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Panel endorses overhaul of at-risk school funding, replaces index with family income measure
Summary
The committee recommended House Bill 63 as amended, which replaces parts of the current at-risk funding mechanism with the Family Income Index and creates a standalone English-learner factor; the committee added a one-year hold-harmless provision and an amendment aligning the bill with the budget bill.
The House Appropriations & Finance Committee voted to give House Bill 63 a favorable recommendation after adopting an amendment that aligns statutory language to changes in the funding package in House Bill 2. HB 63 would replace the historic at-risk indicators with the Family Income Index as the mechanism to generate additional programmatic funds and would create a separate factor for English learners.
Sponsor testimony and Public Education Department staff said the Family Income Index — piloted previously — provides a more precise, school-level picture of students who live below the poverty line and therefore better targets state support. The bill also increases the sixth-grade unit value to better align funding in middle grades with secondary schools.
Why it matters: Multiple school-system voices — district leaders, charter-school representatives and advocacy organizations — supported the policy change as a stronger way to align funding to student needs. Several charter-school witnesses warned the change could reduce funding for some schools and urged a longer hold-harmless period than the one year the committee included. Witnesses said reductions could force cuts to interventionists, counselors and other student supports.
Public comment: Representatives of Gallup-McKinley County Schools, the New Mexico School Board Association, Public Charter Schools of New Mexico, New Mexico Kids Can and several charter school leaders and parents testified. Many supported the shift but urged a multi-year hold harmless and additional conversations about operational impacts.
Vote and next steps: Representative Garrett moved for a due pass as amended; the committee recorded the motion and advanced HB 63 with the adopted amendments. Committee members and witnesses discussed creating a longer phase-in or additional hold-harmless protections during the interim and coordinating LFC/LESC work to monitor effects.
