Welcome to the Legislative Finance Committee

Highlights of the House Appropriations and Finance Committee Substitute for HB2 and HB4
The House Appropriations and Finance Committee Substitute for House Bill 2 would provide FY17 appropriations of $6.32 billion, an increase of $81 million, or 1.3 percent, over the FY16 operating budget. Appropriations for Medicaid, public education, and the departments of Children, Youth, and Families, Corrections, and Public Safety account for almost all of the increase. Appropriations for most other agencies are flat or slightly negative. With new money projected at only $32 million, the substitute relies on House Bill 311, a fund transfer bill, to boost state revenue in FY17 and avoid spending cuts.

Health Notes Brief: Uncompensated Care in New Mexico After the Affordable Care Act
As more New Mexicans have obtained insurance coverage, the costs of uncompensated care in New Mexico have dropped significantly.

Accountability Report: Medicaid
The Medicaid Accountability Report provides performance and cost information on Centennial Care across physical health, behavioral health, and long-term care services.

January 2016 Update to Consensus Revenue Estimate
The updated revenue forecasts for both FY16 and FY17 are substantially lower than earlier forecasts. Compared with the December 2015 forecast, the FY16 recurring revenue estimate was revised downward by $144.8 million to $6.02 billion and the FY17 revenue estimate was revised downward by $201.7 million to $6.26 billion.

Consumer Lending Practices in New Mexico
New Mexico eliminated interest rate caps on small loans in the 1980s but amended the Small Loan Act in 2007 to add caps for payday loans. However, many payday lenders successfully avoided the new restrictions by switching to providing small installment loans. Other requirements for payday loans, such as restrictions on making loans that push borrower debt over 25 percent of gross monthly income, could not be enforced for installment loans. Unintended consequences of payday legislation included increases in the number of loan renewals, loan write-offs, and loans with longer terms and larger principals.

LFC FY17 Budget Recommendation
The Legislative Finance Committee today released a budget recommendation for the 2016-2017 fiscal year that calls for spending $6.47 billion from the state’s general fund, with a third of the $230.7 million increase over FY16 spending contingent on revenues coming in as forecast. Total spending and priorities are similar to the executive recommendation.

Press Release
Volume 1 - Policy and Performance Analysis
Volume 2 - Appropriation Recommendations
Volume 3 - Supplemental Tables and Graphs

Program Evaluation: Higher Education Department On-time Graduation and Degree Production
Workforce projections indicate that 35.5 percent of New Mexico job openings by 2020 will require a postsecondary degree; however, absent major changes in educational attainment, New Mexico is likely to fall short of having the educated workforce necessary to fill these openings, let alone expand economically. The Legislature has invested heavily in higher educationand its citizens devote significant tax effort to support this sector of government.

Finance Facts: Highway Funding
The New Mexico Department of Transportation and the State Transportation Commission are charged with maintaining the state’s transportation infrastructure, including 30,000 lane miles of interstate corridors and U.S. and state highways. To maintain this infrastructure, NMDOT relies on two main sources of funding: the state road fund and transfers from the Federal Highway Administration.

LFC NewsLetter

January 2016

LFC Calendar

LFC Meeting Agenda

Agenda is not available.