State lawmakers convened in Santa Fe on Tuesday, transforming the Roundhouse into a hive of activity as the 30 day legislative session began.
The session gives term-limited Democratic Gov. Michelle Lujan Grisham what is likely her final chance to pass her agenda into law.
The governor’s priorities include health care, public safety and measures that would prohibit local governments from entering into federal immigration detention contracts. Under the New Mexico Constitution, lawmakers may consider only the budget and issues approved by the governor during a 30 day session.
Unlike past years, lawmakers will have less “new money” with which to build a budget. New money is the amount of revenue the state is projected to bring in during Fiscal Year 2027, which begins July 1, above what was appropriated for the current fiscal year.
Fiscal years run from July 1 to June 30 of each calendar year, named for the year they end in. The Legislative Finance Committee projected in December, that falling oil prices and federal policy changes contributed to a downward revision of the new money forecast from the $324 million estimated in August to $105 million in their December forecast.
Lujan Grisham and the legislature have each produced their own budget recommendations. The governor’s office is calling for $11.33 billion in recurring spending for FY27, representing a 4.6% increase above what was appropriated in the current budget year.
Budget writers in the legislature are calling for a more modest $11.1 billion budget, representing an increase of $265 million, or 2.5%, over FY26 spending levels.
One of the biggest differences between the two proposals is the amount allocated to the Early Childhood Education and Care Department as part of the governor’s universal childcare initiative.
The budget calls for an increase of $163 million, or 54.1% in General Fund spending to the department, part of the governor’s proposal to establish universal childcare in the state.
The budget put forth by state lawmakers would raise the amount of General Fund appropriations for the department by $13.7 million, or 4.5%.
The session ends at noon Feb. 19.