CS/HB 2/a GENERAL APPROPRIATION ACT OF 2024

Rep Nathan Small

Actions: [2] HAFC-HAFC [4] DNP-CS/DP [6] fl/a- PASSED/H (53-16)- SFC-SFC [9] DP/a - PASSED/S (31-10) [14] h/cncrd SGND BY GOV (Mar. 6) Ch. 69 (partial veto).

Scheduled: Not Scheduled

 House Bill 2 (HB 2) makes general appropriations and authorizes expenditures by state agencies. 

 House Bill 2 (HB 2) makes general appropriations and authorizes expenditures by state agencies.

Definitions are provided and sources for all appropriations are identified. 

The state budget division of the Department of Finance and Administration (DFA) is charged with monitoring revenues received by agencies from sources other than the General Fund and with reducing the operating budget of any agency whose revenue from such sources is not meeting projections.

The DFA is also charged with regular consultation with the Legislative Finance Committee (LFC) staff to monitor revenue collections and estimates, and to present to the LFC plans to remedy deficits when revenues and transfers to the General Fund are not expected to meet appropriations.

In certain cases, allowances are made for budget increases and transfers.

Restrictions on what appropriations may be used for are set.

The state is required to follow the modified accrual basis of accounting when administering the General Appropriations Act (GAA).

Specific appropriations are made as follows:

Legislative Council Service - $34,292,800

General Control Agencies - $1,819,837,200

Commerce and Industry - $340,971,500

Agriculture, Energy and Natural Resources - $394,363,200

Health, Hospitals and Human Services - $14,824,030,300

Public Safety - $799,557,200

Transportation - $1,211,965,400

Higher Education - $4,211,298,000

Other Education - $134,484,100

Public School Support - $4,957,510,600

A severability clause is included, stating that if any part of the application of the act is held invalid, the remainder of its application to other situations and persons are not affected.
 

 If the bill does not pass, general appropriations will not be made, or will be delayed, and state agency expenditures will not be authorized. 

 Amended January 31, 2024 on House Floor

HFa/HB 2: The House Floor amends House Bill 2 (HB 2) as follows:

1. On page 131, between lines 8 and 9, insert: "Money appropriated to the public education department shall not be used to implement or enforce any rule establishing a minimum requirement of one hundred eighty instructional days per school year."


Amended January 31, 2024 on the House Floor

HFa/HB 2: The House Floor’s amendment to the House Appropriations and Finance Committee’s substitute for House Bill 2 (HB 2) reads as follows:

1.	On page 98, line 9, under the General Fund column, strike "234,129.8" and insert in lieu thereof "244,129.8" and under the Total/Target column, strike "234,129.8" and insert in lieu thereof "244,129.8". 2. 

2.	On page 98, lines 11 and 12, strike "eleven million eight hundred twenty-one thousand three hundred dollars ($11,821,300)" and insert in lieu thereof "twenty-one million eight hundred twenty-one thousand three hundred dollars ($21,821,300)".

 

 Committee Substitute on January 30, 2024 in the House Appropriations and Finance Committee

HBcs/HB 2: The House Appropriations and Finance Committee Substitute for House Bills 2 and 3 makes general appropriations and authorizes expenditures by state agencies.

Definitions are provided and sources for all appropriations are identified. 

The state budget division of the Department of Finance and Administration (DFA) is charged with monitoring revenues received by agencies from sources other than the General Fund and with reducing the operating budget of any agency whose revenue from such sources is not meeting projections.

The DFA is also charged with regular consultation with the Legislative Finance Committee (LFC) staff to monitor revenue collections and estimates, and to present to the LFC plans to remedy deficits when revenues and transfers to the General Fund are not expected to meet appropriations.

In certain cases, allowances are made for budget increases and transfers.

Restrictions on what appropriations may be used for are set.

The state is required to follow the modified accrual basis of accounting when administering the General Appropriations Act (GAA).

Specific appropriations are made as follows:

•	Legislative Council Service - $11,910.2
•	General Control Agencies - $1,799,637.3
•	Commerce and Industry - $345,693.6
•	Agriculture, Energy and Natural Resources - $390,945.8
•	Health, Hospitals and Human Services - $14,368,413.4
•	Public Safety - $771,509.0
•	Transportation - $1,275,952.4
•	Higher Education - $4,190,978.6
•	Other Education - $341,143.7
•	Public School Support - $4,938,538.5
•	Special Appropriations - $1,227,370.4
•	Supplemental and Deficiency Appropriations - $137,636.6
•	Information Technology Appropriations - $52,150.2

Compensation Appropriations:

•	Forty-three million eight hundred thirty-seven thousand nine hundred dollars ($43,837,900) is appropriated from the General Fund to the Department of Finance and Administration (DFA) for Fiscal Year 2025 to provide a salary increase of two percent to employees in budgeted positions; 

•	Three hundred fifty-six thousand dollars ($356,000) for permanent legislative employees, including permanent employees of the legislative council service, legislative finance committee, legislative education study committee, legislative building services, house and senate, house and senate chief clerks’ office and house and senate leadership; 

•	Five million seven hundred ninety-five thousand two hundred dollars ($5,795,200) for judicial permanent employees, including magistrate judges, elected district attorneys, district attorney permanent employees, public defender department permanent employees, judicial hearing officers and judicial special commissioners, supreme court justices, court of appeals judges, district court judges and metropolitan court judges; 

•	Twelve million six hundred thirty-four thousand one hundred dollars ($12,634,100) for incumbents in positions in the classified service governed by the State Personnel Act, except for the department of the environment; 

•	One million three hundred seventy-two thousand two hundred dollars ($1,372,200) for incumbents in the New Mexico state police career pay system; 

•	One million fifty thousand five hundred dollars ($1,050,500) for executive exempt employees, except for the Department of the Environment; 

•	Five hundred forty thousand dollars ($540,000) for costs attributable to the general fund and for costs attributable to federal funds for employees of the Department of the Environment; 

•	Twenty-one million eighty-seven thousand dollars ($21,087,000) to the Higher Education Department for nonstudent faculty and staff of two-year and four-year public postsecondary educational institutions; 

•	One million two thousand nine hundred dollars ($1,002,900) to the Higher Education Department for nonstudent faculty and staff of the New Mexico Military Institute, New Mexico school for the Blind and Visually Impaired and the New Mexico School for the Deaf. 

•	Forty-three million eight hundred thirty-seven thousand nine hundred dollars ($43,837,900) is appropriated from the General Fund to the DFA to provide a salary increase to employees in budgeted positions. 

•	Three hundred fifty-six thousand dollars ($356,000) is appropriated for permanent legislative employees, including permanent employees of the legislative council service, legislative finance committee, legislative education study committee, legislative building services, house and senate, house and senate chief clerks’ office and house and senate leadership; 

•	Five million seven hundred ninety-five thousand two hundred dollars ($5,795,200) is appropriated for judicial permanent employees, including magistrate judges, elected district attorneys, district attorney permanent employees, public defender department permanent employees, judicial hearing officers and judicial special commissioners, supreme court justices, court of appeals judges, district court judges and metropolitan court judges; 

•	Twelve million six hundred thirty-four thousand one hundred dollars ($12,634,100) is appropriated for incumbents in positions in the classified service governed by the State Personnel Act, except for the Department of the Environment; 

•	One million three hundred seventy-two thousand two hundred dollars ($1,372,200) is appropriated for incumbents in the New Mexico state police career pay system; 

•	One million fifty thousand five hundred dollars ($1,050,500) is appropriated for executive exempt employees, provided that amounts provided pursuant to this paragraph may be used to supplement increases; 

•	Five hundred forty thousand dollars ($540,000) is appropriated for employees of the Department of the Environment; and

•	Twenty-one million eighty-seven thousand dollars ($21,087,000) is appropriated to the Higher Education Department for nonstudent faculty and staff of two-year and four-year public postsecondary educational institutions.

The following amounts are appropriated from the Government Accountability Program Fund or other fund as indicated in fiscal year 2025 for the purpose specified, contingent on enactment of House Bill 196 or similar legislation of the second session of the fifty-sixth legislature creating the Government Accountability Expendable Trust and providing for the distribution of the fund. 

o	Early Childhood Education and Care Department -  $5,000.0 
o	Aging and Long-Term Services Department  - $3,125.0 
o	Health Care Authority Department - $5,000.0 
o	Workforce Solutions Department - $5,200.0
o	Office of Family Representation and Advocacy - $2,062.5 
o	Children, Youth and Families Department - $12,425
o	Public Education Department - $45,000 
o	Higher Education Department - $44,000.0 
o	New Mexico Institute of Mining and Technology - $1000.0 
o	Santa Fe Community College - $500.0 

The following amounts are transferred in from the General Fund or other funds as indicated for the purposes specified. 
•	Affordable Housing Trust Fund - $44,500.0 
•	Conservation Legacy Permanent Fund - $300,000.0 
•	Government Accountability Trust Fund - $512,200.0 
•	Government Accountability Program Fund - $325,800.0 
•	Magistrate Court Warrant Enforcement Fund - $884.0 
•	Teacher Loan Repayment Fund - $5,000.0 
•	Opioid Crisis Recovery Fund - $12,700.0 

One hundred and fifty thousand ($150,000) is appropriated from the General Fund to the Department of Transportation. 
Allowable increase requests are specified for:

•	The ninth judicial district court
•	The risk management program of the General Services Department
•	The State Personnel Office
•	The State Treasurer
•	The State Ethics Commission
•	The Racing Commission
•	The Cultural Affairs Department
•	The State Land Office
•	The Family Support and Intervention Program of the Early Childhood Education and Care Department
•	The Aging and Long-Term Services Department
•	The Vocational Rehabilitation Division
•	The Miners’ Hospital
•	The Medical Cannabis Program of the Department of Health
•	The Water Protection Program of the Department of Environment
•	The Office of Family Representation and Advocacy
•	The Department of Transportation
•	The Student Financial Aid Program of the Higher Education Department

Selected budget adjustments are authorized, agencies and departments allowed to receive adjustments, and related definitions are provided.

In the case that revenue and transfers to the General Fund at the end of Fiscal Year 2025 are not sufficient to meet appropriations, the governor, with the State Board of Finance approval, may transfer to the appropriation account of the General Fund the amount necessary to meet that fiscal year’s obligations from the operating reserve, provided that the total transferred does not exceed one hundred five million dollars ($105,000,000). 

A severability clause is included, stating that if any part of the application of the act is held invalid, the remainder of its application to other situations and persons are not affected.

 

 House Bill 176 (HB 176) - General Appropriation Act
Senate Bill 192 (SB 192) - General Appropriation Act
Senate Bill 202 (SB 202) - General Appropriation Act