Legislative Finance Committee

While both the LFC and executive budget recommendations would increase state spending substantially, the committee's more cautious approach uses much of the increase to maintain spending on programs supported this year with one-time federal funds.

The Legislative Finance Committee today released a budget recommendation for the 2022-2023 fiscal year that calls for spending $8.46 billion from the state’s general fund, a 14 percent increase from FY22 spending levels.

Press Conference Packet

Report of the Legislative Finance Committee to the Fifty-Fifth Legislature, Second Session
Volume 1: Policy and Performance Analysis
Volume 2: Appropriation Recommendations
Volume 3: Supplemental Charts and Graphs

A look at the financial environment and the committee budget recommendation.

State revenues for the fiscal year that starts July 1 are estimated at $9.049 billion, with $1.6 billion in "new money" -- projected revenue less this year's planned ongoing spending.

The $1.06 billion in New Mexico's remaining federal stimulus funding qualifies as replacement for state revenue lost to the pandemic and should be available for legislative appropriation, LFC analysts conclude. In addition, LFC staff estimate the state will get $3.7 billion over five years through the federal infrastructure legislation.

The administration's annual report to the U.S. Treasury on its use of fiscal recovery funds appears incomplete and left some questions unanswered.

Few improvements to the state's procurement processes have been implemented since an initial evaluation found them five years ago, and state buying practices remain vulnerable to fraudulent purchases and waste.

Stacked, the federal and state healthcare, food, cash, tax credits, and other benefits available to low-income New Mexicans can allow most families to meet basic needs, but New Mexicans face barriers to access.