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Governor proposes 13 percent state budget increase


The New Mexico Department of Finance and Administration released Gov. Michelle Lujan Grisham’s FY23 executive budget recommendation Jan. 6, proposing $8.4 billion in recurring spending, a 13.4 percent increase from the current fiscal year.

The proposed budget, which includes 36.4 percent in reserve funds, will be presented to the New Mexico Legislature, which begins a 30-day session Jan. 18.

“There’s a saying that budget is policy, and this executive recommendation paints a clear picture of where this administration stands and where my priorities lie,” Lujan Grisham said. “These are investments that take us beyond the status quo, beyond decades of unnecessary austerity – these are investments that carry our state and its people into a future that lifts up every New Mexican.”

The budget recommendation for FY23 (July 1, 2022-June 30, 2023) includes:

  • $276.9 million to provide seven percent raises to New Mexico education personnel and increase base educator pay levels, putting New Mexico teacher salaries above those of neighboring states
  • $195.1 million to expand pre-K capacity, boost early childhood educators’ salaries and launch new early childhood programs
  • $85.5 million to make tuition-free college available to more New Mexicans through the Opportunity Scholarship
  • $11.4 million in funding for early literacy programs that provide specialized reading instruction and supports for K-12 students
  • $10.5 million for higher education programs that help teachers pay for college and pay off loans
  • $10 million for the state’s dual-credit program for high school students who are taking college-level classes concurrently
  • $100 million to recruit, hire and retain law enforcement officers and staff around the state
  • $14.6 million to provide raises and longevity pay to New Mexico State Police officers
  • $18.2 million for local fire departments to purchase equipment, boost recruitment and upgrade facilities
  • $50 million to create a media academy that provides training, internships and other resources for students seeking to enter the state’s established film and media industry
  • $13 million in recurring and nonrecurring funding for the state’s Job Training Incentive Program (JTIP), plus $50 million in nonrecurring funding for the Local Economic Development Act (LEDA) program. JTIP and LEDA have brought $5 billion in new capital investments to New Mexico since 2019.
  • $6.5 million to support the state’s Cannabis Control Division
  • $52.4 million for state employee raises
  • $14.4 million for the state’s largest investment in hunger initiatives in history, spanning eight agencies and addressing hunger for children, families, adults and seniors
  • $2.5 million to create a 15-person Climate Change Bureau within the state Environment Department to focus on implementing policies that ensure the state meets greenhouse-gas reduction goals
  • $3 million for a home caregivers program within the state Aging and Long-Term Services Department that will provide respite, homemaker services and minor home modifications.

To read the full report, visit www.governor.state.nm.us/wp-content/uploads/2022/01/FY23-Budget-Exec-Rec.pdf.

NM budget