New Mexico Senate Finance Committee finalizes $10.8 billion budget

New Mexico's Senate Finance Committee has approved a nearly $10.8 billion budget proposal for the upcoming fiscal year. The committee voted 9-2 on House Bill 2, which includes a 6% spending increase over fiscal year 2025. This proposal aims to allocate an additional $76 million for middle and high school education, along with raises for teachers and public employees. The budget still needs to pass the entire Senate and receive House approval before it goes to Governor Michelle Lujan Grisham for final review. Senator Craig Brandt, a Republican member of the committee, expressed his support for the proposal, marking a rare occasion where he voted for a budget in his 13 years in the Legislature. Concerns about potential cuts to federal funding, particularly for Medicaid, loom over the budget process. Officials worry these cuts could significantly impact New Mexico's budget, as Medicaid spending already exceeds the entire general fund. Committee chair Senator George Muñoz emphasized the importance of focusing on state needs instead of uncertainties in Washington. In the Senate's version of the budget, $500 million from the state's Early Childhood Trust Fund is proposed to support behavioral health initiatives and the Medicaid system. Public education spending constitutes the largest portion of the budget, and the Senate's plan prioritizes increased funding for middle and high school students. The budget proposes a total of over $5 billion for public schools in fiscal year 2026 and includes raises for public employees and teachers. Education leaders believe the flexibility in spending will help schools address their unique needs. As lawmakers prepare for the next steps, it remains to be seen if this increased funding will effectively improve the state's educational challenges. Senators are hopeful that the additional resources will enhance connections between students and teachers, particularly in middle and high schools.