The governor and legislative leaders released their budget recommendations this week. The legislature will meet beginning later this month for a 30-day session in which they will pass a state budget.

The Legislative Finance Committee recommendation included $10.1 billion in spending for the state’s general fund, which is a 5.9 percent increase over the fiscal year 2024 planned spending.

Gov. Michelle Lujan Grisham released her FY25 executive budget recommendations on Thursday.

The governor’s budget proposal includes $10.5 billion in recurring spending, which is almost 10 percent more than in FY24.

The LFC announced its budget recommendations Friday during a press conference in the North Capitol Building.

“I believe we have put together a very responsible budget and still left (room) there for the reserves,” Sen. Nancy Rodriguez, D-Santa Fe, said.

According to the LFC’s spending plan, 30 percent of the budget would be kept in reserves. This is above the amount that helped the state navigate the income falls at the beginning of the COVID-19 pandemic, an LFC press release states.

General fund spending would increase by $566 million dollars, which includes $134 million to be used to maintain the Medicaid Program.

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Public school spending from the general fund would increase by $115 million.

The LFC plan would also include a total of $4.42 billion in spending on kindergarten through 12th grade education, which is a 5.8 percent increase from FY 24.

The plan also recommends $243 million in nonrecurring, education-related appropriations including $52 million from the public education reform fund to address education sufficiency issues as addressed in the Martinez/Yazzie lawsuit.

“The executive is a little bit higher than us and their reserves are higher but that’s because they put more taxes in and did it a different way,” LFC Chairman Sen. George Muñoz, a Democrat from Gallup, said.

“Because of our historic– but prudent– investments made over the last few years in New Mexico in everything from small businesses to hospitals, childcare to college, free school meals to law enforcement, the future of our state is brighter than ever,” Lujan Grisham said in a press release. “Here’s my promise to New Mexicans today: I will continue to push for programs, services and solutions that work. Here’s my promise to New Mexicans in future years and future generations: We will continue to spend within our means, responsibly and with an eye toward accountability, always, while capitalizing on the fiscal opportunities available.”   

Lujan Grisham’s recommendation maintains reserves at 34.2 percent and directs investments in housing, education, child wellbeing, public safety, health care, economic development and water/natural resources, the press release stated.