House Sends State Budget to Governor

House Bill 2 as amended makes significant investments that will deliver meaningful results for New Mexicans today and for generations to come 

Santa Fe, NM - Tonight, the House of Representatives concurred with Senate amendments to the state budget for fiscal year 2025. The bill now heads to the Governor to be signed into law. The final version of House Bill 2, the General Appropriations Act, totals $10.22 billion, a 6.8% increase from last year, while retaining a 31% reserve. 

Senate amendments to House Bill 2 increased the budget by $31.5 million to grow and maintain key state programs. The amended bill retains vital investments in education, workforce development, public safety, infrastructure, the environment, and the working families of New Mexico.

“The House worked incredibly hard to develop a budget that reflects our state’s values in a transparent and collaborative process,” said House Appropriations and Finance Committee (HAFC) Chair, Rep. Nathan Small (D-Las Cruces). “That hard work is reflected in House Bill 2, which makes meaningful investments in areas of need for New Mexicans now, while also charting a course for sustainability and lasting success.”

“We’re proud to send the Governor a budget that puts today’s dollars to work for New Mexicans now, makes smart investments in the future, and maintains robust reserves for whatever lies ahead,” said HAFC Vice Chair Rep. Meredith Dixon (D-Albuquerque).“We are also grateful to our Senate colleagues for meeting us halfway to deliver critical funding for programs that are essential to our working families, veterans, and seniors.”

House Bill 2 as amended includes: 

Education

HB 2 includes $4.3 billion in recurring funds for public schools, including special appropriations for structured literacy, and out-of-school learning opportunities. Other investments include:

  • $59 million for teacher mentorship 

  • $55 million for culturally and linguistically appropriate instructional materials 

  • $50 million for the Tribal Education Trust Fund

  • $20 million in recurring funding to the Public Education Department to fully fund universal school meals

  • $10 million for State Equalization Guarantee reforms, providing additional resources to rural school districts 

  • 3% salary increases for public and higher education employees 

HB 2 appropriates $959 million for Higher Education Trust, which will ensure long-term funding for the Lottery and Opportunity Scholarships. 

The budget increases funding for the Early Childhood Education & Care Department by 6%, including an $11 million increase for pre-kindergarten and childcare quality supports. 

It also increases the distribution from the Early Childhood Trust Fund to fund: 

  • $75 million for childcare assistance

  • $12.3 million for home visits, infant health services, doula services, and lactation support

Workforce Development

HB 2 dedicates a significant investment in developing a strong workforce for New Mexico. 

The Higher Education Department will receive $1.3 billion in recurring funds, including: 

  • $146 million for the Opportunity Scholarship

  • $24 million for student financial aid

  • $15 million for medical professional loan repayment

  • $10 million for STEM scholarships

  • $6.8 million for adult education services and high school equivalency tests

  • $1 million for integrated education and training programs

  • $750,000 for an adult literacy program

  • $600,000 to the Tribal College Dual Credit Program Fund

The Department of Workforce Solutions will receive an increase of 17.6%, as well as significant special appropriations. Areas of funding include: 

  • $50 million for a Workforce Apprenticeship Training Fund

  • $20 million annually for workforce training at community colleges

  • $2 million for a trades career exploration pilot program to engage young adults

  • $600,000 to study youth reemployment and evaluate targeted apprenticeship programs

Child Well-Being

The budget makes key investments in improving the Children, Youth and Families Department, including funds to recruit, train, and support foster care providers, with $17.8 million from the federal Temporary Assistance for Needy Families (TANF) grant to support:

  • Supportive housing & services for youth aging out of foster care

  • Adoption and foster care services

  • A multi-level response system implementation

  • Family support services & family preservation services

  • Evidence-based prevention and intervention services 

Community Safety 

HB 2 invests a total of $532 million in public safety, including funds to ensure our law enforcement and emergency response agencies are well-staffed. This includes:

  • $25 million for the recruitment of local law enforcement, and correctional officers

  • $25 million for recruitment at statewide, local, and volunteer firefighters departments 

  • $11 million for Emergency Medical Services

  • $10 million for an Officer Pay Plan

  • $3.5 million special appropriation for law enforcement vehicle equipment

The budget also invests over $400 million in the judicial system, an increase of 6.4%, to fund: 

  • $4 million for judicial raises at all levels

  • Important safety and IT upgrades

HB 2 makes the largest funding increase to date for the New Mexico Crime Victim Reparation Commission, providing a total of $7 million, including: 

  • $4 million for victim advocates, 

  • $1 million for sexual assault victims,

  • $2 million to supplement federal grants for crime victims

Investments in the budget also seek to address the root causes of crime, including support for:

  • Behavioral healthcare

  • Substance use treatment 

  • Poverty-reduction programs

  • And access to quality education and healthcare

HB 2 also makes investments in housing, including:

  • $125 million for the development of residential and workforce housing through the new Housing Development Fund within the New Mexico Finance Authority

  • $50 million for the Housing Trust Fund

  • $10 million for transitional housing and shelters for victims of domestic violence

  • $2 million for re-entry services that include housing

  • Hundreds of thousands for statewide Councils of Governments to support homeless shelters and temporary, transitional, and affordable housing 

Healthcare

The Aging & Long-Term Services budget is increased by 8.5%, including $5 million for the Kiki Saavedra Senior Dignity Fund to provide transportation, food security, healthcare, case management, and caregiving to senior citizens. 

The budget increases funding for the Department of Health by $8.4% for a total of $2.9 billion, including $200,000 for suicide and mental health services for veterans.

The budget for the new Health Care Authority department totals nearly $2 billion. Health and wellness investments include: 

  • $50 million to support operations of small hospitals

  • A $14.1 million increase in Supplemental Nutrition Assistance Program (SNAP) benefits for elderly and disabled New Mexicans, quadrupling the monthly amount

  • $11.5 million in critical reimbursement rate increases for rural hospitals

  • $8 million increase for providers in Developmental Disability waiver system

  • $6.1 million for rural health care rate increases

  • $5 million in funding for Food Banks

Climate & Environment

The budget is also greatly increasing New Mexico’s investment in our environmental conservation agencies to help them staff up and operate effectively, including: 

  • A 12.5% increase for the Energy, Minerals, and Natural Resources Department (EMNRD) to support regulation of the oil and gas industry, expand firefighting efforts, and boost staffing at state parks

  • A 27% increase for the Environment Department to support staffing and regulation

  • $300 million to the Land of Enchantment Legacy Fund for conservation, supporting 10 programs across six agencies

  • Increased funding for the State Parks, Oil Conservation Divisions, and the Mine Reclamation Program to support the implementation of the Water Data Act 

Infrastructure & Technology
The budget includes $220 million for the Department of Transportation for major maintenance improvements for our roads and highways, local infrastructure, beautification, and litter control. 

It also includes $10 million for the Department of Information Technology to consolidate cybersecurity in state agencies. 

The budget also builds on our investments over the last several years in broadband with $25 million to help New Mexicans get and stay connected.

Additional infrastructure funding in the budget includes one-time appropriations of: 

  • $100 million in addition to the new Government Results and Opportunity (GRO) funds to invest in local governments, statewide agencies, or pilot projects

  • $50 million increase for the Water Trust Fund 

  • $25 million for the new New Mexico Match Fund to help New Mexico unlock federal matching funds for important rural and infrastructure projects

Economic Development 

HB 2 invests in proven economic drivers and creative new initiatives to bring needed diversity to our economy, with: 

  • $15 million for the LEDA fund and site readiness

  • $175 million to expand the Opportunity Enterprise fund, including support for housing 

  • $200,000 for local grants for creative industries

Investments in the Tourism Department are up 4.4% with funding to staff vacancies, as well as promote key tourism attractions and events: 

  • $2.5 million for tourism initiatives and federal grant match related to Route 66 tourism

  • $150,000 for publicity of the Connie Mack World Series

  • $100,000 for outreach related to the 100th anniversary of Zozobra

The Roundhouse is open to the public for the 2024 session. Members of the public can also view floor sessions and committee meetings on the New Mexico Legislature’s Webcasts tab, and provide comment via phone or Zoom as directed on the daily schedule.  

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