The document is a response by the New Mexico State Department of Education to "allegations, accusations and implications" of misuse of Federal funds intended for American Indian children. The allegations resulted from an investigation--supported by the NAACP Legal Defense and Educational Fund with the cooperation of the Center for Laws and Education of Harvard University--which was conducted in a number of states with public schools serving the Indian population. This document contains the response for the Gallup-McKinley County School System exclusively. The rebuttal selects specific allegations from the original report, "An Even Chance" (ED 047 867), and presents answers and clarifications. Recommendations of the reviewing team, resulting from their follow-up study, are also included. (EL)