SCHOOL FINANCE CHANGES

SB 178 requires New Mexico school districts with over 2,000 students to allocate at least 90% of state equalization funds generated by each school directly to that school, with cash balance limits for non-compliant districts. It mandates all school districts and charter schools to develop evidence-based spending plans targeting academic improvements for at-risk students (Native American, low-income, English learners, and special education). The Public Education Department can intervene in underperforming schools by requiring curriculum updates, professional development, or hiring experts to revamp programs. Districts must also submit quarterly financial reports detailing fund allocation for these student groups, effective for the 2026-2027 through 2030-2031 school years.