By Nicole Maxwell, NM Political Report
Gov. Michelle Lujan Grisham released her proposed budget for the upcoming legislative session on Thursday.
“This fiscally sound budget proposal prioritizes early childhood education, clean energy, infrastructure, affordable housing, and expanded healthcare access to build a stronger foundation for New Mexicans,” Lujan Grisham said in a news release. “My administration looks forward to discussing these proposals with state lawmakers and reaching consensus on the priorities that matter most to our state.”
Related: NM Legislature will see increased spending money for upcoming session
The governor’s budget proposal came a few days after the Legislative Finance Committee heard the general fund estimate presented by state economists Monday.
The estimate showed that the legislature will have $892 million in new money for use during the appropriations process.
The General Fund, where most state funding comes from, has $10.944 billion for use for fiscal year 26, which begins July 1, 2025.
Lujan Grisham’s budget recommendation includes budget reserves of $3.33 billion, or 30.4%, through FY26 while the State has $10.9 billion in recurring spending.
The budget includes, but is not limited to:
- $4.56 billion for the Public Education Department
- $2.2 billion for the Health Care Authority
- $1.4 billion for the Higher Education Department
- $365 million for the Early Childhood Education and Care Department
- $352 for the Department of Corrections
- $286 million for Children, Youth and Families Department
- $268 million for courts
- $211 million for the Department of Health
- $196 million for the Department of Public Safety
- $81 million for the public defender’s office
- $41.5 million for the State Engineer’s Office
- $26.3 million for the Tourism Department
- $13.5 million for the Workforce Solutions Department
The budget proposal also includes $172 million for state employee pay raises. These raises are included for educators also.
As to why the executive budget proposal was released earlier than usual, Lujan Grisham said in the press release that “transparency drives trust.”
“Our early release of the executive budget ensures everyone has time to review our priorities for New Mexico,” she said in the press release.
The legislative session begins at noon on Jan. 21. Legislation can be prefiled beginning Jan. 2.