$10.1 billion budget heads to House floor

Between committee meetings discussing bills about guns, license tags and cannabis law updates, lies the main reason for the session: the state budget. The House Appropriations and Finance Committee approved budget bills HB 2, the House Appropriations Act of 2024 and HB 3, the Department of Transportation Appropriation Act, on a 13-to-3 vote. “This budget… […]

$10.1 billion budget heads to House floor

Between committee meetings discussing bills about guns, license tags and cannabis law updates, lies the main reason for the session: the state budget.

The House Appropriations and Finance Committee approved budget bills HB 2, the House Appropriations Act of 2024 and HB 3, the Department of Transportation Appropriation Act, on a 13-to-3 vote.

“This budget… represents by significant factor the largest investments before the Senate has had a chance to do their action during session in areas like housing and infrastructure, the largest healthcare investment that we’ve ever done as a legislature,” HAFC Chairman Rep. Nathan Small, D-Las Cruces, said. “I think in the numbers, this really goes to a huge opportunity and challenge that we have.”

Rep. Cathrynn Brown, R-Carlsbad, Rep. Rod Montoya, R-Farmington, and Rep. Randall Pettigrew, R-Lovington voted against the bills.

The Fiscal Year 2025 New Mexico budget has $10.18 billion available for appropriations. The appropriations involve HB 2, HB 3 and HB 1, the Feed Bill, which funds the legislature through the session.

The bills show how state funds would be allocated for FY 25 which begins July 1.

Related: Lujan Grisham talks public safety, economy and more during State of the State

The budget results in reserves at 32 percent of spending.

“With hundreds of millions of one-time dollars available from the reserves, the recommendation continues efforts to create and grow endowments before expanding agency recurring base budgets, including a new endowment for higher education that, along with existing endowments for early childhood and public education, completes a ‘cradle to career’ system of investments,” the Legislative Finance Committee’s recommendations and highlights report states. “In addition, efforts to ‘re-fund future year’s spending needs include ‘expendable trusts’ that provide appropriations over multiple years, like those being used to support child welfare and workforce development services.” 

The expendable trusts are funds outside of budget reserves set aside for future funding needs as well as ensuring that reserves are maintained, like a rainy day fund.

State natural resources departments are expected to get a windfall for FY 25.

“Everything from increasing staffing and regulatory capacity for overseeing the oil and gas industry, to fighting fires to expanding staffing and funding for operation of our state parks around the state,” LFC Director Charles Sallee said. “Increases in monitoring funding for the environment department’s budget, significant investments in their staffing, and their overall general fund budget grow about 90 percent. Those increases should allow for greater effectiveness in their regulatory response.”

Although the state budget is doing well, the LFC requests that the state begin decelerating to save for less abundant years, according to a report from the committee.

New Mexico’s energy market is currently strong, but its volatile nature drives state revenues in a way that could cause a sudden drop in revenues.

Related: Getting off the oil and gas roller coaster: State economists estimate another year of record revenue

The legislature passed a bill during last year’s legislative session , SB 26, that transfers excess oil and gas revenues to the severance tax permanent fund beginning in FY 25.

This would mean an increase in severance tax fund payments to the general fund.

The budget bills now head to the House floor for debate.

We're ad free

That means that we rely on support from readers like you. Help us keep reporting on the most important New Mexico Stories by donating today.

Related

Supporters of Paid Family and Medical Leave say it will return

Supporters of Paid Family and Medical Leave say it will return

House Speaker Javier Martinez said that the Paid Family and Medical Leave will return to next year’s legislative session. SB 3, sponsored by state…
State’s sexual assault services receive state funding but still a gap in federal dollars 

State’s sexual assault services receive state funding but still a gap in federal dollars 

New Mexico sexual assault services will come up short in Fiscal Year 2025. New Mexico Coalition of Sexual Assault Programs advocated for $4 million…
Advocates for family and children say budget provides benefits for children

Advocates for family and children say budget provides benefits for children

The legislature passed a budget of $10.2 billion this year. The budget now awaits the governor’s signature.  Some highlights from the budget that will…
Legislation focused on reforms of oil and gas extraction fails to pass

Legislation focused on reforms of oil and gas extraction fails to pass

This legislative session brought few changes to the oil and gas industry that provides a substantial part of the state’s budget. Going into the…
Senate approves bill to allow wastewater project funding through the Water Trust Board

Senate approves bill to allow wastewater project funding through the Water Trust Board

The Senate passed legislation that changes which projects can receive funding through the Water Trust Board on a 34-5 vote on Wednesday. HB 211…
Geothermal bill makes it to governor’s desk for second consecutive year

Geothermal bill makes it to governor’s desk for second consecutive year

The Senate unanimously passed legislation intended to spur development of geothermal energy on Wednesday. HB 91 now heads to the governor’s desk.  The legislation…
Amid new graduation requirements, what do high schoolers want to learn?

Amid new graduation requirements, what do high schoolers want to learn?

By Margaret O’Hara, The Santa Fe New Mexican The main things that bring Brayan Chavez to school every day: Seeing, talking to and engaging with…
Special ed teachers hope lawmakers OK pay raises, admin changes

Special ed teachers hope lawmakers OK pay raises, admin changes

By Margaret O’Hara, The Santa Fe New Mexican Brittany Behenna Griffith has a laundry list of adjectives to describe the ideal special education teacher:…
Lawmakers must find consensus on competing education spending plans

Lawmakers must find consensus on competing education spending plans

By Margaret O’Hara, The Santa Fe New Mexican A challenging task awaits New Mexico lawmakers in the next 30 days: Reconciling three very different…
Proposal to curb executive powers moves to House Judiciary

Proposal to curb executive powers moves to House Judiciary

The House Government, Elections and Indian Affairs Committee discussed a potential constitutional amendment that seeks to limit the governor’s executive powers. The committee approved…
Supreme Court censures attorney over conduct in anti-COVID policy suits

Supreme Court censures attorney over conduct in anti-COVID policy suits

The New Mexico State Supreme Court censured a New Mexico attorney because of her “misconduct” in two unsuccessful cases pushing back on COVID-19 regulations…
Guv outlines some health priorities on state spending

Guv outlines some health priorities on state spending

During her state of the state address on Tuesday, Gov. Michelle Lujan Grisham told legislators that one of her legislative priorities is a request…
Referendum on Edgewood’s anti-abortion ordinance moves forward

Referendum on Edgewood’s anti-abortion ordinance moves forward

The town of Edgewood is moving forward with its ballot referendum on its anti-abortion ordinance at a cost of more than $35,000. The town…
2023 Top Stories #1: Anti-abortion efforts go local

2023 Top Stories #1: Anti-abortion efforts go local

Note: Every year, we count down the top ten stories of the year, as voted on by NM Political Report staffers. Earlier this month, the New Mexico Supreme Court heard oral…
NM Supreme Court to decide if local anti-abortion ordinances are legal

NM Supreme Court to decide if local anti-abortion ordinances are legal

The New Mexico Supreme Court will decide whether anti-abortion ordinances passed by local governments in eastern New Mexico over the last 13 months can…
Supporters of Paid Family and Medical Leave say it will return

Supporters of Paid Family and Medical Leave say it will return

House Speaker Javier Martinez said that the Paid Family and Medical Leave will return to next year’s legislative session. SB 3, sponsored by state…
Paid Family Medical Leave bill dies in the final days of the session for a second year in a row

Paid Family Medical Leave bill dies in the final days of the session for a second year in a row

A bill that would have provided paid leave for several weeks died on the House floor when 11 Democrats sided with Republicans to vote…
Paid Family and Medical Leave bill passes Senate

Paid Family and Medical Leave bill passes Senate

A bill that seeks to provide several weeks of paid family and medical leave for workers in the state passed the state senate by…

Bill to require disclosure of use of AI in campaign materials goes to governor

The Senate approved a bill aiming to require the disclosure of the use of artificial intelligence or other changes made by computers to campaign…
House amends, passes bill banning firearms near polling places

House amends, passes bill banning firearms near polling places

The House narrowly approved a bill that would ban firearms near polling places. The House voted 35-34 to pass the bill following an extensive…
Manny Gonzales doesn’t qualify for Senate GOP primary ballot

Manny Gonzales doesn’t qualify for Senate GOP primary ballot

Nella Domenici is the lone Republican candidate for U.S. Senate, after Manny Gonzales III failed to qualify for the ballot. Gonzales did not file…
Supporters of Paid Family and Medical Leave say it will return

Supporters of Paid Family and Medical Leave say it will return

House Speaker Javier Martinez said that the Paid Family and Medical Leave will return to next year’s legislative session. SB 3, sponsored by state…
Advocates for family and children say budget provides benefits for children

Advocates for family and children say budget provides benefits for children

The legislature passed a budget of $10.2 billion this year. The budget now awaits the governor’s signature.  Some highlights from the budget that will…
Supporters say affirmative consent bill would make college campuses safer

Supporters say affirmative consent bill would make college campuses safer

The bill to mandate affirmative consent policies and procedures in institutions of higher education awaits the governor’s signature. If signed, advocates hope it will…

GET INVOLVED

© 2023 New Mexico Political Report