CIBOLA COUNTY, N.M. — Dozens of families across western New Mexico— including at least two students who graduated this past weekend in Cibola County—are now caught in the middle of a growing controversy between Gallup-McKinley County Schools and its virtual education provider, Stride/K12.
The Gallup-McKinley County School Board voted on May 16 to terminate its contract with Stride/K12, effective June 30, citing what it called “material breaches” of contract, including academic underperformance, special education noncompliance, and failures in reporting. But the company behind the program is calling foul—and accusing the district’s superintendent, Mike Hyatt, of violating state ethics laws in the process.
A formal complaint filed April 28 with the New Mexico State Ethics Commission by Stride Inc. alleges Hyatt applied for a $235,000-ayear executive role with the company while it still held an active contract with the school district.
When Hyatt wasn’t hired, Stride claims he retaliated by attempting to abruptly terminate the agreement, bypassing contract protocols and threatening the education of over 4,000 students enrolled statewide in the Destinations Career Academy of New Mexico, including many in Cibola County.
“Superintendent Hyatt is apparently knowingly and willfully abusing his public position,” the complaint stated, alleging potential violations of the Governmental Conduct Act and the state procurement code. Hyatt has denied wrongdoing, stating the company, not he, was acting illegally by overloading classrooms and ignoring student-teacher ratios mandated by law.
Yet the ethics complaint includes a detailed timeline showing that Hyatt applied for the job in December 2024, was interviewed in January, and notified in February that he had not been selected. On April 1, he sent a breach-of-contract notice to Stride, and just days later, the district issued a request for proposals (RFP) to find a new provider. The company argues this violated both the exclusivity clause and a 45day cure period meant to give contractors time to address concerns.
Parents say they’re paying the price.
This past weekend, the Destinations Career Academy hosted its graduation ceremony. Among the graduates were two students from Cibola County. But what should have been a joyful moment has turned into a time of uncertainty for their families and peers.
“I just don’t know what to do,” said Brian Cain, a Cibola County parent with students still enrolled in the online school. “We tried Grants-Cibola County Schools before. It didn’t work for us. Now I feel like I’m being forced to go back to a system that already failed my children.”
Cain said he has received little guidance about what comes next and hasn’t been presented with a clear alternative for continuing his children's education in the fall. “I don’t want to move. But right now, I feel trapped,” he added.
Boardroom Hostility, Community Fallout
The school board’s decision followed weeks of rising tensions. According to Stride, parents who attempted to attend a recent board meeting were turned away from school grounds and not allowed to speak. “They were silenced,” the company said in a public statement, calling the board’s actions disrespectful and politically motivated.
At that same meeting, Gallup School Board President Chris Mortensen reportedly described the virtual school’s performance as “garbage” and “in the toilet”— a comment that ignited further backlash. Stride said 88 percent of families report satisfaction with the program, double the national average.
In response, the district issued a formal FAQ outlining its rationale. It accused Stride of ignoring repeated warnings since February and claimed the company had failed to hire enough teachers to meet state-mandated ratios. As of May 14, only 21 out of 50 required teachers had been cleared, the district said.
District officials also maintain they are not shutting down online education entirely—only seeking a new, more effective provider. But with just weeks until the school year ends, families remain in limbo.
Larger Questions Loom
The dispute is also drawing scrutiny for what some see as a pattern of reactive governance.
“It took five years for them to raise concerns,” Mortensen admitted during the board meeting. “We were happy right up until the moment we weren’t.”
That comment rang hollow for attorney Laura Sanchez, who represents Stride.
“We submitted substantial data, refuted their allegations, and followed the contract,” she said. “The district ignored all of it.”
As the conflict escalates, the courts are beginning to weigh in. A judge in Aztec, New Mexico, denied Stride’s request for a temporary restraining order to halt the contract’s termination, but the company is likely to continue pressing its case through arbitration. Meanwhile, Superintendent Hyatt remains at the center of the storm, with an open ethics complaint hanging over his leadership.
For families like Brian Cain’s, the bureaucratic and legal drama is far removed from the real issue.
“We just want our kids to keep learning,” he said. “Why is that so hard?”