The Legislative Finance Committee of New Mexico has proposed a $10.8 billion budget for the 2025-2026 fiscal year, marking a 5.7% increase over the previous year's planned spending. This budget aims to balance immediate needs with long-term sustainability, focusing on education, healthcare, and infrastructure improvements while maintaining fiscal responsibility. Key highlights include significant investments in public education, healthcare, and strategic reserves. The proposal aligns closely with Governor Michelle Lujan Grisham's earlier recommendations, signaling a unified approach to New Mexico's financial future.

Investing in Education and Public Services

The committee's budget places a strong emphasis on enhancing public education and supporting state employees. A substantial portion of the increased funding will be directed toward schools and higher education institutions. Additionally, there is a focus on improving salaries for educators and other public servants, ensuring they receive competitive compensation. This strategic allocation reflects a commitment to both immediate improvement and sustainable growth in these critical sectors.

The budget allocates 45% of the $577 million increase in recurring general fund spending to public education. This includes formula-based distributions to school districts and charter schools. Furthermore, the Higher Education Department will see a 3% boost, amounting to $36 million. An average 4% salary increase, totaling $134 million, is also planned for higher education staff and state employees. These measures aim to attract and retain top talent in the education sector while providing necessary resources for ongoing development. Moreover, the Health Care Authority will receive an additional $79 million, primarily for Medicaid, underscoring the importance of accessible healthcare services for all New Mexicans.

Prioritizing Infrastructure and Community Development

Beyond education and healthcare, the budget also prioritizes infrastructure and community development projects. One-time spending of $3 billion is earmarked for various initiatives, including regional recreation centers, transportation projects, and special grants. This investment aims to enhance quality of life and support local economies across the state. By focusing on these areas, the committee seeks to foster healthier, more vibrant communities.

A notable portion of the one-time spending includes $50 million for regional recreation centers and quality-of-life grants, $350 million for transportation projects, and $855 million for special projects. Additionally, $1.7 billion will be transferred to endowments and other funds, ensuring long-term stability. Senate President Pro Tem Mimi Stewart highlighted the inclusion of a community benefit fund aimed at promoting electrification, clean jobs infrastructure, and reducing greenhouse gas emissions. This holistic approach not only addresses current needs but also sets the stage for a sustainable future. Overall, the budget focuses on making immediate improvements while laying the foundation for continued prosperity over the next decade.