Legislative Finance Committee

Actual and estimated general fund revenue collections through the end of 2025-2026 fiscal year indicates revenue is tracking $609 million, or 4.6 percent, above the December 2025 consensus forecast, driven primarily by exceptionally strong corporate income tax collections.

Both the number and value of industrial revenue bonds (IRBs) issued by local governments have increased multifold over the last 25 years, but neither the state nor local governments require sufficient reporting on IRBs to determine whether that trade-off pays off.

Healthcare costs, both commercial rates and the costs of public assistance, have climbed in the last five years, with high hospital costs, specialty drugs, provider wages, and general inflation driving the increases in both markets.
Staff Presentation: Overview of the NM Healthcare System, July 2026
Staff Presentation: Healthcare Cost Drivers in New Mexico and Medicaid Oversight, July 2026

New Mexico’s below-average high school graduation rate sets up a cycle that leads to lower incomes and fewer adults working, creating a drag on the state’s economy.
Staff Presentation: Impact of Increased Education Attainment, July 2026
Path to Prosperity Dashboard

New Mexico has invested substantially in rebuilding its behavioral health system through recurring and nonrecurring appropriations, but numerous nonrecurring appropriations remain unspent and outcomes remain mixed.

New Mexico has spent $2.6 billion to increase learning time in public schools since a state court ruled the approach should be expanded, but scheduled instructional time has increased little.

The number of emergency orders issued by the governor almost doubled between 2024 and 2025, while the amount of authorized spending was more than twice as high, increasing by $160 million in the same year.