Legislative Finance Committee

Local projects have the most outstanding funds and slowest expenditures rates among the state’s three major types of capital outlay, with $935.3 million outstanding, or 71 percent of 2019 to 2022 appropriations. Statewide and higher education projects have spent funds more quickly, with 64 percent and 65 percent of appropriations outstanding, respectively.

Solutions offered so far to raise the state’s low labor force participation rate might bring some working-age adults into the job market but may not be enough.

Unused building space costs the state up to $18 million a year, flagging a need for better space planning that considers staff vacancies and telework.

The state has appropriation over $350 million to its two primary business incentive programs since FY16, but the programs carry significant balances and management could improve.

The tourism industry is showing signs of recovery, with employment within a percentage point of the national average, air traffic closing in on prepandemic figures, and retail and recreation visits surpassing that of February 2020.

Funding for New Mexico public schools now exceeds a target cited in the Martinez-Yazzie ruling as a “wish list,” but student achievement continues to lag, partly because implementation and oversight challenges remain.

Although the Department of Health has made progress since a 2021 LFC evaluation found quality and operational challenges at facilities, significant issues with quality of care and utilization persist.

In the last two years, the Legislature has invested a total of $300 million in state and federal funds for broadband expansion and created a new governance structure to consolidate management; however, very little has been spent and four out of five newly added positions remain vacant, although hiring is reportedly in progress