Business Loan

New Mexico would make major new investments in early childhood education, industrial water recycling, and drug addiction and mental health programs linked to concerns about crime under an annual spending proposal from Democratic Gov. Michelle Lujan Grisham.Released Thursday, the budget blueprint would increase general fund spending by about $720 million to $10.9 billion, a roughly 7% increase for the fiscal year running from July 2025 through June 2026.The proposal would slow the pace of state spending increases as crucial income from local oil production begins to level off. New Mexico is the nation’s No. 2 producer of petroleum behind Texas and ahead of North Dakota.The Legislature drafts its own, competing spending plan before convening on Jan. 21 for a 60-day session to negotiate the state’s budget. The governor can veto any and all portions of the spending plan.Aides to the governor said they are watching warily for any possible funding disruptions as President-elect Donald Trump prepares to take office on Jan. 20. New Mexico depends heavily on the federal government to support Medicaid and nutritional subsidies for households living in poverty or on the cusp, as well as for education funding, environmental regulation and an array of other programs.”It’s not lost on us that President Trump will be inaugurated the day before the (legislative) session starts,” said Daniel Schlegel, chief of staff to the governor.Under the governor’s plan, general fund spending on K-12 public education would increase 3% to $4.6 billion. Public schools are confronting new financial demands as they extend school calendars in efforts to improve academic performance, even as enrollment drops. The budget plan would shore up funding for free school meals and literacy initiatives including tutoring and summer reading programs.A proposed $206 million spending increase on early childhood education aims to expand participation in preschool and childcare at little or no cost to most families especially those with children ages 3 and under. The increased spending comes not only from the state general fund but also a recently established, multibillion-dollar trust for early education and increased distributions from the Land Grant Permanent Fund endowments built on oil industry income.The governor’s budget proposes $2.3 billion in one-time spending initiatives including $200 million to address water scarcity. Additionally, Lujan Grisham is seeking $75 million to underwrite ventures aimed at purifying and recycling enormous volumes of salty, polluted water from oil and natural gas production. A companion legislative proposal would levy a per-barrel fee on polluted water.Cabinet secretaries say the future of the state’s economy is at stake in searching for water-treatment solutions, while environmentalists have been wary or critical.Pay increases totaling $172 million for state government and public school employees are built into the budget proposal a roughly 3% overall increase.Leading Democratic legislators are proposing the creation of a $1 billion trust to underwrite future spending on addiction and mental health treatment in efforts to rein in crime and homelessness. Companion legislation might compel some people to receive treatment.The governor’s spending plan also would funnel more than $90 million to Native American communities to shore up autonomous educational programs that can include indigenous language preservation.Lujan Grisham is requesting $70 million to quickly connect households and businesses in remote rural areas to the internet by satellite service, given a gradual build-out of the state’s fiberoptic lines for high-speed internet. The program would rely on Elon Musk’s satellite-based internet service provider Starlink.”We’re blessed in New Mexico that we continue to see recurring revenue growth, but we also recognize that that revenue growth is slowing a little bit. So, I think this budget not only reflects the priorities of the governor but reflects the priorities of most New Mexicans,” State’s Cabinet Secretary of Department of Finance and Administration Wayne Propst said. “We also understand, as you noted, that there are behavioral health challenges across the state, continuing challenges with crime in some areas. So, the focus really will be on those key areas of infrastructure, early childhood development, but continuing to make investments also in economic development and protecting our natural resources,” Propst told KOAT.State Representative Nathan Small (D) told KOAT he welcomes the governor’s budget proposal.”I welcome the governor, the executive releasing the budget. The legislative finance committee spends a year going around the state building the legislature’s proposal. The fact that we’re close on some things at a top line level is positive. That said, the details matter so much,” Small told KOAT.”Details mean whether or not a new Mexican gets health care coverage, whether or not a New Mexican kiddo has a good classroom to learn and go to school and whether they get food. Frankly, the details matter when it comes to making sure that public safety is increased,” Small said. “We have the law enforcement officers we need, and we also can cut through and build the housing that we so desperately need. So, that’s what I’m really excited about is digging into the details, doing the work that the people of New Mexico deserve and most importantly, listening to the people of New Mexico, which is the process of the legislature,” Small said.House Republicans StatementA President once said, Dont tell me what you value, show me your budget, and Ill tell you what you value. We have looked at the governors proposed budget and she clearly values recklessly spending New Mexicans hard-earned money, asking for billions more each year. As the state government spends more of your money this year, think about whether you have seen improvements in the things we all value over the last six years. Are your streets safer? Are your kids better educated? Are there more job opportunities available to you? As House Republicans, we value responsible spending that keeps more money in the pockets of every New Mexican.