Legislative Finance Committee

New Mexico’s local governments receive more state support than local governments in other states and, in some cases, have built up cash balances.

The number and severity of legal claims against the state have become harder to predict at the same time the state’s process for paying settlements and judgments no longer meets its needs.

Despite significant state investment in public safety and behavioral health in Bernalillo County, implementation has lagged, and crime rates remain high.

New Mexico has increased spending on public school educator pay by $709 million since 2019 and eased barriers to entering the teaching profession, but schools still struggle to keep teaching positions filled.

A delay in signing contracts with new Medicaid managed care organizations has slowed progress on program improvements, including provisions that would hold the organizations accountable for ensuring patient access to doctors.

Evidence suggests film incentives are less effective at attracting private investment, cost more per job, and have a lower return on investment than other incentive programs.

State revenues show continued strength after a record-breaking FY22, with general fund recurring revenues for FY23 through May at $10.6 billion, up $2.2 billion, or 25.7 percent, from the same period a year ago. Oil and gas production continues to be a major driver of revenue strength.