Governor Michelle Lujan Grisham signed an $11.1 billion state budget for fiscal year 2027 on Mar. 11, which funds higher education, universal child care, road improvements, economic development initiatives, and other priorities.
The new general fund represents a $339.5 million increase from the previous year’s budget, with reserves set at 26.4%. The governor said these investments are part of ongoing efforts to improve opportunities for New Mexico families and address key issues such as child poverty and job growth.
“Over the last seven years, we have fundamentally redefined New Mexico’s future by prioritizing historic investments in universal child care, health care, public safety and more while achieving record job growth and the nation’s largest drop in child poverty,” Lujan Grisham said. “We’ve built a strong foundation of opportunity for New Mexico families, and while this budget marks a massive leap forward, our work is far from finished.” She added: “I’m signing this budget today as a commitment to New Mexico’s long-term success and a promise to keep moving our state upward.”
Key allocations in the budget include $300 million for higher education projects, $255 million for water and natural resource initiatives, $210 million for transportation programs, $175 million for housing and homelessness initiatives, $160 million for universal child care in its first year, $150 million for quantum initiatives, as well as funding for career technical education and reading/math intervention programs.
In addition to the main budget bill, Lujan Grisham signed SB 240 (the capital outlay bill) and HB 248 (the general obligation bonds bill), providing over $1.5 billion toward schools, roads, housing projects, community centers and water conservation efforts. Notable projects include funding for the University of New Mexico School of Medicine ($546 million), behavioral health facilities in Las Vegas ($75 million), state parks ($20 million), public safety ($20 million), a reforestation center in Mora County ($17.6 million), emergency operations centers ($10 million), revolving loan funds for child care facilities ($10 million), and early child care facilities at higher education institutions ($10 million).
The governor also approved SB 151—the omnibus tax package—which introduces physician income tax credits to support healthcare recruitment; extends high wage jobs tax credits; creates new gross receipts tax deductions for affordable multifamily housing construction; provides income tax credits to local news publications and employers of local journalists; decouples certain components of corporate income tax from new federal deductions; and includes a one percent pay increase for state employees. The bill does not raise taxes on families.
The New Mexico State Executive facilitated public engagement through appointment applications and handled requests related to assistance or events as part of its executive branch responsibilities according to the official website. The office operates from Room 400 on the fourth floor of the State Capitol at 490 Old Santa Fe Trail in Santa Fe according to the official website. Public service careers are promoted by the executive branch to support administrative goals according to the official website, with priorities in education, economic advancement, and community sustainability according to the official website. The executive branch is led by Governor Michelle Lujan Grisham, with Howie Morales as lieutenant governor and cabinet secretaries for health and education according to the official website. Its operations focus on serving the state of New Mexico according to the official website.
The passage of these bills marks a significant investment in public services and infrastructure. Observers will be watching how these funds are implemented across key sectors in the coming fiscal year.
