GALLUP, N.M., Dec. 13, 2025 /PRNewswire/ -- Gallup-McKinley County Schools (GMCS) is responding to recent public discussion regarding state education funding to clarify how funds are allocated to local school districts under New Mexico law and to address inaccurate statements suggesting that the State owes additional funding to GMCS.

First, statements made during a recent New Mexico legislative meeting claiming that GMCS terminated online education services in May 2025 are incorrect. On May 16, 2025, the GMCS Board voted to end its contract with Stride/K12 due to allegations of illegal activities and profiteering misconduct at the expense of students, with the termination effective June 30, 2025. GMCS notified the New Mexico Public Education Department (NMPED), the New Mexico Attorney General, and the New Mexico State Auditor's Office of Stride/K12's alleged misconduct and the facts supporting the contract termination.

Notably, NMPED received a whistleblower complaint from a Stride/K12 administrator detailing the company's alleged illegal activities. GMCS became fully aware of the scope of this misconduct only after obtaining records through an Inspection of Public Records Act request to NMPED.

On May 27, 2025, the GMCS Board approved a new online education provider for the 2025–2026 school year, ensuring that GMCS continues to offer an online learning option to students. Despite the whistleblower complaint and GMCS's notifications, NMPED later permitted other districts to contract with Stride/K12. Santa Rosa Consolidated Schools approved a Stride/K12 contract on July 31, 2025, and Chama Valley Independent School District approved a similar contract on July 28, 2025, both for the 2025–2026 school year. GMCS, by contrast, transitioned to a different provider and continues to provide online education services.

Regarding statements by NMPED suggesting that additional funding is now required to support Stride/K12 programs at other districts, state statute is clear: public school funding is primarily based on prior-year student enrollment. When districts experience significant enrollment growth, as Santa Rosa and Chama Valley did for the 2025–2026 school year, NMPED provides current-year funding adjustments to those districts. Assertions that funding received by GMCS for the 2024–2025 school year should have been redirected to Santa Rosa or Chama Valley for the 2025–2026 school year are misguided and inconsistent with state law. The funding received this year compensates districts for services already provided during the prior school year.

NMPED has been aware of the new virtual programs at Santa Rosa and Chama Valley ISD since August 2025. It remains unclear why NMPED did not brief legislators on these programs and their potential funding implications before the December meeting or clarify during the meeting how the public school funding formula operates. Historically, NMPED has sought additional legislative appropriations to address funding "shortfalls," including $19.9 million in House Bill 2 (2024), $11.1 million in House Bill 2 (2025), and, as discussed during the recent legislative meeting, approximately $20 million for enrollment growth at Santa Rosa and Chama Valley ISD and $14 million for K–12 Plus funding.

Recent references to a $35 million statewide funding "shortfall" reflect the timing of NMPED's funding calculations and adjustments, not any action taken by GMCS. NMPED independently administers the funding formula established by state statute and makes all related adjustments. Misunderstandings of this process, combined with inaccurate statements about online program timelines, have led to unfounded allegations that have unnecessarily caused public concern.

GMCS remains committed to providing innovative educational opportunities and to promoting transparency in school funding. Deputy Superintendent Jvanna Hanks stated, "GMCS is committed to responsible stewardship of public resources, transparency, and keeping students at the center of every decision." She added, "Each year, GMCS provides all information required by NMPED for funding determinations under the legislative formula."

"The suggestion that GMCS is responsible for any NMPED funding shortfall is simply false," Hanks said. "It is regrettable that NMPED did not clarify the facts or explain its processes to the legislative committee, or address the continued use of an online provider with such a troubling history." GMCS is currently litigating against Stride/K12 alleging misuse of public funds and to recover taxpayer dollars.

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SOURCE Gallup-McKinley County Schools