The Santa Fe Public Schools Board of Education voted May 8 to adopt the district's FY2025-26 operating budget, a plan the administration said would fund a 4% salary increase for educational employees, expand site-based staffing for new K-2 statutory requirements and continue summer learning programs while drawing about $2,168,000 from district cash reserves.

The budget covers the district's total operating needs, capital and debt service and was presented by Interim Superintendent Dr. Garcia and Deputy CFO Beverly Aguilar. Dr. Garcia told the board the district expects a net increase in state equalization guarantee (SEG) funding but that the increase was not sufficient to cover all cost pressures, notably insurance premium increases, wage tier gaps and a jump in workers' compensation premiums.

The board's adoption follows weeks of internal review and a May 8 public presentation. The district's finance team told the board the operational portion of the budget would use a $2.17 million draw from reserves to fund site-based adjustments and department-level requests; that draw would reduce the projected cash balance to about $6.5 million, or roughly 3.9% of expenditures, the administration said.

Dr. Garcia said the adopted plan front-loads funding for personnel who work directly with students. "This is the place where you get to make the most decisions around the budget," she said during the presentation, urging the board to consider the operational package that included substitute pay, summer learning and site-based requests. Deputy CFO Beverly Aguilar walked the board through line-item details and the district's revenue assumptions, including membership changes, the unit value and targeted program increases.

Key elements of the FY2025-26 plan presented to and approved by the board include:
- A 4% increase for educational employees (the district said the impact of the raise is roughly $3.3 million).
- Funding to close salary "tier" minimum gaps estimated at about $924,000.
- An increase in employer insurance and risk costs (NMSIA premiums) the administration estimated at about $1.1 million.
- An estimated net increase in SEG of roughly $7.8 million driven largely by English-learner funding and other formula changes; the administration said new SEG funds left a net, usable operational increase of about $1.3 million after formula allocations.
- Site-based staffing adjustments and new state-required K-2 positions the administration estimated at about $1.4 million, including five new teacher FTEs for statutory K-2 requirements.
- An estimated $400,000 increase to cover substitute pay shortfalls and an additional $280,000 budgeted for summer learning in July 2025 (administration said further local grants could offset parts of that figure).
- Department-level adjustments totaling roughly $1.09 million for items including Title IX investigation capacity, transportation and targeted program support.

Board members asked for clarity about which items are recurring versus one-time and how the district will respond if state or federal revenues change after adoption; Dr. Garcia and Aguilar said the budget will be loaded into the Public Education Department's OBMS system and that routine budget-adjustment requests (BARs) will be used throughout the year if revenues or program needs change.

Vice President Noble and several board members said they supported using a portion of reserves this year to staff sites and cover immediate operational shortfalls rather than postpone hires or cuts. "We have made a lot of progress in building back our cash balance," Noble said, noting the board had weighed the risk of potential state cash sweeps. Other board members said staffing increases were appropriately prioritized toward instruction and student-facing services.

The board approved the operating budget by voice vote; the motion was moved during the meeting and carried with all present voting in favor. The administration will finalize budget entries with the state. The board also set May 19 as its next meeting so the district can complete bond-sale and year-end scheduling work.

The fiscal plan adopted on May 8 will be the basis for the district's work in the coming school year and is subject to standard in-year BARs and updates if revenues or program needs change.