Gov. Lujan Grisham signs $7.4B New Mexico state budget that includes public employee raises

SANTA FE, New Mexico — New Mexico Gov. Michelle Lujan Grisham on Friday signed a $7.4 billion general fund spending plan for the coming fiscal year that boosts state spending on public education, early childhood services, and business subsidies and incentives.

The governor made no mention of vetoed provisions in a news release. A copy of the bill as signed was not immediately available.

Lujan Grisham endorsed the Legislature's 1.5% raise for public employees across state government, public schools and universities.

General fund spending will increase by 5% during the fiscal year that starts July 1, with more than one-third of the increase directed toward education.

In a statement, Lujan Grisham called the budget “responsible and responsive to the needs of New Mexicans."

“This legislative season has been a remarkable success for New Mexicans in every corner of our state – with almost a billion dollars in new targeted pandemic relief for businesses and workers," she said.

Lujan Grisham highlighted funding approval for new initiatives in economic development, health care and environmental protection.

Here's a breakdown of the key spending provisions in the budget: 

• Spending will increase 5% over the amended fiscal year 2021 budget, with 36% of new General Fund spending going to education initiatives
• Budget includes 1.5% raises for public school and higher ed personnel, as well as state employees and front-line health and social service workers
• $30.7 million increase to the Human Services Department to expand mental health and substance use disorder services
• $17.5 million increase for projects funded through the Local Economic Development Act
• $12 million in additional funding for the Opportunity Scholarship and Lottery Scholarship
• $17 million to restore and revitalize the state's tourism economic sector
• $300 million for roadway infrastructure and improvements

The budget bill leaves behind estimated financial reserves of $1.7 billion. Lawmakers are wary of depleting reserves because of the state's reliance on income from the oil and natural gas that can suddenly surge or plummet.

Lujan Grisham also signed a companion infrastructure bill that provides $511 million for construction projects. That includes $48 million for projects in Native American communities, $34 million toward public school construction and $53 million for roadways.

Here's a further breakdown of those capital appropriations...

• $10 million for improvements at correctional and health facilities
• $12.5 million for Local Economic Development Act projects
• $52 million for tribal projects
• Nearly $48 million for public safety projects
• $61 million for water and wastewater projects
• $49 million for higher ed institutions 
• About $34 million for public schools
• $53 million for road projects
• More than $8 million for acquifers, ditches and dams