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Here's What You Need to Know About CCSD's Funding Challenge
July 22, 2024

Shiprock, NM - On June 21, The Central Consolidated School District (CCSD) has taken action by filing a Motion to Intervene and a Motion for Rehearing in Public Regulation Commission (PRC) Case No. 23-00353-UT. The request has been rejected.

Learn more from the following published articles from the surrounding news outlets including quotes from local CCSD board members:

Santa Fe New Mexican

By Nicholas Gilmore
July 20, 2024

New Mexico Political Report

By Hannah Grover
July 12, 2024 

Albuquerque Journal

By Alaina Mencinger
Updated: June 28, 2024

The Energy Transition Act (ETA) passed in 2019, has had significant implications for the district following the closure of the San Juan Generating Station, along with the Four Corner's Plant and attached mines. These closures have resulted in a substantial impact on CCSD's property tax revenues, which have been a critical funding source for the district.

The ETA includes a provision aimed at mitigating the impact on CCSD from the loss of property tax revenues. According to the law, PNM is required to locate replacement resources within the school district in New Mexico where the abandoned facility is located to maintain reliable service and serve the public interest, as determined by the commission.

In Case No. 19-00195-UT, the PRC approved a plan that included 430 MW of "replacement resources" to be located in CCSD. However, a 130 MW resource, the Rockmont project, was delayed and ultimately canceled. Despite this, PNM requested additional resources from the PRC without mentioning that these were actually SJGS "replacement resources." The failure to include resources located within CCSD's taxable boundary has left the district with a significant shortfall.

The closure of the SJGS has had a profound impact on CCSD students, particularly due to the rise in student homelessness and job loss in the region. CCSD's student population, consisting of approximately 95% Native American students, has faced challenges such as limited access to essential resources like electricity, running water, indoor plumbing, and the internet. These hardships have forced CCSD to consider restructuring, reduction in force measures, and potential school closures to prioritize the needs of its students with limited resources.

In response, CCSD is urging the PRC to enforce the ETA and revisit the approval of resources primarily located in Bernalillo County, which are intended to replace the capacity of the San Juan Generating Station. Additionally, CCSD is calling for a reassessment of PNM's compliance with the ETA and the placement of resources within CCSD's taxable boundary to address the funding shortfall and support the educational facilities in the district.

Steve Carlson, Superintendent of the Central Consolidated School District, expressed concerns about the implications of the funding shortfall on the district's ability to address historic underfunding of school facilities. He highlighted the potential scenario of having to redirect educational operational funding to subsidize necessary improvements to educational facilities due to insufficient bonding capacity and property tax revenues.

Suzette Haskie-Oberly, School President for CCSD, emphasized the toll that the energy transition has taken on the district, citing the significant increase in student homelessness rates and the need to restructure and consolidate schools to ensure that the dwindling funds benefit the education of students.

In light of these challenges, CCSD is urging the PRC to take action and address the funding shortfall to support the district's educational facilities and the well-being of its students and community.