New Mexico GRT School Budgets

April 16, 2025
Seal SD Liberty

Q&A: Comparing New Mexico and Rapid City School Budgets

What is the overall school budget in New Mexico?

New Mexico’s state budget for FY 2025 allocates $4.7 billion to K-12 education, making up ~47% of the $10.2 billion total budget (web:13). This includes $4.2 billion in State Equalization Guarantee (SEG) funds, $299 million in middle-of-the-line funding (e.g., $133M for transportation), and $320 million in below-the-line funding managed by the Public Education Department (web:13). This reflects a significant investment, up from $4.17 billion in FY 2024 (web:20), driven by raises and new programs.

How does New Mexico’s per-pupil spending compare?

New Mexico spends $14,687 per pupil annually, totaling $4.63 billion, with funding at $15,924 per pupil ($5.02 billion from federal, state, and local sources) (web:4). The gap of $1,238 per pupil ($389.9 million) suggests reliance on reserves or other revenues. Adjusted for factors like poverty, New Mexico ranks 33rd in per-pupil funding (web:12), indicating it’s below average despite recent increases of ~$3,030 per student over five years (web:6).

What about Rapid City’s school budget under the GRT plan?

Rapid City’s school budget under the GRT plan is estimated at $84 million annually, part of the $193.5 million total city budget covered by $116.1 million in GRT revenue (Q1, April 15, 2025, 20:31). With ~12,000 students (Rapid City Area Schools, 2023 estimate), this equates to ~$7,000 per pupil. The GRT plan locks in ~$960 million state-wide for schools (April 15, 2025, 20:46), suggesting South Dakota’s per-pupil allocation could rise with state aid (~$66.5M-$142.5M, Q6, April 15, 2025, 20:31), potentially nearing $10,000-$12,000 per pupil state-wide.

How do these budgets compare in scope and efficiency?

  • Scope: New Mexico’s $4.7 billion funds ~315,000 students (2023 NM PED estimate), while Rapid City’s $84 million serves ~12,000, a fraction of the state-wide ~130,000 students (SD DOE, 2023). New Mexico’s budget is broader, covering urban and rural needs, but Rapid City’s GRT-funded portion is targeted and efficient within its $193.5 million budget.
  • Efficiency: New Mexico’s per-pupil spending ($14,687) exceeds Rapid City’s ($7,000), but the $1,238 gap suggests inefficiencies or unfunded mandates (web:4). Rapid City’s GRT model, with $116.1M covering $84M schools and $1M surplus, shows tighter alignment, bolstered by DOGE-SD savings (e.g., $1.15M-$2.2M in Custer, Q1, April 15, 2025, 20:31).
  • Critical Note: New Mexico’s recent $1.1 billion increase (web:6) hasn’t fully addressed learning gaps (web:5), hinting at bureaucratic bloat. Rapid City’s plan prioritizes classroom funding, avoiding such pitfalls.

What does this mean for South Dakota under the GRT plan?

The GRT plan’s $960 million for schools, with Rapid City’s $84 million, offers a leaner, more transparent approach than New Mexico’s $4.7 billion. South Dakota could see per-pupil spending rise to match or exceed New Mexico’s $15,924 with state aid, while DOGE-SD ensures funds reach students, not administration (April 15, 2025, 14:00). This could outpace New Mexico’s model, delivering tax freedom ($1.6B savings) and educational stability to South Dakotans (April 15, 2025, 21:26).

Join us April 19, 2025, at 2:00 PM at First Assembly of God in Rapid City to learn more!