New Mexico, like all states, has a unique early childhood policy landscape that is shaped by economics, demographics, political history, coalitions, and other factors that create a state-specific environment for policy advocacy.
State early childhood policy progress is dependent both on the state’s environment and the numerous efforts—by the organizations listed on this page, other organizations, parents, policymakers, practitioners, and more—who work both independently and collaboratively to achieve wins for young children.
Research shows that family economic security is foundational to children’s overall wellbeing. Research also shows that widespread disparities in opportunity (especially by race) drive wide disparities in outcomes. States with policies that offer strong support to young children and their families are more likely to see 1) declining numbers of children in low-income households and 2) low racial disparity among those children.
Young Children in Low-Income Households: Declining
Approximately 49 percent (97,000) of the state’s children 0-8 live in households below 200 percent FPL (2022). This number represents a decrease from 57 percent (131,000) in 2017.1
Racial Disparity Among Young Children Living in Low-Income Households: High
Black, Hispanic/Latino, and Native children aged 0-8 are significantly more likely to be living in households below 200% FPL than are Asian and non-Hispanic White children.2
State General Fund Appropriations: Growing
In March of 2024, New Mexico’s governor signed the state budget for fiscal 2025. The budget totals $10.2 billion in recurring general fund spending, a 6.8 percent increase over fiscal 2024 levels. The legislature also passed $1.25 billion in nonrecurring spending including funding for public infrastructure, road projects, and rural hospital expansions. Additionally, the budget includes $838 million in transfers to the newly created government results and opportunity expendable trust and its program fund for multiyear appropriations to pilot a range of initiatives. The enacted budget is based on recurring general fund revenues of $12.8 billion in fiscal 2025, reflecting annual growth of 0.6 percent. The state’s general fund reserves are estimated at $3.3 billion, which is 32.2 percent of recurring expenditures and includes $2.3 billion in the Tax Stabilization Reserve Fund which is the state’s rainy-day fund.3
Largest Revenue Sources (After Federal Transfers):4
New Mexico uses all major state and local taxes. New Mexico’s per capita general sales tax revenue is relatively high in part because it taxes nearly all services while most other state exempt at least some services from tax. Charges are public payments connected with a specific government service, such as tuition paid to a state university, payments to a public hospital, or highway tolls.
State Budget Rules:4
New Mexico uses an annual budget. The legislature is not required to pass a balanced budget, nor is the governor required to sign one, and deficits may be carried over into the following year. However, the governor must submit a balanced budget, and own-source revenue and allowed borrowing must meet or exceed expenditures. New Mexico does not have any other tax and expenditure limits. The state also does not limit either authorized debt or debt service.
Permanent State Funding Streams Dedicated to Early Childhood: Yes
The New Mexico Early Childhood Trust Fund annually distributes $250 million that is dedicated to prenatal-to-five services and the state’s Early Childhood Education and Care Department.
A constitutional amendment also mandates a Land Grant Permanent Fund Distribution for Early Childhood Education. The distribution is equal to 1.25 percent of the total value of the fund and must be dedicated to early childhood education (60 percent of the allocation) and public education (40 percent of the allocation). The early childhood education distribution totals roughly $100 million annually.
Political Alignment: Aligned Democrat
During the 2024 session, the state’s Senate and House were both Democratic controlled. The state’s Governor was also a Democrat.5
Types of Ballot Measures Available:6 Three
Key State Policy Advocacy Organizations Include:
Early Childhood Policy Advocacy Multi-State Initiatives Include:7
Highlights from the state’s early childhood policy advocacy community include:8
Senate Bill 153 increases distributions from the Early Childhood Education and Care Fund (ECCE Fund) to $250 million, providing $95 million more for programs such as child care assistance, NM Pre-K, support for the ECCE workforce, maternal and infant health services, and Tribal facilities. This win was important because the ECCE Fund, created in 2020 with $300 million, had ballooned to $2.2 billion by 2024, due to high oil and gas revenue. While advocates were pleased with the growth of the Fund, lawmakers had expressed concern that the Fund was too large and attempts had been made to siphon from it for programs for other purposes. SB 153 helped ensure that ECCE services not only received more funding in the short-term, but that more of the Fund’s revenue would be earmarked for ECCE services into the future. New Mexico’s ECCE Fund has received national attention and this win led to our Deputy Policy Director being asked to testify before the Connecticut Legislature, which was considering a similar Fund. New Mexico’s House Speaker was also asked to address Congress about the issue.
The Alliance’s lead ally in New Mexico, New Mexico Voices for Children, is a nonpartisan, statewide advocacy organization that works to create systems-level sustainable change to improve the lives of New Mexico’s children in three key areas: family economic security, access to high-quality, cradle-to-career education, and health care and healthy communities.
New Mexico Voices for Children is working to advance early childhood policies in several areas:
Child Care
Child Care Workforce
Infant & Child Health
Family Economic Security
Click here for more information on advocates’ policy agenda.
A coalition of New Mexico advocates recently launched the New Mexico Guaranteed Income Pilot Program for Immigrant Families, an 18-month initiative to address poverty and economic security. The program’s evaluations are showing participating families reporting increases in housing and job security, as well as improved education outcomes for their children.
NOTES:
1 Kids Count Data Center, Annie E. Casey Foundation, Children Ages 0 to 8 Below 200 Percent Poverty, January, 2024.
2National Center for Children in Poverty, Children Ages 0 through 8 Below 200 Percent Poverty, October 2024, NCCP analysis of ACS 5-Year Estimates – Public Use Microdata Sample 2018-2022.
3 National Association of State Budget Officers, Proposed and Enacted Budgets, FY 2025.
4 Urban Institute, State Fiscal Briefs, June 2024.
5 National Conference of State Legislatures, 2024 State & Legislative Partisan Composition, April 29, 2024.
6 Ballotpedia, Ballot Measures by State, Kids Count Data Center, retrieved July, 2024.
7 Alliance for Early Success, Multi-State Initiatives for Early Childhood Policy Advocacy, July, 2024.
8 Alliance for Early Success, State-Wide Advocacy Highlights Survey, April-October, 2024; and 2024 Prenatal-to-3 Legislative Highlights, Prenatal-to-3 Policy Impact Center, July, 2024.
Sign up for state early childhood policy news, advocacy resources, and event invitations.
© 2024 Alliance for Early Success
The Alliance for Early Success does not endorse or advocate for specific legislation or candidates.
