Legislative Finance Committee

At the end of the third quarter of FY25, outstanding capital outlay balances totaled an estimated $5.4 billion across more than 4,700 active projects.

The cost of new construction for higher education projects doubled from $520 per square foot in 2022 to $1,038 per square foot in 2024 and has continued to climb in 2025, with growth in higher education construction costs far outpacing growth in the amount that can be raised through the general obligation bonds that pay for it. 

Average per-pupil spending in the state’s 20 micro school district is almost twice that of the state average but student performance is no better in the districts that serve fewer than 200 students and achievement gaps between English learners and their peers were particularly large.

The SFC amendment for the House Bills 2 and 3 increases recurring funding by 6 percent, leaving reserves at 30 percent.
Amendment: Link
Fiscal Impact Report: Link

The House Appropriations and Finance Committee has adopted a substitute for the General Appropriation Act that grows ongoing state spending by 5.8 percent while setting aside an amount equal to almost a third of planned spending in reserves. The bill now goes to the full House for consideration.

Some New Mexico public schools with high populations of students at risk of failing produce successful students despite the odds, and these schools provide lessons for best practices that could improve schools statewide