Enacted Budget – Fiscal Year 2027
On March 11, New Mexico Governor Michelle Lujan Grisham signed the state budget for fiscal 2027. The budget totals $11.1 billion in recurring general fund spending, a 3.1 percent increase over fiscal 2026 levels. The legislature also passed $3.0 billion in nonrecurring spending and fund transfers including funding for supplemental appropriations, information technology, and transportation projects. The enacted budget is based on recurring general fund revenues of $13.96 billion in fiscal 2027, an increase of 4.3 percent from fiscal 2026. The state’s general fund reserves are estimated at $2.94 billion which is 26.4 percent of recurring expenditures and includes $2.5 billion in the Tax Stabilization Reserve Fund which is the state’s rainy-day fund.
The governor noted that the budget builds on the strong foundation of opportunity for New Mexico families and keeps the state moving upward. The budget provides a 1.0 percent cost-of-living adjustment for state agency, higher education institution, and public-school personnel. The budget makes targeted investments in health and human services to help expand behavioral health, housing, and long-term care services. It also provides increased funding for education to increase the number of available preschool slots for three-year-old children, fund the first year of universal childcare, and support the core operating expenses of colleges and universities.