Bill > HB71

This bill focuses on modifying fund transfer mechanisms for early childhood education, behavioral health, and Medicaid in New Mexico, specifically addressing how excess revenues from extraction taxes and federal mineral leasing will be allocated. From fiscal years 2026 through 2028, the bill directs that fifty percent of excess extraction tax revenues will go to the Early Childhood Education and Care Fund and fifty percent to the Behavioral Health Trust Fund, with a provision that reduces the Behavioral Health Trust Fund transfer if the Early Childhood Education and Care Fund balance drops below its fiscal year 2025 level. Similarly, for the same period, fifty percent of excess federal mineral leasing revenues will go to the Early Childhood Education and Care Fund and fifty percent to the Medicaid Trust Fund, with a comparable balance-protection mechanism. Starting in fiscal year 2029, one hundred percent of these excess revenues will be directed to the Early Childhood Education and Care Fund. The bill also requires the state auditor to report annually on expenditures from the Early Childhood Education and Care Program Fund, beginning in 2025, and establishes investment and reporting requirements for the funds. The bill's provisions are contingent on the creation of a Medicaid Trust Fund and will take effect on July 1, 2025, with the goal of providing more stable and transparent funding for early childhood education and related social services.

Budget and Finance, Education

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=71&year=25