New Mexico plots greater spending, from tuition to Medicaid

An expansion of nonmerit scholarships to college and greater spending to safeguard abandoned oil wells in New Mexico are among the governor’s new spending priorities, amid a windfall in state income linked to federal pandemic relief and petroleum production.

September marks the outset of the Legislature’s grueling budget writing process for the year beginning July 1, 2022. Several executive agencies overseen by New Mexico Gov. Michelle Lujan Grisham are making the case for expanded services. Lujan Grisham spokesman Tripp Stelnicki said Tuesday the inclination is to “aim high” and “make the most of the opportunity we have to finish the work of rebuilding state government services after so many years of forced austerity.”

State income for the coming fiscal year is expected to outpace routine annual spending obligations by $1.4 billion, or 19 percent of annual general fund spending obligations.

That leaves lawmakers more money than ever before to spend on education, roads, public safety and other government programs.

Detailed spending targets from the Legislature’s lead budget writing committee — geared toward programs with efficient and measurable outcomes — are still months away from publication.

The state agency that oversees oilfield permits and cleanup activities says its $82 million budget proposal would increase capacity for on-site inspections and plug more orphan oil and natural gas wells. It was allotted less than $70 million for the current budget year ending June 30, 2022.

The Environment Department is seeking a $7.1 million increase in general fund spending, a roughly 45 percent increase over current year spending of $16 million. The funds would help the state reduce greenhouse gas emissions by implementing new fuel efficiency standards and boosting hydrogen infrastructure for fuel cell vehicles that have no tailpipe emissions, the Environment Department said in a statement.