Legislative Finance Committee

New Mexico has invested heavily in early childhood and is seeing mixed results. Three out of four New Mexico third-grade students are not at grade level in reading or math, but low-income third-graders who attended prekindergarten generally outperform their low-income peers who did not attend prekindergarten. Other early childhood investments are showing similar mixed results.

No one could foresee with any certainty the extent to which oil and gas prices and production would fall and the consequent decline in gross receipts and corporate incomes taxes in the months after the Legislature adopted the current year budget. That reality will be the priority during budget development this year.

Among the findings: Too many New Mexico children suffer repeat abuse. The state crime lab cleared 93 percent of its FY16 cases. Public school student proficiency on reading and math has been slow to improve and the "achievement gap" between poor and affluent student has not been closed. (State of the State Dashboard)

The number of juvenile offenders entering the justice system has dropped since the state moved to a system that emphasizes rehabilitation over punishment but costs have risen.

The preliminary figure for total FY16 revenue is $5.67 billion, down $223 million from the February estimate used to develop the budget. The estimate for FY17 revenue has been revised downward from the January 2016 forecast by $556 million to $5.71 billion.
General Solvency Report
(DFA/TRD presentation)