This bill amends existing laws regarding the management of the general fund and the tax stabilization reserve in New Mexico. It establishes a framework for transferring excess revenues from the general fund to the general fund operating reserve, contingent upon the total of the excess and the balance of the operating reserve exceeding a specified amount. Specifically, if the general fund revenues exceed appropriations, the excess revenue will be allocated to various funds, including the Medicaid trust fund, behavioral health trust fund, community benefit fund, public education reform fund, rural health care delivery fund, and the Kiki Saavedra senior dignity fund, based on defined percentages.

Additionally, the bill introduces new provisions that require a transfer from the tax stabilization reserve to the general fund operating reserve if the latter falls below one percent of aggregate appropriations for the fiscal year. It also clarifies that appropriations from the tax stabilization reserve can only occur with a two-thirds majority vote of the legislature, following a declaration from the governor regarding the necessity of such appropriations for public welfare. The effective date for these changes is set for July 1, 2026.

Statutes affected:
introduced version: 6-4-2.2, 6-4-4