Legislative Finance Committee

School leadership is second only to classroom instruction for its impact on student learning, but a third of New Mexico public school principals leave their posts every year and turnover is highest in the low performing schools.

State spending would need to grow less than 6 percent a year to stay within long-term revenue projections, but state agencies, even without public schools and colleges, have asked for budget increases averaging close to 16 percent for the next fiscal year.

More housing is being built in New Mexico, but the state’s nearly three-quarter billion dollar contribution to housing availability has had a limited impact and system changes might be needed to make a difference.

Results for America, a national nonprofit focused on evidence-based decision-making in government, has awarded New Mexico with platinum certification, the highest possible, for its work on results-driven budgeting and performance analysis.

At the end of the fourth quarter of 2025-2026 fiscal year, outstanding capital outlay balances totaled $7.6 billion across more than 6,400 active projects.76

New Mexico could get more for its economic development investments if it prioritized distressed communities, but currently resources overwhelmingly go to the most successful labor markets.

Recurring revenues for FY28 are expected to grow a modest 1.5 percent over FY27 to an estimated $14.76 billion, with growth moderated by new earmarks on general fund revenue for project specific funds.