New Mexico CFO Sues Over $83 Million Shortfall in Universal Childcare Program
Carmel Pacheco-Aragon, the former Chief Financial Officer of New Mexico's Early Childhood Education and Care Department (ECECD), has filed a lawsuit alleging she was placed on leave after exposing an $83 million budget shortfall in the state's universal childcare program. New Mexico launched the program last year, becoming the first state to offer free childcare to all residents. The lawsuit claims the program was announced without consulting the Administrative Services Division or Pacheco-Aragon. Her attorney, Jacob Candelaria, stated that the program's rollout lacked internal budget planning, leading to financial chaos. The lawsuit also alleges that the ECECD illegally transferred funds to cover childcare payments, violating state law. Pacheco-Aragon is seeking reinstatement, back pay, and damages.