Legislative Finance Committee

General fund revenue in FY26 to date continues to lag collections from last year and, coming on the heels of revenue weakness at the end of FY25 that contributed to draws on an operating reserve already reduced by executive orders, could signal the state will need to draw from one of its rainy day reserves to cover existing appropriations.

With enactment of House Bill 1 (feed bill) and assuming enactment of the General Appropriation Act (GAA or House Bill 2) in conjunction with the omnibus tax bill (Senate Bill 151), state agencies would see an increase in recurring general fund revenues of $339 million, or about 3 percent. Nonrecurring funding from the enactment of GAA and Senate Bill 273 (a supplemental appropriations bill) would provide over $2.7 billion in general fund revenue for one-time expenses. 

A survey of physicians who currently work or previously worked in New Mexico, shows almost two-thirds of those still practicing in the state are considering leaving to practice elsewhere.

The Legislature has appropriated nearly $200 million to the rural health care delivery fund to improve healthcare access in rural counties, but the program lacks standards and it is unclear if the spending has resulted in improvements.

New Mexico has improved its timeliness in delivering food benefits, but its error rate has worsened.

The Legislative Finance Committee today released a budget recommendation for the 2026-2027 fiscal year that calls for spending $11.1 billion from the state’s general fund, a 2.5 percent, or $268 million, increase over FY26 planned spending.

Press Release Packet
Legislating for Results: Policy and Performance Analysis
Legislating for Results: Appropriation Recommendations
Legislating for Results: Supplemental Tables and Graphs

Both violent and property crime rates have fallen since a recent peak in 2018, but they remain above the national average and persistently high.

Almost three-quarters of funding in programs surveyed for the 2025 inventory of evidence-based programs was targeted at evidence- or research-based approaches, up from 2024.