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Legislative panel reviews CTE costs, growth in paid internships and a reengagement pilot in Gallup
Summary
The Legislative Education Study Committee heard staff and PED presentations showing CTE concentrators cost more per student but yield higher graduation rates, and that paid internships and a Graduation Reengagement Internship pilot have expanded rapidly; members pressed for durable funding and statutory options as a 2019 NextGen pilot nears its end.
The Legislative Education Study Committee convened a Gallup site briefing on career-connected learning where state staff, Public Education Department officials and nonprofit partners outlined costs, outcomes and proposals to sustain and expand career and technical education (CTE).
Tim, staff to the committee, opened the session and said the committee’s recent appropriations for career-connected learning rose from $10 million to $40 million between fiscal years and have continued to increase to roughly $45 million in FY25 and $50 million in FY26. "We know it costs about $900 more per student" for typical CTE programs and "about $1,600 more per student" for higher-cost clusters such as health sciences and manufacturing, he said, based on an analysis of FY24 concentrator counts and school instructional expenditures.
Those cost findings underlie staff recommendations for a tiered funding approach rather than a single per-student factor. Tim outlined options: a base allocation for all districts, marginal per-student adjustments for high-cost industries, incentives for industry-recognized credentialing, and performance-based bonuses tied to a 12-element high-quality CTE framework drawn from national guidance.
Alexandra Lutz, manager of the College and Career Readiness Bureau at the Public Education Department, framed CTE’s outcomes: she said national and state data show CTE concentrators are more likely to complete certificates and degrees and are less likely to drop out. "CTE can be expensive, but we do know that it represents an incredible value," Lutz said. She noted the department’s data show concentrator graduation rates above about 93.75% in 2023, while also flagging lower proficiency in math and English language arts and limited statewide tracking of industry credentials.
Nonprofit Future Focused Education presenters described rapid growth in district-based paid internships and a reengagement pilot. A Future Focused speaker reported Innovation Zone districts grew internship placements from roughly 500–600 in year one to about 2,400–2,700 by year three, with 88% of internships paid and 79% supported by Innovation Zone funding. Future Focused’s executive director, Kim Lenoix Sandoval, described the Graduation Reengagement Internship Program pilot across 19 high schools: the pilot reached 79% of its 435-student recruitment goal (343 students), produced 471 recovered credits (about 1.6 credits per participant) and yielded attendance improvements for 69% of participating students.
Speakers and lawmakers pressed practical issues. Legislators raised concerns about rural employer capacity, transportation, and insurance/liability for underage interns; committee staff and presenters said the model includes subsidies and administrative supports for small communities and that Workforce Solutions would be the intended match recipient for a proposed $10,000,000 appropriation to leverage employer contributions. Tony Monfoletto (Future Focus/Instituto del Puente) said Representative Patahone will carry legislation to create a funding source for the proposed public–private internship partnership.
Committee members urged caution that funds be directed to "high-quality" programs aligned with local labor demand so students receive credentials that lead to in-state jobs. Senator Brandt said front-loading high-quality CTE will reduce the need for later recovery programs, and Representative Roybal Caballero asked that future reports more explicitly connect career pathways to Yazzie–Martinez requirements and measurement of outcomes for English learners, low-income students and other federally-identified groups.
The presenters’ concrete recommendations were to reconvene a working group of district leaders to refine per-student cost metrics, collaborate with PED to design a tiered funding formula, continue statewide data analysis on program effectiveness and consider statutory amendments as the NextGen CTE pilot (created in 2019) approaches its 2026 end. The committee closed to continue with the scheduled site visit; public comment will resume at 9 a.m. the following day.
