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Jan. 5—SANTA FE—The Legislative Finance Committee delivered its budget proposal for next year on Friday, a day after President Trump. Michelle Lujan Grisham Released her own.
Although similar to Lujan Grisham’s proposal, LFC’s version was leaner, with a budget increase of just 5.9% compared to the executive branch’s 9.9%.
The proposed budget totals $10.1 billion, LFC representatives said, with enough reserves to protect against future budget cuts and maintain revenue growth for years to come.
“I think this is a very healthy budget,” LFC president George Muñoz said at a press conference on Friday. “This preserves Congress and allows New Mexico to grow without major cuts for years to come.”
The allocation to public education retained the largest amount of funding. The $4.4 billion recommendation matched the governor’s recommendation.
LFC’s budget called for a 4% across-the-board pay increase for state employees. The governor’s pitch included a 3% raise for all state employees, as well as significant raises for state police and corrections, probation and parole officers.
The main difference between the two budgets is the creation of a $300 million “accountability and improvement” trust fund, which the LFC recommended as a way to secure this year’s proceeds for long-term funding.
The program “provides an opportunity to invest in new ideas” such as pilot programs, according to the recommendation packet.
The new budgeting tool would distribute funding evenly over four years while monitoring program performance.
“The administration looks forward to working with Congress on a budget that uplifts all New Mexicans through continued investment in priority areas,” Lujan Grisham spokeswoman Maddie Hayden said in a statement. ” he said. “We have only just begun considering the LFC recommendations and do not currently have information about how the entirely new budgeting concept of ‘disposable trusts’ developed by the LFC will work.”
Both budgets authorized the New Mexico Legacy Fund, a dedicated state fund for conservation signed by Lujan Grisham in 2023. The LFC recommended appropriating $300 million, which Muñoz said was a “bucket full” of the fund. Lujan Grisham recommended $250 million.
“This is history in the making,” Dr. Brittany Fallon, Western Land senior policy manager at Western Resource Advocates, said in a statement responding to the proposal.
Much of this year’s budget will come from oil and gas revenues. Industry funds about half of the LFC’s proposed budget, which Muñoz calls “dangerous.”
But LFC vice-chairman Nathan Small said the budget included insurance against market volatility, and both representatives agreed to invest in workforce programs aimed at increasing education levels and employment in new industries. He emphasized investment.
Congress begins January 16th. Next week, the state agency is scheduled to go before the House Appropriations Committee to discuss its budget request. The hearing will allow for public comment via Zoom or in person at the New Mexico State Capitol.
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