Senate panel presses DOJ, PED on Gallup online-school referral and potential large liability
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Summary
Senate members pressed the Department of Justice for clarity on whether it will pursue claims stemming from Gallup-McKinleys use of online education vendors, asked the Public Education Department to explain referrals, and scheduled an executive-session follow-up with AG and PED leadership.
The Senate appropriations committee raised concerns about the Gallup-McKinley school district's use of online education vendors and the possibility of large legal claims against the district, prompting members to seek clarity from the Department of Justice and the Public Education Department.
The chair described a briefing with the Gallup district and said the committee had been told the online vendor-related dispute could expose the district to claims "up to $100,000,000." He said the Public Education Department had sent a referral and asked why the attorney general's office had not yet filed suit.
Blaine Moffett, director of the Government Counsel and Accountability Bureau at the New Mexico Department of Justice, told senators there have been letters and ongoing investigations by the Office of the State Auditor and the Public Education Department into online learning companies, but he said, "I don't have any additional information on whether we'll be filing any lawsuits." Moffett apologized for arriving a few minutes late and said DOJ would need to check records and coordinate with agencies.
Committee members discussed whether the matter should be handled in executive session because it involves legal strategy. A number of senators urged inviting the Public Education Department secretary and the attorney general to a meeting and recommended placing those officials on the committee agenda first thing the following morning. The chair instructed staff to add the attorney general, PED, the Legislative Finance Committee and council services to an executive-session item for the next meeting.
Members and staff also debated policy options including the PED's authority to stop funding new units tied to the contractual online programs and whether the contracts amounted to improper outsourcing of school management. One committee member cited a California enforcement case led by then-Attorney General Kamala Harris as context for how state attorneys general have pursued similar matters.
No formal legal action was announced; DOJ said investigations are ongoing and did not confirm any filing. The committee scheduled a follow-up meeting at 09:00 the next day to continue the discussion with the requested agencies.