The 2024 Legislature made investments in human capital
In recent years, New Mexico has been making waves not only in its financial investments, but also in nurturing its most valuable asset: its people. The state’s commitment to investing in human capital is not just commendable but serves as a blueprint for fostering prosperity in the 21st century.
In order to understand our responsible approach toward investing in human capital, we must first understand the financial position of the state. Over the last five years alone, New Mexico’s long-term investments have grown by $26.2 billion, driven by investment earnings and oil and gas disbursements. This 51% increase over five years has propelled the state’s total asset value to $77.6 billion as of Dec. 31, 2023. These investment funds include:
The $29.5 billion Land Grant Permanent Fund supports public schools and other state land trust beneficiaries;
The $9 billion Severance Tax Permanent Fund directly bolsters the state’s general fund, averting higher taxes or seeing a reduction in government services;
The $5.7 billion Early Childhood Education and Care Trust Fund supports early childhood services, from childcare and home visiting programs to pre-kindergarten.
Additionally, $16.3 billion supports the Education Retirement Board, and $17 billion aids the Public Employee Retiree Association, both offsetting future pension obligations through strategic investments.
Amid this financial sustainability and growth, we found ourselves in the 2024 legislative session where we made calculated investments for both the short- and mid-term. For example, the Legislature appropriated $2.7 billion into 30 different statutory funds to address critical issues like water, housing, emergency medical services, workforce and apprenticeship development, federal matching opportunities, conservation, and opioid recovery.
One of the most significant human capital investments the Legislature made during the 2024 session was in education, for we realize that an educated populace is fundamental to economic growth and a resilient society. From early childhood education programs, to reading interventions in our public schools, to bolstering higher education opportunities through tuition-free programs like the Opportunity and Lottery scholarships, New Mexico is paving the way for a skilled workforce ready to tackle the challenges of tomorrow.
Moreover, the Legislature’s investment in health care and social services underscores its commitment to the well-being of our residents. Programs targeting health care access, behavioral health, and poverty reduction efforts not only enhance quality of life but also lay the groundwork for a stronger society.
We also ensured that our seniors, disabled residents, and veterans are not left behind by providing them with further supports.
In a state as diverse as New Mexico, ensuring that all individuals have access to opportunities regardless of their background is paramount. Initiatives to close achievement gaps, promote workforce diversity, and support underserved communities remain central to our approach. We must also not lose sight of supporting entrepreneurs and fostering growth within strategic industries in urban, rural and tribal settings throughout our great state.
Looking ahead, New Mexico recognizes that true strength lies in its people. Our commitment to investing in human capital is an investment in future generations who will shape the state’s destiny.
We now head home to face the voters of our neighborhoods, communities and chapter houses. The state budget next year and the year after are not the issue. The issues are reducing crime, smaller classrooms, more health care providers, affordable housing and creating more jobs.
At the end of the day we are being asked to lay the foundation for sustained growth. For growth is the engine that powers New Mexico’s progress. Better roads across New Mexico leads to progress. Better schools and health care leads us to progress. No growth is not a viable option.