ALBUQUERQUE, N.M. — Albuquerque Public Schools is considering closing or consolidating schools after losing approximately 20,000 students since 2018, even as the district’s total budget continues to grow, raising questions about taxpayer spending and the declining number of school-age children in New Mexico.

APS began a series of community meetings Monday to discuss what officials call “right-sizing,” a process intended to align schools, staffing and facilities with declining enrollment.

According to district figures, enrollment fell from nearly 84,000 students in 2018 to fewer than 64,000 during the 2025-26 school year, a decline of approximately 24%.

Despite serving substantially fewer students, APS approved a nearly $2.35 billion budget for fiscal year 2027, approximately 4% higher than the previous year. The district’s $1.15 billion operating budget covers instruction, staffing and other day-to-day expenses, while the larger total includes construction, transportation, meals, debt payments and other expenditures.

The figures highlight a central financial challenge for the district: how to reduce operating costs as enrollment declines while maintaining educational services and aging school facilities.

APS attributes the enrollment decline primarily to two factors: falling birth rates in Bernalillo County and families with school-age children moving out of New Mexico.

Fewer births mean smaller incoming kindergarten classes, while families leaving the state further reduce the student population. APS projects that enrollment will continue declining, although at a slower rate.

The district has not provided figures establishing how much of the decline is attributable to each factor or how many students have transferred to private schools, charter schools or homeschooling.

Declining enrollment has also affected state funding. APS lost approximately 2,560 students between the 2024-25 and 2025-26 school years, resulting in an estimated $40 million reduction in state operational funding.

Nevertheless, the district’s total budget increased, partly reflecting additional expenditures for employee compensation and health insurance. APS estimates that a state-mandated 1% employee raise will cost $6.2 million, while increased employer health insurance contributions will add approximately $35 million.

The district also projects a $16.1 million operational deficit, which officials plan to cover using financial reserves.

Most APS operating revenue comes through state education funding, while local property taxes help fund school construction, improvements and debt repayment. Consequently, closing schools would not necessarily produce corresponding reductions in property taxes.

According to APS, nearly one-quarter of its schools now serve fewer than 250 students, and approximately one in six operates at less than half capacity. The district also reports spending about $50,000 daily on utilities.

“No decisions have been made, and we are not presenting recommendations tonight,” Deputy Superintendent of Operations Antonio Gonzales told board members when the public engagement process was introduced.

APS has not identified schools for closure. Potential changes include consolidations, revised attendance boundaries or repurposing buildings for specialized educational programs.

Community meetings will continue through January, followed by a review of public feedback in February and March. District officials expect to report their findings to the Board of Education later in the school year.

For Albuquerque families, the process could determine where their children attend school and what programs remain available, while also shaping how APS manages billions of dollars in public funding with a substantially smaller student population.