Fiscal Year 2027 State Agency Budget Requests

Fiscal Year 2027 State Agency Budget Requests: Available for the public

by Dr. Andrew Miner, DPA, Director, State Budget Division

The State Budget Division (SBD) of the Department of Finance and Administration is pleased to publish New Mexico state agency budget requests for Fiscal Year 2027 available to the public. Publishing budget requests allows for full civic participation in the budget-making process which affects the lives of all New Mexicans. 

Budget Request Process

State agencies submit budget requests to both SBD and the Legislative Finance Committee (LFC) annually. This year, the deadline for submission was September 2, 2025. The SBD team reviewed all budget requests for technical accuracy. In the coming months, executive and legislative staff will use the requests to develop their respective budget recommendations prior to the Legislative Session beginning in January 2026. 

This group of budget requests does not include public higher education institutions, which are due later this fall. In FY26an , higher education institutions have a cumulative general fund budget of approximately $1.2 billion. 

High-level Summary 

The collective general fund increases requested by agencies total $644.2 million, a 6.7% increase over an FY26 operating budget of $9.57 billion.  Submitted for the first time in September, this includes the FY27 request for public school support, which totals $4.82 billion, a 1.7% increase over FY26.

Agencies with the largest requested increases include:

• The Department of Information Technology ($6.7 million, 65.4%)

• The Regulation and Licensing Department ($9 million, 43.1%)

• The Early Childhood Education and Care Department ($155.6 million, 51.5%)

• The Health Care Authority ($188.3 million, 9.1%)

• The Department of Health ($42.8 million, 21.3%)

• The Children, Youth and Families Department ($48.6 million, 18.1%)
• The Department of Public Safety ($13.8 million, 6.9%)

Many agencies’ FY27 budget requests emphasized the need for ongoing funding to make permanent the provisions of 2025 SB 376, which raised the state’s share of employee health insurance premiums to 80%. That increase was covered with one-time funds in FY26. Requests also reflect higher rates for services provided by the General Services Department and the Department of Information Technology.

The worksheet Summary of Received General Fund Requests shows each agency’s FY26 general fund operating budget alongside its FY27 request. Dollar amounts are presented in thousands; for example, $5,000.0 represents $5million. 

The total FY26 general fund operating budget for New Mexico is $10.84 billion.  As a rule of thumb, each 1% increase in the FY27 budget will equal roughly $108 million over FY26. 

Nonrecurring Requests

Agencies also submitted requests for special appropriations (one-time funding) on September 2, with requests for supplemental and deficiency appropriations to address current or prior-year shortfalls due on October 31. 

In New Mexico, supplemental appropriations are additional funds allocated by the Legislature during the fiscal year to cover unexpected expenses or emergencies. Deficiency appropriations are specific supplemental funds provided to address shortfalls in a department or program’s prior-year budget to ensure compliance with generally accepted accounting principles. 

The total general fund requested for nonrecurring special appropriations amounts to $1.6 billion. Some of the largest requests include: 

• $75 million for the New Mexico Match Fund
• $21 million for the Department of Information Technology to lead statewide cybersecurity initiatives
• $49.3 million to the Economic Development Department for matching funds for Quantum Benchmarking Initiative activities
• $50 million to the Energy, Minerals and Natural Resources Department to support the Wildfire Prepared Program through grants and contracts
• $50 million to the Office of the State Engineer for depletion reductions and increasing the water supply in the Lower Rio Grande and for implementing the settlement resolving interstate litigation
• $20 million to the child care revolving loan fund
• $50 million for the Department of Environment River Stewardship Program
• $420 million for statewide road construction and maintenance 

Also submitted on September 2, nonrecurring general fund requests for public school support included $45 million for Career Technical Education, $35 million for reading and math summer and school time programs, and $10 million for summer internships for high school students. 

Additionally, agencies submitted $500 million in requests for pilot projects funded through the Government Results and Opportunity (GRO) Fund, including: 

• $15.4 million at the Law Offices of the Public Defender to transition selected cases from base rates to hourly rates for contract attorneys
• $30 million to the Early Childhood, Education and Care Department to implement the wage scale and career lattice framework in the child care, early intervention, home visiting and prekindergarten workforce
• $100 million to the Department of Workforce Solutions for statewide affordable and attainable housing initiatives, as well as $25 million for statewide homelessness initiatives
• $30 million to the Environment Department for capacity building in environmental and public health regulatory services for restaurant, manufactured food, onsite liquid waste, and public pools and spas to safeguard public health and support economic growth
• $108 million to the Children, Youth and Families Department for the Protective Services Division to reduce vacancy rates, implement a pay band realignment, address internal compaction, increase contractual support, provide office space for new employees, buildings for emergency stays, foster care plus rate increases, and travel increases 

For a complete list of received nonrecurring requests, refer to the Received Special Appropriation Requests worksheet.  Details regarding many of these requests may be found within specific agencies’ budget request submissions. 

In 2024 the Consensus Revenue Estimating Group (CREG) adjusted the definition of “new money” to properly account for the large amount of nonrecurring spending in the past few years due to large increases in available revenue. Under the new definition, the new money forecast of $485 million for FY27 by the CREG in August 2025 assumes that the Legislature will appropriate $2.8 billion, the same amount as FY26, for nonrecurring purposes in FY27.  The $485 million is thus available for increases in recurring or nonrecurring spending or for saving to add to general fund reserves. 

What’s Next?

SBD invites the public and stakeholders to carefully examine the operating budget and nonrecurring budget requests submitted by state agencies. Legislative and executive leadership will use this information to craft the Fiscal Year 2027 budget prior to and during the 2026 legislative session.