A legislative education committee heard on-site presentations and panel remarks about charter school governance, the statutory 2% administrative withholding, and possible changes to the memorandum of understanding between the Public Education Commission (PEC) and the Public Education Department (PED).

LEDE: Mark Montoya, senior policy analyst with the Legislative Education Study Committee, told the committee the briefing aimed to “offer some context that might inform future discussions about charter schools,” describing how authorizers operate, how state charter finance works and what the PEC and PED say they need to oversee state charters effectively.

NUT GRAF: The hearing focused on tension between the PEC — which “consists of 10 independently elected commissioners” — and PED over roles, budgeting and audit responsibility. PEC commissioners and charter authorizers said they want clearer budgeting transparency for the 2% withheld from state-equalization distributions, more control over staffing related to authorizing and the ability for state charter schools to negotiate independent audits. PED and its Charter Schools Division (CSD) described services funded by the 2% and said some unspent funds have reverted to the general fund while the agency works to reduce reversions.

Most important facts: LESC staff presented historical and operational background and results from eight site visits to state and locally authorized charters. Mark Montoya said New Mexico had 99 charter schools in 2024-25 that served about 30,300 students; during that year the 2% withholding totaled about $8.9 million (Montoya gave a breakdown of roughly $5.9 million withheld from state charter SEG distributions and $2.9 million withheld by local authorizers). Montoya and PEC representatives said PEC has proposed changes to the MOU with PED in three areas: (1) budgeting and transparency for withheld funds, (2) greater authority in certain staffing decisions related to authorizing, and (3) designation of state charter schools as primary government entities for audits so schools could negotiate and hire auditors independently of PED.

PEC Chair Becca Burtt told the committee the commission’s performance framework “respects each school's unique mission” and said PEC uses the 2% to staff authorizing work and to support school oversight. Albuquerque Public Schools’ authorizer representative, Joseph Escovedo, said local authorizers vary in practice but that APS enrolls about 8,900 students across its charter portfolio and treats authorizing as a “portfolio” responsibility, including differentiated engagement for priority and distinction schools.

PED Deputy Secretary Amanda DeBell and the newly confirmed CSD director, Bridget Russell, described how the department manages the portion of the charter 2% that funds agency-wide work and what the CSD provides directly. Russell said the CSD has 17.5 authorized FTE and that, as of the briefing, about 14.5 staff were on board with several vacancies. She outlined services the CSD uses 2% funds for, including annual PEC meeting support, oversight site visits (CSD visits every state charter school annually), governing-board trainings and a recently piloted data repository (Epicenter) and a school improvement grant program that disbursed small awards to state charters in FY25.

Panel discussion emphasized variation in authorizing and oversight. Montoya reported site-visit findings that state-chartered schools function as independent local education agencies (LEAs), often contracting for operational services and receiving less day-to-day operational support from PEC than locally authorized schools receive from their districts. Several speakers urged clearer accounting for withheld funds and for the legislature to consider whether a flat 2% is appropriate across all charters.

Quotes: “The PEC consists of 10 independently elected commissioners each representing distinct geographic districts across New Mexico,” PEC Chair Becca Burtt said in describing the commission’s role. Mark Montoya said, “A charter school authorizer is an entity legally responsible for approving, overseeing, and holding charter schools accountable.” Bridget Russell said, “state charter schools ... are their own LEAs,” explaining why audits and capital financing present special challenges for state charters.

Ending: Committee members asked follow-up questions but took no formal action. LESC staff and PED agreed to follow up on data and the agency indicated it would provide detailed reporting on reversions and on how the CSD budgets and spends the portion of the 2%. The briefing provided material LESC staff said could inform future legislation, including proposals on reporting requirements for withheld funds, expanded training for local authorizers, and possible statutory adjustments to authorizer roles and audit responsibilities.