PED outlines FY27 priorities, touts literacy gains and submits Martinez Yazzie action plan draft

The Public Education Department presented a preview of its FY27 budget and the draft Martinez Yazzie three-year action plan during the Legislative Finance Committee meeting on Oct. 1, describing recent literacy gains and outlining legislative and administrative steps to expand effective interventions statewide.

Madam Secretary told the committee that reading proficiency in grades 3–8 has "climbed 10 percentage points since 2022, reaching 44% for 2025," and credited sustained, statewide implementation of structured literacy and coaching that has trained more than 6,000 educators. She said gains were especially notable among historically underserved groups: Native American students improved about 13 percentage points and English learners improved about 8 points.

Context and priorities: The department’s FY27 request was submitted Sept. 1 and represents a modest recurring-budget shift; it sought to convert several nonrecurring items into recurring funding where sustained investment is needed (examples: special education initiatives, middle-of-the-line categorical supports, math curriculum). PED asked the Legislature to consider recurring support for successful pilots, continued investment in structured literacy and expansion of high-impact tutoring and out-of-school time programs through PERF.

Martinez Yazzie action plan: Secretary described the draft three-year plan developed with contractors and WestEd, emphasizing public engagement (12 regional meetings and more than 1,200 survey responses). The plan focuses on four court-identified needs: equitable access to high-quality instruction, well-prepared culturally responsive educators, academic and social-behavioral supports, and funding plus accountability. The department proposed legislative actions (some requiring statutes, others achievable through rule) and a public dashboard and quarterly accounting for funds tied to Martinez Yazzie populations.

Requests and questions: Committee members sought clarity on accountability mechanisms (how the state will ensure local spending aligns with intended uses), transparency tools (OpenBooks and a proposed online dashboard), and whether some pilot allocations should be scaled rapidly. Secretary said PED would provide quarterly monitoring data and a public-facing dashboard and noted that some policy changes can be achieved by rule while others will require legislation.

Quotes from the hearing: On transparency, the department said it will "create an online dashboard" to show expenditures for at-risk students, English learners and students with disabilities; on graduation goals, PED said it has launched an initiative "to graduate at least 2,400 more students this school year." The secretary urged legislators to consider funding continuity for programs that show promising results.

What’s next: PED committed to additional follow-up materials requested by the committee — district-level accounting, a list of funded institutes and programs, and clarification of hold-harmless methodologies used in recent bills — and to providing the statutory and rule changes needed to implement pieces of the Martinez Yazzie roadmap.