NM SB178

School districts with more than 2,000 students must allocate at least 90% of state equalization guarantee distribution funds to the individual public schools that generate those funds through program units

Districts failing to meet the 90% allocation requirement face limits on unrestricted operational cash balances, ranging from 5% to 18% of budgeted expenditures depending on district size

School districts and charter schools must submit three-year evidence-based spending plans describing how state funding will improve academic outcomes for Native American students, low-income students, English learners, and special education students

Schools that fail to make adequate progress for at-risk student groups for three consecutive years will have the Public Education Department contract with experienced Level 3A teachers or 3B administrators to revamp programming, curriculum, and instructional materials

Provisions apply to school years 2026-2027 through 2030-2031, with key sections automatically repealing on July 1, 2031