APS prepares for $9M shortfall in coming year

Albuquerque Public Schools officials are bracing to trim their operating budget for the sixth year in a row, depending on what the Legislature does this session.

Although some increased funding for education is expected, officials say it won’t be enough to make up for increasing costs.

“The bottom line is that incremental increases in fixed costs continue to outstrip incremental increases in revenue,” APS Chief Financial Officer Don Moya said.

Costs that are expected to increase include medical insurance, teacher pay as teachers move upward through the three-tier licensure system and utility bills.

School board members discussed budget prospects at a Monday morning finance committee meeting, but there were few hard numbers because they don’t yet know how much the Legislature will appropriate for education. However, based on preliminary state budget bills, the APS administration is preparing for a shortfall of about $9 million. The current budget is $599 million, not counting cash reserves.

Some board members and administrators raised concerns about education funding being put “below the line,” meaning it is earmarked for Gov. Susana Martinez’s education reform programs and does not flow directly to districts. “Above the line” funding is funneled through the state education funding formula, meaning it goes to districts on the basis of student enrollment and the needs of those students, such as how many require special education services.

APS officials have been advocates for flowing money through the formula, while the governor’s office has been adamant about keeping some education funding below the line. The issue has also caused some contention at the Legislature. While it is not uncommon for governors to earmark some education funding for special programs, it has become a flashpoint the past several years because money is tight and Martinez’s education platform is controversial.

Moya said he is concerned that schools’ basic needs aren’t being met.

“I’m not an educator so I can’t speak to the merit of these programs, but I don’t know how much good they’re going to do if they’re going to be done in schools where we can’t hire teachers or heat or light the classrooms. That’s what concerns me,” Moya said.

State education chief Hanna Skandera has said in the past that below-the-line funding creates accountability, contending Martinez will hold herself accountable for return on below-the-line investments.

The estimated $9 million shortfall includes projected costs to the district if the Legislature stops allowing districts to save money by exceeding class size limits. APS would have to hire about 120 teachers, at a cost of about $6 million.

Administrators also presented data showing that 16 of the district’s 89 elementary schools are out of compliance with class size limits, which range from 20 to 24 in elementary schools, depending on grade level. Some schools with the highest average class size are Hubert Humphrey, Lew Wallace, Duranes and Ventana Ranch.
— This article appeared on page C2 of the Albuquerque Journal