SANTA FE, N.M. — Leading recent Mexico legislators on Wednesday recommended a 5.7% general fund spending boost for the coming financial year that emphasizes health worry access, community school improvements, and early education and childcare programs that can boost household finances.
The navigator budget writing committee to the Democratic-led Legislature proposed a $577 million boost to $10.8 billion for the financial year running from July 2025 to June 2026. A windfall in government profits from petroleum production is slowing down though far from over in recent Mexico, the country’s No. 2 oil-producing state.
Democratic Senate Majority chief Peter Wirth of Santa Fe said the spending schedule leaves room for a divide proposal to make a $1 billion fund and use financing profits to expand mental health and addiction treatment services. That comes amid a proliferation of homeless encampments in cities large and tiny and related concerns about community safety. recent Mexico Gov. Michelle Lujan Grisham has set crime and homelessness as a central focus for of the 60-day legislative session that begins Tuesday.
Democratic state House Speaker Javier Martínez of Albuquerque said the Legislature’s recent spending pitch “is about making life more affordable for recent Mexico families.”
“This budget is not just about making our communities safer, this budget is about building more access to health worry, including behavioral health and drug addiction treatment,” he said.
Combined state and federal spending on health worry in recent Mexico — principally Medicaid — would boost by $3.3 billion to $15.5 billion, a 27% jump. recent Mexico is using a recent assessment on hospitals to harness more federal Medicaid dollars for the health worry sector.
Democratic state Sen. George Muñoz of Gallup said recent Mexico is well positioned financially if the federal government were to reduce Medicaid allowances after President-elect Donald Trump takes office next week.
“It’s the No. 1 issue across states for everybody — Medicaid,” said Muñoz, the navigator Senate budget negotiator. “We can react to that if it does happen. … We have the ability, we have the money to react.”
Spending on K-12 community education would boost by $263 million, or 6%, to $4.7 billion. Additionally, the proposal sets aside $150 million for pilot programs to enhance literacy, elementary school math proficiency and lagging attendance rates.
Distributions from recent Mexico’s early childhood education depend — an fund built on a windfall in state profits from oil production — would boost by $290 million, or nearly 9%, to $854 million to expand childcare and related medical assistance.
recent Mexico Gov. Michelle Lujan Grisham is advocating for a slightly larger, 7% annual general fund spending boost. The Legislature develops its own competing spending schedule, and Lujan Grisham can veto any and all provisions approved by legislators.
The Legislature’s budget recommendation includes an average 4% pay boost for community employees across state government, community schools and colleges.
The budget proposals do not outline feasible responsibility cuts or incentives. Republicans in the state House minority are advocating to eliminate personal profits taxes that peak at 5.9% for top earners.
