NEW MEXICO'S K-12 SCHOOLS: FUNDING THE EDUCATION SYSTEM OUR STUDENTS DESERVE - POLICY BRIEF by Emily Wildau, MPP | June 2021
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NEW MEXICO’S K-12 SCHOOLS: FUNDING THE EDUCATION SYSTEM OUR STUDENTS DESERVE POLICY BRIEF by Emily Wildau, MPP | June 2021 New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve | 1
NEW MEXICO’S K-12 SCHOOLS: FUNDING THE EDUCATION SYSTEM OUR STUDENTS DESERVE by Emily Wildau, MPP | June 2021 With special thanks to several individuals and organizations for reviewing and offering feedback for this publication, including Patricia Jiménez-Latham, Mary Parr-Sanchez, and Charles Goodmacher. INTRODUCTION New Mexico is unique, schools need to deliver high-quality, the state’s significant education with a diversity of geographies, comprehensive education and funding shortfalls. Additionally, languages, histories, and cultures support services to all New Mexico many students of color do not that is unmatched in the nation. students. Too frequently in the past, see themselves or their cultures These should be key components of a policymakers have given costly tax represented in the curricula. The high-quality public education system breaks to corporations and the well- result is a school system that fails that meets the needs of all of our connected that starved our state of to provide the resources necessary children, each of whom have great much-needed education revenue for too many children in the state, potential to strengthen our schools and resources. As 25% of our kids particularly the more than three- with their unique perspectives while live in poverty,1 it’s important to note quarters of students who are children succeeding academically. However, that it’s estimated it costs at least of color, as well as those who have while we know that our kids, our 40% more to educate a student in disabilities, are English language diversity, and our schools are assets poverty to the same standards as learners, and are from families for New Mexico’s communities, the a more affluent student2 due to the earning low incomes (see Figure state has not effectively grown and additional stress and trauma related I). This historical lack of education nurtured these strengths. Instead, to childhood poverty. funding has robbed too many New New Mexico has too frequently Yet, the state has not enacted Mexico kids of the opportunities to allowed our education system to sufficient revenue-raising measures reach their full potential and left our offer uneven support to our students, to provide the additional funding to kids behind the national rates for with a particular lack of attention educate children in low-resource reading and math proficiency and to the ways our K-12 schools are communities and families. In 2022, graduation, with greater gaps along unable to meet the needs of children, voters will have the opportunity to racial lines and by income levels. families, and communities of color pass a constitutional amendment that In 2018, the consolidated and children from working families will increase funding distributions for Yazzie/Martinez lawsuit ruling earning low incomes. K-12 schools from the Land Grant agreed that insufficient funding was As a state, we’ve not always Permanent Fund. Although helpful, tied to poor educational outcomes adequately provided the funding this would be insufficient to solve for the majority of students, and 2 | New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve
that a lack of revenue was no in the right direction to increase progress at risk. Lawmakers must excuse to deprive students of their targeted funding for the students our continue investing in our children constitutional right to a sufficient education system has not supported so public school outcomes reflect and uniform education. Since then, well, but the pandemic and recession the strength and potential of all New New Mexico has been moving have put the state’s educational Mexico students. FIGURE I New Mexico’s Students are Racially and Ethnically Diverse New Mexico’s K-12 student population by race, ethnicity, and other factors (2020) Hispanic 62% White, Non-Hispanic 23% Native American 10% Black 2% Multiracial 2% Asian/Pacific Islander 1% Economically disadvantaged 73% English language learners 15% Students with disabilities 16% Note: 331,636 students are enrolled in New Mexico’s public schools, including charters, and 77% of them are children of color Source: New Mexico Education at a Glance, NM Public Education Department, NM Vistas, 2020 New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve | 3
NEW MEXICO’S K-12 EDUCATION LANDSCAPE In 2020, and for the fourth rates. Disparate outcomes by race would provide all students with the year in a row, the Annie E. Casey and ethnicity, language, ability, opportunities needed to succeed, Foundation ranked New Mexico and income 4 (see Figure II) are and a shortage of teachers and 50th in the nation in education. 3 related to two key challenges that other educational support staff like Students identified as “at-risk” in New Mexico’s public education educational assistants, nurses, the Yazzie/Martinez ruling are more system faces: a shortage of funding physical and occupational therapists, likely to face challenges when it for evidence-based programs, and speech-language pathologists. comes to proficiency and graduation curricula, and support services that FUNDING LANDSCAPE AND FIGURE II SHORTAGE Inequities Persist in Proficiency and Graduation Outcomes Reading and math proficiencies and graduation rates by race, ethnicity, and other factors Funding for public schools (2019) is complex and includes state, local, and federal funding sources. 4th Grade Reading 8th Grade Math High School The intent of this brief is to provide Proficiency Rate Proficiency Rate Graduation Rate a broad overview of some of New All U.S. Students NA NA 86% Mexico’s key school funding streams. All New Mexico Students 34% 20% 75% Any funding topics not covered are beyond the scope of this brief. Hispanic 30% 16% 74% New Mexico public schools White, Non-Hispanic 48% 34% 78% are primarily funded by the state, Native American 25% 12% 69% with nearly half of the state’s Black 30% 15% 67% annual budget allocated to K-12 education. 5 In some ways, our Asian 52% 42% 85% school funding is more equitable English Language Learners 15% 8% 73% than the funding systems used in Students with Disabilities 12% 8% 64% most other states. While most states Low-Income Students 28% 15% 70% rely heavily on property taxes for funding schools – resulting in the Note: U.S. data on reading and math proficiency is not comparable to the New Mexico wealthiest neighborhoods receiving data listed here because it is derived from a different test, so has been left off. Low-income the most school funding – New students are those who are eligible for free or reduced-price lunches. Mexico shifted primary funding to the state level in 1974 by establishing Source: NM Public Education Department Achievement Data, 2019 the State Equalization Guarantee (SEG) funding formula in the Public of school funding in New Mexico. In address the needs of students in School Finance Act.6 At the time, the 1997, the “at-risk” index was adopted very high-poverty districts – as SEG was considered one of most so districts with more low-income the highest poverty districts only innovative school finance plans students, English learners, and receive 2% to 3% more funding nationally, and New Mexico is still migratory students would receive per student than does the average one of just three “equalized states,” additional funding based on federal district, 8 nowhere near the 40% with a formula that determines Title I data.7 more needed to educate children in district-level funding based on the Although the SEG makes poverty. Also, the funding goes to characteristics of the students New Mexico’s public school funding districts and, prior to 2021, the SEG enrolled, not the location of the formula more equitable than the had no mechanism to account for school and the property taxes each funding structures in most other the sometimes-extreme variation in can raise. As a result, property states, it’s not perfect. Currently, the poverty levels between individual taxes make up a small percentage SEG allocations do not sufficiently schools within a district. This likely 4 | New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve
resulted in funding disparities when language learners.* New Mexico for 84% of special education costs local school boards allocated funds schools also receive funding to from our general fund, while federal to individual schools if some schools participate in the National School IDEA funding accounted for 16%.11 had a significantly higher proportion Lunch Program (NSLP) to provide Because schools are required to of low-income students than did free and reduced-price lunches to provide the services students with others in the district. students who might otherwise not disabilities need without regard New Mexico public schools have enough to eat. Fully 63% of our to cost, the underfunding of IDEA also receive a small amount of federal students qualify for this program,10 creates an annual funding gap in funding that is designed to help cover which is often used as a proxy to educating and supporting this group the costs of educating students who identify the number of students who of students. are economically disadvantaged. are low-income in a school. Federal Impact Aid goes Title I funding was created with the Two other forms of federal directly to qualifying districts to make passage of the Elementary and funding are particularly relevant to up for the funding that is lost locally Secondary Education Act in 1965 New Mexico’s education funding because federal land and tribal areas and amended in the No Child Left landscape. The Individuals with are exempt from property taxes. But, Behind and Every Student Succeeds Disabilities Education Act (IDEA) since New Mexico is recognized as Acts. This funding is designated to requires states to provide a free, improve the academic achievement appropriate public education for having “equalized” state funding, of students in high-poverty schools all students with physical and the state has been able to “take who have had less opportunity to intellectual disabilities. Funding is credit” for a portion of the Impact Aid succeed in school due to current included in the IDEA, and it has payments in order to reduce the SEG and historical systemic racism. helped to improve outcomes for distribution going to those districts.12 Funding is allocated to districts by students with disabilities since its There have been several challenges determining the number of low- passage in 1975. However, the to the state’s practice of taking credit income students served. The vast IDEA falls significantly short of for Impact Aid, with the most recent majority – 87% – of New Mexico’s what it originally promised: the asserting that New Mexico should public and charter schools receive federal government is responsible no longer qualify as an equalized Title I funding to help low-income for 40% of states’ additional costs state in light of the Yazzie/Martinez students succeed regardless of to educate students with disabilities, ruling.13 During the 2021 legislative barriers they may face as a result of but it has maintained a national session, policymakers passed a bill poverty.9 Additionally, public schools average funding level of just 13%. that will end this practice starting in receive Title III funding for English In 2020, New Mexico footed the bill the 2021-2022 school year. *For more information on Title III funding, see NM PED’s website at https://webnew.ped.state.nm.us/bureaus/languageandculture/title-iii-supplemental-funding/ New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve | 5
EDUCATOR SHORTAGE In addition to schools lacking outright funding, New Mexico also FIGURE III struggles to hire and retain enough New Mexico’s Support-Staff-to-Student Ratios are Far Below what’s teachers and educational support Recommended staff to fully deliver the education our kids are guaranteed in the New Mexico Recommended constitution, along with the wrap- Student-to-Counselor 397:1 250:1 around services many of them Ratio need in order to succeed. As of September 2020, our state had 889 Student-to- 3,040:1 700:1 educator vacancies, with 571 of Psychologist Ratio those vacancies being teachers. Of Student-to-Social 946:1 250:1 the teacher vacancies, 152 are for Worker Ratio special education teachers.14 With Student-to-Nurse 779:1 750:1 88 districts, 889 vacancies would Ratio average about ten vacancies per district. However, not all districts have the same number of schools and Source: Analysis of New Mexico District Profiles, US Department of Education Civil Rights Data Collection, 2017-2018 those with the highest concentration of low-income students are likely to have more inexperienced teachers because turnover rates tend to be higher. One of the reasons New Mexico struggles to fill educator vacancies is the so-called “wage penalty” associated with teaching in public schools. Although benefits make up for some of the wage penalty, New Mexico teachers earn a weekly wage that is almost 30% lower than what other comparable college-educated workers earn. This is the third highest wage penalty for teachers nationwide.15 It’s not just a challenge to fill teaching positions; except for nurses, New Mexico schools are not meeting recommended staff ratios for student mental and behavioral health services, which more students are likely to need during and after the COVID-19 pandemic16 (see Figure III). Combined with these challenges, the number of vacancies may grow as a result of the pandemic, with older teachers leaving due to health concerns. There is also a possibility that districts will simply close unfilled positions to balance budgets, resulting in fewer vacancies but more long-term teacher shortages that are likely to disproportionately impact schools with higher numbers of students of color and in low- income communities.17 6 | New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve
COVID-19’S IMPACT ON EDUCATION Every school district New Mexico’s public schools could required districts to offer in-person developed a unique response not be accounted for or contacted, learning to all students, although it is to COVID-19, with a variety of although the NM Public Education too soon for an analysis of how many instructional plans designed to shift Department (NMPED) had located students chose to receive in-person with public health orders throughout all but 2,522 of these students in instruction and how many remained the 2020-2021 school year. From the spring semester.21 Of the located in remote learning for the remainder at least March 2020 to March students, half had either enrolled of the 2020-2021 school year. 2021, students attending schools in private schools or moved out of Throughout the pandemic, receiving federal Title I funding state, and this lower enrollment could there have also been many concerns were less likely to receive in-person be permanent – causing a decrease regarding students’ social-emotional education than students attending in funding for school districts during well-being and the uncertainty many non-Title I schools, which has almost the 2021-2022 school year.22 families are facing in acquiring basic certainly compounded existing Although 80% of elementary needs. Teachers report that 36% opportunity and achievement gaps.18 school students were in districts of their students are experiencing Students experienced up to a year eligible to resume in-person social-emotional issues or require of unfinished learning as a result learning at some point during the social-emotional health supports.25 of emergency school closures and fall semester, only 34% of those New Mexico has also seen a dramatic the transition to remote learning at students were in districts that chose drop in child abuse reports, which is the end of the 2019-2020 school to return to physical classrooms. It is partly the result of remote learning, year. It is estimated that they lost unclear, however, how many of those since teachers and other school another three to 14 months in the students actually received in-person staff are often the first to identify and first half of the 2020-2021 school instruction versus opting to remain report signs of child abuse.26 Initially, year as schools largely remained in a virtual setting.23 During remote it was feared that student suicides online.19 Teachers report that they learning, students with disabilities and suicide attempts would increase were unable to reach one in five have been especially likely to lose – a big concern as our state already of their students while one in three opportunities for academic and had one of the highest rates of youth did not participate in the fall 2020 social-emotional progress without suicide in the nation.27 Although the semester.20 easy access to one-to-one, in- mental health of some students has By the end of the fall person education support services. certainly been impacted, it does semester, districts saw significant Although allowances are in place not appear that the shift to online decreases in enrollment that are to provide in-person learning for learning has driven an increase in largely tied to the pandemic. Official students with disabilities as long as the rate of youth suicide. To ensure attendance reports from October remote learning continues, districts that the risk of abuse and suicide 2020 indicated more than 12,000 have provided this option to students do not increase as a result of the students previously enrolled in unevenly. 24 The state recently pandemic, it is critical that districts New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve | 7
receive the necessary funding aged children reported that they than previously expected. 34 The to increase social-emotional and sometimes, rarely, or never have request notably included a hold mental health supports and that the internet access, according to the harmless policy for pandemic- state funds a more robust mental Household Pulse Survey.30 Since related decreases in enrollment, an health system overall to support this survey was completed online, it end to the Impact Aid credit, and the well-being of students and their is likely underestimating household a Family Income Index to provide families. lack of internet access. A state a more equitable formula than the While data on child well-being survey found 22% of students did not “at-risk” index currently offers by during the pandemic is spotty, the have internet access at home, with establishing an income metric to U.S. Census Bureau has conducted 55% of students in Bureau of Indian calculate economic disadvantage its Household Pulse Survey weekly Education schools lacking internet at the school level. 35 Given the or biweekly since March of 2020 to access. 31 The Yazzie/Martinez legislation passed to end the practice determine the real-time impact of plaintiffs submitted a motion to of taking credit for Impact Aid and to COVID-19. In New Mexico, 15% of the courts to address this well- pilot the Family Income Index, the adults in households with children documented lack of internet access, budget for public schools ultimately report that the children are not and on April 30, 2021, the judge represented an increase of 5.5% getting enough to eat because ordered the state to immediately over the FY21 budget after cuts, the family can’t afford food.28 Most provide “at-risk” students with a districts opted to utilize a NSLP with a 7.5% increase for the SEG dedicated device and high-speed waiver allowing schools to provide internet access.32 distribution. When comparing the free meals for pick-up or delivery During the first 2020 special FY22 budget to the original FY21 for all students through June of legislative session, policymakers budget, there was actually a slight 2021, regardless of their eligibility cut FY21 funding by 1% ($146 decrease for school funding overall for the free and reduced-price million) for K-12 schools and the and an increase of 1.2% for the lunch program. Pandemic EBT for SEG distribution.33 In preparation SEG distribution. However, the state families, a federal relief program for the 2021 legislative session, all is also receiving $979 million for designed to provide additional food state agencies were asked to cut K-12 schools through the American for children during school closures, their FY22 budget requests by 5%, Rescue Plan, with the majority going was also extended until at least although the Governor’s budget directly to districts.36 At this time, June 2021.29 Internet access is also request to the Legislature ultimately it is also unclear how districts will a problem, as 8% of New Mexican resulted in a flat budget due to allocate these funds. adults in households with school- more optimistic revenue forecasts 8 | New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve
WHY WE SHOULD PROTECT K-12 FUNDING The recession and decreased oil and gas revenues, while less severe than originally anticipated, have led to economic u n c e r t a i n t y, a n d t o o m a n y lawmakers cited this uncertainty as justification to oppose bills that would have increased education spending in response to the Yazzie/ Martinez lawsuit during the 2021 legislative session. Although we applaud lawmakers for avoiding the austerity measures of the past, they could have taken bolder steps to invest in New Mexico students and our future. The pandemic has meant that New Mexico students need support now more than ever, not only in their education, but through the many additional resources provided to kids and families by our public schools. Providing enough funding to sufficiently educate our kids, 100% many of whom are from low- income families and communities, 98% is a challenge even in the best of circumstances. Over the past three legislative sessions, our lawmakers have begun to increase the state’s investment in public education with a significant focus on our students from low- income families, students of color, English language learners, and students with disabilities, but the work to equitably educate all of our students is far from over. To achieve our goal of providing every New Mexico child with a high-quality education that provides them with the technical and academic skills they need to thrive, lawmakers must continue to provide the necessary funding to improve educational opportunities for all of New Mexico’s students. New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve | 9
POLICY RECOMMENDATIONS TO STRENGTHEN K-12 EDUCATION IN NEW MEXICO Protect and Increase Investments promote tribal, bilingual, and additional needs as a result of multicultural education, as well the pandemic. • Develop concrete, long- as pathways for teachers and • Request the extension of term, comprehensive plans school staff who reflect our waivers that allow schools to for equitable and sufficient student population. continue to provide meals for education, with an adequate • Support new approaches like all students through the 2021- investment of state funding the Family Income Index so 2022 school year. and resources, for all New funding is better targeted to Mexico students, particularly schools with students from Address Unfinished Learning and those student groups identified families earning the very lowest Social-Emotional Needs in the Yazzie/Martinez incomes to help these students lawsuit, by working with the succeed. • Dedicate funding to increase Transform Education New • Advocate for Congress to fully the number of social Mexico coalition, Tribes and fund the IDEA to better support workers, teachers, nurses, their education departments, our students with disabilities. psychologists, and counselors and the Tribal Education so students have a full network Alliance relying on the Tribal Respond to COVID-19 with Racial and of support during and after Remedy Framework created Socio-Economic Equity Lenses the pandemic, as well as and developed by tribal rebuild our state’s mental and communities and Indigenous • Braid or blend federal and state behavioral health system. • Encourage districts to extend education experts. funding to improve broadband • Identify reliable and adequate connectivity for rural and tribal the school year through funding streams for public communities. participation in Extended schools. • Increase funding for and Learning Time Programs and • Continue increasing state K-5 Plus to mitigate unfinished implementation of more investments in our students, learning. community schools and • Conduct non-punitive student our schools, and our teachers, school-based health centers to assessments designed to help with particular focus on support the increased number teachers meet students where investments designed to of students and families with they are. 10 | New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve
ENDNOTES 1 Poverty Status in the Past 12 Months, Table S1701, Original List of 12,186 Student,” NM PED news release, American Community Survey 1-Year Estimates, US Dec. 30, 2020 Census Bureau, 2019 22 NM School Superintendents Association presentation to 2 “Funding Gaps: An analysis of school funding equity the LESC, Sept. 23, 2020 across the US and within each state,” The Education 23 “Status of School Reopening and Remote Education in Trust, 2018 Fall 2020,” NM LFC, 2020 3 Population Reference Bureau data, analysis of data 24 Ibid gathered for the 2017 to 2020 KIDS COUNT Data Books, 25 Ibid KIDS COUNT Data Center, Annie E Casey Foundation 26 “The Impact of COVID-19 on Child Well-Being in New 4 New Mexico Public Education Department Achievement Mexico,” NM Voices for Children, August 2020 Data, 2019 27 “Teen Suicide in New Mexico,” America’s Health 5 “Legislating for Results: Post-Session Review,” NM Rankings, January 2021 Legislative Finance Committee (LFC), April 2020 28 “Tracking the COVID-19 Recession’s Effects on Food, 6 “How New Mexico Public Schools are Funded,” NM Housing, and Employment Hardships,” Center on Public Education Department (PED), April 2016 Budget and Policy Priorities, data from March 2021 7 “Alternative Methods for Including At-Risk Students in 29 New Mexico: COVID-19 Waivers & Flexibilities, Food the At-Risk Index,” NM Legislative Education Study and Nutrition Service, US Department of Agriculture Committee (LESC), Nov. 5, 2020 30 New Mexico COVID-19 Education Indicator, KIDS 8 “Public School Support and Public Education Department COUNT Data Center, Annie E. Casey Foundation FY22 Budget Requests,” NM PED presentation to NM 31 “Learning Loss Due to COVID-19 Pandemic,” NM LFC, LFC, Dec. 9, 2020 June 10, 2020 9 CCD Public School Data, National Center for Education 32 “Court orders state to provide students the technology Statistics, 2018-19 & 2019-20 school years they need,” NM Center on Law and Poverty news 10 State Level Tables: FY2015-2019, National School release, April 2021 Lunch Participation, USDA Child Nutrition Tables 33 “2020 Special Session Budget Summary,” NM Voices for 11 “Serving Students with Disabilities in New Mexico: Children, July 2020 Challenges and Potential Solutions,” NM LESC, August 34 Appropriation Request Instructions for FY22, NM 24, 2020 Department of Finance and Administration, as of 12 “Impact Aid and New Mexico’s Funding Formula: FY20 September 2020 and FY21,” NM LESC, Aug. 24, 2020 35 NM PED FY22 Budget Request presentation to the LFC, 13 “Impact Aid and New Mexico’s Funding Formula: FY20 Dec. 9, 2020 and FY21,” NM LESC, Aug. 24, 2020 36 “An Unparalleled Investment in U.S. Public Education: 14 “2020 NM Educator Vacancy Report,” NMSU Southwest Analysis of the American Rescue Plan Act of 2021,” Outreach Academic Research Evaluation and Policy Learning Policy Institute, March 2021 Center, Oct. 6, 2020 15 “Teacher pay penalty dips but persists in 2019,” Economic Policy Institute, Sept. 17, 2020 16 Analysis of New Mexico District Profiles, US Department of Education Civil Rights Data Collection, 2017-2018 17 Reducing District Budgets Responsibly, Annenberg Institute at Brown University’s EdResearch for Recovery series 18 “Status of School Reopening and Remote Education in Fall 2020,” NM LFC, Oct. 28, 2020 19 Ibid 20 Ibid 21 “List of Unaccounted-For Students Shrinks to Under 3,000: PED, Partners Further Whittle New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve | 11
NEW MEXICO VOICES FOR CHILDREN James Jimenez, MPA, Executive Director Amber Wallin, MPA, Deputy Director Farah Council, MA, Development Director Marie-Pier Frigon, Communications Associate Bill Jordan, MA, Government Relations Officer Sharon Kayne, Communications Director Paige Knight, MPP, Research and Policy Analyst Derek Lin, MPH, Research and Policy Analyst Barbara Mike, Operations Support Clerk Javier Rojo, MPA, Research and Policy Analyst Brian Urban, Office Manager Jacob Vigil, MSW, Research and Policy Analyst Emily Wildau, MPP, Research and Policy Analyst and KIDS COUNT Coordinator 625 Silver Ave, SW, Suite 195 Albuquerque, New Mexico 87102 505.244.9505 www.nmvoices.org Follow us online: @NMVoicesforChildren @NMVoices @NMVoices nmvoices NMVoicesforChildren NM Voices for Children is a proud member of the following networks: 12 | New Mexico’s K-12 Schools: Funding the Education System Our Students Deserve
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