STATE OF NEW MEXICO

OFFICE OF THE ATTORNEY GENERAL

HECTOR H. BALDERAS
ATTORNEY GENERAL
December 15, 2016

VIA EMAIL WITH HARD COPY TO FOLLOW

Kyle Rhodes
President
Farmington Municipal Schools Board of Education
2001 North Dustin Ave
Farmington, NM 87401
krhodes@fms.k12.nm.us
Re: New Mexico Virtual Academy
Dear Mr. Rhodes,
New Mexican families deserve the best education possible for their children. To this end, public
schools must be transparent, accountable, and effective in their use of public funds. As a statewide
oversight and law enforcement agency, the Office of the Attorney General must ensure that any
use of public funds for education is lawful and accountable.
Earlier this year, K12 Inc., a Virginia-based, for-profit, publicly traded company, entered a multimillion dollar settlement agreement with the Attorney General of California. The agreement
resolved allegations that K12 Inc. had engaged in false advertising, false claims, and unfair
competition. As a result of the settlement, K12 Inc. was required to reform its practices, provide
$160 million in debt-relief to the schools it manages, and pay an additional $8.5 million to settle
the claims.
The allegations in California obviously raise serious concerns about K12 Inc.s practices and the
resulting impact on students. My office is therefore conducting a review of K12 Inc.s activities in
New Mexico.
Because Farmington Municipal Schools Board of Education is the chartering authority for New
Mexico Virtual Academy (NMVA), a K12 Inc. affiliate, we are requesting the Board of
Educations assistance in our review.

TOLL FREE 1-844-255-9210 TELEPHONE: (505)490-4060 FAX: (505)490-4883 www.nmag.gov

MAILING ADDRESS: P.O. DRAWER 1508 - SANTA FE, NEW MEXICO 87504-1508
STREET ADDRESS: 408 GALISTEO STREET - SANTA FE, NEW MEXICO 87501

Correspondence to President Kyle Rhodes

Farmington Municipal Schools Board of Education
Subject: New Mexico Virtual Academy
December 15, 2016
Page 2 of 2

To assist our review, please provide copies of the following documents to my office not later
than January 17, 2016:
1. Farmington Municipal Schools chartering policies and procedures;
2. All materials and documents submitted by K12 Inc. or NMVA in support of any
application or renewal application for a charter;
3. Minutes, agendas, presentations, and other documents related to any Board of Education
meeting at which K12 Inc. or NMVA was discussed;
4. All approvals, charter contracts, memoranda of understanding, or other agreements
between Farmington Municipal Schools and K12 Inc. or NMVA;
5. All policies and procedures of NMVA;
6. All budget submissions by NMVA;
7. All quarterly financial reports by NMVA;
8. All financial audits of NMVA;
9. Any agreements or contracts for products and services between NMVA and K12 Inc.;
10. Any documents and records related to Farmington Municipal Schools monitoring of
NMVAs governance, performance, and legal compliance;
11. Historic and current enrollment data for NMVA; and
12. Any complaints received by Farmington Municipal Schools related to K12 Inc. or
NMVA.
Your cooperation with this review is appreciated. Please feel free to contact us if you have any
questions.
Sincerely,

Hector H. Balderas
Attorney General
State of New Mexico

TOLL FREE 1-844-255-9210 TELEPHONE: (505)490-4060 FAX: (505)490-4883 www.nmag.gov

MAILING ADDRESS: P.O. DRAWER 1508 - SANTA FE, NEW MEXICO 87504-1508
STREET ADDRESS: 408 GALISTEO STREET - SANTA FE, NEW MEXICO 87501