SCHOOL TRANSPORTATION FUNDING

HB 289 clarifies how New Mexico allocates transportation funding to school districts and state-chartered charter schools, requiring that funds cover the full route cost - including miles traveled to pick up the first student and return the bus after dropping off the last student. It establishes a new calculation method using a base amount for all districts plus a variable amount based on historical transportation costs, site characteristics, and operational days. If a district’s allocation exceeds required transportation costs, 50% of the excess must go to a transportation emergency fund, and at least 25% must be used for transportation services (excluding salaries). The bill takes effect July 1, 2026.