Legislative Finance Committee

In FY21, soaring markets resulted in record gains for state investments. Driven by the largest recorded federal stimulus, vaccine distribution, and a reopening world, a resurgent economy buoyed asset values. However, the state’s investments performed worse than peer funds because investment managers continue to prioritize stability and reduced risk.

For the fourth quarter of the fiscal year that ended June 30, few state agencies showed improvements in performance or efficiency, and even fewer have plans in place to improve flagging performance.

Progress Report: Addressing Pandemic Impacts on Learning The share of public elementary school students performing at grade level likely dropped by at least 15 percent in the 2020-21 school year, but efforts to help students catch up are erratic.

Federal Stimulus Funding Update Of the $10.5 billion in federal Covid-19 relief awarded to New Mexico, state agencies spent nearly $6.3 billion or 61 percent by August 31, 2021.

Recurring revenues for the upcoming FY23 are projected at $8.842 billion, with “new money” available for spending growth estimated at $1.392 billion. Recurring revenues for the current FY22 are estimated at $8.109 billion, up almost $633 million from the February estimate used to develop the budget.

Drug overdose and alcohol-related deaths in New Mexico reached all-time highs in 2020, even though the state has tripled spending on addiction treatment since 2014.

State agencies have spent roughly half of the $10.1 billion from 130 different pandemic relief grants, with about 65 of the funds spent used for programs mandated by the federal government.

The trifurcated health benefits systems for public school and state employees has led to dramatically different premiums for employees.