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Taos district outlines charter oversight and flags inconsistent PED fund flows, fronting procedures

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Summary

District staff told the Taos Municipal Schools Board on Feb. 5 that the district authorizes and oversees its charters under state law, routinely fronts cash for charter reimbursements and is pushing PED for clearer, consistent guidance on which grants flow through the district and what administrative fees apply.

Associate Superintendent Mona Arbonne and Finance Director Victoria Ballestas briefed the board Feb. 5 on the district’s oversight role for its charter schools, how funds flow through the district, and operational issues the district has encountered while serving as the chartering authority.

Arbonne summarized the district’s oversight responsibilities under the New Mexico Charter Schools Act: the district authorizes charters, oversees performance frameworks, reviews renewal applications and replication proposals, and monitors academic outcomes, attendance, subgroup performance and grant compliance. She described a state effort that began in 2018–19 to provide clearer tools for district oversight and said the district’s compliance officer has begun scheduled charter reviews.

Finance Director Ballestas explained how some grant and program funds come to the district as a flow‑through to be allocated to charters and how the district in practice often “fronts” cash to charters while it submits request‑for‑reimbursement (RFR) paperwork to the Public Education Department (PED) and/or the New Mexico Finance Authority to recover the money. Ballestas said the district bears the cash‑flow burden and then files the RFRs; PED reimburses the district after review. Ballestas described administrative friction around which grants PED sends through the district versus which it pays directly to charters, and she said the flow varies year to year: “One year they’ll give us two flow‑through grants for them. One year we don’t do any for them,” she said.

Ballestas also addressed the administrative fee the district keeps for oversight work. Board members and staff discussed a figure in the budget approximated at 2 percent (a previous meeting noted approximately $110,000 in the district budget associated with charter oversight). Ballestas explained the fee is a portion retained by the district for the administrative work performed and that PED sets rules around which monies flow through the district and what the district may retain.

Other cabinet members described operational oversight: facilities/maintenance will inspect leased or charter buildings when required by PSFA; HR conducts license, background and HB‑128 checks for charter employees; safety and operations will review and test charters’ Safe Schools plans and may conduct site visits; transportation explained the district provides bus service for Anansi Charter under an RFR arrangement (Taos Charter currently operates its own bus service). IT noted it does not manage charter IT systems, though device donations have occurred in the past.

Board members asked how the district ensures charter compliance on special‑education services and whether data reporting is timely. Arbonne said special‑education compliance and student‑level reporting are monitored by the Exceptional Programs office and that charters must meet reporting and IEP requirements; the district will follow up on any gaps. Ballestas noted PED has recently mandated monthly reporting into the OBMS system, and the district is enforcing that requirement to keep documentation current and to avoid reimbursement delays.

What the board heard - The district has a formal role as authorizer and must monitor academic performance, attendance, subgroup outcomes and grant compliance for charter schools. - The district often fronts money to charters and then requests reimbursements from PED/NMFA; inconsistent flow‑through decisions from PED cause administrative work and cash‑flow burdens. - The district retains a small administrative fee to cover oversight work; the level and rules are set by PED and can vary by grant.

Next steps District finance staff will continue to pursue clearer direction from PED on which grants should flow through the district and the expected timing; staff will continue monthly RFR reviews and strengthen charter reporting processes. Board members requested a clearer outline of the administrative fee and a scheduled update on charter audit findings and compliance work.