Lawmakers in the New Mexico House of Representatives Monday passed a $10.8 billion state budget proposal months in the making. If enacted, it would be the largest in state history, marking a nearly 6% increase over last year’s record-breaking budget.
At a news conference ahead of the hearing, House Appropriations and Finance Committee Chair Rep. Nathan Small (D-Las Cruces) highlighted the proposal’s largest recurring investments, which his committee added on top of the Legislative Finance Committee recommendation. Those include categories like students and schools, police and public safety, growing New Mexico’s economy and protecting its water supply.
"I think we can all agree that those are key priorities for all New Mexicans,” he said. “These will have immediate impact for New Mexicans and set us up for sustainable growth in the long run. All the while saving in a very prudent and strong manner.”
The proposal would leave more than 31% of the state’s general fund in reserves, which could cover unexpected shortfalls.
Under the committee's substitute for House Bills 2 and 3, the Public Education Department would see a 6% increase while Higher Education would get nearly 3% more than it does now. For even younger learners, the Early Childhood Education and Care Department budget would grow by more than 21%.
The state’s new Health Care Authority and the Energy, Minerals and Natural Resources Department would also see double-digit growth, with more than 23% and 19% budget increases respectively.
A number of public safety and justice agencies would get recurring bumps, including the departments of Public Safety, Corrections, Courts, Public Defenders and the state Department of Justice. The Office of the State Engineer and Economic Development Department would get bigger budgets to work with, as well.
State, higher education and public school employees would also see a 4% raise on average.
Rep. Cathrynn Brown (R-Carlsbad) introduced a GOP substitute to the bill during the debate. She touted it as maintaining a surplus and higher reserves than the original. It proposed $1.5 billion in cuts to one-time spending she deemed “low-priority” in favor of sharing the state’s record oil and gas revenue with New Mexicans through $600 payments for all residents.
“I want the money, especially when we have such wonderful new money, to go to the people directly,” she said. “And, you know, some of these initiatives will find their funding and move forward. If it’s a good investment, people will find it.”
Democrats criticized the GOP’s proposal for cutting investments in water, economic development, and transitional housing, among others, before tabling it on a 42 to 24 vote.
At the news conference earlier in the day, Rep. Small praised the now House-approved budget proposal as the result of bipartisan work over the first month of the session, but also ahead of time. He highlighted subcommittees and working groups that held multiple open meetings with public comment to get to this point.
“I’m really proud to say that this is the most open, transparent and collaborative budget ever,” he said. “That builds the best budget. When we all have a chance to bring our voice to the table.”
Small highlighted $110 million for transitional housing and behavioral health supports as a result of community input.
He closed the debate on the House floor by reiterating the broad, statewide impact his committee’s proposal would have.
“If you’re a rancher in Raton, this buget’s for you. If you’re a 6th grade student at Seboyeta Elementary, this budget’s for you. If you’re worried about affordability and access to health care in Albuquerque and any other part of the state, this budget’s for you,” he said.
The full House approved it on a 50 to 18 vote. As the bill heads next to the Senate, Small says there’s room for that chamber to add in its own priorities, and then each will “have some choices to make at the end.”
Once through the Legislature, Gov. Michelle Lujan Grisham will have the opportunity to line-item veto any part of the proposed budget before signing.
