Bill > SB166

This bill, effective July 1, 2026, modifies how excess general fund revenues are handled, particularly concerning the "tax stabilization reserve," which is a reserve fund for the state. It allows for transfers from this reserve to the "general fund operating reserve" if that reserve falls below one percent of the state's total general fund appropriations for a fiscal year, ensuring it's replenished to that minimum level. Additionally, if general fund revenues exceed appropriations, and the combined excess revenue and the balance in the general fund operating reserve are between five and eight percent of the previous fiscal year's general fund appropriations, a portion of that excess will be transferred to several specific funds, including the medicaid trust fund, behavioral health trust fund, and public education reform fund, provided that the combined balances of the general fund operating reserve and the tax stabilization reserve exceed twenty-five percent of the previous fiscal year's general fund appropriations. Any excess revenue beyond eight percent of the previous fiscal year's general fund appropriations will be transferred to the "government results and opportunity expendable trust."

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=166&year=26