HOUSE MEMORIAL 18

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Rebecca Dow and Tara L. Lujan and Luis M. Terrazas

and Harlan Vincent

A MEMORIAL

RECOGNIZING THE CERTIFIED PUBLIC ACCOUNTANT WORKFORCE CRISIS AND REQUESTING THE CREATION OF A TASK FORCE TO EXAMINE AND PROPOSE SOLUTIONS, INCLUDING STEM INTEGRATION, TO EXPAND AND SUPPORT THE CERTIFIED PUBLIC ACCOUNTANT WORKFORCE IN NEW MEXICO.

     WHEREAS, the "certified public accountant talent pipeline" refers to attracting and retaining individuals with the skills needed to become certified public accountants; and

     WHEREAS, individuals with backgrounds in STEM skills are increasingly critical to modern accounting, including data analysis and automation; and

     WHEREAS, a 2022 report by the center for audit quality revealed significant barriers to the pursuit of accounting careers, with a thirty-six percent decline in the certified public accounting examination pass rate between 2010 and 2021 and nearly seventy-five percent of the certified public accountant workforce reaching retirement age in 2020; and

     WHEREAS, over three hundred thousand certified public accountants and auditors in the United States have left the field over the past two years, a seventeen percent decline, compounded by fewer college students entering the profession, and finding and retaining qualified staff continues to be a top challenge for accounting employers; and

     WHEREAS, the shortage of certified public accountants is exacerbated by young and mid-career professionals leaving the field, and many experienced certified public accountants are transitioning to other roles in finance and technology; and

     WHEREAS, despite high salaries, the certified public accounting profession faces a persistent talent shortage, with temporary workers often filling gaps in employment; and

      WHEREAS, the one-hundred-fifty-hour credit requirement to become a certified public accountant is a significant barrier for many accounting graduates, and the number of college students completing degrees in accounting declined nearly nine percent between 2012 and 2020; and

     WHEREAS, the national pipeline advisory group calls for a data-driven approach to increase accounting talent, emphasizing engagement, affordability, support for examination candidates and access for under-represented groups; and

     WHEREAS, the American institute of certified public accountants supports federal legislation recognizing accounting as a STEM career to diversify the workforce, with legislation introduced to fund K-12 accounting education, as STEM recognition at the K-12 level will help expand the certified public accountant talent pipeline and introduce diverse students to accounting careers; and

     WHEREAS, the growing integration of technology in accounting drives demand for certified public accountants with strong analytical and data-driven skills, aligning with STEM education; and

     WHEREAS, artificial intelligence, analytics and technology require a workforce with STEM skills to enable accountants to leverage data and technology for strategic problem-solving; and

     WHEREAS, increasing awareness of the benefits of a career in public accounting and promoting the profession are crucial to attracting future members of the profession; and

     WHEREAS, diversity, equity and inclusion initiatives are essential for fostering a more diverse and innovative workforce; and

     WHEREAS, a multi-stakeholder task force will ensure continued progress in addressing the public accounting talent gap;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the office of the state auditor be requested to create an interagency certified public accountant talent pipeline task force to expand and support certified public accounting and audit professionals in New Mexico, examine the shortage of certified public accounting and audit professionals in the state and propose solutions; and

     BE IT FURTHER RESOLVED that the task force include one representative from the office of the state auditor; one representative from the department of finance and administration; one representative from the New Mexico public accountancy board; one representative from the public education department; one representative from the higher education department; one representative from the workforce solutions department; and representatives from stakeholders, including the American institute of certified public accountants, the center for audit quality and the national pipeline advisory group; and

     BE IT FURTHER RESOLVED that the task force be requested to consider and address various solutions to expand and support accounting professionals in the state, including: proposal of and support for legislation identifying accounting as a STEM subject; identification of and support for expanded state and federal funding for expanded K-12 and higher education in accounting and auditing; creation and integration of a STEM-based accounting curriculum for grades K-12; exploring partnerships with educational institutions for the creation of internships, scholarships and training programs to attract and prepare the next generation of accounting professionals; consideration of the use and integration of CPA evolution, a licensure model that builds competencies in accounting, auditing, tax and technology; the expansion of the workforce solutions department's workkeys program to assess artificial intelligence, STEM and accounting competencies, including a career readiness certificate to confirm artificial intelligence and STEM skills for employers; the expansion of education finance programs, including the expansion and availability of the higher education department's 529 education savings plan to increase access to accounting education benefits and professional certifications; increasing accounting education outreach to under-represented students, including students in rural and frontier areas; and expanding the higher education trust fund to help finance accounting education; and

     BE IT FURTHER RESOLVED that the task force report its findings and recommendations to the governor and the legislative finance committee by November 1, 2025; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor, the state auditor, the secretary of finance and administration, the secretary of the New Mexico public accountancy board, the secretary of public education, the secretary of higher education, the secretary of workforce solutions and the chair of the legislative finance committee.

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