$11.1 billion budget maintains 28% reserves while making smart investments in health care, early childhood, and public safety.
(Santa Fe, NM) — The New Mexico Senate today passed House Bill 2, the state budget for fiscal year 2027, totaling $11.1 billion in planned spending. This represents a year-over-year increase of 2.6%. The Senate Finance Committee’s amendments to the House version prioritize strategic investments in healthcare access, economic development, and support for children and families while maintaining strong fiscal reserves above 28%.
The Senate Finance Committee version of HB 2 increases recurring general funds by $277 million, or 2.6%, and provides approximately $3 billion in nonrecurring appropriations and transfers from all funding sources for priority areas designed to improve outcomes for New Mexicans.
“This balanced budget proves that we can meet the moment, investing boldly in our people, our economy and our future while maintaining fiscal discipline and strong reserves,” said Senator George Muñoz, Chair of the Senate Finance Committee.
Key Senate Finance Committee Amendments Include:
Early Childhood and Child Welfare: The Senate version fully funds year one of the governor’s childcare initiative, adding $105 million over the House version from the Early Childhood Trust Fund. The budget includes recurring funding for wage increases and career ladder advancement for early childhood workers, expanded home visiting programs, and $33.5 million for CYFD protective services personnel, emergency shelter placement, and multiservice homes.
Healthcare Expansion: Significant investments in medical education and healthcare infrastructure include significant resources to expand the UNM medical school, $20 million for UNM clinical faculty pay, $2 million for graduate resident and fellow salaries at UNM-HSC, and $24 million for rural graduate medical education. The budget also includes substantial contributions to the Health Care Authority to address anticipated changes to Medicaid and SNAP, bolster federal food aid, and maintain healthcare affordability initiatives.
Economic Development: The Senate added millions in economic development spending focused on frontier industries in science and technology, including $40 million for quantum initiatives. Additional investments include $100 million for state fair redevelopment (including $30 million for housing) and $20 million for affordable housing, transitional housing, and homelessness initiatives.
Public Safety: New investments provide recurring funding for two new judgeships, the new Office of the Child Advocate, additional resources for the Organized Crime Commission, the Violence Intervention Program Fund, and the DPS Intelligence Led Policing initiative.
Education: The Senate added $18 million for evidence-based career and technical education programs, bringing total CTE funding to approximately $50 million. Other education investments include $20 million for out-of-school time programs, $14.6 million for literacy coaches, $2 million for literacy institute operations, and significant investments in higher education athletics facilities and native student education supports.
HB 2 passed the Senate by a vote of 23-16. The bill now returns to the House of Representatives for concurrence on the Senate amendments.
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