This bill amends the Public School Finance Act to enhance the funding formula for public schools in New Mexico. Key changes include an increase in the basic program unit for grades six through twelve, the introduction of a "family income index rate" to better assess student needs, and modifications to the at-risk program unit. The bill also establishes a new English learner program unit, which aims to support English learners in achieving language proficiency. Additionally, it outlines a hold harmless provision to protect school districts and charter schools from potential funding reductions due to these changes.

The bill specifies that charter schools will have their operating budgets adjusted based on their membership and various indices, including the at-risk index and English learner rates, particularly in their first three years of operation. It also mandates that the public education department recalculates the at-risk index and the English learner three-year average rate annually. Furthermore, the bill includes a temporary provision to ensure that if a school district or charter school experiences a reduction in calculated program units due to the new provisions, they will receive supplemental funding to cover the difference for fiscal year 2026. The effective date for these changes is set for July 1, 2025.

Statutes affected:
introduced version: 22-8-18, 22-8-23.3
Final Version: 22-8-18, 22-8-23.3