Albuquerque Public Schools’ (APS) proposed 2027 fiscal year budget is moving to the next stage of the approval process. It may pave the way for employee salary increases next school year.
The Board of Education voted 4-2 on Wednesday to pass the 2027 fiscal year budget. The board will forward the document to the state Public Education Department for final approval. The new fiscal year begins on July 1.
For the upcoming school fiscal year, the district’s total budget amounts to nearly $2.35 billion. This includes operational spending, building projects, student transportation services, and the provision of free meals. The figure represents a 4% increase over the 2026 fiscal year budget.
APS’ $1.15 billion operational budget invests in initiatives and practices aimed at improving student outcomes, aligned with the board’s goals. They include teaching and learning coaches, community schools impact coordinators, and resource teachers focused on student success. The district also supports deeper learning through programs such as Genius Hour and high-quality professional development. Operational funds also pay for school safety initiatives, including the APS Police Department.
Additionally, the operational budget includes a 1% salary increase for employees and covers 80% of the cost of employee health insurance. State lawmakers approved both measures this year, and the governor signed them into law. The 1% pay raise for the district’s more than 11,000 employees is estimated to cost about $6.2 million. APS will also spend an additional $35 million to increase its share of employee health insurance costs.
Enrollment Decline Impacts APS Budget
APS finance staff project a $16.1 million budget deficit, which the district will cover using reserves. The district’s reserves are expected to decrease from $73.9 million to $57.8 million. However, APS will still meet the requirement to maintain at least 5% of its operational budget in reserve.
APS lost 2,560 students from the 2024-2025 school year to 2025-2026. This resulted in a decrease of about $40 million in SEG operational funding from the state. Capital project spending has increased, along with higher costs for salary raises and health insurance. This increased spending offsets the funding loss.
APS has faced enrollment declines and the associated funding loss for years. The loss in per-student funding has coincided with significant pay raises for teachers, educational assistants, and other educators, as well as skyrocketing construction costs. These factors have driven continued increases in the district’s overall budget.
The budget for the upcoming fiscal year anticipates 290 fewer full-time equivalent employees than the current fiscal year. The district will handle the reductions largely through attrition.
Budget Breakdown
The board began the budget process early in the school year and held community listening sessions to gather public input.
The finance team worked throughout the year to refine allocations based on feedback. They also worked to align the budget with APS goals and guardrails.
In addition to the $1.15 billion operational fund, the total budget for the upcoming fiscal year includes:
- Nearly $729 million in capital funds for things like school construction and air conditioning projects
- Nearly $208 million for debt service
- Nearly $76 million in federal grants
- $77.6 million for Food and Nutrition Services
- Nearly $23 million in state and local grants
- Nearly $24 million for student transportation
- Nearly $19.6 million in school activity funds
- $15.4 million in funding for the universal free lunch program
- Nearly $9.6 million in enterprise funds, which includes KANW
- $11.2 million in forest reserve/ad valorem revenue
- $1.4 million in Athletics revenue
- And nearly 984,000 in impact aid.