Hearing on PED plan for K-3 testing and retention on Thursday in Santa Fe

SANTA FE—The New Mexico Public Education Department will hear public comment in Santa Fe this Thursday on its proposed one-sized-fits-all testing and retention policy. The New Mexico Center on Law and Poverty opposes the proposed rule because mandatory retention based on standardized tests hurts our children and violates state law.

The New Mexico Legislature has given families and school districts the authority to decide what is best for each child based on a child’s individual needs. The PED’s rule, however, would require our state’s youngest students – kindergartners through third graders – to pass a PED-designated test in reading to continue to the next grade. Parents would have the right to refuse the first effort to retain a child, but retention would be mandatory if the child did not pass the test the following year.

It is critical that all New Mexican children know how to read. However, years of research shows that holding kids back does nothing to improve their reading skills; instead, it increases their likelihood of dropping out of school. Rather than retaining five to eight-year-olds, the Center proposes the PED invest in evidenced-based programs that actually help children learn to read, like PreK, extended learning time, and professional development for teachers who teach reading.

The Center’s comments on the proposed regulations can be found here: http://nmpovertylaw.org/letter-final-comments-to-ped-proposed-regs-2018-05-15/

PED’s proposed regulations can be found here: https://webnew.ped.state.nm.us/bureaus/policy-innovation-measurement/rule-notification/

PED public hearing on proposed new rule 6.19.9 NMAC, Early Literacy Remediation, Interventions, and Parental Engagement

Thursday, May 17, 2018 from 9:00 a.m.-12:00 p.m.

New Mexico Public Education Department
Mabry Hall
300 Don Gaspar Ave., Santa Fe, NM 87501

New Mexico Center on Law and Poverty attorneys
New Mexico Public Education Department staff
Education advocates

NM Financial Institutions Division releases small loans law regulations

ALBUQUERQUE, NM – This week, the New Mexico Financial Institutions Division (FID) released highly anticipated regulations on a law which imposed a 175% interest rate cap on small loans. In addition to capping small-dollar loan APR, the law (HB 347) which passed during the 2017 New Mexico legislative session, ensures that borrowers have the right to clear information about loan total costs, allows borrowers to develop credit history via payments made on small-dollar loans, and stipulates that all such loans have an initial maturity of 120 days and cannot be subject to a repayment plan smaller than four payments of loan principal and interest.

HB 347 and the proposed regulations signal progress for fair loan terms and a more inclusive economy for all New Mexicans by eliminating short term payday loans and enacting the first statutory rate cap on installment loans. But, while HB 347 is progress towards ensuring that all New Mexicans have access to fair credit, regardless of income level, the 175% APR cap required by HB 347 remains unfair, unnecessarily high, and will result in serious financial hardship to countless New Mexicans.

“The proposed regulations are a first step in giving all New Mexicans access to fair credit, but we still have a long way to go. In the past, storefront lending in the state was largely unregulated, and hardworking people were forced to borrow at interest rates as high as 1500% APR, forcing them into in a never-ending cycle of high-cost debt,” said Christopher Sanchez, supervising attorney for Fair Lending at the New Mexico Center on Law and Poverty. “All New Mexicans deserve a chance to more fully participate in our state’s economy. We hope to see additional regulations that would improve disclosures and language regarding loan renewals so that all borrowers can understand the terms of their loans.”

Storefront loans have aggressively targeted low-income families and individuals, with sometimes quadruple-digit interest rates or arbitrary fees and no regard for a family or individual’s ability to repay.

“Coupled with high interest rates and unaffordable payments, predatory loans prevent New Mexican families from building assets and saving for a strong financial future. These kind of unscrupulous lending practices only serve to trap people, rather than liberate them from cycles of poverty and debt,” said Ona Porter, President & CEO of Prosperity Works. “Enforcing regulation and compliance is a critical step in protecting our families.”

The implementation and enforcement of HB 347, via regulation and compliance examinations by the FID, aims to finally allow all New Mexicans to more fully and fairly participate in New Mexico’s economy. The momentum surrounding this issue was recently accelerated when New Mexico Senators Tom Udall and Martin Heinrich cosponsored the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act to crack down on some of the worst abuses of the payday lending industry and protect consumers from deceptive and predatory lending practices.

The regulations released early this week are the first round of proposed regulations. Before FID releases the second round, the department will be accepting public comment, including at a public rule hearing on April 3 in Santa Fe.