Opinions
Pete Campos is a state senator from Las Vegas representing State Senate District 8 including parts of Colfax, Guadalupe, Harding, Mora, Quay, San Miguel & Taos Counties.
For decades, New Mexico policymakers have been talked about reforming the capital outlay process. And some progress has been made, but the reality remains frustrating: billions of dollars of authorized spending are stuck in neutral, as projects across the state idle.
At the end of the fiscal year on June 30, New Mexico had $7.2 billion in outstanding balances tied to 6,500 capital outlay projects. However, nearly 4,200 of those projects were “local”—construction projects and equipment purchases for city, county, and tribal governments and other local entities funded at the discretion of individual legislators and the governor.
This imbalance tells a story. The current capital outlay process struggles to get local dollars where they’ll be most effective, while state-level projects, which go through a formal vetting process, are moving ahead with more consistency and purpose.
State agencies are required by state law to craft five-year plans for major capital improvement projects. Each year, agencies present their priorities to a panel of executive and legislative staff. These hearings help shape the Legislative Finance Committee’s recommendations, which serve as the foundation for capital outlay discussions. Roughly half of the available funds go to these well-vetted, statewide projects.
The other half is divided among the House, Senate, and governor, and legislators get an equal share of the amount allocated to their chamber. This allocation empowers each legislator to fund priorities in their districts, but the individual amounts are often ineffective in addressing the greatest needs in local communities or supporting economic growth.
This is largely for two reasons: The amounts are too small to get the project launched or completed, and vetting for the projects is limited, meaning many projects were not sought by the community or the community is not prepared to use the money effectively.
It’s time for a new approach to vetting and prioritizing local projects. Staff with the newly created Infrastructure Planning and Development Division at the Department of Finance and Administration should assess whether local entities are truly ready to take on a project. They can identify underfunded efforts that need a boost. And they can guide communities toward existing grant programs—especially for essentials like drinking water and wastewater systems—before they seek capital outlay dollars.
Legislators, too, must sharpen their focus. Let’s prioritize unfinished but vital projects across the state. Let’s build regional plans for senior centers, libraries, soil and water conservation districts, and other community anchors. Let’s coordinate construction material purchases to leverage bulk pricing and stretch every dollar further.
Capital outlay isn’t just a budget issue—it’s a powerful tool to improve lives and grow our economy. But it only works if we use it wisely, strategically, and with a shared commitment to impact.
New Mexico deserves better than billions in limbo.