Senate sends $8.5B budget plan back to House

SANTA FE — With bipartisan support, legislators adopted a revised budget proposal Monday that would grow state spending by 14% as New Mexico enjoys a revenue boom, allowing new investments in education and public safety.

The Senate voted 37-3 in favor of the plan, sending it back to the House.

Under the proposal, New Mexico’s budget would grow to almost $8.5 billion, or about $1 billion more than this year’s spending plan.

The legislation includes especially healthy raises for educators and State Police, in addition to retention stipends for experienced law enforcement officers throughout the state.

Teachers and school staff are set to get raises averaging 7%, or 10% if their school participates in programs that extend the school year or learning time.

Minimum salaries for each of the three tiers in the teacher licensing system would also climb by $10,000 each, ensuring, for example, that any Level 3 teacher would get at least $70,000 a year.

State Police officers could get 16% raises. The budget also includes funding for separate legislation that calls for law enforcement officers throughout the state to get retention bonuses at certain stages of their career.

For other employees, the budget has enough funding for raises averaging 7% for state employees and institutions of higher education.

Senate Finance Committee Chairman George Muñoz, D-Gallup, ticked off a list of other initiatives funded in the budget plan, ranging from $50 million for local economic development projects to $10 million for housing programs for homeless people.

The budget also leaves room for $400 million in tax cuts that would be determined in separate legislation.

“We have an opportunity in New Mexico like we’ve never had,” Muñoz said of the increased revenue.

Sen. William Sharer, R-Farmington, said the proposal deserved more scrutiny than it was getting.

“I’m torn here,” he said during the debate. “I know there’s some very good things in here. Also, there’s some things in here that are absolute trash.”

In the end, he didn’t oppose the bill, which won bipartisan support. Just three Republicans voted “no.”

The budget legislation, House Bill 2, was already approved by the House, but it must go back to that chamber for consideration of the changes made by the Senate. House agreement on the amended version would send it to Gov. Michelle Lujan Grisham.

The spending increase is made possible by strong growth in oil and gas revenue, among other sources of state income.

About $2.6 billion would remain in reserves.

Legislators estimated the financial reserves would equal 29% to 31% of spending, with the exact figure hinging on the accuracy of revenue estimates and other factors.