New Mexico

New Mexico

Budget Cycle
Annual  

Governor Submits Budget
January 5 or 10

Fiscal Year Begins
July 1 

Governor Signs Budget 
March/April 

Budget Links 

FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)
FY2018 (enacted)

Proposed Budget - Fiscal Year 2023
On January 6, New Mexico Governor Michelle Lujan Grisham submitted a fiscal year 2023 budget recommendation. The budget calls for total fund spending of $21.0 billion, an increase of 6.5 percent from fiscal 2022, and recurring general fund spending of $8.4 billion, an increase of 13.4 percent from fiscal 2022. The budget also calls for $285.3 million of nonrecurring general fund appropriations which is a decrease of $156.3 million from fiscal 2022. The fiscal 2023 budget recommendation is based on a recurring general fund revenue estimate of $9.05 billion, an 11 percent increase compared to fiscal 2022. The budget projects a total balance in general fund reserves of $3.07 billion which represents 36.4 percent of recurring general fund appropriations. Total reserves include $2.13 billion in the state’s rainy day fund and $333.4 million in the state’s Tobacco Settlement Permanent Fund.

Proposed Budget Highlights 
The fiscal 2023 budget recommendation makes key investments in the priority areas of education, public safety, and economic development. The following recommendations are included in the budget:


Education

  • $200.4 million to increase salary minimums for teachers and $76.9 million to provide a 7 percent salary increase to teachers and school staff at public schools to put teacher salaries above every neighboring state.
  • Provide approximately 735 additional openings for early childhood education and increase pay for pre-K educators.
  • Additional funding for dual-credit programs enabling high school students to accumulate college credit in high school.
  • $85.5 million increase to the Opportunity Scholarship program to cover tuition costs of New Mexico students of higher education.


Public Safety

  • $100 million to recruit, hire, and retain law enforcement officers.
  • A 19.5 percent increase in state police officer pay.
  • Provide Department of Public Safety with funding to train approximately 100 additional state police officers to fill every current officer vacancy.
  • $19.5 million to State Fire Marshal’s Office to enable communities to respond to fires.


Jobs and Economy

  • Directs $18.5 million to the Economic Development Department to support and grow economic activity in the state.
  • $50 million in capital outlay to create a media academy to serve New Mexico students in the transition from education to employment in the state’s film and media industry.
  • $6.5 million to support the new Cannabis Control Division.


Special Initiatives

  • $14.4 million to support statewide food and hunger initiatives.
  • $3 million for a home caregivers program within the Aging and Long Term Services Department.
  • $9.7 million to Public Education Department for the Indian Education Fund to improve education outcomes for Native American students.
  • $10.2 million for Native American Student Education to leverage Indian Education funding to expand and enhance programs.

Overall, the budget calls for general fund recurring spending of the following:

  • $3.8 billion for public education.
  • $1 billion for higher education.
  • $2.2 billion for health and human services.
  • $499 million for public safety.
  • $94 million for commerce and industry.
  • $100.8 million for agriculture, energy, and natural resources.
  • $188 million for general government.
  • Funds for judicial and legislative branches.