Legislative Finance Committee

Performance trends for the third quarter of FY22 show a decline in participation in several state programs. Enrollment in higher education, caseloads in the criminal justice system, and utilization of Medicaid healthcare services are all down.

For the quarter ending March 2022, the value of New Mexico’s combined investment holdings for the pensions and permanent funds shrunk by $824.5 million, to an ending balance of $66.3 billion. For the year, funds grew by $6.5 billion, or 10.8 percent.

Despite a growing number of English learners in the public schools, enrollment in bilingual programs is dropping and programs are struggling, including with high vacancies among bilingual teachers.

Strong state revenues and an influx of federal dollars have created a historic opportunity to make meaningful infrastructure investments in communities across New Mexico, but using these funds effectively will be challenging absent a focused effort to address longstanding barriers to project success.

While several public education lawsuits have resulted in enhanced funding for the education of Native American students, issues remain with the distribution of dollars and accountability.

With $200 million in new funding for various economic development initiatives and a 10-month-old 20-year strategic plan, the Economic Development Department has more resources, and responsibility, than ever to transform the state's economy through evidence-based strategies.

New Mexico is poised to have the first hydrogen-based power plant converted from a retired coal-fired plant but environmental questions remain.

Interest in the committee’s visit to the Tallgrass hydrogen project in Prewitt, scheduled to start at 9 a.m. Wednesday, has prompted the committee to take special steps to make the presentations available online. The committee does not typically live-cast from tour sites because of a lack of access to the hard connections to the Internet or strong WiFi data connections that make casting possible. The webcast will be available through the Legislature’s regular webcast site (https://www.nmlegis.gov/) or on the Legislature’s “What’s Happening” page (https://www.nmlegis.gov/Calendar/Whats_Happening). While the presentations will be streamed, the use of cameras or phones will not be allowed on any tours of the private facility. The presentation will be followed by a limited time for public comment. Those who want to comment must attend in person or submit comments in writing.