Sprawling Rural School District Facing Financial Struggle as Shift From Coal Continues
In the expansive stretches of San Juan County, New Mexico, a rural school district known for its vast territory yet small student body is facing financial difficulties. This comes as New Mexico’s largest power provider, the Public Service Company of New Mexico (PNM), transitions from coal-fired power generation to embrace renewable sources of energy, a move prompted by the state’s ambitious Energy Transition Act of 2018. The act seeks not only to phase out coal in favor of greener alternatives but also ensures that affected communities are supported through this significant change.
The Central Consolidated School District, spread over an enormous 3,000 square miles and serving an estimated 5,000 students – over 90% of whom are Native American – is at the heart of this transition. The district encompasses 15 schools, a technical center, and several preschools, a testament to its critical role in the community. However, the recent closures of the San Juan Generating Station and concerns over the future of the nearby Four Corners Power Plant have heightened fears regarding the financial viability of the district. These facilities have historically been pivotal in contributing to the district’s tax revenue, crucial for funding education.
Steve Carlson, the superintendent of the district, has openly shared the grim realities facing his schools. In a detailed statement, Carlson described how the district is struggling to ensure its students have access to the same quality of education as those in other regions, amidst dwindling resources. He highlighted the severe impact of these financial strains on the district’s ability to maintain its infrastructure, noting that around 80% of their property tax revenue previously came from the energy sector, including the San Juan Generating Station and the Four Corners Power Plant and their associated coal mines.
Notably, the district has seen a staggering 700% increase in student homelessness rates since the closure of the San Juan plant in 2022. There is a palpable fear that without significant intervention, the district may continue on this downward spiral, impairing its ability to provide for its students.
This financial insecurity has caught the attention of state representatives like Rod Montoya, who points out the unique predicament of the Central Consolidated School District. Montoya stresses that the district’s financial woes are unprecedented in the state, underlining the critical dependence on the coal industry for its economic survival.
In response to these challenges, there has been significant legislative pushback against PNM’s move to locate replacement power projects outside the area served by the school district. Fifteen state legislators have recently sought intervention from the state Supreme Court, demanding that the Public Regulation Commission enforce the provisions of the Energy Transition Act that mandate replacement power generation developments within the district’s boundaries.
PNM asserts its commitment to the Energy Transition Act, stating plans to develop energy projects that not only comply with the act but also support the local community. According to the utility, it has initiated solar and battery projects within and outside San Juan County and has pledged to include a project within the school district’s vicinity in its future resource plans.
Despite these commitments, there remains a deep sense of unease among the district’s stakeholders and community members. The transition from coal to renewable energy, though environmentally commendable, has cast a shadow over the district’s financial health and its ability to serve its student population effectively. As debates and legal challenges continue, the path forward for the Central Consolidated School District remains fraught with uncertainty, highlighting the complex interplay between environmental policy, community welfare, and economic stability in the age of renewable energy.
The situation in San Juan County serves as a poignant reminder of the need for a thoughtful, inclusive approach to energy transition. It underscores the importance of ensuring that policies aimed at combating climate change also address the socio-economic impacts on vulnerable communities, striving for a balance that nurtures both the planet and its people.
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