LESC bill analyses are available on the New Mexico Legislature website (www.nmlegis.gov). Bill analyses are
prepared by LESC staff for standing education committees of the New Mexico Legislature. LESC does not assume
any responsibility for the accuracy of these reports if they are used for other purposes.
LEGISLATIVE EDUCATION STUDY COMMITTEE
BILL ANALYSIS
57th Legislature, 1st S ession, 2025
Bill Number HB433 Sponsor Gonzales/Garratt/Dixon/Brown
Tracking Number .230486.1 Committee Referrals HEC/HAFC
Short Title Study Career & Tech Education
Original Date 2/25/2025
Analyst Hicks Last Updated
BILL SUMMARY
Synopsis of Bill
House Bill 433 (HB433) would direct the Higher Education Department (HED), in consultation
with the Public Education Department (PED), the Department of Workforce Solutions (DWS), and LESC, to conduct a study of the current and anticipated future availability of career and
technical education (CTE) courses and instructors in New Mexico. This study would also include a review of the salaries and compensation packages for CTE instructors and an analysis of current
and future workforce needs. A final report and accompanying recommendations would need to be
submitted to the governor, the Legislative Finance Committee (LFC), and other legislative
committees by October 1, 2025. FISCAL IMPACT
HB433 appropriates $100 thousand from the general fund to HED for expenditure in FY26. Any unexpended or unencumbered balance remaining at the end of FY26 shall revert to the general fund. HB433 appropriates funding specifically to HED to oversee the CTE study. The language outlining the required information for the study would require the study to particularly focus on the salaries of CTE instructors teaching at community colleges. DWS has expressed a concern there is no funding allocated for their participation in the study. The agency’s analysis suggests either an additional appropriation for DWS, or the creation of an
agreement between HED and DWS to allow the latter agency to draw on the funding given to HED.
SUBSTANTIVE ISSUES
CTE in New Mexico. Modern CTE is an educational pathway designed to equip students with
practical skills, technical knowledge, and applied learning experiences. CTE contextualizes academic content by employing hands-on learning, enabling students to gain both foundational
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knowledge and specialized skills. CTE now spans a wide range of industries including healthcare,
technology, engineering, education, and business, alongside more traditionally thought of
industries such as construction or auto mechanics. While LESC analysis focuses particularly on
kindergarten through 12th grade (K-12) education, as well as teacher preparation, CTE programs
are offered in numerous parts of the state’s education and workforce systems: K-12 schools, two-
and four-year colleges, and as workforce training programs offered in both public and private
settings.
K-12 CTE Funding. In K-12 education, New Mexico has invested steadily in CTE efforts in
recent years with the Legislature appropriating $45 million in funding for CTE programs for FY25
and $40 million for FY24. Current CTE appropriations primarily support three initiatives: a CTE
pilot project created by the Legislature in 2019 (approximately $13 million for FY25), an
Innovation Zones initiative created by PED to redesign the high school experience (approximately
$11.2 million for FY25), and work- based learning primarily offered through the state’s Summer
Enrichment Internship Program ($10 million for FY25). Additional uses of the funding include
supporting PED staff, career technical student organizations, and various college and career
readiness initiatives. In addition to state funding, CTE programs in New Mexico are supported by
federal funds, known as “ Perkins V
.” In FY24, for example, New Mexico received $10.5 million
in federal Perkins funding. Under Perkins’ local formula distribution (accounting for 85 percent of the total allocation to the state), half of the funding ($4.05 million) is given to secondary recipients
while another $4.05 million is given to postsecondary recipients.
CTE Participation and Concentration. There are a total of 157.3 thousand New Mexico
secondary and postsecondary students participating in CTE courses as of the 2022- 2023 school
year (SY23). Of this population, 44.1 thousand are CTE concentrators, meaning they have
completed at least two CTE courses. See Figure 1: Secondary and Postsecondary CTE
Participants and Concentrators in New Mexico for a more detailed breakdown of the state’s
CTE student population.
CTE Teacher Shortages. According to national studies
, administrators around the United States
report having difficulty filling positions in CTE subjects 57 percent of the time, compared with 39 percent of academic subject positions. Shortages
appear to be particularly concentrated in high-
demand, high- wage subjects where teachers may face a higher wage penalty, including
69,888
43,273
22,210 21,927
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Secondary Postsecondary
Number of students
Figure 1: Secondary and Postsecondary CTE Participants and
Concentrators in New Mexico
2022-2023 School Year
Participants Concentrators
Source: Perkins Collaborative Resource Network
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manufacturing; information technology; health sciences; science, technology, engineering, and
math (STEM); and CTE.
A recent study
of CTE teacher turnover in Tennessee found CTE teachers in high- growth, hard-
to-staff CTE areas are:
• More likely to leave teaching;
• Difficult to replace, creating net reductions in the number of students served; and
• Earn the most money in their post-teaching employment compared to other high school
teachers who leave the teaching profession.
The study found CTE teachers in high- growth areas earned nearly 20 percent more in private
industry than they did teaching. Comprehensive Local Needs Assessment. To receive federal Perkins V funding, recipients are
required to conduct a comprehensive local needs assessment (CLNA)
. This assessment uses labor
market information and the state’s economic development plan to identify the necessary educational supports to address the needs of employers, growth industries, and communities across
the state. New Mexico’s Perkins V
state plan was most recently revised in 2024 and uses a
regionalized approach for funding decisions in the form of 10 regional associations consisting of
secondary, postsecondary, and industry partners. According to PED, funded programs of study must meet Perkins V criteria related to size, scope, and quality and be aligned to in-demand industry sectors to be considered for federal Perkins funding or be designed to meet local education
or economic needs.
Given Perkins’ requirement of a CLNA, many of the study components required under HB433 may be duplicative of existing efforts by PED and partners to continually assess and address educational and workforce needs in the state. Previous LESC Research on CTE. CTE has been a significant focus for LESC members and staff in recent years with CTE topics being discussed in numerous hearings and written reports
.
Most recently, LESC staff produced a policy brief in 2024 reviewing CTE programs, pathways,
and funding in the state. This brief examined the increased geographic spread of CTE grant funding in New Mexico, student outcomes associated with CTE participation, and other indicators of CTE uptake and impact.
ADMINISTRATIVE IMPLICATIONS
HB433 would likely have administrative implications for all three executive agencies directed to
carry out the study. According to DWS, the department would need to dedicate a learning program coordinator to provide data and analysis for the study. HED notes the appropriation provided by HB433 could be used to hire a third- party contractor to perform data collection and compile
findings into a report. PED reports it would also likely need to dedicate staff to support the required study under HB433.
OTHER SIGNIFICANT ISSUES
Fiscal Agent for CTE Funding. In New Mexico, federal Perkins V CTE funding for both secondary and postsecondary education is administered by PED. As written, HB433 would direct
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HED to oversee the required CTE study and appropriates funding to support this work. HED
oversees CTE programming in postsecondary settings. PED, however, also plays a role in
overseeing CTE programming and federal funds in the state, and DWS also oversees many CTE
efforts in the workforce. Further, LESC also conducts research on funding and policy related to
CTE. Genuine collaboration of all entities would be beneficial to ensure comprehensive findings.
RELATED BILLS
Related to Senate Bill 130, School Career Tech Ed. Program Units, which would add CTE program
units to the state equalization guarantee’s program cost calculation.
Related to Senate Bill 64, School Career Development Success Project, which would establish a
career development pilot project within PED and provide financial incentives to school districts
that encourage and promote student engagement in career development programs.
SOURCES OF INFORMATION
• LESC Files
• Department of Workforce Solutions (DWS)
• Higher Education Department (HED)
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