GMCS Clarifies State Funding, Details Contract End With Stride K12

Gallup McKinley County Schools released a formal clarification on December 13, 2025 aimed at correcting public statements about the districts state funding entitlements and at summarizing recent contract and oversight actions. The district said state education allocations are based on prior year enrollment, with statutory adjustments available only for districts that experience current year growth, and thus recent legislative remarks did not alter the districts funding formula or create an immediate additional payment obligation.

The statement revisited the board vote on May 16, 2025 to end the districts contract with Stride K12, which became effective June 30, 2025. The district said the termination followed allegations of illegal activity and profiteering, and that it notified the New Mexico Public Education Department, the Office of the Attorney General, and the State Auditors Office. To preserve student services the board approved a new online provider on May 27, 2025, ensuring a continuity of virtual learning options for families while the matter is resolved.

For McKinley County residents, the explanation matters for two practical reasons. First, the prior year enrollment basis used by the state affects local budget planning. District leaders must craft fiscal 2026 budgets on enrollment and funding figures already established, which can create short term rigidity if student counts shift. Second, the move away from a large national virtual provider and toward a new vendor raises questions about service continuity, costs and oversight of publicly funded online instruction.

Policy and market implications extend beyond local logistics. The districts action and the referenced whistleblower complaints fit within a broader trend of increased scrutiny of for profit vendors in K 12 education, and could prompt tighter state oversight of contract terms and reporting. For the community, the immediate priorities are transparent accounting of funds, assurance that online learning remains available and high quality, and clarity from state agencies about any investigations underway. McKinley County officials and school leaders say they will watch for responses from state auditors and legal authorities, and for any budget adjustments that might follow.