Legislative Finance Committee

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.

The state upped its share of healthcare insurance premiums for public employees by more than $100 million a year to make insurance more affordable, but that price tag is expected to grow substantially during the next budget year because rising inflation costs will be mostly absorbed by state and public school employers.

The new child welfare data system, originally expected to be complete in October 2022 at a cost of $36 million, is now expected to be ready in August 2028 at a cost of $95.4 million. 

New Mexico subsidizes health insurance purchased through the exchange at higher rates and for more buyers than most states but may need to consider cost-containment measures to sustain the fund that supports the subsidies.

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.