This bill amends the Public School Finance Act in New Mexico to improve the funding formula for public schools. Key enhancements include an increase in the basic program unit for grades six through twelve, the introduction of a "family income index rate," and modifications to the at-risk program unit. A new English learner program unit is also established to provide additional resources for schools to support English learners in achieving language proficiency. To safeguard schools from potential funding reductions resulting from these changes, a hold harmless provision is included. The bill specifies calculations for determining program units and costs, particularly for charter schools, and requires reporting on services provided to at-risk students and English learners.

Additionally, the bill addresses financial provisions for public education funding in fiscal year 2026, including supplemental appropriations for school districts and charter schools. It mandates that the public education department report by January 31, 2026, if the appropriation for implementing the funding formula changes is insufficient. The bill appropriates $132,725,000 from the general fund for funding formula changes, with unspent funds reverting to the general fund at the end of the fiscal year, and allocates $5,000,000 for supplemental funding that will not revert if unspent. The provisions of this act are set to take effect on July 1, 2025.

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