State Budget Headed to Governor’s Desk
Amended House Bill 2 maintains key investments in state’s future and puts historic state revenues to work for New Mexicans
Santa Fe, NM - Today, the House of Representatives voted to concur on Senate amendments to the state budget for fiscal year 2024, sending the legislation to the Governor’s desk to be signed into law. The final version of House Bill 2, the General Appropriations Act, totals $9.57 billion, up roughly 13.7% from last year, while still maintaining robust 30% reserves.
“As lawmakers, we have a responsibility to invest wisely, save prudently, and always act in the best interest of New Mexicans,” said House Appropriations and Finance Committee (HAFC) Chair, Representative Nathan Small (D-Las Cruces). “With that in mind, we worked across chambers and across the aisle to create a budget that addresses the urgent needs of communities across the state, maintains robust reserves, and responsibly invests in New Mexico’s future.”
House Bill 2 builds on the framework of the Legislative Finance Committee (LFC) to deliver transformational investments in health care and housing, community safety, education and child well-being, climate, infrastructure, and economic development.
“We are making responsible investments to help working families across our state today, improve the safety of our communities, and create opportunities for kids across New Mexico,” said HAFC Vice Chair Representative Meredith Dixon (D-Albuquerque). “We are also making deposits in long-term savings like the Severance Tax Permanent Fund and maintaining strong reserves that will help New Mexico remain resilient through economic ups and downs.”
Highlights from the budget are listed below:
Education
The budget prioritizes continued support for New Mexico’s schools, students, and teachers, including an 8% funding increase for public schools, totaling $302 million.
Much of this is focused on initiatives to improve the quality of instruction for our students, with:
$32 million for at-risk student services
$40 million for career technical education programs for students
$252 million for extended learning
It provides strong support for educators to help recruit and retain quality teachers, including 6% raises for teachers and higher education employees, and $14.5 million to raise the minimum salary of educational assistants.
Additionally, the budget increases higher education funds by $187 million or 18%, including $146 million to fully fund the Opportunity Scholarship.
Funding for our youngest New Mexicans is also significantly greater, with appropriations to the Early Childhood and Education Care Department up $135 million, a 69% increase.
Health Care & Child Well-Being
The FY24 budget contains the largest investment in New Mexico’s behavioral health services in recent history, totaling $164 million to the Department of Health, the Human Services Department, the Children, Youth & Families Department, the Early Childhood Education and Care Department, and other agencies.
HB 2 also uses $21 million of opioid settlement revenue to expand housing services, telehealth, and substance use research and treatment.
It includes a 6% increase in funding for the Children, Youth, and Families Department, and $7.6 million dedicated to evidence-based, nationally recognized child welfare programs to modernize the state’s system and funding to fill hundreds of existing and new social worker positions.
HB 2 also increases Medicaid funding by $246 million.
Community Safety
To ensure the safety of communities across New Mexico, the budget funds a set of smart, comprehensive solutions that provide our police with the resources they need today, while investing in proven programs to deter future crime by tackling its root causes.
Dedicates $100 million to community safety and law enforcement, including:
$32.5 million for law enforcement recruitment and retention
$10 million for felony warrant enforcement
Climate & Environment
New Mexico’s environment is also a top budget priority for FY24, with $489.5 million in recurring and nonrecurring appropriations to the Environment Department; Energy, Minerals and Natural Resources Department, the Office of the State Engineer, and other agencies.
These increased investments in these agencies will help with enforcement and oversight of existing environmental regulations. This includes:
a 14.7% increase to the Energy, Mineral and Natural Resources Department
a 13.5% increase to the Environment Department
an 8.8% increase in general fund appropriations for the office of the state engineer
The budget also includes smart investments that will use the current surplus to generate future recurring revenue. It allocates $50 million to establishing the Land of Enchantment Legacy Fund - a new permanent fund for land and water conservation. HB 2 also allocates $40 million for recreation centers across the state.
Economic Development, Infrastructure & Broadband
Economic diversification remains a top priority in this year’s budget, with an 11.3% increase in funding to the Economic Development Department.
Investments in infrastructure include $230 million in special appropriations for state and local roads and $55 million for airports.
Additionally, a total of $124 million will go to the Office of Broadband Access and Expansion for implementation of the statewide broadband plan.
The Roundhouse is open to the public for the 2023 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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