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Lawmakers press PED on 3,000‑student shift, call for pause and tighter funding rules for virtual programs
Summary
Lawmakers pressed the Public Education Department over a sudden shift of about 3,000 virtual students from Gallup McKinley to Santa Rosa and Chama, raising concerns about double payments under the funding formula; PED has proposed language to pause new virtual programs pending better reporting and compliance.
A contentious exchange focused on virtual school enrollments and how New Mexico funds online programs, after the Public Education Department told the committee that roughly 3,000 students enrolled in Gallup McKinley’s virtual program have since been served by other districts, notably Santa Rosa and Chama.
Lawmakers said the funding formula allows the district that had the students last year to be paid while new districts that now serve those students also receive funding, potentially producing what several members called "double payment" for the same students. "If Gallup sends the money back and then you fund...Santa Rosa and Chama, then the SED doesn't change in any shape or form," the Vice Chair said, pressing for a remedy.
Many members expressed alarm; one lawmaker called the shift "a money grab" and urged immediate action to retrieve payments if necessary. The vice chair urged suspension of the Gallup superintendent and threatened direct intervention if the district did not return funds.
PED said it had asked both Santa Rosa and Chama to pause new enrollments and that it was reviewing requests to create virtual schools and the contracts underpinning them. The secretary said the agency has proposed language for House Bill 2 to impose a moratorium on new virtual programs until reporting and oversight improve and that districts must report fortieth‑day counts so officials can verify where students are located.
PED also noted the fiscal impact of not approving a supplemental to cover enrollment shifts: revising the unit value downward would reduce funding for all districts, with an example figure of an $8.0 million reduction to Albuquerque Public Schools if the unit value were adjusted. The secretary and LESC staff urged careful consideration of policy and formula changes rather than ad hoc adjustments.
Committee members requested contracts and budgets for the private vendor that previously ran the Gallup virtual program (identified in materials as "K12") and asked PED to return with data on which students are virtual, where they live, educator licensure and class‑time verification. Some members signaled they would support legislation prohibiting double funding and would press for stronger statutory penalties or expedited administrative remedies if districts did not cooperate.
The committee made no immediate vote but directed staff to follow up and to consider bill language during the upcoming session.
