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Changes to school funding helped some districts but enrollment losses offset gains for others

July 23, 2025 | Legislative Education Study, Interim, Committees, Legislative, New Mexico


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Changes to school funding helped some districts but enrollment losses offset gains for others
At the Las Vegas meeting of the Legislative Education Study Committee, superintendents described uneven fiscal effects following this year's adjustments to the State Equalization Guarantee (SEG). Speakers said the changes increased unit values for certain factors but did not change the enrollment calculation that drives most local budgets.

Why it matters: changes to the SEG can shift staffing capacity for student supports such as social workers, psychologists and CTE programs. District leaders said enrollment trends and demographic shifts remain decisive for budgets.

Melissa Sandoval, superintendent of Las Vegas City Schools, said her district experienced continuing enrollment declines and had to cut more than $1 million, protect classroom positions when possible and consolidate roles: "I did have to cut a little over $1,000,000 in funding. ... where it would have a positive impact, I have had to make budgetary decisions to reduce our staff size, and have larger class sizes." West Las Vegas Superintendent Chris Gutierrez said his district's enrollment and budget had grown, enabling investments in social workers and psychologists to support student mental health. Santa Rosa Superintendent Martin Madrid said his district's budget increased even after losing students and that the change helped sustain ancillary staff such as social workers and a psychologist.

Panelists asked the committee to note that SEG adjustments affect districts differently depending on enrollment trends and district size. Several superintendents described the difficulty of making multi-year programmatic commitments when funding tied to enrollment can change year to year.

No formal vote occurred. Superintendents said they will continue to monitor enrollment and align staffing to sustain student supports where possible.

The committee staff noted the SEG contains more than 20 discrete factors; the recent changes touched three of those factors but do not alter enrollment calculations that govern most base funding.

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