New Mexico Governor Michelle Lujan Grisham has unveiled a new budget proposal aimed at addressing key issues in early childhood education, industrial water recycling, and expanding mental health and addiction treatment programs. The proposed $10.9 billion budget for fiscal year 2025-2026 represents a 7% increase, totaling an additional $720 million in general fund spending.
Investments in Education and Mental Health
The Governor’s plan prioritizes significant investments in early childhood education, with a proposed $206 million boost to expand access to preschool and childcare services, particularly for families with children aged three and under. The funds would come from both the state’s general fund and a newly established trust that utilizes earnings from the state’s oil industry. The aim is to provide education opportunities at little or no cost to most families, helping close educational gaps early in a child’s development.
In addition to education, Lujan Grisham is targeting the state’s rising crime rates and homelessness with proposals for enhanced addiction and mental health treatment programs. Leading Democratic lawmakers have also proposed creating a $1 billion trust fund for these initiatives, signaling a strong focus on tackling social issues tied to substance abuse and mental health.
Water Recycling and Environmental Initiatives
The budget proposal includes a major focus on addressing New Mexico’s water scarcity, with $200 million earmarked for water-related projects. A central element of this is a $75 million initiative to recycle water from oil and gas production, specifically targeting the vast amounts of polluted, salty water used in fracking. The governor’s plan also introduces a per-barrel fee on this polluted water, a proposal that could play a key role in mitigating environmental risks while securing the state’s water resources.
Despite the state’s reliance on oil production—New Mexico is the second-largest oil producer in the U.S.—officials are mindful of the potential disruption that federal policy changes could bring, especially with the incoming Trump administration. New Mexico relies heavily on federal support for Medicaid, education, environmental programs, and other essential services.
Employee Pay Increases and Rural Internet Access
Another major component of the budget is a $172 million allocation for pay raises for state government and public school employees, aiming for a 3% overall increase. In addition, Lujan Grisham is requesting $70 million to accelerate internet access in rural communities, utilizing satellite service from Elon Musk’s Starlink network as a stopgap while fiber-optic infrastructure is developed.
Support for Native American Communities
The proposal also includes more than $90 million in funding for Native American communities to bolster educational initiatives, including the preservation of indigenous languages. The aim is to support autonomy in Native American education, addressing specific needs within these communities.
The budget will be reviewed and debated by the New Mexico Legislature, which will convene for its 60-day session starting January 21, 2025. While the governor’s office has expressed cautious optimism, they remain vigilant about the potential effects of federal policy shifts under the incoming Trump administration. The Governor retains the authority to veto portions of the proposed budget.
Looking Ahead
As the state of New Mexico navigates its fiscal challenges and shifts in federal policy, Governor Lujan Grisham’s proposal reflects a commitment to improving public health, education, and environmental sustainability, while addressing the pressing issues of crime, homelessness, and economic inequality. The coming legislative session will be crucial in determining the trajectory of these initiatives.
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