$1.5 Million Shortfall Projected for 2008-2009

SANTA FE, N.M. (July 2, 2008) — Every time diesel prices go up a penny, nearly $44,000 gets tacked on to New Mexico’s projected $1.5 million shortfall for the 2008-2009 school year. To keep buses running at the state’s 89 public school districts, the Department of Education will ask the legislature for emergency funding in January.

This will be at least the second time the state has requested additional funding for transportation. According to Department of Education spokeswoman Danielle Montoya, the legislature allocated $1.6 million last year when it seemed that diesel price predictions of $2.42 per gallon would leave districts short.

But the additional funding wasn’t enough. The state closed the school year with a $2 million transportation deficit.

Montoya could not say how much Dr. Veronica García, the secretary of education, would ask for in January. However, she added Garcia was working with the finance committee and the education committee to create a more flexible formula and better way of predicting fuel prices.

State pupil transportation director Gilbert Perea said the state’s current fuel price model, the Lundberg Letter, was insufficient. The state is already short 40 cents per gallon for the coming school year. For every cent fuel increases, approximately $43,750 will be added to the state’s transportation funding deficit. The state may be able to dip into more than $400,000 in emergency reserve funds in unspent budget money from individual districts.

Perea said districts should "easily" be able to continue operating through January despite the shortfall. But if fuel prices spike dramatically, the Department of Education could advance funds even earlier, he added.