and other positions aligned with board priorities. Superintendent Garcia said she planned to return with three budget scenarios ("draconian, midway, and keep it where it's at") that would show tradeoffs and recommended next steps.

Substitute coverage and staffing cost discussion: presenters said the district's overall substitute budget target is $2,000,000 after adjustments made earlier in the year; the presentation included a $100,000 incremental funding element intended to improve an estimated sub fill rate. Board members and staff discussed the possibility of bringing substitute services in-house versus continuing with agencies, volunteers and long-term substitutes at large high schools. Garcia cautioned the board that budget spreadsheets showed one $100,000 sub-related line item twice and that administrative staff would recheck figures.

Why it matters: The presentation lays out the revenue and expenditure pressures the district must balance before a final budget adoption date in May. Presenters emphasized enrollment-driven revenue risk, one-time ESSER carryovers that have become operational expenses, and statutory requirements that influence staffing.

Next steps: Superintendent Garcia said she would rework requests with department heads and return to the board with refined scenarios and recommendations before the board'scheduled budget adoption date (the board discussed aiming for May 8 with a fallback study session on May 15 if needed).