Legislative Finance Committee

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.

Shortcomings in the state’s administration of the Supplemental Nutrition Assistance Program could cost New Mexico $173 million in federal funding.

Through January and before the start of the U.S.-Iran conflict, general fund revenues were tracking 2.3 percent above the December forecast, with strong corporate income tax collections and general sales taxes more than offsetting unexpectedly low personal income tax collections.

New Mexico spent $520 million on tax breaks for economic development in FY25, but only some of the approaches paid off and the overall impact was limited.

Three years into the largest Medicaid rate investment in state history, the state does not have the data to determine whether access is improving.

While overall enrollment in Medicaid-covered behavioral healthcare has decreased, those still enrolled are using more services at a higher cost.