Legislative Update

Tuesday, Jan. 16, 2024

Grisham began her speech focusing on economic development successes and ended with the hot button issue of gun legislation. She told the crowd that New Mexico now has more jobs than ever in its history and that 110,000 jobs had been added in the last three and a half years. She also touted New Mexico as having one of the best job growth rates in the nation and the best growth in pay rate. Detractors of those numbers have pointed out that those numbers only happened because of the incredible lows New Mexico saw under her leadership during the pandemic.

The Governor is also asking for $500 million for a “Strategic Water Supply” that would seek to kickstart private enterprise toward desalination of briny water deposits deep under most of the land in the state.

The Governor seeks another $100 million for the Rural Healthcare Delivery Fund to match the successes she says it had last year. Other healthcare initiatives including for behavioral health were mentioned.

The lion’s share of her proposed budget is once again earmarked for education. She wants to use a portion of that to support “Structured Literacy” programs. She requested $30 million to build a statewide literacy institute and another $30 million to support free summer literacy programs. She also said she would seek to make sure that each school district is mandated 180 days of instruction.

Finally, on gun violence, she would like to have an assault weapons ban, raise the age to purchase firearms to 21, mandate a 14-day waiting period for firearms purchases, ban guns in parks and playgrounds and allow law enforcement to file “Extreme Risk Protection Orders” against individuals she says shouldn’t have firearms. She also mentioned increasing penalties for some crimes and for commercial burglary.

Expect that last paragraph here to supply all the fireworks we can handle in a 30-day session.

The governor’s budget is $10.5 billion, a 9.9% increase, while the LFC comes in lower at $10.1 billion, a 5.9% increase. State agencies had requested a 10.9% increase.

Here are the highlights of both courtesy of the Greater Albuquerque Chamber of Commerce:

Highlights of the Executive Budget Proposal

·    34.2% general fund reserve (as a percentage of recurring spending)

·    3% compensation increase for all state and school employees, with targeted increases for state police and correctional officers

·    $500 million for statewide housing initiatives

·    $500 million for tax reform

·    $250 million to the Conservation Legacy Fund

·    $200 million for statewide road projects

·    $130 million for lottery tuition

·    $108 million for Opportunity Scholarships

·    $100 million for the rural health care delivery fund

·    $42 million to implement the state’s broadband plan

·    $40 million for homeless initiatives

·    $35 million for law enforcement recruitment and retention

·    $30 million for drought mitigation projects by the State Engineer

·    $25 million for LEDA

·    $20 million for behavioral health and child welfare services

·    $15 million for teacher and professional health care loan repayment

·    $15 million for the national marketing and advertising by the Tourism department

·    $10 million for roadway beautification

·    $10 million to improve enrollment and graduation from nursing programs

·    $9.7 million for JTIP

·    $850 million for capital outlay (sources to be determined)

Highlights of the LFC Budget Proposal

·    30% general fund reserve

·    4% compensation increase for all state and school employees – 2% cost of living and 2% to “properly place” employees on pay scale (additional funds provided for health insurance)

·    $663 million to GATF for future years and $300 million for first four years

·    $200 million for tax reform

·    $300 million to the Conservation Legacy Fund

·    Increase distribution from Early Childhood Trust fund to $250 million

·    A 1% increase for Children Families and Youth department

·    $152 million from GATF funds to pilot educator clinical practice programs and other education initiatives

·    $120 million for rural health care providers

·    $100 million to the Water Trust fund

·    $80 million for student aid for high-demand workforce training certificate programs and apprenticeships (over four years)

·    $50 million to the Housing Trust fund

·    $45.9 million to eliminate deficits in the patient compensation fund

·    $26 million for public safety radio communication infrastructure statewide (capital outlay)

·    $20 million for broadband implementation

·    Capital outlay: $410 million from the general fund; $90 million from other state funds and $269 million from general obligation bonds (if approved by voters in November). No issue of severance tax bonds (currently there is more that $5 billion in outstanding capital outlay spread over more than 5,000 projects)

·    Other capital outlay of significance: $55 million for new humanities complex at UNM; $15 million to complete Comprehensive Cancer Center at UNM Health Sciences Center; and, $10 million for the FUSE Makerspace at CNM

2024 Legislative Priorities