Members of the New Mexico Legislative Finance Committee recently discussed public school capital outlay formula issues that will likely require action in the upcoming 60-day legislative session in January, including issues with online learning and instructional time.

LFC Principal Fiscal Analyst Sunny Liu told committee members July 23 during the committee’s meeting in Red River that the state could face another budget shortfall if online students move between districts, as happened last year in Gallup. That $35 million shortfall in that situation prompted lawmakers to pass several bills during the 2026 session that temporarily halted how distance learning units are calculated by the current funding formula and allowed the state an opportunity to recoup the funds.

Originally published on sourcenm.com, part of the BLOX Digital Content Exchange.

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