Senate committee hears SB401 to create Education Technology Infrastructure Fund and transfer school‑broadband oversight

A Senate Finance Committee hearing examined SB401, a bill to create an Education Technology Infrastructure Fund and transfer oversight of the State Education Network from the Public School Facilities Authority to the Office of Broadband Access and Expansion.

Sen. Michael Padilla introduced the measure as a way to "enhance educational access" and to streamline administration so projects "get more efficiently analyzed, reviewed, and approved," saying the change would improve learning outcomes and support economic development. Drew Loveless, acting director of the Office of Broadband Access and Expansion, told the committee the bill would make permanent a year‑to‑year agreement that already places the network under his office.

"This simply moves the Public School Facilities Authority oversight of the state education network over [to] the Office of Broadband," Loveless said. He added the office wants to use federal resources more effectively and to keep schools and communities connected.

Diane Lindstrom, a volunteer advocate for AARP New Mexico, testified in support, saying the consolidated oversight would allow the state to leverage federal E‑Rate and federal rural health care funding to build middle‑mile infrastructure and connect community anchor institutions, "like senior centers, to high‑speed, reliable, and affordable Internet services." She asked members for a due‑pass vote.

Several senators pressed officials on the funding mechanics and limits. One senator said the severance tax bond money at issue is "specifically for schools" and cited concern about moving school‑designated bond funds into broadband oversight. Loveless and other supporters responded that the funds at stake are severance tax bond funds directed to the State Education Network and, if oversight transfers, would continue to be used for school purposes while also producing spillover community benefits when a school is connected.

Loveless said the office is "down to our last two schools" that need fiber hookups through E‑Rate Category 1 work and that the State Education Network — which turned on July 1 and initially connected eight entities, including charters and Albuquerque Public Schools — expects a second wave that could bring a couple hundred more schools online over the next 12–18 months. He said schools that opt into the network would have some administrative burdens removed because the office (and its contractors) can submit FCC forms on their behalf and run RFP processes under a statewide price agreement.

The office also reported active grant work: it has used the Connect New Mexico student‑connect program and awarded 10 grants totaling $19,000,000 to help students in locations without 5G get connectivity through the State Education Network and school‑sited towers.

Committee members and witnesses also discussed scale and cost. Padilla said roughly $675,000,000 in related federal funds (described in the hearing) are at risk and likely insufficient to finish statewide connectivity given New Mexico’s geography; senators noted the need for ongoing upgrades (Category 2/E‑Rate) and cybersecurity and procurement support for districts with limited staff capacity.

Officials described the funding vehicle as a non‑reverting severance tax fund; severance tax bonds can be issued for multi‑year use, and recent authorizations through the Public School Facilities Authority have occurred but precise cumulative expenditures were not provided at the hearing.

The committee did not take a final vote on SB401 during the hearing. Members asked for follow‑up data on expenditures, explicit accounting of transfers and authorizations, and confirmation of the number and identity of the schools still awaiting connection. The hearing included public support from at least one in‑room and one Zoom witness; no formal amendments or roll‑call votes were recorded at the session.