STATE OF NEW MEXICO
Volume 1 - Legislative Finance Committee Report For Fiscal Year 2017 Report of the Legislative Finance Committee to the Fifty-Second Legislature SECOND SESSION
January 2016 For Fiscal Year 2017 Volume i
legislating for results: policy and performance analysis Senator John Arthur Smith State of New Mexico Representative Jimmie C. Hall Chairman Vice-Chairman LEGISLATIVE FINANCE Senator Sue Wilson Beffort COMMITTEE Representative Paul C. Bandy Senator Pete Campos Representative George Dodge
Senator Carlos R. Cisneros Representative Jason C. Harper 325 Don Gaspar, Suite 101 • Santa Fe, NM 87501 Senator Carroll H. Leavell Representative Larry A. Larrañaga Phone (505) 986-4550 • Fax: (505) 986-4545 Senator Howie C. Morales Representative Patricia A. Lundstrom
Senator George K. Munoz Representative Nick L. Salazar David Abbey Senator Steven P. Neville Representative Luciano “Lucky” Varela Director
Honorable Members Fifty-Second Legislature, Second Session State Capitol Santa Fe, New Mexico 87501
Dear Fellow Legislators:
Pursuant to Section 2-5-4 NMSA 1978, the fiscal year 2017 budget recommendation of the Legislative Finance Committee is provided to you. The committee recommendation for recurring appropriations from the general fund is $6.47 billion, $230.7 million more than the FY16 operating budget for a 3.7 percent increase in spending. However, $77.6 million of that amount, intended for compensation increases, is contingent on the state generating as much general fund revenue as projected, a caution reflecting the significant risk to the revenue forecast posed by depressed oil and natural gas prices. Proposed new spending is essentially flat with projected “new money” of $232 million, leaving general fund reserves at $427.4 million, or 6.6 percent of proposed appropriations. With the expected release of most of the $101.7 million set aside to address a contingent liability in the FY14 general fund audit, the reserves would reach a prudent 8 percent, a sensible approach in this economic climate.
With the end of 2015 peppered with bad economic news, the committee was forced to make hard budget decisions and focused new spending on Medicaid, education, early childhood investments, public health, workforce development and economic growth, public safety, and the protection of New Mexico’s most vulnerable with an emphasis on programs with proven success.
Recommended new recurring spending for early childhood programs is $21.4 million, a 9 percent increase over FY16. The increase includes additional funding for early literacy programs, prekindergarten, the K-3 Plus extended school year program, childcare assistance, and home visits to families with infants.
General fund spending on higher education and public schools totals $3.7 billion in the committee’s recommendation, a 3.2 percent increase over FY16. The $2.8 billion spending plan for public schools, a 3.7 percent increase, includes funding to adjust the salary structure and targeted compensation increases contingent on general fund revenues meeting projections and higher starting salaries for new teachers. The committee’s recommendation for higher education includes healthcare education initiatives aimed at closing the gap in the supply of medical providers.
General fund support for the departments of Public Safety and Corrections would increase 3.6 percent in the committee’s recommendation for a total of $420 million. For Corrections, the committee recommendation includes funds for hepatitis C treatment and medical and private prison cost inflation. The proposal for both agencies prioritizes safe staffing levels, higher pay, and strategic spending.
I would like to thank the membership of the Legislative Finance Committee for their hard work on behalf of the people of New Mexico and the LFC staff for its thoughtfulness and diligence on this very difficult task. Together, we have prepared a responsible budget that prioritizes cost-effective spending that provides the most benefit to New Mexicans.
Sincerely,
Senator John Arthur Smith Chairman includes funds for hepatitis C treatment and medical and private prison cost inflation. The proposal for both Table of Contents agencies prioritizes safe staffing levels, higher pay, and strategic spending.
I would like to thank the membership of the Legislative Finance Committee for their hard work on behalf of the Table of Contents people of New Mexico and the LFC staff for its thoughtfulness and diligence on this very difficult task. Overview Together, we have prepared a responsible budget that prioritizes cost-effective spending that provides the most benefit to New Mexicans. REPORT OF THE Recommendations and Highlights ...... 1 Table of Contents LEGISLATIVE Revenues and Tax Policy Sincerely, Overview FINANCE COMMITTEE Economic Forecast...... Recommendations and Highlights ...... 1 REPORT OF THE TO THE Revenues/Tax Policy...... LEGISLATIVE Senator John Arthur Smith Revenues and Tax Policy FIFTY-SECOND FINANCE LEGISLATURE Policy Analysis Chairman Economic Forecast...... COMMITTEE 77 SECOND SESSION Early Childhood ...... Revenues/Tax Policy...... TO THE 11 Education ...... FIFTY-SECOND Economic Development and Workforce Training...... Policy Analysis VOLUME I LEGISLATURE LEGISLATING Health Care ...... Public Safety and Justice ...... FIRST SESSION Early Childhood ...... 1515 FOR RESULTS: Public Infrastructure ...... Education ...... 2020 POLICY AND Natural Resources...... Economic Development and Workforce Training ...... 3434 VOLUME I PERFORMANCE Government Administration...... Health Care ...... 3388 LEGISLATING Public Safety and Justice ...... ANALYSIS 4848 Investments Report…………….……………………………… FOR RESULTS: Public Infrastructure ...... 5353 POLICY AND Natural Resources ...... 6767 JANUARY 2016 PERFORMANCE Government Administration ...... 7171 FOR Performance…………………….……………………………… ANALYSIS FISCAL YEAR 2017 Investments Report…………….……………………………...77 Accountability in Government ...... Report Card Criteria ...... JANUARY 2015 Performance Reports: Performance…………………….……………………………...81 Children, Youth and Families Department ...... FOR SENATOR Public Education ...... FISCAL YEAR 2016 Accountability in Government ...... 8383 JOHN ARTHUR SMITH Higher Education ...... Report Card Criteria ...... 8484 CHAIRMAN Performance Reports: Economic Development Department...... REPRESENTATIVE Tourism Department...... Children, Youth and Families Department ...... 8787 REPRESENTATIVE JIMMIE C. HALL Workforce Solutions...... Public Education ...... 90 LUCIANO “LUCKY” VARELA 90 VICE CHAIRMAN Human Services Department ...... Higher Education ...... 9393 CHAIRMAN Behavioral Health Collaborative ...... Economic Development Department ...... 9797 DAVID ABBEY Department of Health...... SENATOR Tourism Department ...... 9999 DIRECTOR Aging and Long-Term Services Department ...... JOHN ARTHUR SMITH Workforce Solutions...... 100100 VICE-CHAIRMAN Human Services Department ...... 102 Corrections Department ...... 102 Department of Public Safety...... Behavioral Health Collaborative ...... 106106 DAVID ABBEY Administrative Office of the Courts……………………….. Department of Health...... 108108 DIRECTOR Department of Transportation...... Aging and Long-Term Services Department ...... 111111 Department of Information Technology…………………. Corrections Department ...... 113113 Department of Public Safety ...... 115 Department of Environment...... 115 Energy, Minerals and Natural Resources Department...... Administrative Office of the Courts………………………...... 111177 Office of the State Engineer ...... Department of Transportation ...... 118118 General Services Department…………………………….. Department of Information Technology…………………...... 112020 State Personnel Board ...... Department of Environment ...... 122122 Taxation and Revenue Department...... Energy, Minerals and Natural Resources Department ...... 121244 Office of the State Engineer ...... 126126 General Services Department……………………………...... 121288 State Personnel Board ...... 130130 Taxation and Revenue Department...... 131131
QUALITY PRINTING BY
III Table of Contents
Table 1: General Fund Agency Recommendation Summary
Table 2: U.S. and New Mexico Economic Indicators
Table 3: General Fund Consensus Revenue Estimates
Table 4: General Fund Financial Summary and Reserve Detail
Table 5: Special, Supplemental, and Deficiency Appropriations, 2016 Legislative Session Requests
Table 6: FY17 Information Technology Requests
IV Recommendations & Highlights Policy Analysis: Recommendation and Highlights Policy Analysis: Recommendation and Highlights Page 1 Page 1
udget development this year was conducted in an FY17 Recurring udget development this year was conducted in an FY17 Recurring General Fund environment of uncertainty. Although FY15 revenue General Fund environment of uncertainty. Although FY15 revenue Appropriation Appropriation came in stronger than expected, the assumptions used came in stronger than expected, the assumptions used Recommendation: B Recommendation: B $6.47 billion to project state income for FY16 and FY17 have been $6.47 billion to project state income for FY16 and FY17 have been challenging, with the prices of oil and natural gas particularly challenging, with the prices of oil and natural gas particularly 15% 20% 15% difficult to forecast. As a result, the committee took a 20% difficult to forecast. As a result, the committee took a cautious approach, limiting growth to high-priority areas, cautious approach, limiting growth to high-priority areas, 7% 7% 1% 1% setting aside some funds, and allowing some spending to setting aside some funds, and allowing some spending to occur only if revenue materializes. occur only if revenue materializes.
13% 44% Budget Development and Priorities 13% 44% Budget Development and Priorities Budget Development. In August 2015, the consensus revenue team from Budget Development. In August 2015, the consensus revenue team from the Department of Finance and Administration (DFA), Tax and Revenue the Department of Finance and Administration (DFA), Tax and Revenue Medicaid: $970.5 million Department (TRD), and LFC projected “new money” – FY17 projected Medicaid: $970.5 million Department (TRD), and LFC projected “new money” – FY17 projected Public Safety: $432.6 million recurring revenue less FY16 recurring appropriations – to be $293 million, an Public Safety: $432.6 million recurring revenue less FY16 recurring appropriations – to be $293 million, an increase of 4.7 percent. The consensus team revised their outlook in increase of 4.7 percent. The consensus team revised their outlook in Public Schools: $2,854 million Public Schools: $2,854 million December, reducing the revenue growth projection to $232 million, or December, reducing the revenue growth projection to $232 million, or Higher Education: $856.8 million approximately 3.7 percent, over FY16 appropriations. Given the lower Higher Education: $856.8 million approximately 3.7 percent, over FY16 appropriations. Given the lower Compensation: $77.6 million revenue projection and notable downside risk, the committee recommends Compensation: $77.6 million revenue projection and notable downside risk, the committee recommends spending $6.47 billion – $230.7 million, or 3.7 percent, more than FY16 spending $6.47 billion – $230.7 million, or 3.7 percent, more than FY16 Other: $1,274.5 million operating levels – and leaving a projected $427.4 million, or 6.6 percent, in Other: $1,274.5 million operating levels – and leaving a projected $427.4 million, or 6.6 percent, in Source: LFC Files reserve. The committee made $77.6 million for compensation increases in the Source: LFC Files reserve. The committee made $77.6 million for compensation increases in the recommendation contingent on general fund revenues achieving projected recommendation contingent on general fund revenues achieving projected levels and on maintaining adequate reserves. The committee also noted it levels and on maintaining adequate reserves. The committee also noted it FY17 General Fund expects a contingent liability in the FY14 general fund audit of $101.7 million FY17 General Fund expects a contingent liability in the FY14 general fund audit of $101.7 million Expenditure to be mostly reversed when the FY15 audit is released, which would bring the Expenditure to be mostly reversed when the FY15 audit is released, which would bring the Increases: general fund reserve levels up to about 8 percent. Increases: general fund reserve levels up to about 8 percent. $230.7 million $230.7 million $90 Priorities. The Legislative Finance Committee (LFC) adopted a balanced $90 The Legislative Finance Committee (LFC) adopted a balanced Priorities. $80 budget that prioritizes increases for education, early childhood investments, $80 budget that prioritizes increases for education, early childhood investments, public health, workforce development and economic growth, public safety, public health, workforce development and economic growth, public safety, $70
$78.8 and the protection of vulnerable citizens. Targeted investments are $70 $60 $77.6
$78.8 and the protection of vulnerable citizens. Targeted investments are recommended to address growth in the Medicaid program, increased $60 $77.6 recommended to address growth in the Medicaid program, increased $50 incarceration costs, uncompetitive salary structures that result in high $50 incarceration costs, uncompetitive salary structures that result in high $40 vacancies and employee turnover, replacement of nonrecurring revenues in $40 vacancies and employee turnover, replacement of nonrecurring revenues in $30 $47.7 the budget, and efforts to improve public and higher educational outcomes. $47.7
$30 the budget, and efforts to improve public and higher educational outcomes. $20 $14.5
$14.5 LFC recommends larger-than-average increases for district attorney offices; $8.3 $20 $3.8 LFC recommends larger-than-average increases for district attorney offices; $10 the Public Defender; the State Engineer; and the departments of Tourism, $8.3 $10 $3.8 the Public Defender; the State Engineer; and the departments of Tourism, $0 Economic Development, Corrections, Public Safety, Environment, and $0 Economic Development, Corrections, Public Safety, Environment, and Children, Youth and Families. Nearly $78.8 million, or 34 percent, of the Children, Youth and Families. Nearly $78.8 million, or 34 percent, of the Other $232 million of “new money” is allocated to the Medicaid program to address Medicaid Other $232 million of “new money” is allocated to the Medicaid program to address growth in enrollment and utilization and to replace federal funds. Medicaid Public Safety Public Schools
growth in enrollment and utilization and to replace federal funds. Compensation* Public Safety Higher Education Public Schools Compensation* Recommendation Higher Education Recommendation *Contingent appropriation Source: LFC Files, GAA The committee’s spending recommendation is balanced with December *Contingent appropriation revenue projections; however, the committee noted the price of oil continued Source: LFC Files, GAA The committee’s spending recommendation is balanced with December revenue projections; however, the committee noted the price of oil continued 1 Policy Analysis: Recommendation and Highlights RecommendationsPolicy Analysis: Recommendation and Highlights & Highlights Page 2 Page 2 to fall and recommends $77.6 million for compensation increases as a contingentto fall appropriation. and recommends The total $77.6 general million fund increasefor compensation is $230.7 million. increases as a Early Childhood contingent appropriation. The total general fund increase is $230.7 million. Programs,Early GeneralChildhood FundPrograms, Revenues General Early Childhood. The LFC recommendation increases recurring funding (in Fundmillions) Revenues for earlEarlyy childhood Childhood. initiatives The by LFC $20.5 recommendationmillion, a 5 percent increases increase recurring over funding $45 (in millions) FY16 forrecurring early childhood appropriations. initiatives The increased by $20.5 funding million, includes a 5 percent $14.5 millionincrease over $40 $45 for earlyFY16 literacy recurring programs appropriations. and the K The-3 Plus increased extended funding school includes year prog $14.5ram, million $35 $40 $4.5 millionfor early for literacy prekindergarten, programs $1.2 and millionthe K-3 for Plus home extended visits to school families year with program, $4.5 million for prekindergarten, $1.2 million for home visits to families with $30 $35 infants, $1 million for childcare assistance, and $150 thousand to support providerinfants, training $1 andmillion education for childcare advancement. assistance, and $150 thousand to support $25 $30 provider training and education advancement. $20 $25 Continuing the trend of prioritizing investment in education, the $15 $20 Education. committeeEducation recommends. Continuing a total ofthe $3.7 trendbillion of prioritizing in general investment fund appropriations in education, the $10 $15 for FY17,committee a $115.5recommendsmillion, a total or of3.2 $3.7percent, billion ini ncrgeneeaseral fundover appropriationsFY16 $10 $5 appropriations.for FY17, a $115.5 million, or 3.2 percent, increase over FY16 $- $5 appropriations.
$- FIT
PreK Public Education. The committee recommends $2.8 billion in general 3 Plus - FIT K PreK fund supportPublic forEducation. public education, The ancommittee increase ofrecommends $47.7 million, $2.8 or 1.7billion percent, in general 3 Plus -
K over FY16fund support appropriations. for public The education, program an cost increase recommendation, of $47.7 million, which or totals 1.7 percent, Early Literacy Home Visiting Home $2.53 overbillion, FY16 is anappropriations. increase of $21.5 The million,program or cost 0.9 recommendation, percent, over the FY16which totals Early Literacy Home Visiting Home appropriation$2.53 billion, and includes is an increase funding offor $21.5 projected million, unit changesor 0.9 percent, in FY17 over and thean FY16 Childcare Assistance increaseappropriation in the minimum and includes salaries fundingfor level for one projected teachers unitfrom changes$34 thousand in FY17 to and an
FY16 GAA Childcare Assistance $35 thousand.increase in Additionally, the minimum the salaries LFC compensation for level one recommendation teachers from $34 includes thousand to FY17 LFC Rec. FY16 GAA $54.2$35 million thousand. for a targetedAdditionally, salary the increase LFC compensation for teachers recommendationand administrators includes Source:FY17 LFC Files Rec. meeting$54. annual2 million competencies, for a targeted including salary teachers increase serving for teachers as mentors and, supportsadministrators Source: LFC Files for training,meeting preparation,annual competencies, recruitment including and retention, teachers servingand a ascost mentors-of-living, supports increasefor fortraining, all public preparation, school employees. recruitment However, and retention, the appropriation and a cost is -of-to living Public Education DFA increasefor disbursement for all public contingent school onemployees. achievement However, of consensus the appropriation revenue is to Funding History estimatesDFA and for adequate disbursement general fundcontingent reserves. on achievement of consensus revenue (inPublic billions) Education $2.9 Funding History estimates and adequate general fund reserves. (in billions) The committee recommends $137.2 million for categorical public school $2.9 $2.7 supportThe, a $6.4committeemillion recommendsincrease over $137.2 FY16 appropriations. million for categorical LFC recommends public school making two separate transportation allocations – one for school districts and $2.7 support, a $6.4 million increase over FY16 appropriations. LFC recommends $2.5 one formaking charter two schools. separateLastly, transportation the committee allocationsrecommends – one for an school increase districts of and $19.7 million, or 19.5 percent, for related, recurring initiatives – “below-the- $2.5 $2.3 one for charter schools. Lastly, the committee recommends an increase of line” $19.7funding million, appropriated or 19.5 to percent, the department for related, instead recurring of through initiatives the funding – “below-the- formula – to be targeted to early childhood education, teacher quality, and $2.3 line” funding appropriated to the department instead of through the funding $2.1 school improvement. The committee’s focus continues to be on early formula – to be targeted to early childhood education, teacher quality, and $2.1 childhood education programs that demonstrate improved outcomes for $1.9 school improvement. The committee’s focus continues to be on early students, including prekindergarten, early literacy, and the K-3 Plus extended childhood education programs that demonstrate improved outcomes for $1.9 school year program. $1.7 students, including prekindergarten, early literacy, and the K-3 Plus extended school year program. $1.7 Higher Education. The committee recommends a total of $856.8 million in general fund support for higher education, an increase of $8.3 million, or 1 percent,Higherover FY16Education.appropriations The committee. The increase recommends includes a $6.1total millionof $856.8 for million SEG instructionin general and fundgeneral support purposes for higher through education, a performance an increase-based of $8.3 funding million, or 1 Categorical percent, over FY16 appropriations. The increase includes $6.1 million for RelatedSEG-Recurring formula and additional support for agencies administratively attached to DepartmentCategorical higherinstruction education institutions,and general including purposes $100 through thousand a moreperformancefor the Office-based offunding RelatedSource:-RecurringLFC Files the Medicalformula Investigatorand additional and suppo$250rt thousandfor agenciesmore administrativelyfor the Agricultural attached to Department Experimenthigher educationStation. The institutions, committee’s including recommendation $100 thousand targets more healtfor thehcare Office of Source: LFC Files the Medical Investigator and $250 thousand more for the Agricultural Experiment Station. The committee’s recommendation targets healthcare 2 Policy Analysis: Recommendation and HighlightsRecommendations &Policy Highlights Analysis: Recommendation and Highlights Page 3 Page 3
workforce initiatives to fill provider gaps by increasing nurse training and workforce initiatives to fill provider gaps by increasing nurse training and medical residency funding by nearly $1.4 million. medical residency funding by nearly $1.4 million.
Health. The committee recommendation for the Department of Health totals Higher Education Health. The committee recommendation for the Department of Health totals Higher Education $557.2 million, a small general fund decrease but overall 0.9 percent increase Institutions $557.2 million, a small general fund decrease but overall 0.9 percent increase Institutions General Fund that prioritizes public health and maximizes the use of all funding sources. General Fund that prioritizes public health and maximizes the use of all funding sources. Support LFC recommends increasing the use of patient revenue from Medicaid and Support LFC recommends increasing the use of patient revenue from Medicaid and (in millions) (in millions) other sources, adding about 80 developmental disabilities waiver slots, and other sources, adding about 80 developmental disabilities waiver slots, and $900 $900 funding many of the department’s filled positions. With a 25 percent turnover funding many of the department’s filled positions. With a 25 percent turnover $800 rate and elevated vacancy rates, the LFC recommendation in a separate $800 rate and elevated vacancy rates, the LFC recommendation in a separate compensation package includes targeted salary increases for nurses and other compensation package includes targeted salary increases for nurses and other $700 $700 direct care staff. direct care staff. $600 $600 Public Safety. The committee recommends $483 million in total funding The committee recommends $483 million in total funding $500 $500 Public Safety. for the New Mexico Corrections Department (NMCD) and the Department of for the New Mexico Corrections Department (NMCD) and the Department of $400 Public Safety. The general fund support for the two agencies of $420 million $400 Public Safety. The general fund support for the two agencies of $420 million $300 is a 3.6 percent increase over FY16. For NMCD, the committee recommends $300 is a 3.6 percent increase over FY16. For NMCD, the committee recommends $2.4 million for hepatitis C and medical inflation costs, $871 thousand for $2.4 million for hepatitis C and medical inflation costs, $871 thousand for $200 $200 private prison inflation costs, and $500 thousand for transitional living private prison inflation costs, and $500 thousand for transitional living $100 services to be leveraged with Medicaid dollars. The LFC compensation $100 services to be leveraged with Medicaid dollars. The LFC compensation $0 recommendation includes funding to provide salary increases for dispatchers, $0 recommendation includes funding to provide salary increases for dispatchers, forensic scientists, state police officers and correctional, probation, and parole
forensic scientists, state police officers and correctional, probation, and parole FY10 FY11 FY12 FY13 FY14 FY15 FY16 officers. The recommendation for both agencies prioritizes safe staffing FY10 FY11 FY12 FY13 FY14 FY15 FY16 officers. The recommendation for both agencies prioritizes safe staffing levels, higher pay, and effective strategic management. levels, higher pay, and effective strategic management.
FY17 LFC Rec. Transportation. The New Mexico Department of Transportation
FY17 LFC Rec. Transportation. The New Mexico Department of Transportation Source: LFC Budget Documents (NMDOT), funded primarily by the state road fund and federal funding, Source: LFC Budget Documents (NMDOT), funded primarily by the state road fund and federal funding, anticipates FY17 state road fund revenue to increase by $8.1 million, or 2.1 anticipates FY17 state road fund revenue to increase by $8.1 million, or 2.1 percent, over FY16 levels. In general, the majority of the state road fund percent, over FY16 levels. In general, the majority of the state road fund (SRF) is used for highway maintenance while Federal Highway (SRF) is used for highway maintenance while Federal Highway Administration (FHWA) revenue is used to fund construction-related Administration (FHWA) revenue is used to fund construction-related expenses. expenses. NMDOT estimates the annual shortfall in maintenance funding to be $105 NMDOT estimates the annual shortfall in maintenance funding to be $105 million while the construction shortfall is $362 million. LFC recommends million while the construction shortfall is $362 million. LFC recommends increasing the use of SRF fund balances by $16 million to provide an increasing the use of SRF fund balances by $16 million to provide an additional $10 million for construction and $6 million for maintenance, more additional $10 million for construction and $6 million for maintenance, more than NMDOT requested. The LFC recommendation would result in 0.1 than NMDOT requested. The LFC recommendation would result in 0.1 percent growth relative to the FY16 operating budget. During the budget percent growth relative to the FY16 operating budget. During the budget development process, Congress passed a new federal transportation funding development process, Congress passed a new federal transportation funding bill that increases highway funding. While the FY17 budget recommendation bill that increases highway funding. While the FY17 budget recommendation for NMDOT does not reflect the increased funding, the additional FHWA for NMDOT does not reflect the increased funding, the additional FHWA revenue will be accounted for during the 2016 legislative session. revenue will be accounted for during the 2016 legislative session. Economic Development. The LFC recommendation for the Economic Economic Development. The LFC recommendation for the Economic Development Department (EDD) includes a total of $7.5 million for the Job Development Department (EDD) includes a total of $7.5 million for the Job Training Incentive Program (JTIP), matching the near-record level of the Training Incentive Program (JTIP), matching the near-record level of the FY16 appropriation. EDD continues to fall well below rural job creation FY16 appropriation. EDD continues to fall well below rural job creation targets, and the recommendation includes language clarifying that at least targets, and the recommendation includes language clarifying that at least one-third of the JTIP appropriation must be spent for training in rural areas. one-third of the JTIP appropriation must be spent for training in rural areas. The committee recommendation also recognizes the significant improvements The committee recommendation also recognizes the significant improvements the Legislature has made to taxes and incentives for businesses and includes the Legislature has made to taxes and incentives for businesses and includes 3 Recommendations & Highlights PolicyPolicy Analysis: Analysis:RecommendationRecommendation and Highlights and Highlights PagePage4 4
$1.6 million$1.6 million for the for Economic the Economic Developme Development Partnershipnt Partnership to market to thosemarket those improvementsimprovements and the and state the to statebusinesses. to businesses.
The committeeThe committee recommendation recommendation also provides also provides $180 thousand $180 thousand for business for business DOH FundingDOH Funding incubators,incubators, shown shownto have to one have of onethe lowestof the costslowest per costs job percreated job amongcreated among FY13-FY13FY17-FY17 economiceconomic development development programs. programs. Finally, Finally,the recommendation the recommendation increases increases $600 $600 fundingfunding for tourism for tourism advertising advertisingby $1.2 by million $1.2 millionto a total to ofa total$10.4 ofmillion, $10.4 million, recognizingrecognizing the impact the impact of the leisureof the leisureand hospitality and hospitality industry industry on job growthon job growth and gross receipts tax revenues. $500 $500 and gross receipts tax revenues. Compensation.Compensation.The LFC The recommendation LFC recommendation includes includes $77.6 million $77.6 frommillion from $400 $400 the generalthe general fund forfund compensation for compensationto improve to improve employee employee recruitment recruitment and and retentionretention in legislative, in legislative, judicial, judicial, and executive and executive agencies agencies, as well, asas publicwell as and public and $300 $300 higherhighereducation education institutions. institutions. To accomplish To accomplish this, LFC this, recommends LFC recommends a salary a salary structurestructure adjustment adjustmentto keep to thekeep salary the plansalary from plan falling from furtherfalling behindfurther behind millions millions marketmarket rates and rates targeted and targeted increases increases for employees for employees in fields in facing fields the facing most the most $200 $200 significantsignificant recruitment recruitment and retention and retention problems. problems. The recommendation The recommendation includes includes contingencycontingency language language to ensure to ensureadditional additional compensation compensation is only providis onlyed provid if ed if $100 $100 the revenuethe revenue estimates estimates for FY17 for are FY17 equal are to equal or greater to or thangreater $6.47 than billion $6.47 and billion and reservesreserves are equal are to equal 8 percent. to 8 percent.LFC intends LFC intendsthe full Legislaturethe full Legislature to revisit to the revisit the $0 $0 fundingfunding allocation allocation and percentage and percentage compensatio compensation increasesn increases for legislative, for legislative, judicial,judicial, and executive and executive agencies agencies and educational and educational institutions. institutions. FY13 FY14 FY15 FY16
FY13 FY14 FY15 FY16 SpecificSpecifically, theally, LFC the recommendationLFC recommendation includes includes $23.4 million$23.4 millionfrom the from the FF OSF GF generalgeneral fund forfund a forsalary a salarystructure structure adjustment adjustmentfor legislative, for legislative, judicial, judicial,
FF OSF GFFY17 LFC Rec. FY17 LFCe Rec. xecutive,executive, and highe andr higheeducationr education employees. employees. The recommendation The recommendation includes includes funding for targeted increases for nurses, judges, court clerks, district Source: LFC Files funding for targeted increases for nurses, judges, court clerks, district Source: LFC Filesattorneys, social workers, and public safety occupations, including state attorneys, social workers, and public safety occupations, including state police, correctional officers, and probation and parole officers, as well as police, correctional officers, and probation and parole officers, as well as dispatchers and forensic scientists. During the August 2105 LFC hearing, the State Personneldispatchers Office and forensic(SPO) scientists.identified occupationsDuring the Augustwithin 2105public LFC safety, hearing, the health Statecare, andPersonnel social workOffice as (SPO)being mostidentified in need occupations of salary increases. within public SPO safety, did nothealth assess care, the andneeds social of positions work as withinbeing themost judiciary in need becauseof salarythey increases. fall SPO did not assess the needs of positions within the judiciary becauseth they fall outside of the state pay plan. However, New Mexico judge pay is ranked 50 th in the countryoutside ,of and the court state clerks pay plan. have However,a turnover New rate ofMexico 32 percent, judge morepay is than ranked 50 doublein the the state country average, and of court 14 percent. clerks have a turnover rate of 32 percent, more than double the state average of 14 percent. The LFC recommendation also includes $54.2 million from the general fund for publicThe LFCschools recommendation for salary alsoincreases includes for $54.2all teachersmillion fromand theschool general fund administratorsfor public who schoolsmeet annual for competencies,salary increases and forfor training, all teachers preparation, and school recruitmentadministrators and retention, who asme wellet annual as a cost competencies,-of-living adjustment and for fortraining, all public preparation, schoolrecruitment employees. and retention, as well as a cost-of-living adjustment for all public school employees. Deficiency, Special, and Supplemental Appropriations. State agenciesDeficiency, requested $323.7Special,million and for special,Supplemental supplemental, Appropriations and deficiency. State appropriaagenciestions for requested FY17, including $323.7 million $196.8 formillion special,from supplemental, the general fund and and deficiency $126.9appropriamillion tionsof other for FY17, revenues. including Seventy $196.8-seven millionspecial from appr the ogeneralpriation fund and requests$126.9 totaled million $113.6 omilf otherlion, includingrevenues. $101.7 Seventymillion-sevenfrom special the general appropriation fund andrequests $12 totaled million $113.6 from milotherlion revenues., including $101.7Thirty- twomillion requests from forthe general supplementalfund and appropriations $12 million totaled from $209.1 other million revenues., including Thirty $94.1-two million requests for from thesupplemental general fund appropriations and $114.9 million totaled from $209.1 other revenues.million, including Six deficiency $94.1 million appropriationsfrom therequests general totaledfund and $1 $114.9 million, million all from from the othergeneral revenues. fund. Finally, Six deficiency appropriations requests totaled $1 million, all from the general fund. Finally, 4 Policy Analysis: Recommendation and HighlightsRecommendations &Policy Highlights Analysis: Recommendation and Highlights Page 5 Page 5
there were eight requests to extend the time to spend previous special there were eight requests to extend the time to spend previous special FY16 - FY17 LFC FY16 - FY17 LFC appropriations and federal grants. appropriations and federal grants. Recommendations Recommendations for Special, for Special, LFC recommends $197.3 million for nonrecurring special, supplemental, and LFC recommends $197.3 million for nonrecurring special, supplemental, and Supplemental, and Supplemental, and deficiency appropriations, including $107.5 million from the general fund and deficiency appropriations, including $107.5 million from the general fund and Deficiency Deficiency $89.8 million from other revenues. A significant portion of the funding, Appropriations $89.8 million from other revenues. A significant portion of the funding, Appropriations (in millions) $114.3 million, is to supplement a projected shortfall for Medicaid expenses, (in millions) $114.3 million, is to supplement a projected shortfall for Medicaid expenses, including $33 million from the general fund. Special appropriations are just $250 including $33 million from the general fund. Special appropriations are just $250 $53 million, or 26.9 percent of the overall funding recommendation. $53 million, or 26.9 percent of the overall funding recommendation. $200 $197.3 Recommended appropriations include $5 million from the general fund for $187.1 $200 $197.3 Recommended appropriations include $5 million from the general fund for $187.1 the Job Training Incentive Program (JTIP); $3.9 million from the general the Job Training Incentive Program (JTIP); $3.9 million from the general fund for the Department of Public Safety to address departmental priorities; fund for the Department of Public Safety to address departmental priorities; $150 $143.5 $150 $143.5 $5.5 million for the Department of Health to comply with a settlement $5.5 million for the Department of Health to comply with a settlement agreement, including $4 million from the general fund; and $2 million from agreement, including $4 million from the general fund; and $2 million from $100
$76.0 the general fund to support school districts experiencing shortfalls. $100 $73.3
$76.0 the general fund to support school districts experiencing shortfalls. $73.3 $53.0
$50 $37.8 $53.0 Information Technology. The LFC recommendation for IT funding totals $50 $37.8 Information Technology. The LFC recommendation for IT funding totals $71.4 million for 19 projects. Funding sources include $24 million from the $71.4 million for 19 projects. Funding sources include $24 million from the $- $0.9 general fund, $19 million from other state funds, and $28.4 million in federal $0.9 $- general fund, $19 million from other state funds, and $28.4 million in federal funds. The recommendation prioritizes ongoing projects and well-prepared funds. The recommendation prioritizes ongoing projects and well-prepared and well-managed system requests that demonstrated strong positive returns and well-managed system requests that demonstrated strong positive returns on investment for each agency and New Mexico. Projects determined to be on investment for each agency and New Mexico. Projects determined to be FY17 LFC Rec. non-critical or ill-prepared or that reasonably could be delayed were not FY17 LFC Rec. non-critical or ill-prepared or that reasonably could be delayed were not FY16 LFC Rec. recommended. FY16 LFC Rec. recommended. Source: LFC Files Capital Outlay and Infrastructure. Capital outlay requests from state Source: LFC Files Capital Outlay and Infrastructure. Capital outlay requests from state and local entities in 2016 totaled $1.8 billion, far more than the $485.4 and local entities in 2016 totaled $1.8 billion, far more than the $485.4 FY17 Requests and million available. As lawmakers seek an equitable distribution of the limited FY17 Requests and million available. As lawmakers seek an equitable distribution of the limited Recommendations for capital funds among state-owned and local capital needs, they must be Recommendations for capital funds among state-owned and local capital needs, they must be Special, attentive to the $1 billion for over 2,800 state and local projects that remains Special, attentive to the $1 billion for over 2,800 state and local projects that remains Supplemental, and outstanding. Deficiency Supplemental, and outstanding. Appropriations State agencies, higher education institutions, and special and tribal schools Deficiency (in millions) Appropriations State agencies, higher education institutions, and special and tribal schools $350 requested $647.6 million for capital projects; $288.4 million from severance tax bond (STB) capacity, $331.1 million from general obligation bond (GOB) (in millions) requested $647.6 million for capital projects; $288.4 million from severance $350 $300 capacity, and $28.1 million from other state funds. The LFC staff tax bond (STB) capacity, $331.1 million from general obligation bond (GOB) $323.7 “framework” for state entities addresses the most critical projects impacting $300 capacity, and $28.1 million from other state funds. The LFC staff $250 $197.3 $196.8 public health and safety, preservation of state facilities, and completion of $250 $323.7 “framework” for state entities addresses the most critical projects impacting $200 projects in progress. The proposed funding for consideration by the full $197.3 $196.8 public health and safety, preservation of state facilities, and completion of $150 Legislature includes $61.2 million from STB capacity, $186.6 million from $200 projects in progress. The proposed funding for consideration by the full $112.8 $107.5 GOB capacity, and $28.1 million from “other state funds.” $81.9 $150 Legislature includes $61.2 million from STB capacity, $186.6 million from $100 $112.8
$107.5 GOB capacity, and $28.1 million from “other state funds.” The $1.2 billion requested by eligible local entities reflects only the top five $81.9 $50
$100 $14.1 $7.8 priorities listed in the Infrastructure Capital Improvement Plans. The most $- $50 The $1.2 billion requested by eligible local entities reflects only the top five critical needs requested by local entities are for water, transportation, quality $14.1 $7.8 priorities listed in the Infrastructure Capital Improvement Plans. The most of life (libraries, parks, senior centers, community and cultural centers, etc.), $- critical needs requested by local entities are for water, transportation, quality environment (utilities, landfills, clean energy, solid waste, etc.), and public of life (libraries, parks, senior centers, community and cultural centers, etc.), safety. The priorities range in the millions of dollars, placing legislators in environment (utilities, landfills, clean energy, solid waste, etc.), and public the position of funding only a small portion of the amount needed to complete safety. The priorities range in the millions of dollars, placing legislators in Agency Request LFC Rec. even a phase of a project and resulting in increased strain on the the position of funding only a small portion of the amount needed to complete administrative resources of local governments. Source: LFC Files Agency Request LFC Rec. even a phase of a project and resulting in increased strain on the administrative resources of local governments. Source: LFC Files 5 This page is intentionally left blank. Economic Forecast Policy Analysis: Economic Forecast Policy Analysis: Economic Forecast Page 1 Page 1 ew Mexico’s heavy reliance on oil and gas revenues ew Mexico’s heavy reliance on oil and gas revenues US Economic Growth and Inflation was made evident in the most recent revenue US Economic Growth was made evident in the most recent revenue and Inflation 3.5% Nestimating cycle with sliding oil prices driving down 3.5% estimating cycle with sliding oil prices driving down N 3.0% the initial revenue estimate. With revenue forecasts for 3.0% the initial revenue estimate. With revenue forecasts for 2.5% severance taxes and royalties both down, projected “new
2.5% severance taxes and royalties both down, projected “new 2.0% money” was reduced by $61.7 million to a new estimate of
2.0% money” was reduced by $61.7 million to a new estimate of 1.5% $232 million in December from $293 million in August. During the 2016 session, many economic uncertainties loom 1.5% $232 million in December from $293 million in August. 1.0% large for the state’s outlook. Budget developers will be 1.0% During the 2016 session, many economic uncertainties loom 0.5% large for the state’s outlook. Budget developers will be challenged to prioritize spending while maintaining reserves 0.5% 0.0% challenged to prioritize spending while maintaining reserves at a level adequate to soften the impact of volatile economic 0.0% FY14 FY15 FY16 FY17 markets. at a level adequate to soften the impact of volatile economic GDP Growth
FY14 FY15 FY16 FY17 markets. Consumer Price Index GDP Growth ECONOMIC FORECAST Consumer Price Index Source: Global Insight Oct. 2015
Source: Global Insight Oct. 2015 ECONOMIC FORECAST U.S. Economy. Since the low point in 2009 during the Great Recession, NM versus US real gross domestic product (GDP) in the United States has grown by an U.S. Economy. Since the low point in 2009 during the Great Recession, Employment Growth average rate of 2.4 percent. This growth falls short of the more robust NM versus US real gross domestic product (GDP) in the United States has grown by an 2.5% expansions seen after the two previous recessions in 2001 and 1990-91. The Employment Growth average rate of 2.4 percent. This growth falls short of the more robust 2.0% continued low oil prices, down nearly 60 percent since last year, are expected 2.5% expansions seen after the two previous recessions in 2001 and 1990-91. The to push GDP growth by up to 0.5 percent as consumers benefit from lower 1.5% 2.0% continued low oil prices, down nearly 60 percent since last year, are expected gasoline prices, contributing to higher consumer spending and paying down to push GDP growth by up to 0.5 percent as consumers benefit from lower 1.0% personal debt. Signaling the strength of the economy, the Federal Reserve 1.5% gasoline prices, contributing to higher consumer spending and paying down raised interest rates 0.25 percent at the end of 2015. 0.5% 1.0% personal debt. Signaling the strength of the economy, the Federal Reserve raised interest rates 0.25 percent at the end of 2015. 0.0% The national employment picture continues to expand at a much faster pace 0.5% than it has in New Mexico which has fallen well behind neighboring states.
FY14 FY15 FY16 FY17 Nationally, in October 2015, job gains were 150 thousand, or 0.5 percent, and 0.0% The national employment picture continues to expand at a much faster pace than it has in New Mexico which has fallen well behind neighboring states. NM US the unemployment rate fell to 5.0 percent, from 5.7 percent a year ago.
FY14 FY15 FY16 FY17 Nationally, in October 2015, job gains were 150 thousand, or 0.5 percent, and Source: Global Insight Oct. 2015 the unemployment rate fell to 5.0 percent, from 5.7 percent a year ago. BBER Oct. 2015 New Mexico Economy. Post-recession economic recovery in New NM US Mexico has continued to lag compared with the rest of the country. Over the Source: Global Insight Oct. 2015 last few years, employment growth in New Mexico was relatively flat and BBER Oct. 2015 New Mexico Economy. Post-recession economic recovery in New Southwest States continues to remain 3 percent below the pre-recession peak. New Mexico Mexico has continued to lag compared with the rest of the country. Over the Employment Growth took nine years to regain employment levels last seen in 2006, approximately last few years, employment growth in New Mexico was relatively flat and FY15 Year Over Year Southwest States 4.0% two years longer than the rest of the United States; however, recent reports Employment Growth continues to remain 3 percent below the pre-recession peak. New Mexico 3.5% indicate job growth has begun to slide to lower levels. Year-over-year growth FY15 Year Over Year took nine years to regain employment levels last seen in 2006, approximately 3.0% 2.5% was 0.4 percent in August, 0.9 percent in September, and 0.3 percent in 4.0% two years longer than the rest of the United States; however, recent reports 2.0% October, well below forecast. Earlier evidence of New Mexico job growth 3.5% indicate job growth has begun to slide to lower levels. Year-over-year growth 1.5% 3.0% was overly optimistic and the contraction of the state’s economy, notably in was 0.4 percent in August, 0.9 percent in September, and 0.3 percent in 1.0% manufacturing and mining sectors, hinders the move toward positive growth. 2.5% 0.5% 2.0% October, well below forecast. Earlier evidence of New Mexico job growth 0.0% 1.5% was overly optimistic and the contraction of the state’s economy, notably in A persistently weak labor market combined with slow growth of household 1.0% Utah
manufacturing and mining sectors, hinders the move toward positive growth. Texas 0.5% income is hurting the state’s economy. Forecasters anticipate employment Arizona Nevada
0.0% Colorado growth to be 1.4 percent through FY17 when it is expected to return to pre-
A persistently weak labor market combined with slow growth of household New Mexico recession levels and wage and salary disbursements, a critical driver of gross
Utah Source: BLS Oct. 2015 Texas income is hurting the state’s economy. Forecasters anticipate employment receipts taxes, to grow 4.6 percent in FY16 and thereafter. Arizona Nevada
Colorado growth to be 1.4 percent through FY17 when it is expected to return to pre-
New Mexico recession levels and wage and salary disbursements, a critical driver of gross Source: BLS Oct. 2015 receipts taxes, to grow 4.6 percent in FY16 and thereafter. 7 PolicyEconomicPolicy Analysis: Analysis:EconomicEconomic ForecastForecastForecast PagePage2 2
The year continued to see broad volatility in the oil EnergyEnergy Markets Markets. . The year continued to see broad volatility in the oil market as pricing crashed by 60 percent from $104 per barrel (bbl) in July NM Employment market as pricing crashed by 60 percent from $104 per barrel (bbl) in July NM Employment 2014 to $63 a year later. As late as August, the West Texas intermediate Growth, Seasonally- 2014 to $63 a year later. As late as August, the West Texas intermediate Growth,Adjusted Seasonally- (WTI) oil price sank below $40 per bbl, signifying record supplies of refined 2.0% Adjusted petroleum(WTI) products. oil price Through sank below autumn $40, oil per prices bbl, remainedsignifying stead recordy, with supplies oil of refined 2.0% trading petroleumbelow $50 /bblproducts.but in DecemberThrough WTIautumn prices, oil spiraled prices beloremainedw $35 /bbsteadl. y, with oil 1.5% The U.S.trading Energy below Information $50/bbl Administration but in December (EIA) WTI reports prices the Unitedspiraled States below $35/bbl. 1.5% reachedThe levels U.S. of oilEnergy in storage Information not seen Administration in nearly 80 years (EIA)which reportsis expected the United States 1.0% reached levels of oil in storage not seen in nearly 80 years which is expected 1.0% to keep prices low through the end of 2016. 0.5% to keep prices low through the end of 2016. 0.5% Globally, the broad economic slowdown in China has caused the demand for 0.0% commoditiesGlobally, to drop the dramaticallybroad economic and exacerbatedslowdown infurther Chinalosses. has caused The price the demand for 0.0% drop andcommodities production declinesto drop havedramatically contribute andd to exacerbated reduced investment further andlosses.a The price -0.5% pull-backdrop in industryand production operational declinesspending. haveWhile contribute most oild to producing reduced basinsinvestment and a 12 13 14 15 12 13 14 15 - - - - -0.5%- - - - began topull- slowback production in industry at the operational end of 2015, spending. the Eagle While Ford and most the oil Permian producing basins Jul Jul Jul Jul Jan Jan Jan Jan 12 13 14 15 12 13 14 continued15 to produce at consistently high levels not seen previously. ------began to slow production at the end of 2015, the Eagle Ford and the Permian Jul Jul Jul Jul Jan Jan Jan Source:WSD Jan continued to produce at consistently high levels not seen previously. WTI oil prices averaged above $60/bbl in FY15 but are projected to remain
Source:WSDlower throughout the forecast period. Prices are expected to average around $44/bblWTI in FY16 oil prices and $49/bbl averaged in FY17 abovebefore $60/ recoveringbbl in FY1to5 betweenbut are projected$56/bbl to remain New Mexico Oil and $60lower/bbl in throughout FY18 through the FY forecast20. period. Prices are expected to average around Production $44/bbl in FY16 and $49/bbl in FY17 before recovering to between $56/bbl (in millionsNew of barrels)Mexico Oil Oil volumesand $60 increased/bbl in FYby18 an throughunprecedented FY20. 25 percent in FY15, more than 40 Production (in millions of barrels) double the level that prevailed over the last 30 years, primarily due to new 40 drilling Oiltechnology volumes in increased the Permian by basinan unprecedented. The forecast 25assumes percent positive in FY1 yet5, more than 35 slowingdouble production the growthlevel that of 6prevailedpercent in overFY1 6the and last 3 percent 30 years in FY1, primarily7. due to new drilling technology in the Permian basin. The forecast assumes positive yet 30 35 New Mexicoslowing crude production oil generally growth has ofbeen 6 percentpriced lower in FY1 than6 and standard 3 percent WTI inby FY1 7. a differential of $5/bbl. According to well operators around the state, infrastructure advances and well services improvements have narrowed the 25 30 New Mexico crude oil generally has been priced lower than standard WTI by differentiala differential to about $2 /bblof $5to /bbl$2.50. /bblAccording. As a rule to ofwell thumb, operators each additional around the state, $1/bbl change in price sustained over one year is equivalent to a $10 million infrastructure advances and well services improvements have narrowed the change in general fund revenue. 25Q2, 2013 Q3, 2013 Q4, 2013 Q1, 2014 Q2, 2014 Q3, 2014 Q4, 2014 Q1, 2015 Q2, 2015 Q3, 2015 differential to about $2/bbl to $2.50/bbl. As a rule of thumb, each additional Source: BBER Oct. 2015 Natural$1/bbl gas prices change averaged in price $3.78 sustainedper thousand over cubicone year feet is(mcf) equivalent in FY15 to and a $10 million change in general fund revenue. Q2, 2013 Q3, 2013 Q4, 2013 Q1, 2014 Q2, 2014 Q3, 2014 Q4, 2014 Q1, 2015 Q2, 2015 areQ3, 2015 estimated to average $2.90/mcf in FY16 and $3.20/mcf in FY17. New Change Source:in BBER Oct. 2015Mexico natural gas prices continue to lag below Henry Hub (Louisiana) New Mexico prices dueNatural to the gas decline prices in averaged the natural $3.78 gas per liquids thousandpremium cubic (which feet (mcf) trend sin FY15 and Natural Gas with oilare prices estimated). Like tooil, average near record $2.90 natural/mcf in gas FY16 inventories and $3.20are /mcfpushing in FY17. New ProductionChange in prices downMexico resulting natural in gasmore prices than continuea 40 percent to lagdrop below in drilling Henryactivity Hub (Louisiana) 5.0 New Mexico nationallyprices over due the to last the year. decline Yet, in na thetionally, natural record gas liquidsgas production premium and (which trends Natural Gas 3.0 consumptionwith oil levels prices have). been Like achieved oil, near for recordthe fifth natural consecutive gas year.inventories Natural are pushing Production gas inventories were 18 percent higher than a year ago and ended the month 1.0 prices down resulting in more than a 40 percent drop in drilling activity 5.0 of Octobernationally with the over third the highest last monthyear. Yet,level naontionally, record. However,record gas in Newproduction and -1.0 Mexicoconsumption, natural gas volumes levels have fell by been 0.2 achievedpercent in for FY15. the fifth They consecutiveare expected year. Natural 3.0 to increase slightly during FY16 at 1.3 percent, then decline at rates between -3.0 gas inventories were 18 percent higher than a year ago and ended the month 1.0 1.8 percent and 2.6 percent over the forecast period. -5.0 of October with the third highest month level on record. However, in New -1.0 The naturalMexico gas ,liquids natural p remiumgas volumes above fellthe dryby gas0.2 pricepercent has inevaporated FY15. They and is are expected -3.0 expectedto increaseto remain slightly at, or duringbelow, FY16zero. atThe 1.3 premiumpercent, thenis attributable decline at torates between Q2, 2013 Q3, 2013 Q4, 2013 Q1, 2014 Q2, 2014 Q3, 2014 Q4, 2014 Q1, 2015 Q2, 2015 Q3, 2015 transportation1.8 percent costs. and It is 2.6 not percent expected over to therecover forecast during period. the next couple of -5.0Source: BBER Oct. 2015 The natural gas liquids premium above the dry gas price has evaporated and is expected to remain at, or below, zero. The premium is attributable to Q2, 2013 Q3, 2013 Q4, 2013 Q1, 2014 Q2, 2014 Q3, 2014 Q4, 2014 Q1, 2015 Q2, 2015 Q3, 2015 transportation costs. It is not expected to recover during the next couple of Source: BBER Oct. 2015 8 Policy Analysis: Economic Forecast EconomicPolicy Forecast Analysis: Economic Forecast Page 3 Page 3
years. Each 10 cent change in natural gas price is equivalent to a $7 million to years. Each 10 cent change in natural gas price is equivalent to a $7 million to December 2015 $8 million change in general fund revenue. December 2015 $8 million change in general fund revenue. Consensus Revenue Consensus Revenue Forecast Revenue Forecast. The December 2015 consensus revenue estimate Forecast Revenue Forecast. The December 2015 consensus revenue estimate $8.0 6% projects FY17 revenue million at $6.47 billion, representing 4.9 percent $8.0 6% projects FY17 revenue million at $6.47 billion, representing 4.9 percent $7.5 $7.5 5% 5% growth over the $6.17 billion projected for FY16. “New money” in FY17, growth over the $6.17 billion projected for FY16. “New money” in FY17, $7.0 $7.0 defined as FY17 projected recurring revenue less FY16 recurring $6.5 4% defined as FY17 projected recurring revenue less FY16 recurring $6.5 4% appropriations, is projected to be $231.7 million, or 3.7 percent of FY16 $6.0 appropriations, is projected to be $231.7 million, or 3.7 percent of FY16 $6.0 3% 3% appropriations. $5.5 appropriations. $5.5
billions 2% billions $5.0 2% $5.0 $4.5 1% The gross receipts tax (GRT) forecast was bolstered by strong receipts for $4.5 1% The gross receipts tax (GRT) forecast was bolstered by strong receipts for $4.0 $4.0 0% FY15. Strength came from the health care and transportation and warehousing 0% FY15. Strength came from the health care and transportation and warehousing $3.5 $3.5 sectors. These employment gains offset a portion of the oil, gas and mining sectors. These employment gains offset a portion of the oil, gas and mining $3.0 -1% job losses, attributed to the prolonged drop in oil prices. GRT revenue is $3.0 -1% job losses, attributed to the prolonged drop in oil prices. GRT revenue is estimated to grow 4 percent in FY16 and 7.9 percent in FY17. The federal estimated to grow 4 percent in FY16 and 7.9 percent in FY17. The federal FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 budget deal is expected to add approximately 1 percent to FY17 GRT budget deal is expected to add approximately 1 percent to FY17 GRT Revenue Revenue Growth Rate revenue. Growth Rate revenue. Source: LFC Files Source: LFC Files FY15 saw growth in personal income tax (PIT) revenue from tourism and FY15 saw growth in personal income tax (PIT) revenue from tourism and professional services, and this is expected to continue in FY16 and FY17. professional services, and this is expected to continue in FY16 and FY17. Quarterly Taxable Quarterly Taxable Gross Receipts PIT revenue is expected to grow 4.6 percent in FY16 and 4 percent in FY17, Gross Receipts PIT revenue is expected to grow 4.6 percent in FY16 and 4 percent in FY17, (in billions) which indicates some upside risk. (in billions) which indicates some upside risk. $15 $15 Corporate income tax (CIT) receipts were revised down to reflect weak oil Corporate income tax (CIT) receipts were revised down to reflect weak oil $14 and gas prices, larger net operating loss reports, and lower corporate profits. $14 and gas prices, larger net operating loss reports, and lower corporate profits. Over the past few years, CIT has been volatile as the economy in New Over the past few years, CIT has been volatile as the economy in New $13 Mexico has struggled to recover from the great recession. CIT revenues, net $13 Mexico has struggled to recover from the great recession. CIT revenues, net of all credits, are estimated to decline 14.4 percent in FY16 and remain flat in of all credits, are estimated to decline 14.4 percent in FY16 and remain flat in $12 FY17. A scheduled tax rate reduction in FY17 is expected to reduce CIT $12 FY17. A scheduled tax rate reduction in FY17 is expected to reduce CIT payments approximately $30 million. payments approximately $30 million. $11 $11 2012 2013 2014 2015 2016 The decline in oil prices strongly impacted a reduction in the federal mineral Source: TRD RP-500 leasing (FML) revenue estimate for FY16 onward. Oil drilling on federal 2012 2013 2014 2015 2016 The decline in oil prices strongly impacted a reduction in the federal mineral lands has expanded by nearly 60 percent over the last two years; the Source: TRD RP-500 leasing (FML) revenue estimate for FY16 onward. Oil drilling on federal lands has expanded by nearly 60 percent over the last two years; the combination of drilling and pricing activities in the oil and gas sector results
combination of drilling and pricing activities in the oil and gas sector results Estimated FY17 in a forecasted 22.2 percent reduction for FML in FY16 and 3.5 percent in General Fund FY17. Persistently low petroleum prices resulted in a projected 23.3 percent Estimated FY17 in a forecasted 22.2 percent reduction for FML in FY16 and 3.5 percent in FY17. Persistently low petroleum prices resulted in a projected 23.3 percent Revenue Sources reduction in severance tax revenues estimated for FY15 and a 22.4 percent General Fund decline in FY16 before recovering in later years. The distribution from the Revenue Sources reduction in severance tax revenues estimated for FY15 and a 22.4 percent 11% Land Grant Permanent Fund (LGPF) to beneficiaries will decrease from 5.5 decline in FY16 before recovering in later years. The distribution from the Invest ments percent of the fund’s market value in FY16 to 5 percent in FY17. 11% Land Grant Permanent Fund (LGPF) to beneficiaries will decrease from 5.5 Invest percent of the fund’s market value in FY16 to 5 percent in FY17. 26% ments Income Sales Compensating tax revenue is generated in large part by oil and gas equipment. 26% Taxes Taxes In the first three months of FY16, revenue from the compensating tax 43% Income Sales Compensating tax revenue is generated in large part by oil and gas equipment. decreased $17.1 million or 62 percent over the same period of the prior year. Taxes Taxes In the first three months of FY16, revenue from the compensating tax 43% The forecast is a 9 percent decline in FY16 and flat in FY17 due to the decreased $17.1 million or 62 percent over the same period of the prior year. Energy 16% continuing weakness in purchases and capital expenditures in the mining The forecast is a 9 percent decline in FY16 and flat in FY17 due to the Energy sector. 16% continuing weakness in purchases and capital expenditures in the mining 4% Other sector. Source: Dec. 2015 Consensus The fiscal impacts of the Affordable Care Act (ACA) were a strong factor for 4% Revenue Estimate insurance premium tax revenues. The forecast anticipates an increase of Other Source: Dec. 2015 Consensus The fiscal impacts of the Affordable Care Act (ACA) were a strong factor for Revenue Estimate insurance premium tax revenues. The forecast anticipates an increase of 9 PolicyEconomicPolicy Analysis: Analysis: Economic Economic ForecastForecast Forecast PagePage 4 4
insurance tax revenue by 25.5 percent in FY16 and 16.5 percent in FY17. The insurance tax revenue by 25.5 percent in FY16 and 16.5 percent in FY17. The enrollment take-up rate of Medicaid and the ACA insurance exchange Consensus Revenue enrollment take-up rate of Medicaid and the ACA insurance exchange remains uncertain. Over the last year, the rate at which members of the New EstimateConsensus 18-Month Revenue remains uncertain. Over the last year, the rate at which members of the New Estimate 18-Month Mexico Medical Insurance Pool transition to Medicaid or the exchange has Forecast Mexico Medical Insurance Pool transition to Medicaid or the exchange has Difference/ErrorForecast been slower than expected. The NMMIP board recently voted to take Difference/Error coordinatedbeen action slower to movethan membersexpected out. Theof the NMMIP pool over b aoa threerd -recentlyyear period voted to take 0.2 coordinated action to move members out of the pool over a three-year period 0.2 beginning in calendar year 2017. The delayed wind-down of the pool 0.15 membershipbeginning results in highercalendar than year anticipated 2017. NMMIPThe delayed credits , winda cost-down to the of the pool 0.15 general fund.membership results in higher than anticipated NMMIP credits, a cost to the 0.1 general fund. 0.1 0.05 Risks to the Forecast. The greatest risk to the forecast is energy market variability. Although oil prices have trended down for over a year, it is 0.05 Risks to the Forecast. The greatest risk to the forecast is energy market 0 unclear variabilitywhether the. pricesAlthough have oil reached prices a havefloor. trendedDepressed down oil pricesfor over are a year, it is reflected in the overall weakness of revenues during the last year. If market -0.05 0 unclear whether the prices have reached a floor. Depressed oil prices are prices doreflected not recover in theas expected,overall weakness general fund of revenuesrevenue may during be $100 the millionlast year. If market or more lower than projected in FY16 and FY17. -0.1 -0.05 prices do not recover as expected, general fund revenue may be $100 million FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 or more lower than projected in FY16 and FY17. -0.15 -0.1 The global demand for crude oil has not kept pace with supply levels. The ActualFY05 RevenueFY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Exceeded Forecast broad imbalance will delay price recovery. Because about 20 percent of the -0.2 -0.15 The global demand for crude oil has not kept pace with supply levels. The Actual Revenue state’s general fund revenue comes from severance taxes, royalties, and Total RecurringExceeded Revenue Forecast indirectlybroad from imbalancesales and income will delay taxes, price pricing recovery. volatility Because causes large about revenue 20 percent of the Percent-0.2 Error shocks. Thestate’s continued general improvements fund revenue in shale comes drilling from technologies severance and taxes higher, royalties, and Total RecurringSource: LFC Revenue Files fracturingindirectly pressures from may sales sustai andn incomeoutput despitetaxes, pricing less drilling volatility with cause fewers large revenue Percent Error drilling rigsshocks. than Thein prior continued years. improvements in shale drilling technologies and higher Source: LFC Files fracturing pressures may sustain output despite less drilling with fewer Gross receipts continue to be an area of concern; the first quarter of FY16 drilling rigs than in prior years. resulted in a loss in year-to-year revenue. The decline is in part due to the General Fund substantial drop in oil and gas prices and a drop in wages and salaries Reserves Gross receipts continue to be an area of concern; the first quarter of FY16 (as a percent of attributedresulted to layoffs in ain loss the inmining year -toindustry.-year revenue. Other sectors The declinearound theis in state part due to the appropriations)General Fund have notsubstantial grown at a pacedrop strong in oil enough and gasto pick prices up where and mia ningdrop declined. in wages and salaries 18% Reserves attributed to layoffs in the mining industry. Other sectors around the state 16% (as a percent of The settlement of high-wage job tax credit applications, combined with the appropriations) potentialhave for notincreases grown in at thea pace cost strong of other enough tax tocredits, pick upis wherea risk mito ningstate declined. 18% 14% revenues. In recent years, several tax expenditures for economic development 12% 16% have hadThe a settlargerlement fiscal of impacthigh-wage than jobinitially tax creditestimated, applications, contributing combined to with the potential for increases in the cost of other tax credits, is a risk to state 10% 14% revenue estimating error. In some cases, the revenue impacts have significantlyrevenues. exceeded In recent initial years, estimates, several requiring tax expenditures changes in forstatu economicte to curb development 8% 12% the impact.have had a larger fiscal impact than initially estimated, contributing to 6% 10% revenue estimating error. In some cases, the revenue impacts have 4% Generalsignificantly Fund Reserves exceeded. The initial genera estimates,l fund financial requiring summary changes in Table in statu 4 te to curb 8% shows unaudited actual FY15 revenues fell short of appropriations by $41 2% the impact. 6% million, resulting in a drawdown of general fund reserves to $611.7 million, 0% or 9.9 percent of recurring appropriations. Considering expected spending in 4% General Fund Reserves. The general fund financial summary in Table 4 FY16 estimatedshows unaudited FY16-ending actual reserves FY15 arerevenues $391.5 fellmillion, short or of 6.3 appropriations percent. by $41 FY08 FY10 FY06 FY12 FY14 2% FY16 * LFC heardmillion testimony, resulting during in the a drawdown2015 interim of that general a contingent fund reserves liability toin the$611.7 million, *Forecast FY14 general fund audit would be mostly reversed in the FY15 audit. 0% or 9.9 percent of recurring appropriations. Considering expected spending in Source: LFC Files Reversing the contingent liability would raise the FY16 and FY17 reserve FY16 estimated FY16-ending reserves are $391.5 million, or 6.3 percent. levels to about 8 percent. Due in part to New Mexico’s reliance on volatile FY08 FY10 FY06 FY12 FY14 energyFY16 * -relatedLFC heard revenues, testimony LFC considersduring the reserve 2015 interimbalances that of 8a percentcontingent to 10 liability in the *Forecast percent toFY14 be favorable. general fund audit would be mostly reversed in the FY15 audit. Source: LFC Files Reversing the contingent liability would raise the FY16 and FY17 reserve
levels to about 8 percent. Due in part to New Mexico’s reliance on volatile energy-related revenues, LFC considers reserve balances of 8 percent to 10 percent to be favorable. 10 Revenues & Tax Policy Policy Analysis: Revenues/Tax Policy Page 1 Policy Analysis: Revenues/Tax Policy Page 1
or more than a decade, the trend in New Mexico or more than a decade, the trend in New Mexico
LFC TAX POLICY PRINCIPLES: taxation policy has been to leave personal and LFC TAX POLICY PRINCIPLES: taxation policy has been to leave personal and corporate taxes mostly alone and focus on piecemeal corporate taxes mostly alone and focus on piecemeal Adequacy: F Adequacy: F Revenue should be adequate to fund changes to the gross receipts tax and a tax environment Revenue should be adequate to fund changes to the gross receipts tax and a tax environment needed government services. needed government services. favorable to business development. However, this dissection favorable to business development. However, this dissection Efficiency: Efficiency: Tax base should be as broad as of a critical source of state income – with exemptions, Tax base should be as broad as of a critical source of state income – with exemptions, possible and avoid excess reliance on possible and avoid excess reliance on one tax. deductions and credits eating into net gross receipts tax one tax. deductions and credits eating into net gross receipts tax Equity: revenue – has necessarily meant raising the rate overall, Equity: revenue – has necessarily meant raising the rate overall, Different taxpayers should be treated narrowing the base and placing a greater burden on those left Different taxpayers should be treated fairly. fairly. narrowing the base and placing a greater burden on those left Simplicity: paying the tax. For years, tax experts have advised state Collection should be simple and easily Simplicity: paying the tax. For years, tax experts have advised state understood. policymakers that New Mexico needs a tax structure Collection should be simple and easily Accountability: overhaul built on a broad base and focused on adequacy, understood. policymakers that New Mexico needs a tax structure Preferences should be easy to monitor Accountability: overhaul built on a broad base and focused on adequacy, and evaluate. fairness and clarity. Absent the political environment in Preferences should be easy to monitor which to tackle that task, policymakers should seek greater fairness and clarity. Absent the political environment in and evaluate. transparency and more effective administration. which to tackle that task, policymakers should seek greater
transparency and more effective administration. Trends in New Mexico Taxation
Although the personal and corporate income tax rates have changed in Trends in New Mexico Taxation significant ways in the last decade, the 2003 enactment of the food and medical exemptions from gross receipts tax inspired additional exemptions, Although the personal and corporate income tax rates have changed in credits, and deductions. These provisions have contributed to the narrowing Selected GRT Rates for NM of the tax base, in conflict with the tax policy of efficiency. To maintain significant ways in the last decade, the 2003 enactment of the food and Cities and Counties medical exemptions from gross receipts tax inspired additional exemptions, (as of January 2016) steady revenue balances and in the wake of the Great Recession, the statewide credits, and deductions. These provisions have contributed to the narrowing GRT rate increased 1/8 percent to 5.125 percent. Combined with local Selected GRT Rates for NM Highest Rates options, the GRT rate is as high as 8.94 percent in some municipalities. of the tax base, in conflict with the tax policy of efficiency. To maintain Española (Santa Fe County) 8.94% Cities and Counties Contributing to the increase in local rates was a 2013 amendment to the food Taos Ski Valley 8.69% (as of January 2016) steady revenue balances and in the wake of the Great Recession, the statewide and medical exemptions law that allowed local governments to raise the GRT GRT rate increased 1/8 percent to 5.125 percent. Combined with local Española (Rio Arriba County) 8.56% Raton 8.52% rate by ¾ percent to compensate for the phase-out of “hold-harmless” Highest Rates options, the GRT rate is as high as 8.94 percent in some municipalities. Española (Santa Fe County) 8.94% Sunland Park 8.44% payments the state initially made to local governments to compensate for the Contributing to the increase in local rates was a 2013 amendment to the food loss of GRT revenue. The gross receipts tax, as it currently stands, is in need Taos Ski Valley 8.69% Ruidoso 8.44% Logan 8.38% of reform, and an in-depth study of the tax that generates recommendations Española (Rio Arriba County) 8.56% and medical exemptions law that allowed local governments to raise the GRT Lowest Rates for reform is warranted. To date, this effort has been slow to get underway. Raton 8.52% rate by ¾ percent to compensate for the phase-out of “hold-harmless” payments the state initially made to local governments to compensate for the Taos County 7.13% Sunland Park 8.44% Santa Fe County 7.00% Pyramiding. The increase in GRT rates has also exacerbated the effect of Ruidoso 8.44% loss of GRT revenue. The gross receipts tax, as it currently stands, is in need Sierra County 6.94% pyramiding, which remains an issue in some industries. Pyramiding occurs Logan 8.38% of reform, and an in-depth study of the tax that generates recommendations Valencia County 6.88% when the GRT is applied to business-to-business purchases of supplies, raw Lowest Rates for reform is warranted. To date, this effort has been slow to get underway. Luna County 6.88% materials, and equipment, creating an extra layer of taxation at each stage of Taos County 7.13% San Miguel County 6.83% production. The New Mexico Tax Research Institute (NMTRI) estimates Torrance County 6.75% Santa Fe County 7.00% Pyramiding. The increase in GRT rates has also exacerbated the effect of effective GRT could reach 17 percent in certain sectors, such as McKinley County 6.75% Sierra County 6.94% pyramiding, which remains an issue in some industries. Pyramiding occurs manufacturing and research and development, a significant disincentive to Dona Ana County 6.75% businesses considering expanding or locating in New Mexico. Legislation Valencia County 6.88% when the GRT is applied to business-to-business purchases of supplies, raw Source: TRD enacted in 2012 to address tax pyramiding in the manufacturing and Luna County 6.88% materials, and equipment, creating an extra layer of taxation at each stage of construction sectors was onerous to administer and more open-ended than San Miguel County 6.83% production. The New Mexico Tax Research Institute (NMTRI) estimates intended, doubling its estimated fiscal impact and requiring legislation to Torrance County 6.75% effective GRT could reach 17 percent in certain sectors, such as reduce the revenue losses. The manufacturing deduction allows firms to McKinley County 6.75% manufacturing and research and development, a significant disincentive to Dona Ana County 6.75% businesses considering expanding or locating in New Mexico. Legislation Source: TRD enacted in 2012 to address tax pyramiding in the manufacturing and
construction sectors was onerous to administer and more open-ended than
intended, doubling its estimated fiscal impact and requiring legislation to reduce the revenue losses. The manufacturing deduction allows firms to 11 PolicyPolicyRevenues Analysis: Analysis: Revenues/Tax Revenues/Tax & Policy Tax Policy Policy PagePage 2 2
deductdeduct tangible tangible property property consumed consumed in manufacturing. in manufacturing. The construction The -construction- serviceservice and equipment and equipment-leasing -leasingdeductions deductions apply to salesapply to to a salesconstruction to a construction JurisdictionsJurisdictions That That Have Have businessbusiness for a taxable for a taxable construction construction project. Future project. anti Future-pyramiding anti-pyramiding legislation legislation Enacted the 3/8% "Hold- Enacted the 3/8% "Hold- shouldshould be thoughtfully be thoughtfully constructed constructed to limit uncertainty. to limit uncertainty. Harmless" GRT Harmless" GRT Municipality Enacted Effective Tax Policy and Job Growth. The key to retaining companies Municipality Enacted Effective Tax Policy and Job Growth. The key to retaining companies Corrales January 2014 and recruiting new companies to New Mexico is to achieve a competitive tax Corrales January 2014 structureand andrecruiting then compete new companies on a job-ready to New workforce. Mexico Any is to unusual achieve taxes a competitive or tax Española* July 2014 structure and then compete on a job-ready workforce. Any unusual taxes or Española* July 2014 disparately high tax rates create a disincentive for companies to stay in or Fort Sumner January 2016 move disparatelyto a location. high If a state’stax rates tax structurecreate a falls disincentive within a reasonable for companies range, as to stay in or JemezFort SpringsSumner JanuaryJanuary 2016 2016 comparedmove with to a peer location. states, Ifbusinesses a state’s taxwill structurebase their falls location within decisions a reasonable on range, as LasJemez Cruces Springs JulyJanuary 2014 2016 other comparedfactors, such with as labor, peer real states, estate, businesses infrastructure, will and base transportation their location from decisions on LovingtonLas Cruces January 2014July 2014 suppliersother a ndfactors, to the such markets. as labor, In some real estate,cases, infrastructure,particularly if the and decision transportation- from maker will be relocating, quality of life can also play a significant role. Reserve July 2015 suppliers and to the markets. In some cases, particularly if the decision- Lovington January 2014 Springer January 2016 maker will be relocating, quality of life can also play a significant role. Reserve July 2015 New Mexico’s tax structure includes incentives aimed at attracting specific Sunland Park July 2015 industries, such as film, and aims to reward high-wage job creation. Springer January 2016 New Mexico’s tax structure includes incentives aimed at attracting specific County Enacted Generally, New Mexico’s tax structure falls in line with peer states; however, Sunland Park July 2015 the grossindustries, receipts taxsuch is a notableas film, exception and aims and itsto very reward existence high is -awage concern job creation. Chavez July 2015 County Enacted for companiesGenerally, considering New Mexico’s relocating tax orstructure expanding falls to in the line state. with If peer the states;rate however, Cibola July 2014 were thelower, gross this receipts would helptax is assuage a notable the exceptionconcerns, andbut asits GRTvery existencecarve-outs is a concern Chavez July 2015 De Baca January 2016 have increasedfor companies over the considering years, the rate relocating has necessarily or expanding increased. to the state. If the rate DonaCibola Ana July 2015July 2014 were lower, this would help assuage the concerns, but as GRT carve-outs GrantDe Baca JanuaryJanuary 2015 2016 Costshave. Over increased the last over couple the ofyears, years, the several rate has economic necessarily development increased. tax expenditures had larger fiscal impacts than initially estimated, in some cases HardingDona Ana January 2015July 2015 requiring statutory changes to curb the impact. Following its expansion in LunaGrant JulyJanuary 2015 2015 2001,Cost the statutes. Over governing the last the couple high wofage years, jobs tseveralax credit economic (HWJTC) dwasevelopment tax Mor a January 2016 expenditures had larger fiscal impacts than initially estimated, in some cases Harding January 2015 amended in 2013 to tighten eligibility requirements for both employers and Roosevelt July 2015 employees;requiring however, statut oryprotests changes could to result curb inthe additional impact. FollowingHWJTC claims, its expansion in Luna July 2015 Sierra January 2015 pushing2001, the costthe statuteof the creditgoverning back up.the Also high in w2013age , jlegislatorsobs tax c tightenedredit (HWJTC) was Mor a January 2016 Valencia January 2015 qualifyingamended standards in 2013 for the to manufacturing tighten eligibility tax credit requirements because businesses for both were em ployers and * RioRoosevelt Arriba and Santa Fe County July 2015 claimingemployees; the credit however,in unexpected protests ways. Incould addition result, the in$50 additional million film HWJTC tax claims, credit cap was reached, which will also have an impact on revenue estimates. Sierra Source:January TRD 2015 pushing the cost of the credit back up. Also in 2013, legislators tightened
Valencia January 2015 qualifying standards for the manufacturing tax credit because businesses were Recentclaiming Change thes . creditOn income in unexpected taxes, most wayschanges. In over addition the last, the decade $50 havemillion film tax * Rio Arriba and Santa Fe County benefited business activity: a cut in the top corporate income tax (CIT) rate credit cap was reached, which will also have an impact on revenue estimates. Source: TRD and single-sales apportionment for some corporations in 2013, an extension of the CIT net operating loss carry-forward provision in 2014, and in 2015, the High Wage Jobs creationRecent of special Change treatments. On under income CIT fortaxes, corporate most changesheadquarters over loca theted last in decade have Tax Credit Claims the statebenefited by allowing business “sales activity: only” apportionment. a cut in the topAlso co inrporate 2015, theincome “angel” tax (CIT) rate (in millions) investmentand single credit- saleswas reinstatedapportionment and expanded, for some the corporations gross receipts in 2013,deduction an extension of FY13 $21.4 for tradethe- supportCIT net companies operating that loss first carry locate-forward in a border provision zone was in restored,2014, and the in 2015, the technology jobs tax credit was expanded, and a GRT deduction for receipts FY14High Wage $48.8Jobs creation of special treatment under CIT for corporate headquarters located in from certainthe state research, by allowing direct energy “sales and only” satellite apportionment.-related services Also was increated. 2015, the “angel” FY15Tax Credit Claims$15.0 FY16 (in millions) investment credit was reinstated and expanded, the gross receipts deduction (estimated)FY13 $70.0$21.4 Otherfor tradeTax-support Policy companies Issues that first locate in a border zone was restored, the Source: LFC files technology jobs tax credit was expanded, and a GRT deduction for receipts FY14 $48.8 Fuel fromTax andcertain Motor research, Vehicle direct Excise. energy T andhe tax satellite rate charged-related on services gasoline was created. FY15 $15.0 was last changed in 1995, when it was decreased by 3 cents to 17 cents per
FY16 gallon. The tax on special fuels, such as diesel, has not been increased since (estimated) $70.0 2003,Other when it was Tax increased Policy by 3 cents Issues to 18 cents per gallon. This is a unit Source: LFC files Fuel Tax and Motor Vehicle Excise. The tax rate charged on gasoline was last changed in 1995, when it was decreased by 3 cents to 17 cents per
gallon. The tax on special fuels, such as diesel, has not been increased since 2003, when it was increased by 3 cents to 18 cents per gallon. This is a unit 12 Policy Analysis: Revenues/Tax Policy Revenues & PolicyTax Analysis: Policy Revenues/Tax Policy Page 3 Page 3
tax not indexed to inflation, and relatively constant levels of fuel purchases tax not indexed to inflation, and relatively constant levels of fuel purchases Revenue Impacts of Selected and increases in vehicle fuel efficiency have contributed to an erosion of the Revenue Impacts of Selected and increases in vehicle fuel efficiency have contributed to an erosion of the Tax Law Changes and Tax purchasing power of fuel tax revenue. The major benefactor of fuel taxes has Tax Law Changes and Tax purchasing power of fuel tax revenue. The major benefactor of fuel taxes has Expenditures been the road fund (see infrastructure discussion); however, local Expenditures been the road fund (see infrastructure discussion); however, local (in millions) governments receive a portion of revenue as well, used for local road (in millions) governments receive a portion of revenue as well, used for local road Tax Law maintenance. The reduced purchasing power of fuel taxes is constraining Tax Law maintenance. The reduced purchasing power of fuel taxes is constraining Change / local governments’ ability to build and maintain their road infrastructures. Change / local governments’ ability to build and maintain their road infrastructures. Tax Tax Expenditure FY16 FY17 Year Internet and Taxation. Federal efforts to regulate state taxing authority for Expenditure FY16 FY17 Year CIT Rate Federal efforts to regulate state taxing authority for Reduction in-state activities could affect state revenues. The Marketplace Equity Act and CIT Rate Internet and Taxation. and Optional Marketplace Fairness Act would grant states authority to impose taxes on in-state activities could affect state revenues. The Marketplace Equity Act and (63.3) (93.8) 2013 Reduction Single-Sales remote Internet retailers who compete with local retailers but do not have to and Optional Marketplace Fairness Act would grant states authority to impose taxes on (63.3) (93.8) 2013 Apportioning collect and remit sales or gross receipts taxes to a purchaser’s home state. It Single-Sales remote Internet retailers who compete with local retailers but do not have to (CIT) is unclear whether these bills will pass or how their specific provisions would Apportioning collect and remit sales or gross receipts taxes to a purchaser’s home state. It Mandatory affect New Mexico. The imposition of New Mexico tax on remote sellers (CIT) is unclear whether these bills will pass or how their specific provisions would Combined 5.8 4.2 2013 could generate new revenue for the state, although the impact is limited Mandatory Reporting (CIT) because major online retailers are already collecting and remitting sales tax. affect New Mexico. The imposition of New Mexico tax on remote sellers High-Wage Jobs Combined 5.8 4.2 2013 (70.0) (20.0) 2004 could generate new revenue for the state, although the impact is limited Tax Credit Reporting (CIT) because major online retailers are already collecting and remitting sales tax. Manuf. Additional Internet-related tax policy changes at the federal level include the High-Wage Jobs (70.0) (20.0) 2004 Deduction (20.0) (27.2) 2012 extension of the Internet Tax Freedom Act (ITFA), which imposed a Tax Credit (GRT) moratorium on new state and local taxes on monthly Internet access fees Manuf. Additional Internet-related tax policy changes at the federal level include the Construction while preserving (grandfathering) existing Internet access taxes. The Center Deduction (20.0) (27.2) 2012 extension of the Internet Tax Freedom Act (ITFA), which imposed a Deduction (15.6) (13.0) 2012 on Budget and Policy Priorities argues Congress should lift the ban and let (GRT) moratorium on new state and local taxes on monthly Internet access fees (GRT) states decide whether they will impose their sales and telecommunications Film Production Construction (50.0) (50.0) 2002 while preserving (grandfathering) existing Internet access taxes. The Center Tax Credit (CIT) taxes on Internet access charges. Making the ITFA permanent and stripping Deduction (15.6) (13.0) 2012 the grandfather clause could result in revenue reductions in New Mexico. on Budget and Policy Priorities argues Congress should lift the ban and let Locomotive Fuel (GRT) states decide whether they will impose their sales and telecommunications Tax Exemption (3.0) (3.1) 2011 Film Production (50.0) (50.0) 2002 taxes on Internet access charges. Making the ITFA permanent and stripping (Comp) Electronic Cigarettes. Several states have begun to examine the market Tax Credit (CIT) for e-cigarettes to develop a tax structure similar to traditional tobacco the grandfather clause could result in revenue reductions in New Mexico. Total (216.1) (202.9) Locomotive Fuel products. The consumption base for tobacco taxes is being eroded by the Source: LFC files and Consensus Revenue Tax Exemption (3.0) (3.1) 2011 Estimating Group increased market share of electronic cigarettes, not subject to an excise tax in (Comp) Electronic Cigarettes. Several states have begun to examine the market New Mexico. The use of e-cigarettes has grown amid unclear federal for e-cigarettes to develop a tax structure similar to traditional tobacco regulation and limited research about the health effects. A tax on e-cigarettes Total (216.1) (202.9) States with E-Cigarette Taxes equivalent to the tax rate on traditional tobacco products would restore this Source: LFC files and Consensus Revenue products. The consumption base for tobacco taxes is being eroded by the North Carolina: An excise tax is levied revenue source and minimize preferential treatment by taxing all tobacco Estimating Group increased market share of electronic cigarettes, not subject to an excise tax in on vapor products at the rate of 5 products equally. However, opponents of such a tax cite e-cigarettes’ New Mexico. The use of e-cigarettes has grown amid unclear federal cents per fluid milliliter of consumable potential as a smoking cessation tool and argue a tax would discourage its use regulation and limited research about the health effects. A tax on e-cigarettes product. All invoices for vapor in favor of traditional tobacco products. States with E-Cigarette Taxes equivalent to the tax rate on traditional tobacco products would restore this products issued by manufacturers must state the amount of consumable North Carolina: An excise tax is levied revenue source and minimize preferential treatment by taxing all tobacco product in milliliters. Local Government Revenues on vapor products at the rate of 5 products equally. However, opponents of such a tax cite e-cigarettes’ cents per fluid milliliter of consumable Minnesota: E-cigarettes and liquid potential as a smoking cessation tool and argue a tax would discourage its use Perhaps the most significant of product. All invoices for vapor capsules are considered tobacco Distributions to Local Governments. in favor of traditional tobacco products. products and are subject to the several tax policies affecting local government is that of adjustments to tax products issued by manufacturers tobacco tax, which is currently 95 must state the amount of consumable revenue distributions to local governments. For instance, if a taxpayer initially percent of the wholesale cost of any paid a tax in the wrong jurisdiction and amends the tax return to report the product in milliliters. Local Government Revenues product containing or derived from tobacco. Retailers are required to proper jurisdiction, the Taxation and Revenue Department (TRD) adjusts Minnesota: E-cigarettes and liquid purchase the tax-paid product. distributions to the affected local governments to reflect the corrected return. capsules are considered tobacco Distributions to Local Governments. Perhaps the most significant of Consumers who purchase from This could be done by reducing distributions to one local government and products and are subject to the someone who has not paid the increasing distributions to another. However, in some cases, this can result in several tax policies affecting local government is that of adjustments to tax tobacco tax must pay a tobacco tobacco tax, which is currently 95 revenue distributions to local governments. For instance, if a taxpayer initially consumer use tax. a zero distribution to a local government, impeding its ability to operate. percent of the wholesale cost of any Legislation enacted in 2015 resolved the issue by allowing adjustments to product containing or derived from paid a tax in the wrong jurisdiction and amends the tax return to report the tobacco. Retailers are required to proper jurisdiction, the Taxation and Revenue Department (TRD) adjusts purchase the tax-paid product. distributions to the affected local governments to reflect the corrected return. Consumers who purchase from This could be done by reducing distributions to one local government and someone who has not paid the increasing distributions to another. However, in some cases, this can result in tobacco tax must pay a tobacco consumer use tax. a zero distribution to a local government, impeding its ability to operate. Legislation enacted in 2015 resolved the issue by allowing adjustments to 13 PolicyPolicyRevenues Analysis: Analysis: Revenues/Tax Revenues/Tax & Policy Tax Policy Policy PagePage 4 4
distributions to the local governments and allowing the state to recover the
amountdistributions reimbursed toto the the taxpayer local governments on the local gov andernment’s allowing behalf. the Thestate bill to recover the
includeamountd provisions reimbursed that protect to the local taxpayer government on thes from local f iscallygovernment’s catastrophic behalf. The bill
adjustments,include includingd provisions allowing that theprotect secretary local of government TRD to waives from recovery fiscally of catastrophic
State Gasoline amount adjustments,s greater than including 50 percent allowing of the theaverage secretary distribution of TRD to tothe waive local recovery of TaxState Rates Gasoline government. amount Thes greater estimated than impact 50 percent on the generalof the fundaverage ranges distribution from $500 to the local (in cents per gallon) Tax Rates thousand government. to $1.5 million. The estimated impact on the general fund ranges from $500 Arizona (in cents per gallon)19 California 48.7 thousand to $1.5 million. Arizona 19 Legislation in 2013 reduced the Colorado 22 Food and Medical Deductions. California 48.7 corporate income tax rate and created a 15-year phase-out of the hold- Oklahoma 17 Legislation in 2013 reduced the Colorado 22 Food and Medical Deductions. Nevada 33.1 harmless distribution to municipalities and counties to offset food and Oklahoma 17 corporate income tax rate and created a 15-year phase-out of the hold- New Mexico 17 medical GRT deductions. The length of the phase-out gives local Nevada 33.1 governmentsharmless time distribution to reprioritize to budget municipalitiess to manage theand reduction counties in revenue.to offset food and Texas 20 medical GRT deductions. The length of the phase-out gives local UtahNew Mexico 24.5 17 In addition, current law authorizes local option GRT rates to restore lost governments time to reprioritize budgets to manage the reduction in revenue. TexasSource: The Tax Foundation 20 revenue. An alternative to raising the GRT rate would be to restore food and Utah 24.5 medicalIn servicesaddition, to currentthe gross law receipts authorizes tax base, local if not option statewide, GRT then rates at theto restore lost local level. This would eliminate the need for the hold-harmless payments Source: The Tax Foundation revenue. An alternative to raising the GRT rate would be to restore food and while broadening the GRT base and potentially enabling a rate reduction. medical services to the gross receipts tax base, if not statewide, then at the The restorationlocal level. to the This tax basewould of eliminatecertain health the care need services for the is supportedhold-harmless by payments the implementationwhile broadening of the the Affordable GRT base Care and Act ,potentially which potentially enabling expand a rates reduction.
healthcareThe restorationcoverage to toover the 2 5tax0 thousand base of uninsuredcertain health adults care, diminishing services theis supported by need to lower healthcare costs through tax policy. An increase in the working
families’the implementationtax credit could ofoffset the Affordableadditional tax Care burden Act , onwhich low -potentiallyincome expands Food and Medical Hold taxpayers,healthcare although coverage fraudulent to claims over for25 0this thousand credit are uninsured a concern. adults, diminishing the Harmless Distributions to need to lower healthcare costs through tax policy. An increase in the working
Local Governments Property families’ Taxes tax. Generally, credit couldlegislative offset sessions additional have seen tax few burden changes on to low-income Food(in and millions) Medical Hold propertytaxpayers, tax law. althoughEffective infraudulent 2001, the claims state enacted for this the credit “3 percent are a concern.cap” on FY HarmlessFood Medical DistributionsTotal to growth of residential property value for tax purposes. The cap was suspended 2009 Local$93.4 Governments$27.5 $120.9 when Propertya residential Taxes property. Generally, changed hands, legislative moving sessions the valuation have toseen market few changes to (in millions) 2010 $97.1 $30.3 $127.4 value propertyas of the taxtime law. of the Effective transfer. in In 2001,June 2014,the state the stateenacted Supreme the “3 Court percent cap” on validated this provision and dismissed the claims of primarily Bernalillo 2011FY $99.1Food $31.7Medical$130.8Total growth of residential property value for tax purposes. The cap was suspended County taxpayers to have the cap apply when properties changed hands. when a residential property changed hands, moving the valuation to market 20122009$103.2$93.4 $34.6$27.5$137.8$120.9 Unusually, at least six property-tax-related bills were enacted in the 2015 20132010$104.5$97.1 $34.7$30.3$139.2$127.4 regularvalue legislative as of session.the time Four of thechanged transfer. various In Juneadministrative 2014, the provisions, state Supreme Court validated this provision and dismissed the claims of primarily Bernalillo 20142011$108.0$99.1 $32.9$31.7$140.9$130.8 including allowing a disabled veteran to transfer a property tax exemption 2015 $107.8 $31.3 $139.1 from oneCounty property taxpayers to another to havewithin the the capsame apply property when tax propertiesyear. The fifthchanged hands. 2012 $103.2 $34.6 $137.8 resolvedUnusually, a problem atwith least the impactsix property of drough-taxt -onrelated agricultural bills propertywere enacted use. in the 2015 Source: TRD 2013 $104.5 $34.7 $139.2 regular legislative session. Four changed various administrative provisions, 2014 $108.0 $32.9 $140.9 including allowing a disabled veteran to transfer a property tax exemption Tax Gap 2015 $107.8 $31.3 $139.1 from one property to another within the same property tax year. The fifth Source: TRD With littleresolved likelihood a problem policymakers with the will impact enact o newf drough taxes,t theon agriculturalpotential to raise property use.
revenue rests with strong enforcement of existing law. During the 2013 interim, TRD estimated the tax gap in New Mexico, the difference between
what Taxis owed Gap and what is collected, to be $573 million collectively for personal income tax, CIT, and GRT. Less collection and enforcement efforts, whichWith net an little estimated likelihood 30 percent policymakers of the gross will taxenact gap, new the taxes, net tax the gap potential is to raise approximatelyrevenue $400rests million. with strong enforcement of existing law. During the 2013 interim, TRD estimated the tax gap in New Mexico, the difference between what is owed and what is collected, to be $573 million collectively for personal income tax, CIT, and GRT. Less collection and enforcement efforts, which net an estimated 30 percent of the gross tax gap, the net tax gap is approximately $400 million.
14 Early Childhood Policy Analysis: Early Childhood Policy Analysis: Early Childhood Page 1 Page 1 ecognizing that investing in early childhood can have ecognizing that investing in early childhood can have significant impact on a child’s future social and significant impact on a child’s future social and cognitive health and economic well-being, the Children, Youth and R Families Department Legislature has increased spending on early childhood Children, Youth and cognitive health and economic well-being, the R Report Card programs by more than $100 million over the last five years. Families Department Legislature has increased spending on early childhood Page 87 Report Card programs by more than $100 million over the last five years. While New Mexico continues to rank low nationally on child Page 87 While New Mexico continues to rank low nationally on child well-being measures, an indication that gaps in service still well-being measures, an indication that gaps in service still exist, additional investment must be strategically Early Childhood implemented and carefully monitored, with incremental exist, additional investment must be strategically Funding History funding going to those programs that are most effective and implemented and carefully monitored, with incremental FY12-FY16 Early Childhood (in millions) to those systems with the capacity to take the new money and Funding History funding going to those programs that are most effective and $250 turn it quickly into services. FY12-FY16 (in millions) to those systems with the capacity to take the new money and $230 $250 turn it quickly into services. $210 Numerous studies indicate that poverty, and the stresses that come with it, can affect brain growth and development and $230 $190 lead to learning, social, and behavioral delays and an $210 Numerous studies indicate that poverty, and the stresses that $170 come with it, can affect brain growth and development and increased risk of illness. Spending on early childhood $190 $150 lead to learning, social, and behavioral delays and an programs pays off in the long-run in lower costs for $170 $130 education supports, juvenile rehabilitations, law increased risk of illness. Spending on early childhood $110 $150 enforcement, and public assistance. To improve the lives of programs pays off in the long-run in lower costs for $90 $130 New Mexico children and long-term outcomes for the state, education supports, juvenile rehabilitations, law $70 the Legislature remains committed to continued investment $110 enforcement, and public assistance. To improve the lives of $50 in early care, development, and education programs to $90
New Mexico children and long-term outcomes for the state, FY12 FY13 FY14 FY15 improve the experiences of children and strengthen families FY16 $70 the Legislature remains committed to continued investment Childcare Assistance and communities. Home Visiting $50 in early care, development, and education programs to Prekindergarten Targeting At-Risk Families. Families have become increasingly diverse K-3 Plus FY12 FY13 FY14 FY15 improve the experiences of children and strengthen families and complex in recent decades. According to the Census Bureau, one out of FY16 Early Literacy five children in the United States lives with at least one foreign-born parent, Childcare Assistance and communities. FIT the share of children living with two biological married parents has declined, Home Visiting Race to the Top and families are experiencing more fluidity in living arrangements and Prekindergarten Families have become increasingly diverse Source: CYFD/PED/DOH Targeting At-Risk Families. employment. In addition, New Mexico has an increasingly high percentage of K-3 Plus and complex in recent decades. According to the Census Bureau, one out of Early Literacy children living in poverty. The growing complexity of families and five children in the United States lives with at least one foreign-born parent, persistence of poverty leads policymakers to focus on programming that FIT the share of children living with two biological married parents has declined, Race to the Top supports the developmental needs of children in conjunction with stabilizing and families are experiencing more fluidity in living arrangements and families. Source: CYFD/PED/DOH employment. In addition, New Mexico has an increasingly high percentage of Early care and education programs provide support children living in poverty. The growing complexity of families and Support for Families. and stability for families. A child’s family environment plays an important persistence of poverty leads policymakers to focus on programming that role in shaping the child’s well-being because it is the site of daily activities supports the developmental needs of children in conjunction with stabilizing and provides social and economic experiences. Childcare assistance provides families. low-income working families a safe and affordable place for the child while parents work or go to school and can enhance a child’s healthy cognitive, Support for Families. Early care and education programs provide support emotional, social, and physical development. The Children, Youth and and stability for families. A child’s family environment plays an important Families Department (CYFD) is piloting a childcare assistance program for role in shaping the child’s well-being because it is the site of daily activities and provides social and economic experiences. Childcare assistance provides low-income working families a safe and affordable place for the child while parents work or go to school and can enhance a child’s healthy cognitive, emotional, social, and physical development. The Children, Youth and Families Department (CYFD) is piloting a childcare assistance program for 15 EarlyPolicy Analysis: Childhood Early Childhood Policy Analysis: Early Childhood PagePage 2 2
families familieswith a referral with buta referral no evidence but no of maltreatmentevidence of inmaltreatment an effort to provide in an effort to provide EarlyEarly Childhood Childhood Investment Investment Zones Zonesstabilizingstabilizing services servicesfor familie fors infamilie crisis.s Additionalin crisis.ly, Additionalhome-visitingly, home-visiting InvestmentInvestment Population Population CountyCounty Zone RankZone RankAge 0-4* Age 0-4*programsprograms, which provide, which home provide visits home to families visits withto familiesyoung children with youngby children by Quay Quay 1 1 <1% paraprofessionals,<1% paraprofessionals, address maternal address and maternal child health and issues,child healthsupport issues,positive support positive Luna 2 1% parenting practices, and provide referral services and access to additional Luna 2 1% parenting practices, and provide referral services and access to additional Sierra 3 <1% supportive services. Sierra 3 <1% supportive services. Rio Arriba 4 2% Rio Arriba 4 2% McKinley 5 4% New Mexico’s Early Childhood Care and Education System McKinley 5 4% Torrance 6 <1% New Mexico’s Early Childhood Care and Education System GaudalupeTorrance 7 6 <1% <1% HardingGaudalupe 8 7 <1% <1% Birth 1 Yrs. 2 Yrs. 3 Yrs. 4 Yrs. 5 Yrs. & Prenatal ColfaxHarding 9 8 <1% <1% To 1 OldBirth Old1 Yrs. Old2 Yrs. Old 3 Yrs.Older 4 Yrs. 5 Yrs. & Prenatal CibolaColfax 10 9 1% <1% To 1 Old Old Old Old Older Lea 11 4% Cibola 10 1% Home Visiting Total 15% Lea 11 4% *2010 Census Source: LFC and CYFD Home Visiting Total 15% IDEA Part C IDEA Part B *2010 Census Source: LFC and CYFD Early Intervention – NM FIT Program Early Childhood Special Education Invesment zones prioritize funding IDEA Part C IDEA Part B for at-risk communities, based on Early Intervention –ChildNM Care FIT Program Early Childhood Special Education aggregatedInvesment socio zones-economical prioritize risk funding indicators, and communities with for at-risk communities, based on the greatest capacity for creating a Early Head Start Head StartChild Care continuumaggregated of high socio-quality-economical early risk learningindicators, programs. and LFC communities estimates with
the thenumber greatest of children capacity ages for 0creating-4 a Early Head Start Head Start livingcontinuum in investment of zoneshigh is-quality close early NM PreK
to 22learning thousand. programs. LFC estimates K-Three Plus, Early the number of children ages 0 - 4 Reading Initiative, NM PreK living in investment zones is close Education Reforms to 22 thousand. Across Grades 1, 2, and Early Childhood 3. K-Three Plus, Early Programs Reading Initiative, Cost-Benefit Ratios Source: UNM Center for Education Policy ResearchEducation Reforms Across Grades 1, 2, and Early Childhood $1.60 $1.49 Early Childhood Brain Development. Research indicates the most rapid 3. Programs $1.40 period of brain development occurs in the first few years of life. During this Cost-Benefit Ratiostime, the basic architecture of a child’s brain starts toSource: form UNM, with Center ongoing for Education Policy Research $1.20 $1.06 $1.07 implications into adulthood. This means the earliest years may present the $1.60 $1.49 $1.00 most significantEarly Childhood opportunity to Brain remediate Development.. Brain development Research is slowed indicates for the most rapid $1.40 children periodwhen ofexposed brain developmentto less stimulating occurs inemotional the first fewand yearsphysical of life. During this $0.80 environments,time, leadingthe basic to cognitivearchitecture and socialof a child’sdelays. Additionally,brain starts researchto form , with ongoing $1.20 $0.60 $1.06 $1.07 also showsimplications later interventions into adulthood. may be less This successful. means Asthe a earliestresult, programs years may present the that identify and support children and families most at-risk for experiencing $0.40$1.00 most significant opportunity to remediate. Brain development is slowed for highly stressfulchildren environments when exposed can reduce to orless avoid stimulatingthe need for moreemotional costly and physical $0.20 and less effective remediation and support programs later. $0.80 environments, leading to cognitive and social delays. Additionally, research $0.00 $0.60 National NM Pre K Home Early Childhoodalso shows laterPrograms, interventions Quality, may andbe lessCost successful.-Effectiveness. As a result, programs Early Visiting Strategicthat investments, identify andalong support with careful children attention and families to implementation most at-risk and for experiencing $0.40Childhood Model performancehighly monitoring, stressful couldenvironments improve thecan social reduce and or cognitive avoid the skills need of for more costly $0.20 children,and with less benefits effective extending remediation throughout and a child’ssupport life. programs National later. return on Source:New Mexico Results First investment studies of early childhood programs show returns as high as seven $0.00 dollars for every one dollar invested. By investing in early childhood National NM Pre K Home Early Childhood Programs, Quality, and Cost-Effectiveness. programs, taxpayers may save more over time through decreased juvenile Early Visiting Strategic investments, along with careful attention to implementation and Childhood Model performance monitoring, could improve the social and cognitive skills of children, with benefits extending throughout a child’s life. National return on
Source:New Mexico Results First investment studies of early childhood programs show returns as high as seven dollars for every one dollar invested. By investing in early childhood programs, taxpayers may save more over time through decreased juvenile 16 Policy Analysis: Early Childhood Policy Analysis: Early Childhood Early Childhood Page 3 Page 3 Policy Analysis: Early Childhood
Page 3 delinquency, criminal activity, and educational remediation. However, not all delinquency, criminal activity, and educational remediation. However, not all Home-Visiting early childhood education and development programming is shown to delinquency, criminal activity, and educational remediation. However, not all early childhood education and development programming is shown to Home-Visiting Funding and improve child well-being and provide such significant returns.Home -Visiting early childhood education and development programming is shown to Funding and improveService child well History-being and provide such significant returns. Funding and improve child well-being and provide such significant returns. Service History A recent evaluation of Tennessee prekindergarten programs Serviceshowed History gains in A recent evaluation ofFunding Tennessee prekindergarten programs showed gains in A recent evaluation of Tennessee prekindergarten programs showed gains in Funding (in millions) math, language, and reading but those gains did not last through kindergarten.Funding (in millions) (in millions) math, language, and reading but those gains did not last through kindergarten. math,4,000 language, and reading$16 but thoseThis gisains in didstark not lastcontrast through to kindergarten.the results of other public prekindergarten 4,000 $16 4,000 $16 This is in stark contrast to the results of other public prekindergarten This is in stark contrast to theprograms, results ofsuch other as Bostonpublic andprekindergarten New Jersey, which have closed between 20 programs, such as Boston and New Jersey, which have closed between 20 programs, such as Boston and New Jersey, which have closed between 20 3,500 $14 percent and 30 percent of the educational achievement3,500 gap between low-$14 percent and 30 percent of the educational achievement gap between low- 3,500 $14 percent and 30 percent of the educationalincome students achievement and the gap national between average. low- Researchers believe the key income students and the national average. Researchers believe the key inc3,000ome students and the$12 nationaldifferences average. to Researchers obtaining lastingbelieve outcomes the key in public 3,000programs is strategic$12 differences to obtaining lasting outcomes in public programs is strategic 3,000 $12 differences to obtaining lasting developmentoutcomes in publicof evidence programs-based is strategicprogramming, careful and attentive development of evidence-based programming, careful and attentive development of evidence-based programming, careful and attentive 2,500 $10 2,500 $10 implementation, and continued performance monitoring -- in other words, implementation, and continued performance monitoring -- in other words, 2,500 $10 implementation, and continued performancehigh-quality services.monitori ng -- in other words, high-quality services. high-quality services. 2,000 $8 2,000 $8 High-quality programs require significant investment. Inputs such as well- 2,000 $8 High-quality programs require significant investment. Inputs such as well- High-quality programs require significant investment. Inputs such as well- 1,500 $6 educated, experienced teachers, small group sizes, and one-on-one coaching 1,500 $6 educated, experienced teachers, small group sizes, and one-on-one coaching are costly but predictive of long-term outcome gains. With this in mind, 1,500 $6 educated, experienced teachers, small group sizes, and one-on-one coaching are costly but predictive of long-term outcome gains.1,000 With this in mind,$4 several early childhood programs received significant provider rate increases are costly but predictive of longsever-termal outcomeearly childhood gains. programsWith this receivedin mind, significant provider rate increases to invest in quality inputs. Childcare assistance providers received an average sever1,000 al early childhood programs$4 received significant provider rate increases 1,000 $4 to invest in quality inputs. Childcare assistance providers500 received an average$2 26 percent rate increase in FY15. In FY16 the home-visiting program also to invest in quality inputs. Childcare26 percentassistance rate providers increase received in FY15. an In average FY16 the home-visiting program also increased provider rates more than 12 percent for high-risk and rural families. 500 $2 The Legislature should expect these investments in quality services will 500 $2 26 percent rate increase in FY15.increased In FY16 pro thevider home rates-visiting more thanprogram 12 percent also for high-risk0 and rural families.$0 improve outcomes. However, the rising cost of services means fewer families increased provider rates more thanThe 12 percentLegislature for highshould-risk expectand rural these families. invest ments in quality services will 0 $0 FY12 FY13 FY14 FY15 FY16 can be served. 0 $0 The Legislature should expect these investments in quality services will improve outcomes. However, the rising cost of services means fewerSource: families CYFD/LFC improve outcomes. However, the rising cost of services means fewer families FY12 FY13 FY14 FY15 FY16 can be served.
FY12 FY13 FY14 FY15 FY16 can be served. Source: CYFD/LFC
Source: CYFD/LFC
Early Childhood Services Gap Analysis
Early Childhood Services Gap Analysis
Early Childhood Services Gap Analysis
Despite significant, targeted investments by the Legislature in the state’s early childhood programs, New Mexico remains behind most of the nation in many indicators of child well-being. LFC’s Early Childhood Services Accountability
Report Card, Gap Analysis and Spending Plan (January 2015) examined four key state early childhood programs (home visiting, prekindergarten, child care, and K-3 Plus) for needs and gaps in services, current accountability data, barriers to
Despite significant, targeted investments by the Legislature in the state’s early childhood programs,program expansio New Mexicon, and potential funding options. Despite significant, targeted investments by the Legislature in the state’s early childhood programs, New Mexico remains behind most of the nation in many indicators of child well-being. LFC’s Early Childhood Services Accountability remains behind most of the nation in many indicators of child well-being. LFC’s Early Childhood Services Accountability Report Card, Gap Analysis and Spending Plan (January 2015) examined four key state early childhood While homeprograms visiting (home has achieved successes in some high-risk communities, developing community relationships and Report Card, Gap Analysis and Spending Plan (January 2015) examined four key state early childhood programs (home visiting, prekindergarten, child care, and K-3 Plus) for needs and gaps in services, current accountability infrastructure data, continuebarrierss to to be a barrier to expansion. The majority of at-risk clients remain unserved, and the state lacks visiting, prekindergarten, child care, and K-3 Plus) for needs and gaps in services, current accountability data, barriers to sufficient information about whether the program is reaching the targeted population. program expansion, and potential funding options. program expansion, and potential funding options.
In contrast, New Mexico is close to providing sufficient funding to ensure all low-income 4-year-olds receive some While home visiting has achieved successes in some high-risk communities, developing community relationships and While home visiting has achieved successes in some high-risk communities, developing community relationships and service when childcare assistance, prekindergarten, and Head Start are considered. However, programs remain infrastructure continues to be a barrier to expansion. The majority of at-risk clients remain unserved,fragmented and the and state the lacksquality of service is still a concern. Additionally, while the K-3 Plus extended school year program is infrastructure continues to be a barrier to expansion. The majority of at-risk clients remain unserved, and the state lacks sufficient information about whether the program is reaching the targeted population. now operated in most eligible elementary schools, the majority of eligible students in these schools do not participate. sufficient information about whether the program is reaching the targeted population.
In contrast, New Mexico is close to providing sufficient funding to ensure all low-income 4 -yearTo -closeolds receiveservice gapssome and continue improving early childhood outcomes, targeted interventions are needed. New In contrast, New Mexico is close to providing sufficient funding to ensure all low-income 4-year-olds receive some Mexico should target expanded home services to at-risk, low-income families in high-need communities, develop new service when childcare assistance, prekindergarten, and Head Start are considered. However, programs remain service when childcare assistance, prekindergarten, and Head Start are considered. However, programs remain performance measures for prekindergarten and child care services, and prioritize funding K-3 Plus on a school-wide or fragmented and the quality of service is still a concern. Additionally, while the K-3 Plus extended school year program is fragmented and the quality of service is still a concern. Additionally, while the K-3 Plus extended school year program is district-wide basis. now operated in most eligible elementary schools, the majority of eligible students in these schools do not participate. now operated in most eligible elementary schools, the majority of eligible students in these schools do not participate.
To close service gaps and continue improving early childhood outcomes, targeted interventions are needed. New To close service gaps and continue improving early childhood outcomes, targeted interventions are needed. New Mexico should target expanded home services to at-risk, low-income families in high-need communities, develop new Mexico should target expanded home services to at-risk, low-income families in high-need communities, develop new performance measures for prekindergarten and child care services, and prioritize funding K-3 Plus on a school-wide or performance measures for prekindergarten and child care services, and prioritize funding K-3 Plus on a school-wide or district-wide basis. district-wide basis.
17 Policy Analysis: Early Childhood Page 4
Service Gaps and Investment Growth. While New Mexico continues to show leadership in increased investment in early care and education, large
numbers of children are still in need of services. For example, LFC estimates current home-visiting funding supports only 8 percent of low-income, first- time families. However, The National Academy of Science cautions against scaling up programs before they have been optimized for specific delivery settings and before capacity has been built. EarlyPolicy Analysis: Childhood Early Childhood
Page 4 Home Visiting. The Legislature has prioritized funding for early intervention home-visiting services since FY12. Home visiting is an intensive parent education program shown to effectively reduce child abuse and Service Gaps and Investment Growth. While New Mexico continues to improve showhealth. leadership This voluntary in increased program providesinvestment family in supportearly care and andbasic education , large parenting skills critical to improving childhood outcomes during pregnancy Childcare Assistance numbers of children are still in need of services. For example, LFC estimates Enrollment by and through the first few years of a child’s life. Home visiting also assists Fiscal Year health professionalscurrent home in -identifyingvisiting funding mothers supports with postpartum only 8 depressionpercent of and low -income, first- (as of October 2015) connectstime them families. with behavioral However, health The resources. National Research Academy show sof early Science family cautions against 22,000 support scalingprograms up, such programs as home before visiting, they are have an effective been optimized system of forearly specific delivery intervention for at-risk families. 21,000 settings and before capacity has been built.
In FY16, LFC estimated over 3,000 families would receive state-funded 20,000 Home Visiting. The Legislature has prioritized funding for early home-visitingintervention services, home and -anvisiting estimated services 7,000 since eligible FY12. families Home would visiting go is an intensive without. Policymakers should consider continued investment in this evidence- 19,000 parent education program shown to effectively reduce child abuse and based model while keeping in mind responsible program growth 18,000 recommendations.improve health. This voluntary program provides family support and basic Childcare Assistance parenting skills critical to improving childhood outcomes during pregnancy 17,000 Enrollment by Childcareand Assistance through the. Administered first few years by the of Children, a child’s Youth, life. andHome Families visiting also assists Fiscal Year Departmenthealth (CYFD) professionals, the Childcare in identifying Assistance mothers Program wit inh Newpostpartum Mexico depression and 16,000 (as of October 2015) serves aboutconnects 18 thousand them with children behavioral up to healthage 13 resources.at a cost of Research $97 million show s early family 22,000 annually. The program subsidizes the cost of child care for families with 15,000 support programs, such as home visiting, are an effective system of early incomesintervention at or below 200 for percentat-risk offamilies. the federal poverty level (FPL), or about 21,000 $48.5 thousand annually for a family of four. As of November 2013, all participating families at 150 percent of the FPL receive automatic assistance. 20,000 In FY16, LFC estimated over 3,000 families would receive state-funded FY13 FY14 Historically,home child-visiting care services,has been andviewed an asestimated a welfare 7,000 support eligible program, families would go 19,000FY15 FY16 allowingwithout. low-income Policymakers parents to work. should Howeve considerr, since continued 2004, LFC investment evaluations in this evidence- have emphasizedbased modelhigh-quality while programs keeping improve in outcomes mind andresponsible recommended program growth Source: CYFD 18,000 shifting fundingrecommendations. toward more costly initiatives.
17,000 In 2014, the federal Child Care and Development Block Grant (CCDBG) Act was Childcarereauthorized. AssistanceCCDBG is the. federalAdministered authority by and the funding Children, source Youth, for and Families Department (CYFD), the Childcare Assistance Program in New Mexico 16,000 childcare assistance. The reauthorization made significant changes by definingserves health aboutand safety 18 thousandrequirements children for child upcare to providers,age 13 at outlining a cost of $97 million family-friendlyannually. eligibility The program policies, subsidizesand requiring the parentscost of and child the caregeneral for families with 15,000 public toincomes have transparent at or below information 200 percent about of available the federal child povertycare services level. (FPL), or about New Mexico$48.5 receives thousand close annually to $36.1 million for a fromfamily CCDBG of four. annually As . of November 2013, all participating families at 150 percent of the FPL receive automatic assistance.
Highlights of CCDBG reauthorization requirements include criminal background checks for all childcare staff, certification that providers are FY13 FY14 Historically, child care has been viewed as a welfare support program, complying with child abuse reporting requirements, pre-licensure and annual FY15 FY16 unannouncedallowi inspectionsng low-income of licensed parents providers, to work. qualifications However, and since training 2004, for LFC evaluations licensinghave inspectors, emphasized and standard high- qualitychild-to- programsprovider ratios improve. outcomes and recommended Source: CYFD shifting funding toward more costly initiatives.
In 2014, the federal Child Care and Development Block Grant (CCDBG) Act was reauthorized. CCDBG is the federal authority and funding source for childcare assistance. The reauthorization made significant changes by defining health and safety requirements for childcare providers, outlining family-friendly eligibility policies, and requiring parents and the general
public to have transparent information about available childcare services. New Mexico receives close to $36.1 million from CCDBG annually.
Highlights of CCDBG reauthorization requirements include criminal background checks for all childcare staff, certification that providers are
complying with child abuse reporting requirements, pre-licensure and annual unannounced inspections of licensed providers, qualifications and training for licensing inspectors, and standard child-to-provider ratios. 18 Policy Analysis: Early Childhood Page 5
The most costly requirement of the reauthorization is a new 12-month
Policy Analysis: Early Childhood eligibility period versus the current six months. Extending the recertification Early Childhood Page 5 process may result in increased enrollment and expenditures. CYFD requested $1 million from the general fund. However, these amounts may not be sufficient.
The most costly requirement of the reauthorization is a new 12-month CCDBG is available to families at Tiered Quality Rating and Improvement System. Focus is New eligibility period versus the current six months. Extending the recertification or below 85 percent of the state Mexico's third-generation TQRIS. The purpose of improving quality in child process may result in increased enrollment and expenditures. CYFD median income. Above that, the care is to improve the health and well-being of children and promote school general fund pays for childcare up success. Currently, childcare providers may volunteer to participate in the requested $1 million from the general fund. However, these amounts may not to 200 percent of the federal be sufficient. poverty level. Focus pilot, and 250 providers are participating statewide. The essential elements of Focus include observational child assessment, curriculum planning and support, family engagement strategies, health and safety Tiered Quality Rating and Improvement System. Focus is New CCDBG is available to families at practices, comprehensive program assessment and continuous improvement, or below 85 percent of the state Mexico's third-generation TQRIS. The purpose of improving quality in child and early childhood educator workforce qualifications support. These median income. Above that, the care is to improve the health and well-being of children and promote school New Mexico Median essential elements are predictive indicators of high-quality early childhood general fund pays for childcare up success. Currently, childcare providers may volunteer to participate in the programs and practices. Elements of Focus include reduced teacher-to-child to 200 percent of the federal Income and Poverty poverty level. Focus pilot, and 250 providers are participating statewide. The essential Level ratios, increased director and teacher qualifications, and child health and elements of Focus include observational child assessment, curriculum Annual developmental screenings. Income planning and support, family engagement strategies, health and safety $90,000 practices, comprehensive program assessment and continuous improvement, Temporary Assistance for Needy Families. Due to decreasing and early childhood educator workforce qualifications support. These $80,000 caseloads and lower overall spending in FY15, projections for TANF FY17 carryover will be significant, an estimated $46 million. In FY16, CYFD $70,000 New Mexico Median essential elements are predictive indicators of high-quality early childhood received $48.6 million of TANF funds from the Human Services Department Income and Poverty programs and practices. Elements of Focus include reduced teacher-to-child $60,000 (HSD) for early childhood programs, such as childcare assistance, home Level ratios, increased director and teacher qualifications, and child health and visiting, and prekindergarten. $50,000 Annual developmental screenings. Income $40,000 Prekindergarten. A recent LFC evaluation found prekindergarten (prek) $90,000 Temporary Assistance for Needy Families. Due to decreasing had a significant impact on math and reading proficiency for low income 4- $30,000 year-olds. In FY16, LFC projects CYFD and the Public Education $80,000 caseloads and lower overall spending in FY15, projections for TANF FY17 Department (PED) will provide over 10 thousand children with prek services, carryover will be significant, an estimated $46 million. In FY16, CYFD $20,000 $70,000 that include over 2 thousand slots for extended-day services. Prior to FY15, received $48.6 million of TANF funds from the Human Services Department $10,000 prek programs were only two and a half hours long each day. To increase $60,000 (HSD) for early childhood programs, such as childcare assistance, home $0 student achievement, services were extended to allow for longer hours. CYFD visiting, and prekindergarten. 1 2 3 4 5 6 7 8 reported provider and community interest was so great the agency reallocated $50,000 Number in Family funding for extended-day prek in FY15. An additional $5.5 million was 200 Percent FPL $40,000 Prekindergarten. A recent LFC evaluation found prekindergarten (prek) appropriated in FY16 for a total operating budget of $13.9 million.
had a significant impact on math and reading proficiency for low income 4- 150 Percent FPL $30,000 year-olds. In FY16, LFC projects CYFD and the Public Education Early Prekindergarten. LFC analysis indicates the capacity to serve the Source: CYFD and US HHS majority of low-income 4-year-olds statewide is near saturation when $20,000 Department (PED) will provide over 10 thousand children with prek services, considering childcare assistance, Head Start, and prek. However, few services that include over 2 thousand slots for extended-day services. Prior to FY15, are available for 3-year-olds. Nationally, policymakers are extending prek $10,000 prek programs were only two and a half hours long each day. To increase services to allow participation for 3- and 4-year-olds, and research indicates $0 student achievement, services were extended to allow for longer hours. CYFD this further promotes proficiency in math and reading by third grade. 1 2 3 4 5 6 7 8 reported provider and community interest was so great the agency reallocated Considering this, in FY16 $3.3 million was appropriated to pilot prek for 3- Number in Family funding for extended-day prek in FY15. An additional $5.5 million was year-olds. Early prek proved exceedingly popular statewide and CYFD 200 Percent FPL appropriated in FY16 for a total operating budget of $13.9 million. requested an additional $1 million from the general fund in FY17 to expand services. 150 Percent FPL Early Prekindergarten. LFC analysis indicates the capacity to serve the Source: CYFD and US HHS majority of low-income 4-year-olds statewide is near saturation when considering childcare assistance, Head Start, and prek. However, few services
are available for 3-year-olds. Nationally, policymakers are extending prek services to allow participation for 3- and 4-year-olds, and research indicates this further promotes proficiency in math and reading by third grade. Considering this, in FY16 $3.3 million was appropriated to pilot prek for 3- year-olds. Early prek proved exceedingly popular statewide and CYFD requested an additional $1 million from the general fund in FY17 to expand services.
19 Education Policy Analysis: Education PagePolicy 1 Analysis: Education Page 1
ew Mexico directs over half of general fund revenues to education-related programs each year – from pre- ew Mexico directs over half of general fund revenues kindergartento education to post--relatedgraduate, programs as well eachas adultyear – from pre- FY16 General Fund N education, workforce training, and literacy support – yet Appropriations kindergarten to post-graduate, as well as adult (inFY16 millions) General Fund some Nindividual program goals and outcomes remain Appropriations unaligned,education, requiring workforce the state totraining, shore up andattai nmentliteracy gaps support – yet (in millions) with supplementarysome individual services. program Requirement goalss to obtainand aoutcomes high remain school unaligned,diploma remain requiring inconsistent the statewith theto expectationsshore up attai of nment gaps
Other State Public a collegewit h freshman,supplementary leading services. to required Requirement remediation.s to obtain a high Government Education $2,631.9 Meanwhile, students in kindergarten programs enter the $2,752.1 school diploma remain inconsistent with the expectations of 42% 44% public school system with a varying degree of preparedness, Other State Public a college freshman, leading to required remediation. Government Educationcalling for extensive interventions. This is the result of a $2,631.9 Meanwhile, students in kindergarten programs enter the $2,752.1 42% fragmented education system in which a seamless transition 44% public school system with a varying degree of preparedness, from grade to grade is disrupted by a lack of coordination Higher calling for extensive interventions. This is the result of a Education between governmental agencies. Moving forward, each $848.5 14% piece offragmented the student pipelineeducation must system cooperate in which with the a nextseamless to transition Source: LFC Files ensure fromstudent grade outcomes to grade align. is Further,disrupted available by a lackfunding of coordination Higher Education must targetbetween collaborative governmental efforts agencies. that leverage Moving proven forward, each $848.5 14% strategiespiece to generate of the studenta well-informed, pipeline productive must cooperate citizenry. with the next to
Source: LFC Files ensure student outcomes align. Further, available funding Public Education
Change in Formula must target collaborative efforts that leverage proven Funding FY08 to FY16* The state allocates 44 percent of general fund revenues to public education strategies to generate a well-informed, productive citizenry. programs. Funding allocated through the formula, which represents both the $140 bulk of state spending on public schools and the way school districts and $117 charter schoolsPublic get mostEducation of their money, increased $240 million between $120 Change in Formula $104 FY08 and FY16, from $2.33 billion to $2.57 billion. Given the large Funding FY08 to FY16* $100 investmentThe in statepublic allocates schools, 44some percent policymakers of general expect fund to seerevenues significant to public education improvementsprograms in student. Funding learning. allocated However, through improvements the formula, havewhich been represents both the $80 $140 modest. bulk Formula of state funding spending and onPublic public Education schools Departmentand the way (PED) school districts and distribution of dollars do not always target resources at students at risk of $117 charter schools get most of their money, increased $240 million between millions $60 $120 academicFY08 failure. and Going FY16, forward, from calculated $2.33 billiondecisions to must $2.57 be madebillion. at the Given the large $104 state and local level to focus spending on practices and programs proven to $40 $100 increase investmentstudent achieveme in publicnt to ensureschools, the statesome is policymakersgetting the best expectreturn onto see significant its investment.improvements Particular in attention student should learning. be paid However, to how resources improvements are have been $20 $80 allocatedmodest. to serve the Formulastate’s economically funding disadvantagedand Public students,Education the mostDepartment (PED) $- likely to distributionperform poorly of, if dollars the achievement do not alwaysgap is to targetbe narrowed. resources at students at risk of millions $60Charter School academic failure. Going forward, calculated decisions must be made at the Schools Districts Almost halfstate of andthe $240 local million level into new focus dollars spending spent through on practices the public and school programs proven to $40 funding formula since FY08 has gone to support charter schools. The number *FY16 preliminary of approvedincrease charter student schools achieveme increasednt from to ensure64 in theFY08 state to 99is gettingin FY16 the. best return on Source: PED and LFC Files Charter schoolsits investment. serve 23 thousand Particular students, attention while school should districts be paid educate to 309how resources are $20 thousandallocated students. Into FY15 serve, charter the state’s schools economically received $8,66 3disadvantaged per student while students, the most school districtslikely toreceived perform $7 poorly,597 per, if student.the achievement Despite gapthe growthis to be innarrowed. the $- Charter Schoolnumber of charter schools and the increased funding they receive, student in Schools Districts Almost half of the $240 million in new dollars spent through the public school funding formula since FY08 has gone to support charter schools. The number *FY16 preliminary of approved charter schools increased from 64 in FY08 to 99 in FY16. Source: PED and LFC Files Charter schools serve 23 thousand students, while school districts educate 309
thousand students. In FY15, charter schools received $8,663 per student while school districts received $7,597 per student. Despite the growth in the
number of charter schools and the increased funding they receive, student in
20 Policy Analysis: Education Education Page 2 Policy Analysis: Education Page 2 these schools, public schools operated independently, do not perform significantly better than public schools operated by school districts. these schools, public schools operated independently, do not perform Public Education significantly better than public schools operated by school districts. Report Card In addition to formula funding, a smaller amount of funding is allocated by Public Education Report Card In addition to formula funding, a smaller amount of funding is allocated by Page 90 PED for department-supported initiatives. PED staff contends these dollars Page 90 PED for department-supported initiatives. PED staff contends these dollars are better targeted to produce results, though the department makes limited are better targeted to produce results, though the department makes limited data available to assess this claim. Additionally, school leaders continue to data available to assess this claim. Additionally, school leaders continue to voice concerns about the administrative burden placed on them to apply for voice concerns about the administrative burden placed on them to apply for Eight Characteristics of individual grant programs. Eight Characteristics of individual grant programs. High-Performing Schools High-Performing Schools Learning Gaps. One of the state’s most significant challenges is 1. High expectations and Learning Gaps. One of the state’s most significant challenges is 1. High expectations and addressing the achievement gap – the disparity in performance between standards; addressing the achievement gap – the disparity in performance between standards; 2. High levels of collaboration and groups of students defined by gender, race, language, or socioeconomic 2. High levels of collaboration and groups of students defined by gender, race, language, or socioeconomic communication; communication; status. Generally, minority students and economically disadvantaged students status. Generally, minority students and economically disadvantaged students 3. Strategic assignment of fare more poorly than their peers due to a number of factors, including 3. Strategic assignment of fare more poorly than their peers due to a number of factors, including principal and staff; principal and staff; 4. Focused professional parents’ education levels, access to high-quality early childhood care and 4. Focused professional parents’ education levels, access to high-quality early childhood care and development; education, distribution of public education funding through the funding development; education, distribution of public education funding through the funding 5. Regular and targeted parent formula and categorical grant programs, allocation of funding within school 5. Regular and targeted parent formula and categorical grant programs, allocation of funding within school and community involvement; districts, peer influences, educators’ expectations, and curriculum and teacher and community involvement; 6. Caring staff dedicated to districts, peer influences, educators’ expectations, and curriculum and teacher diversity and equity; quality. When not adequately addressed, the achievement gap persists well 6. Caring staff dedicated to quality. When not adequately addressed, the achievement gap persists well 7. Curriculum, instruction, and into high school, postsecondary education, and the workforce. diversity and equity; assessment aligned with core 7. Curriculum, instruction, and into high school, postsecondary education, and the workforce. standards; and Closing the Achievement Gap. Research shows educating at-risk assessment aligned with core 8. Data-driven focus and frequent students requires additional resources, though studies vary on the costs. standards; and Closing the Achievement Gap. Research shows educating at-risk monitoring of student achievement. States differ on the funding allocated for at-risk students but, recognizing the 8. Data-driven focus and frequent students requires additional resources, though studies vary on the costs. significant impact risk factors have on academic achievement, provide up to monitoring of student achievement. States differ on the funding allocated for at-risk students but, recognizing the 50 percent more funding for at-risk students. New Mexico only allocates an additional 10 percent per at-risk student through the funding formula, though significant impact risk factors have on academic achievement, provide up to K-3 Plus, PED 50 percent more funding for at-risk students. New Mexico only allocates an Prekindergarten, and there are many other state-funded grant programs that target at-risk students at additional 10 percent per at-risk student through the funding formula, though Early Literacy Funding all levels, including early intervention programs offered at prekindergarten K-3 Plus, PED (in millions) through the early elementary levels and programs that help at-risk middle and Prekindergarten, and there are many other state-funded grant programs that target at-risk students at $70 high school students prepare for college. Early Literacy Funding all levels, including early intervention programs offered at prekindergarten $60 (in millions) through the early elementary levels and programs that help at-risk middle and Early identification of at-risk students and implementation of appropriate $70 high school students prepare for college. $50 education strategies are essential. Educators must ensure young students master basic skills, like reading and math. Extended-day or extended-school $60 Early identification of at-risk students and implementation of appropriate $40 year programs, increased time on task, high-quality early childhood care and $50 education strategies are essential. Educators must ensure young students $30 education programs, and targeted interventions for students falling behind will master basic skills, like reading and math. Extended-day or extended-school help close the achievement gap. More strategic management decisions at the $40 $20 district and school level to ensure the basic characteristics of high-performing year programs, increased time on task, high-quality early childhood care and schools exist in all schools will likely result in significant improvement in $10 $30 education programs, and targeted interventions for students falling behind will student outcomes. Additionally, the Legislature may want to consider further help close the achievement gap. More strategic management decisions at the $- increasing the at-risk index in the funding formula to support school district $20 district and school level to ensure the basic characteristics of high-performing and charter school efforts. schools exist in all schools will likely result in significant improvement in FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 $10 An increasing percentage of New Mexico student outcomes. Additionally, the Legislature may want to consider further K-3 Plus PreK Early Literacy Early Childhood Education. children grow up in poverty every year, signaling the need for a continuum of $- increasing the at-risk index in the funding formula to support school district high-quality, evidence-based early learning programs from birth to age 5 to and charter school efforts. Source: LFC Files
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 prepare children for school and then from ages 5 to 8 as they learn to read. Early experiences influence learning; quality early care and education An increasing percentage of New Mexico K-3 Plus PreK Early Literacy Early Childhood Education. programs result in both immediate and long-term benefits. Prioritized children grow up in poverty every year, signaling the need for a continuum of investments in early childhood programs are producing positive outcomes for
Source: LFC Files high-quality, evidence-based early learning programs from birth to age 5 to prepare children for school and then from ages 5 to 8 as they learn to read. Early experiences influence learning; quality early care and education programs result in both immediate and long-term benefits. Prioritized investments in early childhood programs are producing positive outcomes for 21 EducationPolicyPolicy Analysis: Analysis: Education Education PolicyPagePage Analysis: 3 3 Education Page 3
participantsparticipants, especially, especially where where high high-quality-quality instructional instructional time time is issignificantly significantly Beginning in FY16, kindergarteners participants, especially where high-quality instructional time is significantly BeginningBeginning in FY16,in FY16, kindergartener kindergartenerparticipantss sincreased increased, especially; however,; however,where highthe the- qualityneed need still instructional still outweighs outweighs time available isavailable significantly funding, funding, resulting resulting in in will be evaluated with the increased; however, the need still outweighs available funding, resulting in Beginningwillwill inbe FY16, be evaluated kindergartenerevaluated withswith thethe kindergarten assessment onincreased the limited; limitedhowever, im improvements theprovements need still in outweighsinstatewide statewide availablestudent student achievementfunding, achievement resulting data. data. in will kindergartenbekindergarten evaluated assessment assessmentwith the on onthe the limited improvements in statewide student achievement data. kindergartenfollowing assessmentsix developmentalon the limited im provements in statewide student achievement data. followingfollowing six six developmentaldevelopmental followingdomains: six physicaldevelopmental development, School Readiness. Children Children from from low low-income-income homes homes and and children children not not domains:domains: physical physical development, development, School School Readiness. Readiness. Children from low-income homes and children not domains:health, physicaland welldevelopment,-being; literacy; School Readiness. Children from low-income homes and children not health,health, and and well well-being;-being; literacy; literacy; proficient proficient in inEnglish English often often start start school school behind behind and and must must learn learn more more than than a a health,numeracy; and well -scientificbeing; literacy; conceptual proficient proficient in English in oftenEnglish start oftenschool start behind school and mustbehind learn and more must than learn a more than a numeracy;numeracy; scientific scientific conceptual conceptual year’s year’s worth worth of ofinformation information each each school school year year to tocatch catch up upto totheir their more more affluent affluent numeracy;understanding; scientific self,conceptual family, year’sand worthyear’s of worthinformation of information each school each year toschool catch yearup to totheir catch more up affluent to their more affluent understanding;understanding;understanding; self, self,family, self, family, andfamily, and and community; and approachesEnglish to -EnglishspeakingEnglish- speakingpeers.-speaking Many peers. peers.New ManyMexico Many New students New Mexico Mexico come students from students low come-income come from from low low-income-income community;community;community; and andapproaches and approaches approaches to to toEnglish -speaking peers. Many New Mexico students come from low-income learning. householdshouseholds or orare are English English-language-language learners learners or orboth both. . The The state state invests invests learning.learning.learning. householdshouseholds or are English or are-language English learners-language or bothlearners. The or stateboth .invests The state invests
heavily heavilyin heavilyearly incare inearly andearly carelearning care and andprograms learning learning intended programs programs to ensintended ureintended school to toens ensureure school school heavily in early care and learning programs intended to ensure school readinessreadiness and foundational and foundational early literacy early skills, literacy including skills, paraprofessional including paraprofessional readiness and foundational early literacy skills, including paraprofessional readiness and foundational early literacy skills, including paraprofessional home visitshomehome to visits familiesvisits to towithfamilies families young with children,with young young prekindergarten children, children, prekindergarten , prekindergartenspecial , special, special home visits to families with young children, prekindergarten, special education prekindergarten, PED’s keystone early literacy initiative New educationeducation prekindergarten, prekindergarten, PED’s PED’s keystone keystone early early literacy literacy initiative initiative New New education prekindergarten, PED’s keystone early literacy initiative New Mastery of reading by third grade is Mexico Reads to Lead, and K-3 Plus – an extended school year program. Mastery of reading by third grade is MexicoMexico Reads Reads to toLead, Lead, and and K -K3 -Plus3 Plus – an– anextended extended school school year year program program. . a criMasteryticalMastery milestone of readingof readingin a bystudent’s bythird third grade gradeHowever, is isMexico little is Reads known to about Lead, the and readiness K-3 Plusof kindergarten – an extended students; school the year program. a critical milestone in a student’s However,However, little little is isknown known about about the the readiness readiness of ofkindergarten kindergarten students; students; the the academica cria tical cricareer,tical milestone asmilestone students in inashift student’sa student’sstandards However, -based assessment little is administered known about in the the third readiness grade currently of kindergarten provides students; the academic career, as students shift fromacademic learningacademic to career, read career, to asreading asstudents students to theshift earliestshift standards standardssnapshot--based of-based student assessment assessment performance. administered administered in thein the third third grade grade currently currently provides provides from learning to read to reading to learn.from fromEarly learning learningreading to proficiencyreadto read to readingto is reading to tothe the earliest earliest snapshot snapshot of ofstudent student performance. performance. well-learn.established Early asreading a proficiencystrong is the earliest snapshot of student performance. learn.learn. Early Early reading reading proficiency proficiencyPED is develop is ed a kindergarten assessment (KOT) to gather information about predictorwell- establishedof high school graduationas a strong wellwell-established-established as as a a strongwhatstrong childrenPED developknow anded can a kindergartendo within the firstassessment weeks of (KOT) school. to Information gather information about and predictorfuturepredictor ofearning ofhigh high school potential.school graduation graduation PED PED develop developed eda kindergarten a kindergarten assessment assessment (KOT) (KOT) to togather gather information information about about Identifyingpredictor strugglinof high gschool readers graduation gathered from the KOT will give teachers a well-rounded view of the whole andand futurefuture earningearning potential.potential. what what children children know know and and can can do do within within the the first first weeks weeks of ofschool. school. Information Information beforeand the thirdfuture grade earning is critical topotential. what children know and can do within the first weeks of school. Information Identifying struggling readerschild, allowing teachers to better meet student’s individual needs. Access to academicIdentifyingIdentifying success. strugglin struggling g readersreaders gathered gathered from from the the KOT KOT will will give give teachers teachers a wella well--roundedrounded-rounded viewview view ofof ofthethe the wholewhole whole before the third grade is criticalassessment to results earlier in the year will allow elementary schools to design beforebefore the the third third grade grade is criticalis critical to tochild, child, allowing allowing teachers teachers to tobetter better meet meet student’s student’s individual individual needs. needs. Access Access to to academic success. targetedchild, educational allowing programs teachers that close to better the achievement meet student’s gap earlier. individual needs. Access to academicacademic success. success. assessment results earlier in the year will allow elementary schools to design assessment results earlier in the year will allow elementary schools to design assessment results earlier in the year will allow elementary schools to design targetedtargeted educational educational programs programs that that close close the the achievement achievement gap gap earlier. earlier. targeted educational programs that close the achievement gap earlier.
Elementary Schools Case Study
ElementaryElementary Schools Schools Case Case Study Study Elementary Schools Case Study
Statewide student performance remains disappointing and does not meet performance targets. LFC’s evaluation
Performance and Improvement Trends: A Case Study of Elementary Schools in New Mexico (fall 2014) examined
why some elementary school children fare worse than others, resulting in a large achievement gap. In FY14, the
majorityStatStat ofewide eleewidementary student student students performance performance in New Mexicoremain remain dsid disappointing snot disappointing make a full and year and do of esdo academic esnot not meet meet growth performance performance in reading targets.or targets.math , LFC’s LFC’s evaluation evaluation Statewide student performance remain s disappointing and does not meet performance targets. LFC’s evaluation thoughPerformance Performanceschools consistently and and Improvement Improvement implementing Trends: Trends: best A practices CaseA Case Study Studyachieved of Elementaryof Elementarybetter results. Schools Schools High in-performing Newin New Mexico Mexico schools (fall (fall 2014) 2014) examined examined Performance and Improvement Trends: A Case Study of Elementary Schools in New Mexico (fall 2014) examined demonstratedwhy some eight elementary common schoolcharacteristics children , such fare as worse high thanexpectations others , andresulting standards in a andlarge strategically achievement used gap. In FY14, the whywhy some some elementary elementary school school children children fare fare worse worse than than others others, resulting, resulting in ain largea large achievement achievement gap. gap. In FY14,In FY14, the the financial resources, including grants for prekindergarten and K-3 Plus. Student mobility and chronic absenteeism majoritymajority of ofele elementarymentary students students in Newin New Mexico Mexico did d notid not make make a fulla full year year of ofacademic academic growth growth in readingin reading or ormath math, , presentedmajority challenges of elementary for schools students statewide. in HighNew-performing Mexico d schoolsid not makeemployed a full effective year leadersof academic and a bettergrowth mix in of reading or math, thoughthough s choolsschools consistently consistently implementing implementing best best practices practices achieved achieved better better results. results. High High-performing-performing schools schools beginningthough and s veteranchools teachers.consistently Strug glingimplementing schools had besta disproportionate practices achieved number of teachersbetter results. with lower High teacher-performing schools licensingdemonstrateddemonstrated exam results, eight aeight predictor common common of effectiveness.characteristics characteristics Additionally,, such, such as turn ashigh -aroundhigh expectations expectations efforts of chronically and and standards standards low-performing and and strategically strategically used used demonstrated eight common characteristics , such as high expectations and standards and strategically used schoolsfinancial financialare inconsistent, resources resources costly,, including, including and results grants grants are for mixed. forprekindergarten prekindergarten To reduce theand achievementand K- 3K -Plus.3 Plus. gap,Student Student the reportmobility mobility recommends and and chronic chronic absenteeism absenteeism financial resources, including grants for prekindergarten and K-3 Plus. Student mobility and chronic absenteeism increasing presentedpresented formula challenges fundingchallenges for for at for-schools risk schools students statewide. statewide. and expanding High High-performing intervention-performing schools programs schools employed, employedsuch as effectiveprekindergarten effective leaders leaders and and and a better a better mix mix of of K-3 Plus.presented The statechallenges needs afor new schools approach statewide. to ensure High more-performing effective teachers schools and employed leaders areeffective teaching leaders at high and- a better mix of beginningbeginning and and veteran veteran teachers. teachers. Strug Strugglinggling schools schools had had a disproportionatea disproportionate number number of teachersof teachers with with lower lower teacher teacher povertybeginning schools. andAdditionally, veteran the teachers. report recommended Struggling schoolsthe Public had Education a disproportionate Department ensure, number through of teachers the budget with lower teacher licensinglicensing exam exam results, results, a predictora predictor of effectiveness.of effectiveness. Additionally, Additionally, turn turn-around-around efforts efforts of chronicallyof chronically low low-performing-performing reviewlicensing process, exam school results, districts a arepredictor taking ofaction effectiveness. to develop schoolAdditionally, leadership turn and-around using efforts available of chronicallyfunding in low-performing schoolsschools are are inconsistent, inconsistent, costly, costly, and and results results are are mixed. mixed. To Toreduce reduce the the achievement achievement gap, gap, the the report report recommends recommends effectiveschools ways are at underperforming inconsistent, costly,schools. and results are mixed. To reduce the achievement gap, the report recommends increasingincreasing formula formula funding funding for forat- riskat-risk students students and and expanding expanding intervention intervention programs programs, such, such as asprekindergarten prekindergarten and and increasing formula funding for at-risk students and expanding intervention programs, such as prekindergarten and K-3K -Plus.3 Plus. The The state state needs needs a newa new approach approach to toensure ensure more more effective effective teachers teachers and and leaders leaders are are te achingteaching at athigh high- - K-3 Plus. The state needsEvidence a new approach- Based Investmentsto ensure more. effectiveThe state teachers has invested and leaders heavily are in tetwoaching at high- povertypoverty schools. schools. Additionally, Additionally, the the report report recommended recommended the the Public Public Education Education Department Department ensure, ensure, through through the the budget budget poverty schools. Additionally,evidence the report -based recommended programs in public the Public schools Education – half-day Department prekindergarten ensure, funded through the budget reviewreview process, process, school school districts districts are are taking taking action action to todevelop develop school school leadership leadership and and using using available available funding funding in in review process, school districtsthrough arePED taking and the action Children, to develop Youth andschool Families leadership Department and usingand K -available3 Plus. funding in effectiveeffective ways ways at underperformingat underperforming schools. schools. effective ways at underperformingSince FY07, schools. the state has invested almost $210 million in these two programs
that target low-income students and communities and are having positive Evidence-Based Investments. T heT hestate state has has invested invested heavily heavily in intwo two EvidenceEvidence-Based-Based Investments Investments. .The state has invested heavily in two effects on student performance. Funding has also been appropriated for early evidenceevidence-based-based programs programs in inpublic public schools schools – half– half-day-day prekindergarten prekindergarten funded funded literacy evidenceintervention,-based incl udingprograms reading in publiccoaches, schools new instructional – half-day materials, prekindergarten funded throughthrough PED PED and and the the Children, Children, Youth Youth and and Families Families Department Department and and K- K3 -Plus.3 Plus. and otherthrough interventions PED andintended the Children,to improve Youth early literacy and Families skills. Results Department from and K-3 Plus.
SinceSince FY07, FY07, the the state state has has invested invested almost almost $210 $210 million million in inthese these two two programs programs Since FY07, the state has invested almost $210 million in these two programs thatthat target target low low-income-income students students and and communities communities and and are are having having positive positive that target low-income students and communities and are having positive effects on student performance. Funding has also been appropriated for early effectseffects on onstudent student performance. performance. Funding Funding has has also also been been appropriated appropriated for for early early
literacyliteracy intervention, intervention, incl includinguding reading reading coaches, coaches, new new instructional instructional materials, materials, literacy intervention, including reading coaches, new instructional materials, 22 andand other other interventions interventions intended intended to improveto improve early early literacy literacy skills. skills. Results Results from from PolicyPolicy Analysis:Analysis: EducationEducationPolicy Analysis: Education PolicyEducation Analysis: Education PagePage 44 Page 4 Page 4
thethe earlyearly literacyliteracy interventionintervention appropriationappropriationthe early literacy remainremain intervention mixedmixed andand appropriation concernsconcerns remain mixed and concerns the early literacy intervention appropriation remain mixed and concerns persist that distributions have not been targeted to low-performing schools or persist that2015 distributions K-3 Plus have not persistbeen targeted that distributions to low-performing have not schoolsbeen targeted or to low-performing2015 K -schools3 Plus or 20152015 KK--33 PlusPlus persist that distributions have not been targeted to low-performing schools or at-risk students. Any early childhood education strategy must be supported at-risk students.Enrollment Any and early childhoodat-risk education students. strategy Any early must childhood be supported education strategy mustEnrollment be supported and EnrollmentEnrollment andand at-risk students. Any early childhood education strategy must be supported Eligibility by strong curriculum, identify and target students who need services the most, Eligibility by strong curriculum,Eligibility identify andby target strong students curriculum, who need identify services and targetthe most, students who need services the most, Eligibility by strong curriculum, identify and target students who need services the most, 80 and provide teachers with more focused training and support. 80 and provide teachers with more focused training and support. 8080 andand provideprovide teachersteachers withwith moremore focusedfocused trainingtraining andand support.support. 70 70 Third-Grade Retention. Despite targeted early childhood investments, 7070 Despite targeted early childhood investments, ThirdThird--GGraderade Retention.Retention. DespiteDespiteThird targetedtargeted-Grade earlyearlyRetention. childhoodchildhood investments,investments, 60 statewide third-grade reading proficiency rates averaged 25 percent in FY15 – 60 statewide third-grade reading proficiency rates averaged 25 percent in FY15 – 6060 statewidestatewide thirdthird--gradegrade readingreading proficiencyproficiency ratesrates averagedaveraged 2525 percentpercent inin FY15FY15 –– 50 this is the number of students receiving a score of four or five on the new this50 is the number of students receivingthis is the a scorenumber of offour st udentsor five receivingon the new a score of four or five on the new standards-based assessment developed by the Partnership for Assessment of 5050 this is the number of students receiving a score of four or five on the new 40 standards-based assessment developedstandards by -thebased Partnership assessment for developed Assessment by of the Partnership for Assessment of Readiness for College and Careers (PARCC). PARCC scores cannot be standards-based assessment developed by the Partnership for Assessment of thousands 40 40 30 directly compared with the New Mexico Standards-Based Assessment 40 ReadinessReadiness forfor CollegeCollege andand CareersCareersReadiness (PARCC).(PARCC). for College PARCCPARCC and scoresscores Careers cannotcannot (PARCC). bebe PARCC scores cannot be
thousands 20 (NMSBA) scores from the previous year, but third-grade reading proficiency thousands 30 thousands directly compared with the New Mexico Standards-Based Assessment 3030 directlydirectly comparedcompared withwith thethe NewNew MexicoMexico StandardsStandards--BasedBased AssesAssesssmentment is consistently low. Even though many third-grade students are unable to read (NMS20 BA) scores from the previous(NMS yearBA), but scores third -fromgrade the reading previous proficiency year, but third-grade10 reading proficiency 2020 (NMSBA) scores from the previous year, but third-grade reading proficiency on grade level, they are promoted to the fourth grade. The executive supports isis consistentlyconsistently lowlow.. EvenEven thoughthough manyismany consistently thirdthird--gradegrade low studentsstudents. Even thoughareare unableunable many toto thirdreadread -grade students- are unable to read a mandatory retention policy for certain third-grade students unable to read on 10 10 Summer 2015 10 onon gradegrade level,level, theythey areare promotedpromoted on toto thegradethe fourthfourth level, grade.grade. they are TheThe promoted executiveexecutive to supportssupports the fourth grade. The executive supports grade level; however, research shows negative effects of both promoting - Funded Students -- a mandatory retention policy for certain third-grade students unable to read on unprepared third graders to fourth grade and holding students back to repeat a aa mandatorymandatorySummer retentionretention 2015 policypolicy forfor certaincertain thirdthird--gradegrade studentsstudents unableunable toto readread onon SummerSummer 20152015 grade level; however, research shows negative effects of both promoting grade without the appropriate interventions. Focus should be on early gradegrade levellevel;; hhowever,owever, rresearchesearch showsshows negativenegative effectseffects ofof bothboth promotingpromoting Number of Student Applicants Funded Students identification of struggling readers and providing immediate access to FundedFunded StudentsStudents unprepared third graders to fourthunprepared grade and holdingthird graders students to fourth back to grade repeat and a holding students back to repeat a unprepared third graders to fourth grade and holding students back to repeat a Total Eligible Students targeted, coordinated intervention strategies to prohibit the need for retention. grade without the appropriate interventionsgrade without. theFocus appropriate should be interventions on early . Focus should be on early Number of Student Applicants gradeNumber without of Student the Applicantsappropriate interventions. Focus should be on early Additionally, core reading programs should be reviewed to ensure they are Number of Student Applicants identification of struggling readers and providing immediateSource: access PED and LFC to Files identificationidentification ofof strustrugglingggling readersreaders andand providingproviding immediateimmediate accessaccess toto evidence-based and effectively serving students. Total Eligible Students targeted, coordinated intervention strategies to prohibit the need for retention. TotalTotal EligibleEligible StudentsStudents targeted,targeted, coordinatedcoordinated interventionintervention strategiesstrategies toto prohibitprohibit thethe needneed forfor retention.retention. Additionally, core reading programs should be reviewed to ensure they are Source: PED and LFC Files Additionally,Additionally,Source: corecore PED reading readingand LFC Files programsprograms shouldshould bebe reviewedreviewed toto ensureensure theythey areare Source: PED and LFC Files Performance, Programming & Cost evidence-based and effectively servingevidence students.-based and effectively serving students. evidence-based and effectively serving students. of Middle Schools
Performance, Programming & Cost Performance,Performance, ProgrammingProgramming && CostCost
of Middle Schools of Middle Schools of Middle Schools Student achievement in eighth grade has a greater impact on college and career readiness (CCR) than performance in
any other grade, including high school. The LFC’s Performance, Programming, and Cost of Middle Schools in New
Mexico (summer 2015) analyzed factors that affect student performance. Middle school students account for 22 percent
of the overall enrollment and 50 percent of students taking statewide assessments. Student performance in middle
school grades 6-8 has remained relatively flat for the past decade. Grade configurations vary widely, with the traditional Student achievement in eighth grade has a greater impact on college and career readiness (CCR) than performance in StudentStudent achievementachievement inin eightheighth gradegrade hashas aa greatergreater impactimpact onon collegecollege andand careercareer readinessreadiness (CCR)(CCR) thanthan performanceperformance inin 6-8 configuration at only 35 percent of school with these grades. Schools face increased challenges with high mobility any other grade, including high school. any Theother LFC’s grade, Performance, including high Programming, school. The andLFC’s Cost Performance, of Middle Schools Programming, in New and Cost of Middleand absenteeism Schools inin middleNew school grades, with both negatively impacting performance. The evaluation found middle any other grade, including high school. The LFC’s Performance, Programming, and Cost of Middle Schools in New Mexico (summer 2015) analyzed factors Mexico that (summeraffect student 2015) performance. analyzed factors Middle that school affect students student performance.account for 22 Middle percent school students schoolsaccount struggling for 22 percent to implement new common core state standards, lack data-driven and differentiated instruction, and Mexico (summer 2015) analyzed factors that affect student performance. Middle school students account for 22 percent of the overall enrollment and 50 percent of students taking statewide assessments. Student pinconsistenterformance im plementationin middle of interventions. Programming and curriculum, such as career and technical education and ofof thethe overalloverall enrollmentenrollment andand 5050 percentpercent ofof studentsstudents takingtaking statewidestatewide assessments.assessments. StudentStudent pperformanceerformance inin middlemiddle school grades 6-8 has remained relatively flat for the past decade. Grade configurations vary widely,after schoolwith the supports, traditional needed to improve engagement of students at this age are generally not offered or not at scale. schoolschool gradesgrades 66--88 hashas remainedremained relativelyrelatively flatflat forfor thethe pastpast decade.decade. GradeGrade configurationsconfigurations varyvary widely,widely, withwith thethe traditionaltraditional Contrary to best practice, college and career readiness starts too late in eighth grade. The report recommends the 6-8 configuration at only 35 percent of6- 8school configuration with these at onlygrades. 35 percent Schools of face school increased with these challenges grades. with Schools high mobilityface increased challenges with high mobility 6-8 configuration at only 35 percent of school with these grades. Schools face increased challenges with high mobility Legislature consider requiring sixth and seventh grade students complete a next step plan to expose and target a and absenteeism in middle school grades,and absenteeism with both negatively in middle impactingschool grades, performance. with both Thenegatively evaluation impacting found performance.middle The evaluation found middle and absenteeism in middle school grades, with both negatively impacting performance. The evaluation found middle student’s possible postsecondary interests and set the classes the student will complete in middle school in order to be schools struggling to implement new common core state standards, lack data-driven and differentiated instruction, and schoolsschools strugglingstruggling toto implementimplement newnew commoncommon corecore statestate standards,standards, lacklack datadata--drivendriven andand differentiateddifferentiated instruction,instruction, andand on track for high. PED should reinforce implementation of school site best practices through the budget process, inconsistent implementation of interventions. Programming and curriculum, such as career and technical education and inconsistentinconsistent imimplementationplementation ofof interventions.interventions. ProgrammingProgramming andand curriculum,curriculum, suchsuch asas careercareer andand technicaltechnical educationeducation andand technical assistance, and instructional audits, and targeted turnaround initiatives already in place. after school supports, needed to improve after engagementschool supports, of students needed atto thisimprove age areengagement generally ofnot students offered orat notthis atage scale. are generally not offered or not at scale. after school supports, needed to improve engagement of students at this age are generally not offered or not at scale. Contrary to best practice, college and Contrary career toreadiness best practice, starts collegtoo latee and in eighth career grade. readiness The startsreport toorecommends late in eighth the grade. The report recommends the Teacher and School Leader Quality. Research clearly demonstrates Contrary to best practice, college and career readiness starts too late in eighth grade. The report recommends the Legislature consider requiring sixth and seventh grade students complete a next step plan to expose and target a teacher quality impacts student learning. Research conducted by Dr. Eric LegislatureLegislature considerconsider requiringrequiring sixthsixth andand seventhseventh gradegrade studentsstudents completecomplete aa nextnext stepstep planplan toto exposeexpose andand targettarget aa student’s possible postsecondary interests and set the classes the student will complete in middle school in order to be Hanushek, Paul and Jean Hanna Senior Fellow at the Hoover Institution of student’sstudent’s possiblepossible postsecondarypostsecondary interestsinterests andand setset thethe classesclasses thethe studentstudent willwill completecomplete inin middlemiddle schoolschool inin orderorder toto bebe
on track for high. PED should reinforceon track implementation for high scho oofl. PEDschool should site bestreinforce practices implementation through the of schoolbudget site process, best practices through the budget process, Stanford University, shows, “The students of an ineffective teacher learn an on track for high. PED should reinforce implementation of school site best practices through the budget process, technical assistance, and instructional technical audits, and assistance, targeted andturnaround instructional initiatives audits, already and targeted in place. turnaround initiatives already in place. average of half a year’s worth of material in one school year, while the technical assistance, and instructional audits, and targeted turnaround initiatives already in place.
students of a very good teacher learn 1.5 year’s worth – a difference of a Teacher and School Leader Quality. Research clearly demonstrates TT eachereacher andand SchoolSchool LeaderLeader Quality.Quality. ResearchResearch clearlyclearly demonstratesdemonstrates year’s worth of learning in a single year.” Additionally, having a top-quartile
teacher quality impacts student learning. Research conducted by Dr. Eric teacherteacher qualityquality impactsimpacts studentstudent learning.learning. ResearchResearch conductedconducted byby Dr.Dr. EricEric teacher rather than a bottom-quartile teacher four years in a row could be
Hanushek, Paul and Jean Hanna HanushekSenior Fellow, Paul atand the Jean Hoover Hanna Institution Senior Fellowof at the Hoover Institution of Hanushek , Paul and Jean Hanna Senior Fellow at the Hoover Institution of
Stanford University, shows, “TheStanford students University of an ineffective, shows ,teacher “The students learn an of an ineffective teacher learn an Stanford University, shows, “The students of an ineffective teacher learn an average of half a year’s worth of material in one school year, while the averageaverage ofof halfhalf aa year’syear’s worthworth ofof materialmaterial inin oneone schoolschool year,year, whilewhile thethe
students of a very good teacher learn 1.5 year’s worth – a difference of a studentsstudents ofof aa veryvery goodgood teacherteacher learnlearn 1.51.5 year’syear’s worthworth –– aa differencedifference ofof aa
year’s worth of learning in a singleyear’s year.” worth Additionally of learning, having in a single a top year.”-quartile Additionally , having a top-quartile year’s worth of learning in a single year.” Additionally, having a top-quartile teacher rather than a bottom-quartile teacher four years in a row could be teacher rather than a bottom-quartile teacher four years in a row could be teacher rather than a bottom-quartile teacher four years in a row could be 23 EducationPolicy Analysis: Education PolicyPage Analysis: 5 Education Page 5 enough to close the achievement gap. While New Mexico has made Teacher Evaluation enough to close the achievement gap. While New Mexico has made TeacherRatings Evaluation FY14 and FY15 significant progress evaluating teacher performance, other policy levers significant progress evaluating teacher performance, other policy levers Ratings70% FY14 and FY15 should continue to be addressed, including teacher and school leader 70% should continuepreparation to beprograms, addressed, effective including recruitment teacher and and school retention leader strategies, teacher 60% preparation programs, effective recruitment and retention strategies, teacher 60% and school leader placement, and compensation to achieve the highest quality 50% and school leader placement, and compensation to achieve the highest quality 50% education workforce. 40% education workforce. 40% 30% 30% Annual AnnualTeacher TeacherEvaluation. Evaluation. To identify strugglingTo identify teachers struggling and teachers and 20% 20% recognizerecognize top performers, top performers, PED implemented PED implementeda new evaluation a newsystem evaluation in system in 10% 10% FY14 basedFY14 50 percentbased 50on studentpercent growth on student as measured growth through as measured assessments, through assessments, 25 percent on multiple observations, and 25 percent on other district-adopted 0% 0% 25 percent on multiple observations, and 25 percent on other district-adopted measures.measures The system. The classifies system teachers classifies as exemplary,teachers ashighly exemplary, effective, highly effective, effective, minimally effective, or ineffective. Results from the second year of
Effective effective, minimally effective, or ineffective. Results from the second year of Ineffective Exemplary
Effective the new teacher evaluation system show almost 83 percent of teachers Ineffective evaluatedExemplary the received new a teacherrating of effectiveevaluation or higher,system an showincrease almost of 4 percentage 83 percent of teachers Highly Effective evaluated received a rating of effective or higher, an increase of 4 percentage Minimally Effective Minimally Highly Effective points from FY14 results.
FY14 FY15 Effective Minimally points from FY14 results.
FY14 Source:FY15 PED While most stakeholders agree the old evaluation system was ineffective because it lacked detail, the new system remains controversial. Critics note Source: PED While most stakeholders agree the old evaluation system was ineffective significant technical glitches and data inaccuracies that lead to inaccurate New Mexico’s college of education because it lacked detail, the new system remains controversial. Critics note (COE ) deans and directors have results; however,significant many technical recognize glitchesthe current and evaluation data inaccuracies process has promise, that lead to inaccurate New Mexico’s college of education been working with PED to develop in particularresults; noting however, the feedback many educators recognize are the rec eivingcurrent from evaluation the required process has promise, a performance(COE) deans report forand each directors COE observations. have PED worked to address many stakeholder concerns about that willbeen track working the performance with PED toof developspecial educationin particular teachers, noting new theteachers, feedback and instructors educators who are teach receiving subjects from the required graduates in their first three years a performance report for eachor COE grades observations.that are not tested PED. A major worked point to of contentionaddress many continues stakeholder to be the concerns about of teaching.that will COEs track are the concerned performance of use and weightspecial of education student test teachers, scores. Concernsnew teachers, exist that and decreases instructors in test who teach subjects that graduatesexisting in their educatorfirst three years competencies – those that of teaching. COEs are concernedscores in orFY15 grades from that administration are not tested of. theA majornew PARCC point of assessment contention will continues to be the programs are required to ensure that existing educatornegatively use affect and FY16 weight evaluations. of student test scores. Concerns exist that decreases in test their graduates know on graduation – arecompetencies not aligned – to thosethe that scores in FY15 from administration of the new PARCC assessment will Teacher and school competenciesprograms included are required in the new to ensureCollege negativelyof Education affect Preparation FY16 evaluations. Programs. leader preparation programs are important contributors to the quality of evaluationtheir graduatessystem .know COEson graduation requested– arePED notupdate aligned existing toclassroom the instruction and school leadership. Recent studies raise concerns educatorcompetencies competencies included to eliminate in theabout new college College of education of Education (COE) programs, Preparation including lowPrograms. entrance and Teacherexit and school this inconsistency.evaluation system. standards,COEs leader inadequate preparat focusion on earlyprograms literacy are and important other program contributors weaknesses, to the quality of
requested PED update existingand limited classroom quality student instruction teaching and opportunities. school leadership. While each Recent New Mexico studies raise concerns educator competencies to eliminateCOE is ableabout to setcollege entrance of educationrequirements (COE), PED hasprograms, adopted includinga more rigorous low entrance and exit this2008 inconsistency. New Teacher Cohort Retention beginningstandards, teacher assessment inadequate – the focus NES onTeacher early Assessment literacy and. Additionally, other program weaknesses, PED’s NMPrep and NMLead initiatives focus on creating new, high-quality 100 and limited quality student teaching opportunities. While each New Mexico teacher andCOE school is able leader to setpreparation entrance programs. requirements In addition, PED hasto statewideadopted a more rigorous 80 2008 New Teacher initiatives, individual COEs are reforming their programs with an eye toward Cohort Retention producingbeginning stronger teacher teacher candidates. assessment By more– the closely NES overseeingTeacher Assessment quality on . Additionally, 60 PED’s NMPrep and NMLead initiatives focus on creating new, high-quality 100 the front end, PED can reduce the burden of dealing with ineffective
percent 40 educatorsteacher after they and are alreadyschool inleader the classroom. preparation programs. In addition to statewide 80 20 initiatives, individual COEs are reforming their programs with an eye toward Educatorproducing Recruitment stronger and teacher Retention. candidates. School By districts more closely and charter overseeing quality on 0 60 schools continuethe front to faceend, challenges PED can filling reduce vacant the teaching burden positions. of dealing As of with ineffective SY08 SY09 SY10 SY11 SY12 SY13 percent 40 October 2015,educators 60 school after districts they are reported already 300 in teacherthe classroom. vacancies, down from Source: LFC Analysis 600 several months prior. Difficulty exists generally finding teachers to fill 20 vacancies and, in some instances, finding appropriately trained teachers to fill Educator Recruitment and Retention. School districts and charter 0 vacancies. Teachers are being placed in subjects and grades they are not qualified schoolsto teach; continue however tothe face highly challenges qualified fillingteacher vacant waiver teachingPED just positions. As of
SY08 SY09 SY10 SY11 SY12 receivedSY13 requiresOctober these 2015, teachers 60 school to be provideddistricts professionalreported 300 development teacher vacancies, and down from Source: LFC Analysis 600 several months prior. Difficulty exists generally finding teachers to fill vacancies and, in some instances, finding appropriately trained teachers to fill vacancies. Teachers are being placed in subjects and grades they are not qualified to teach; however the highly qualified teacher waiver PED just
24 received requires these teachers to be provided professional development and Policy Analysis: Education Policy Analysis: Education PageEducation 6 Page 6 maintain an evaluation rating of effective or higher to continue to teach in these positions. PED reports more teaching licenses have been issued than in
maintain an evaluation rating of effective or higher to continue to teach in The General Appropriations Act of previous years, seemingly incongruous with teacher shortages reported by
these positions. PED reports more teaching licenses have been issued than in 2015 increased the minimum salary school districts. However, it is unclear if PED is licensing more individuals
previous years, seemingly incongruous with teacher shortages reported by for a level one teacher from $30 than previous years or is issuing multiple licenses to an individual. The General Appropriations Act of thousand in statute to $34 school districts. However, it is unclear if PED is licensing more individuals Compounding reported teacher shortages, higher beginning salaries are being 2015 increased the minimum salary thousand for FY16. Without offered in some neighboring states; however, pay comparisons among states is for a level one teacher from $30 than previous years or is issuing multiple licenses to an individual. additional action, the level one difficult. thousand in statute to $34 Compounding reported teacher shortages, higher beginning salaries are being minimum salary will return to $30 thousand in FY17. thousand for FY16. Without offered in some neighboring states; however, pay comparisons among states is additional action, the level one Compensation. Current policy discussions have focused on the need to minimum salary will return to $30 difficult. increase pay to attract and retain the best teachers while also ensuring large Comparing educator salaries within investments in the three-tiered licensure system are improving student thousand in FY17. the state and across states is Compensation. Current policy discussions have focused on the need to difficult because of differences in performance. Starting salaries are generally too low to be competitive with increase pay to attract and retain the best teachers while also ensuring large pay structures. Contracts differ neighboring states. (Though the state’s benefits package is relatively rich, Comparing educator salaries within investments in the three-tiered licensure system are improving student from location to location – different benefits are not portable and do not provide immediate financial benefits.) In the state and across states is number of instructional days, non- addition, the training and experience index in the public education funding performance. Starting salaries are generally too low to be competitive with instructional days, hours per day, difficult because of differences in formula is not aligned to the three-tiered licensure system, movement through pay structures. Contracts differ neighboring states. (Though the state’s benefits package is relatively rich, etc. Also, pay reported may or may not include bonuses, stipends, the licensure system is too loosely linked to improved student outcomes, and from location to location – different benefits are not portable and do not provide immediate financial benefits.) In supplemental pay, retirement both beginning and veteran teachers are prematurely leaving the profession. number of instructional days, non- addition, the training and experience index in the public education funding benefits, or fringe benefits. instructional days, hours per day, Additionally, comparisons do not Except for modest increases to the statutory salary of a beginning teacher over etc. Also, pay reported may or may formula is not aligned to the three-tiered licensure system, movement through take into consideration cost-of-living not include bonuses, stipends, the licensure system is too loosely linked to improved student outcomes, and differences throughout the state. the past two years, minimum salaries established in statute have not been supplemental pay, retirement both beginning and veteran teachers are prematurely leaving the profession. Several nationally known sources changed since implementation more than a decade ago. Each school district benefits, or fringe benefits. compare salaries but do not control and charter school establishes their own salary schedule, resulting in variation Additionally, comparisons do not for variables among locations. across the state. PED reports the average returning teacher salary budgeted in Except for modest increases to the statutory salary of a beginning teacher over take into consideration cost-of-living FY16 was $47,552, an increase of 1.4 percent over the average returning the past two years, minimum salaries established in statute have not been differences throughout the state. teacher salary paid in FY15. The National Education Association (NEA) Several nationally known sources changed since implementation more than a decade ago. Each school district Regulations enacted by PED indicates New Mexico ranked 43rd nationally in FY14 in terms of the average compare salaries but do not control and charter school establishes their own salary schedule, resulting in variation require each teacher wishing to salary of public school teachers (including first-year teachers), an increase for variables among locations. across the state. PED reports the average returning teacher salary budgeted in advance their license to submit a from 47th in FY13. During the initial years of implementation of the three- professional development dossier FY16 was $47,552, an increase of 1.4 percent over the average returning tiered licensure system, the change in average teacher salary in New Mexico (PDD); PED is prohibited from waiving the PDD requirement. ranked relatively high when compared with other states nationally; however, teacher salary paid in FY15. The National Education Association (NEA) During FY15, however, PED the state’s ranking has dropped over the past several years. Regulations enacted by PED indicates New Mexico ranked 43rd nationally in FY14 in terms of the average allowed teachers to bypass the require each teacher wishing to salary of public school teachers (including first-year teachers), an increase PDD if they achieved an evaluation In addition to funding included in the General Appropriations Act of 2015 to advance their license to submit a from 47th in FY13. During the initial years of implementation of the three- rating of effective or higher, earned professional development dossier a minimum of 50 percent of the increase minimum salaries of level one teachers, $9 million was appropriated (PDD); PED is prohibited from tiered licensure system, the change in average teacher salary in New Mexico points available to them in the to PED and has been earmarked to continue the incentive pay pilot in FY16. waiving the PDD requirement. ranked relatively high when compared with other states nationally; however, student achievement portion, and Criticism surrounding pay increases based on education and experience, During FY15, however, PED the state’s ranking has dropped over the past several years. met all other statutory factors LFC research suggests are not closely tied to teacher quality, led PED requirements. It is unclear what to implement an incentive pay pilot tied to student achievement. School allowed teachers to bypass the authority PED is relying on to allow PDD if they achieved an evaluation In addition to funding included in the General Appropriations Act of 2015 to teachers to bypass the PDD districts and charter schools receiving pilot funding during FY15 were able to rating of effective or higher, earned increase minimum salaries of level one teachers, $9 million was appropriated process. PED is encouraged to design unique incentive pay plans, though each recipient was required to use a minimum of 50 percent of the review regulations and make the new evaluation system to identify individuals for financial awards. points available to them in the to PED and has been earmarked to continue the incentive pay pilot in FY16. necessary changes through the Incentive pay structures are controversial and have mixed results, depending regulatory process. student achievement portion, and Criticism surrounding pay increases based on education and experience, on implementation. In 2014, PED indicated the pilot would provide local data met all other statutory factors LFC research suggests are not closely tied to teacher quality, led PED that would allow policymakers to evaluate the success of incentive pay requirements. It is unclear what to implement an incentive pay pilot tied to student achievement. School structures. To date, PED has not made pilot data available for analysis and it authority PED is relying on to allow teachers to bypass the PDD districts and charter schools receiving pilot funding during FY15 were able to is unclear how student performance is being impacted by the pilot program. process. PED is encouraged to design unique incentive pay plans, though each recipient was required to use However, it does not appear that performance pay is being used to influence the state’s best teachers to work with the state’s most at-risk students. review regulations and make the new evaluation system to identify individuals for financial awards. necessary changes through the Incentive pay structures are controversial and have mixed results, depending regulatory process. on implementation. In 2014, PED indicated the pilot would provide local data that would allow policymakers to evaluate the success of incentive pay structures. To date, PED has not made pilot data available for analysis and it
is unclear how student performance is being impacted by the pilot program. However, it does not appear that performance pay is being used to influence the state’s best teachers to work with the state’s most at-risk students.
25 PolicyEducationPolicyPolicyPolicy Analysis: Analysis: Analysis:Analysis: Education Education EducationEducation PagePagePagePage 7 7 77
AsAs the the Legislature Legislature addresses addresses educator educator pay, pay, it it is is important important to to note note increased increased As Asthe theLegislature Legislature addresses addresses educator educator pay, pay, it isit importantis important to noteto note increased increased
ppayay alonealone doesdoes notnot necessnecessarilyarily leadlead toto improvedimproved studentstudent outcomes.outcomes. TheThe payp ayalone alone does does not notnecess necessarilyarily lead lead to improvedto improved student student outcomes. outcomes. The The
LegislatLegislatLegislatLegislatureure ureureshould should shouldshould continue continue continuecontinue to linkto toto link linklink pay pay pay payto effectiveto toto effective effectiveeffective practices, practices, practices,practices, including including includingincluding annual annual annualannual
evaluations and licensure advancement that will improve student outcomes. evaluationsevaluationsevaluations and and andlicensure licensurelicensure advancement advancementadvancement that thatthat will willwill improve improveimprove student studentstudent outcomes. outcomes.outcomes.
AccountabilityAccountabilityAccountability.. . As AsAs expected expectedexpected by byby PED PEDPED, ,, math mathmath and andand English EnglishEnglish proficiency proficiencyproficiency scores scoresscores Accountability. As expected by PED, math and English proficiency scores on the new PARCC assessment in FY15 were significantly lower than FY14 on ontheon thethenew newnew PARCC PARCCPARCC assessment assessmentassessment in FY15 inin FY15FY15 were werewere significantly significantlysignificantly lower lowerlower than thanthan FY14 FY14FY14
results. For FY15, proficiency results are less than half the reported results.results.results. For For ForFY15, FY15,FY15, proficiency proficiencyproficiency results resultsresults are areareless lessless than thanthan half halfhalf the thethereported reportedreported
proficiencyproficiencyproficiency ratesratesrates ofofof FY14FY14FY14 forforfor fourthfourthfourth andandand eightheightheighth gradegradegrade mathmathmath andandand English,English,English, proficiency rates of FY14 for fourth and eighth grade math and English,
demondemondemonstratingstratingstrating room roomroom for forfor improvement. improvement.improvement. Fiscal FiscalFiscal year yearyear 2015 20152015 r resultsresultsesults e eestablishstablishstablish new newnew demonstrating room for improvement. Fiscal year 2015 results establish new baseline data for comparisons in future years. New Mexico students are baselinebaselinebaseline data datadata for forforcomparisons comparisonscomparisons in futureinin futurefuture years. years.years. New NewNew Mexico MexicoMexico students studentsstudents are areare
benchmarkedbenchmarked against against a a number number of of other other states states that that administered administered the the PARCC PARCC benchmarkedbenchmarked against against a number a number of otherof other states states that that administered administered the thePARCC PARCC
assessment.assessment. AsAs ofof NovemberNovember 2015,2015, itit waswas unclearunclear howhow NewNew MexicoMexico assessment.assessment. As Asof ofNovember November 2015, 2015, it wasit was unclear unclear how how New New Mexico Mexico
measuredmeasuredmeasured up upup against againstagainst other otherother PARCC PARCCPARCC states; states;states; e eacheachach of ofof these thesethese state statestatess s has hashas its itsits own ownown measured up against other PARCC states; each of these states has its own release date for test results. releasereleaserelease date datedate for fortestfor test testresults. results.results.
PARCCPARCCPARCC Assessment AssessmentAssessment PARCC Assessment
PARCCPARCC assessments assessments replaced replaced the the New New Mexico Mexico Standards Standards-Based-Based Assessment Assessment (NMSBA) (NMSBA) in in math math and and English English in in FY15. FY15. PARCCPARCC assessments assessments replaced replaced the theNew New Mexico Mexico Standards Standards-Based-Based Assessment Assessment (NMSBA) (NMSBA) in math in math and and English English in FY15. in FY15. PARCCPARCC is is a a more more challenging challenging battery battery of of assessments assessments designed designed to to test test more more complex complex skills, skills, like like critical critical thinking, thinking, PARCCPARCC is ais more a more challenging challenging battery battery of assessmentsof assessments designed designed to testtoth testmore more complex complex skills, skills, like likecritical critical thinking, thinking, th thth persuasivepersuasivepersuasive writing, writing,writing, and andand problem problemproblem- -solv-solvsolv ing.ing.ing. Students StudentsStudents in inin third thirdthird through throughthrough 11 1111 grade gradegrade took tooktook the thethe PARCC PARCCPARCC assessments assessmentsassessments in inin FY15. FY15.FY15. persuasive writing, and problem-solving. Students in third through 11 grade took the PARCC assessments in FY15. Additionally,Additionally, PARCC PARCC is is aligned aligned to to state state content content standards standards adopted adopted in in 2010 2010 while while the the NMSBA NMSBA was was aligned aligned to to content content Additionally,Additionally, PARCC PARCC is aligned is aligned to state to state content content standards standards adopted adopted in 2010 in 2010 while while the theNMSBA NMSBA was was aligned aligned to content to content standards adopted prior to 2010, making results on the two tests difficult to compare. While FY15 results were delayed standardsstandardsstandards adopted adoptedadopted prior priorprior to 2010, toto 2010,2010, making makingmaking results resultsresults on the onon thetwothe twotwotest teststest difficultss difficultdifficult to compare. toto compare.compare. While WhileWhile FY15 FY15FY15 results resultsresults were werewere delayed delayeddelayed well into FY16 as the consortium of participating states worked to establish proficiency cut scores, results in wellwell wellinto into into FY16 FY16FY16 as astheas thetheconsortium consortiumconsortium of participatingofof participatingparticipating states statesstates worked workedworked to establishtoto establishestablish proficiency proficiencyproficiency cut cutcutscores, scores,scores, results resultsresults in inin
subsequentsubsequentsubsequent years yearsyears should shouldshould be bebe released releasedreleased around aroundaround June JuneJune or oror July JulyJuly annually. annually.annually. PARCC PARCCPARCC has hashas five fivefive perf perfperformanceormanceormance levels levelslevels with withwith one oneone subsequent years should be released around June or July annually. PARCC has five performance levels with one representingrepresenting aa studentstudent withwith the the greatest greatest needneed andand fivefive representingrepresenting aa studentstudent whowho demonstratesdemonstrates advancedadvanced representingrepresenting a studenta student with with the thegreatest greatest need need and and five fiverepresenting representing a studenta student who who demonstrates demonstrates advanced advanced performance. PARCC considers scores of four and five to be proficient and demonstrate a student is “on track to be performance.performance.performance. PARCC PARCCPARCC considers considersconsiders scores scoresscores of four ofof four fourand and andfive fivefiveto be toto proficientbebe proficientproficient and and anddemonstrate demonstratedemonstrate a student aa studentstudent is “on isis “ontrack“on tracktrack to be toto bebe college - and career-ready.” PARCC will be used in New Mexico as the “state graduation examination”; PED has collegecollegecollege- and-- and andcareer careercareer-ready.”--ready.”ready.” PARCC PARCCPARCC will willwillbe usedbebe usedused in New inin NewNew Mexico MexicoMexico as theasas thethe“state “state“state graduation graduationgraduation examination”; examination”;examination”; PED PEDPED has has has
establishedestablishedestablished that thatthat a aa score scorescore of ofof three threethree or oror higher higherhigher on onon PARCC PARCCPARCC will willwill satisfy satisfysatisfy the thethe “state “state“state graduation graduationgraduation examination” examination”examination” for forfor FY16 FY16FY16 and andand FY17, FY17,FY17, established that a score of three or higher on PARCC will satisfy the “state graduation examination” for FY16 and FY17, despitedespite the the fact fact that that a a score score of of three three is is not not considered considered proficient. proficient. In In FY18, FY18, a a student student will will have have to to score score a a four four or or five five on on despitedespite the thefact fact that that a score a score of three of three is not is notconsidered considered proficient. proficient. In FY18, In FY18, a student a student will willhave have to score to score a four a four or five or fiveon on PARCC to satisfy the “state graduation examination” or prove competency through approved alternative means. PARCCPARCCPARCC to satisfy toto satisfysatisfy the the“statethe “state“state graduation graduationgraduation examination” examination”examination” or prove oror proveprove competency competencycompetency through throughthrough approved approvedapproved alternative alternativealternative means. means.means.
SchoolSchoolSchoolSchool Grades. Grades. Grades.Grades. The The TheThe state’s state’s state’sstate’s school school schoolschool grading grading gradinggrading formula formula formulaformula is usedis isis used usedused for for forforboth both bothboth state state statestate Minimum and federal accountability purposes to gauge how schools are performing Minimum MinimumMinimum andand andfederal federalfederal accountability accountabilityaccountability purposes purposespurposes to gaugetoto gaugegauge how howhow schools schoolsschools are areareperforming performingperforming Salary for SalarySalarySalary for forfor annually.annually.annually.annually. The The TheThe system system systemsystem gives gives givesgives schools schools schoolsschools a letter a aa letter letterletter grade grade gradegrade between between betweenbetween A A andAA and and andF basedF FF based basedbased License Level FY16FY16FY16 LicenseLicenseLicense Level LevelLevel FY16 largellargellargellargely onyyy ononstudenton studentstudentstudent performance performanceperformanceperformance on ononstandardson standardsstandardsstandards-based--based-basedbased and andand andother otherotherother assessments assessmentsassessmentsassessments, , ,, Teachers TeachersTeachersTeachers withwithwithwith small small smallsmall values values valuesvalues awarded awarded awardedawarded for for forstudentfor student studentstudent surveys, surveys, surveys,surveys, attendance, attendance, attendance,attendance, student student studentstudent and and and andparen paren parenparent tt t Level One $34,000 engagement,engagement, and and other other factors. factors. For For FY15 FY15, ,because because of of administration administration of of the the LevelLevelLevel One One One$34,000 $34,000$34,000 engagement,engagement, and and other other factors. factors. For For FY15 FY15, because, because of administrationof administration of theof the new PARCC assessment, release of school grades has been delayed well into Level Two $40,000 newnewnew PARCC PARCCPARCC assessment, assessment,assessment, release releaserelease of school ofof schoolschool grades gradesgrades has has hasbeen beenbeen delayed delayeddelayed well wellwell into intointo LevelLevelLevel Two Two Two$40,000 $40,000$40,000 FY16.FY16.FY16.FY16. It is It ItIt unclear is isis unclear unclearunclear how how howhow the the thethedeclines declines declinesdeclines in in PARCC inin PARCC PARCCPARCC proficiency proficiency proficiencyproficiency scores scores scoresscores will will willwill affect affect affectaffect LevelLevel Three Three A A $50,000$50,000 LevelLevel Three Three A A$50,000 $50,000 FY15FY15FY15FY15 school school schoolschool grades. grades. grades.grades. Administrators AdministratorsAdministratorsAdministrators ES Princ. $60,000 Many high school students fail to ES Princ.ESES Princ.Princ. $60,000 $60,000$60,000 CoCoCollegeCollegellegellege and andandand Career CareerCareerCareer Readiness. Readiness.Readiness.Readiness. Many ManyMany high highhigh school schoolschool students studentsstudents fail fail failto toto Ast. ES Princ. $55,000 graduate,graduate,graduate, and andand a aa high highhigh percentage percentagepercentage of ofof those thosethose who whowho do dodo graduate graduategraduate are areare not notnot prepared preparedprepared to toto Ast. Ast.ESAst. Princ. ESES Princ.Princ. $55,000 $55,000$55,000 graduate, and a high percentage of those who do graduate are not prepared to enterenterenterenter college college collegecollege or or the oror the theworkforce.the workforce. workforce.workforce. High High HighHigh school school schoolschool exit exit exitexit expectations expectations expectationsexpectations must must mustmust be be aligned bebe aligned alignedaligned MSMSMS Princ. Princ.Princ. $70,000$70,000$70,000 MS Princ. $70,000 withwithwithwith the the thethepostsecondary postsecondarypostsecondarypostsecondary institution institutioninstitutioninstitution en tranceenenentrancetrancetrance expectations expectationsexpectationsexpectations and andand andemployers employersemployersemployers’ ’’ ’ Ast. MS Princ. $57,500 Ast. Ast.MSAst. Princ.MSMS Princ.Princ. $57,500 $57,500$57,500 expectationsexpectationsexpectationsexpectations. . .History. HistoryHistoryHistory has hashas hasshown shownshownshown that thatthatthat aligning aligningaligningaligning high highhighhigh school schoolschoolschool curricula curriculacurriculacurricula to tototo HS Princ. $96,000 HS Princ.HSHS Princ.Princ. $96,000 $96,000$96,000 standardsstandardsstandardsstandards does does doesdoes not not notnotalways always alwaysalways ensure ensure ensureensure high high highhigh school school schoolschool exit exit exitexit standards standards standardsstandards are are arearealigned aligned alignedaligned to to toto Ast. HS Princ. $62,500 postpost-graduation-graduation expectations expectations resulting resulting in in the the need need for for remediation remediation. . Ast. Ast.HSAst. Princ. HSHS Princ.Princ. $62,500 $62,500$62,500 postpost-graduation-graduation expectations expectations resulting resulting in the in theneed need for forremediation remediation. . Source: LFC Files Source:Source:Source: LFC LFCFilesLFC Files Files
GraduationGraduation Rate.Rate. The TheThe four fourfour--year-yearyear cohortcohortcohort highhighhigh schoolschoolschool graduationgraduationgraduation rate raterate forforfor GraduationGraduation Rate. Rate. The four-year cohort high school graduation rate for
201420142014 declined declineddeclined 1 11 percentage percentagepercentage point pointpoint to toto 69.3 69.369.3 percent. percent.percent. This ThisThis means meansmeans three threethree in inin 10 1010 2014 declined 1 percentage point to 69.3 percent. This means three in 10 students who start high school do not graduate in four years. All subgroups, studentsstudentsstudents who whowho start startstart high highhigh school schoolschool do donotdo notnotgraduate graduategraduate in four inin fourfour years. years.years. All AllAllsubgroups, subgroups,subgroups,
26 PolicyPolicy Analysis:Analysis: EducationEducationPolicy Analysis: Education Education PagePage 88 Page 8
except migrant students, showed declines; African American students showed exceptexcept mmigrantigrant students,students, showedshowed ddeeclines;clines; AfricanAfrican AmericanAmerican studentsstudents showedshowed
the largest decline at 4.4 percentagethe largest points decline followed at 4.4 by percentage students withpoints followed by students with the largest decline at 4.4 percentage points followed by students with
disabilities at 2.7 percentage pointsdisabilities and Native at 2.7 Americans percentage at points2.6 percentage and Native Americans at 2.6 percentage disabilities at 2.7 percentage points and Native Americans at 2.6 percentage points. Students must demonstrate subject matter competency in five subject points.points. StudentsStudents mustmust demonstratedemonstrate subjectsubject mattermatter competencycompetency inin fifiveve subjectsubject
areas on the NMSBA and PARCC assessments or through an alternative areasareas onon thethe NMSBANMSBA andand PARCCPARCC assessmentsassessments oror throughthrough anan alternativealternative
portfolio to graduate. portfolio to graduate. portfolio to graduate.
Dropping out of high school Droppingis related out to ofmultiple high schoolfactors, is includingrelated to multiple factors, including Dropping out of high school is related to multiple factors, including
individual, family, school, and communityindividual, family,influences. school Schools, and community must ensure influences. Schools must ensure individual, family, school, and community influences. Schools must ensure
early identification of studentsearly at riskidentification of dropping of outstudents and atimplement risk of dropping out and implement early identification of students at risk of dropping out and implement effective, evidence-based practices and programs to keep students engaged effective,effective, evidenceevidence--basedbased practicespractices andand programsprograms toto keepkeep studentsstudents engagedengaged
and on track to graduate. PED is developing an early warning system to andand onon tracktrack toto graduate.graduate. PEDPED isis developingdeveloping anan earlyearly warningwarning systemsystem toto
collect student data and provide informationcollect student to schoolsdata and to provide implement information practices t o schools to implement practices collect student data and provide information to schools to implement practices that address student risk factors to improve the likelihood of success. that address student risk factors to improve the likelihood of success. that address student risk factors to improve the likelihood of success.
Chronic Absenteeism Chronic Absenteeism Chronic Absenteeism
A growing body of research demonstrates chronic absence from school – for any reason, excused or unexcused – is a AA growigrowingng bodbodyy ofof researchresearch demonstratesdemonstrates chronicchronic absenceabsence fromfrom schoolschool –– forfor anyany reason,reason, excusedexcused oror unexcusedunexcused –– isis aa primary cause of low academic achievement and a powerful predictor of which students will eventually drop out of primaryprimary causecause ofof lowlow academicacademic achievement achievement andand aa powerfulpowerful predictorpredictor ofof whichwhich studentsstudents willwill eventuallyeventually dropdrop outout ofof school. Chronic absenteeism is particularly school. Chronicprevalent absenteeism among low -isincome particularly students, prevalent students among of color, low-income students students, with students of color, students with school. Chronic absenteeism is particularly prevalent among low-income students, students of color, students with disabilities, students who are highly disabilities, mobile, and students youth whoinvolved are highlyin the mobile,juvenile andjustice youth system. involved Several in the federaljuvenile justice system. Several federal disabilities, students who are highly mobile, and youth involved in the juvenile justice system. Several federal agencies released a joint report, Every Student, Every Day: A Community Toolkit To Address and Eliminate Chronic agenciesagencies releasedreleased aa jointjoint report,report, EveryEvery Student,Student, EveryEvery Day:Day: AA CommunityCommunity ToolkitToolkit ToTo AddressAddress andand EliminateEliminate ChronicChronic Absenteeism, which recommends prioritizing development of early warning prevention and intervention systems, Absenteeism,Absenteeism, whichwhich recommendsrecommends prioritizingprioritizing developmentdevelopment ofof earlyearly warningwarning preventionprevention andand interventionintervention systems,systems,
developing a positive message for developingyouth and familiesa positive as messagewell as implementingfor youth and supportive families as engagement well as implementing strategies, supportive engagement strategies, developing a positive message for youth and families as well as implementing supportive engagement strategies, launching local initiatives to raise launchingpublic awareness local initiatives about theto raisecauses public and awarenesseffects of chronaboutic theabsenteeism, causes and and effects of chronic absenteeism, and launching local initiatives to raise public awareness about the causes and effects of chronic absenteeism, and regularly communicating that chronic absenteeism is a problem that affects the community, not just chronically absent regularlyregularly communicatingcommunicating thatthat chronicchronic absenteeismabsenteeism isis aa problemproblem thatthat affectsaffects thethe community,community, notnot justjust chronicallychronically absentabsent students and their families. studentsstudents andand theirtheir families.families.
College Remediation. FortyCollege-eight percent Remediation. of New Mexico Forty -higheight sc percenthool of New Mexico high school College Remediation. Forty-eight percent of New Mexico high school
students graduating in 2012 andstudents enrolling graduating in New in Mexico2012 andcolleges enrolling the in New Mexico colleges the students graduating in 2012 and enrolling in New Mexico colleges the following fall required remedial courses. This is a decrease from the prior followingfollowing fallfall requiredrequired remedialremedial courses.courses. ThisThis isis aa decreasedecrease fromfrom thethe priorprior
year’s rate of 52 percent; however, rates still remain higher than FY11. year’syear’s raterate ofof 5252 percent;percent; however,however, ratesrates stillstill remainremain higherhigher thanthan FY11.FY11.
Research indicates students whoResearch require remedial indicates courses students in who college require are lessremedial courses in college are less Research indicates students who require remedial courses in college are less
likely to complete a degree or certificatelikely to program. complete a degree or certificate program. likely to complete a degree or certificate program.
Implementation of the new commonImplementation core state standards of the new should common help coreidentify state standards should help identify Implementation of the new common core state standards should help identify
students who are not college- or careerstudents-ready who early are not in theircollege high- or school career career;-ready early in their high school career; students who are not college- or career-ready early in their high school career; however, basic high school programming for math and English must be however,however, basicbasic highhigh schoolschool proprogramminggramming forfor mathmath andand EnglishEnglish mustmust bebe
improved, and high school and college curricula should be better aligned. improved,improved, andand highhigh schoolschool andand collegecollege curriculacurricula shouldshould bebe betterbetter aligned.aligned.
In addition to offering pathways High-Quality High School Programs.High-Quality InIn additionadditionHigh School toto offeringoffering Programs. pathwayspathways High-Quality High School Programs. intended to prepare students for college, high school programs should intendedintended toto prepareprepare studentsstudents forfor college,college, highhigh schoolschool programsprograms shouldshould
consider adequately preparing studentsconsider for adequately skilled jobs. preparing To achieve students the for dual skilled jobs. To achieve the dual consider adequately preparing students for skilled jobs. To achieve the dual
mission of preparing students formission both careersof preparing and college, students schools for both should careers and college, schools should mission of preparing students for both careers and college, schools should consider aligning curricula with identified workforce needs and the general considerconsider aligningaligning curriculacurricula withwith identifiedidentified workforceworkforce needsneeds andand thethe generalgeneral
education college core and establishing clear academic pathways. educationeducation collegecollege corecore andand establishingestablishing clearclear academicacademic pathways.pathways.
New Mexico continues to invest in early college high school (ECHS) and NewNew MexicoMexico continuescontinues toto investinvest inin earlyearly collegecollege highhigh schoolschool (ECHS)(ECHS) andand
workforce readiness initiatives, which allow enrolled students to graduate workforceworkforce readinessreadiness initiatives,initiatives, whichwhich alallowlow enrolledenrolled studentsstudents toto graduategraduate
with a high school diploma andwith an associate’s a high school degree diploma or industry and an credential associate’s degree or industry credential with a high school diploma and an associate’s degree or industry credential
without incurring postsecondarywithout debt. incurringGraduates postsecondaryare able to enterdebt. theGraduates are able to enter the without incurring postsecondary debt. Graduates are able to enter the workforce or apply credits to a bachelor’s degree. Additionally, many high workforceworkforce oror applyapply creditscredits toto aa bachelor’sbachelor’s degree.degree. Additionally,Additionally, manymany highhigh
schools, in collaboration with institutions of higher education, continue to schools,schools, inin collaborationcollaboration withwith institutionsinstitutions ofof higherhigher education,education, continuecontinue toto
27 Policy Analysis: Education PageEducationPolicy 9 Analysis: Education Page 9 offer dual credit courses. Moreover, the state receives federal funds for career technical education (CTE) programs. According to the Southern Regional School Grade History Educationoffer Board,dual credit a nonpro courses.fit, nonpartisanMoreover, theeducation state receives organization, federal fundshigh- for career FY13 and FY14 qualitytechnical CTE programs education should (CTE) alignprograms. secondary According education to theto Southernspecific Regional 300 School Grade History postsecondaryEducation education Board, anda nonpro trainingfit, opportunities,nonpartisan educationwhich in organization,turn are high- FY13 and FY14 informedquality by an industryCTE programs advisory committeeshould alignand linked secondary to regional education or natio nalto specific 250 300 labor marketpostsecondary opportunities. education Additionally, and training CTE programs opportunities, should be whichsupported in turn are by a robustinformed career by andevelopment industry advisory process committeethat begins and in linkedmiddle toschool regional and or national 200 250 continueslabor throughout market opportunities. secondary education Additionally, and is aligned CTE toprograms community should needs. be supported by a robust career development process that begins in middle school and 150 200 Elementarycontinues and throughout Secondary secondary Education education Act. and The is federalaligned Elementaryto community needs. and Secondary Education Act (ESEA), first passed in 1965 and reauthorized 100 number of schools 150 in 2001Elementary under the No and Child Secondary Left Behind ActEd ucation(NCLB), isAct. the primary The federal federal Elementary fundingand source Secondary for public Education education Act and (ESEA), generally first addresses passed discrepanciesin 1965 and inreauthorized 50 100 funding and academic outcomes between advantaged and disadvantaged number of schools in 2001 under the No Child Left Behind Act (NCLB), is the primary federal students.funding Pursuant source to forthe public act, content education standards, and generally assessments, addresses and schooldiscrepancies in - accountability provisions were introduced in 1994. Each subsequent version 50 FY13 FY14 funding and academic outcomes between advantaged and disadvantaged has introduced new programs, and ESEA now provides about $25 billion in educationstudents. funds annually. Pursuant to the act, content standards, assessments, and school A - B C D F accountability provisions were introduced in 1994. Each subsequent version FY13 FY14 has introduced new programs, and ESEA now provides about $25 billion in Source: PED Reauthorization of the ESEA in December 2015, re-titled Every Student A B C D F Succeedseducation Act (ESSA), funds provides annually. states wider discretion in setting performance goals, determining accountability standards for schools and districts, and Source: PEDinterveningReauthorization in low-performing of the schools.ESEA inStates December are allowed 2015 to, reset-titled their ownEvery Student goals Succeedsthat address Act (ESSA),proficiency provides on tests states and wi dergraduation discretion rates in settingwith t heperformance expectationgoals, that determining achievement accountability gaps will closed. standards for schools and districts, and College Completion - intervening in low-performing schools. States are allowed to set their own Recent High School States goalswill still that be requiredaddress toproficiency test all students on testsin third and through graduation eighth graderates with the Graduates: and at least once in high school in reading and math. Tests still have to be Undergraduate Awards expectation that achievement gaps will closed. PerCollege 100 FullCompletion-Time - included in state’s accountability systems; however, states must incorporate EquivalentRecent Students High School other Statesfactors willrelated still tobe students’required opportunityto test all students to learn. in thirdThe ESSAthrough also eighth grade Graduates: maintainsand atthe least 95 oncepercent in highparticipation school inrate reading and continuesand math. to Testsallow still for have to be 30% Undergraduate Awards alternativeincluded assessments in state’s for accountabilitystudents with disabilities.systems; h oweverStates will, states be allowed must incorporate 25% Per 100 Full-Time to use locally developed, evidence-based interventions in schools in the other factors related to students’ opportunity to learn. The ESSA also Equivalent Students bottom 5 percent of performance, schools where less than two-thirds of the 20% maintains the 95 percent participation rate and continues to allow for 30% students graduate, and schools where subgroups of students are struggling. 15% The schoolalternative improvement assessments grant forprog studentsram has withbeen disabilities.eliminated – Statesit prescribed will be allowed 25% to use locally developed, evidence-based interventions in schools in the 10% turnaround strategies for failing schools – though the bill includes resources bottom 5 percent of performance, schools where less than two-thirds of the 20% for turnarounds. 5% students graduate, and schools where subgroups of students are struggling. 0% 15% FederalThe authori schoolty is improvement significantly curtailedgrant prog in ramthe bill has; thebeen federal eliminated government – it prescribed 10% has noturnaround role whatsoever strategies in tea forcher failing evaluation schools and – limits though the the authority bill includes of the resources U.S. Secretaryfor turnarounds. of Educa tion , especially when it comes to decisions on testing, 5% standards, and school turnaround. Additionally, a number of programs have 0%New Mexico been combinedFederal authoriinto a singlety is significantlyblock grant program. curtailed in the bill; the federal government United States has no role whatsoever in teacher evaluation and limits the authority of the Avg. Top Five States ProvisionsU.S. of Secretary the bill begin of Educa with tionthe ,2017-2018 especially school when yearit comes and are to authorizeddecisions on testing, for a four year period. Provisions of ESSA will apply to any competitive Source: NCES, IPEDS 2011-2012 standards, and school turnaround. Additionally, a number of programs have Completions federal grants beginning October 1, 2016 and formula grants, such as Title I New Mexico been combined into a single block grant program. grants, federal funds to improve academic achievement of disadvantaged United States students, on July 1, 2016. Avg. Top Five States Provisions of the bill begin with the 2017-2018 school year and are authorized
Source: NCES, IPEDS 2011-2012 for a four year period. Provisions of ESSA will apply to any competitive Completions federal grants beginning October 1, 2016 and formula grants, such as Title I grants, federal funds to improve academic achievement of disadvantaged students, on July 1, 2016. 28 Policy Analysis: Education PolicyEducation Analysis: Education Page 10 Page 10
Higher Education Higher Education I&G Funding as Part of I&G Funding as Part of To better leverage state support for higher education, New Mexico, along with To better leverage state support for higher education, New Mexico, along with Total Institutional Total Institutional Funding other states, has sought to implement a higher education instruction and Funding other states, has sought to implement a higher education instruction and (in millions) general (I&G) funding formula that rewards performance and outcomes rather (in millions) general (I&G) funding formula that rewards performance and outcomes rather $900 than enrollment and campus footprint. However, the formula used for FY16 $900 than enrollment and campus footprint. However, the formula used for FY16 $800 contained a “stop-loss” function that prevents institutions, specifically those $800 contained a “stop-loss” function that prevents institutions, specifically those that fail to improve performance, from losing more than 1 percent of I&G that fail to improve performance, from losing more than 1 percent of I&G $700 funding. Meanwhile, proposed changes and adjustments to the formula $700 funding. Meanwhile, proposed changes and adjustments to the formula $600 during the 2015 interim focused on institutional needs rather than student during the 2015 interim focused on institutional needs rather than student outcomes and success. As potential changes to the formula were discussed $600 $500 outcomes and success. As potential changes to the formula were discussed during the 2015 interim, larger institutions were quick to highlight reductions $500 during the 2015 interim, larger institutions were quick to highlight reductions $400 in funding during the recession that have yet to be recovered, while smaller $400 in funding during the recession that have yet to be recovered, while smaller $300 institutions called attention to dwindling budgets that could lead them to close their doors. Instead of focusing on individual institutional challenges, New $300 institutions called attention to dwindling budgets that could lead them to close $200 their doors. Instead of focusing on individual institutional challenges, New Mexico colleges and universities must capitalize on this transition period in $200 Mexico colleges and universities must capitalize on this transition period in $100 higher education funding to build stronger partnerships that focus on improved student outcomes. This holds especially true for those institutions $100 higher education funding to build stronger partnerships that focus on $0 at risk of losing significant portions of their I&G allocation due to lack of $0 improved student outcomes. This holds especially true for those institutions FY11 FY12 FY13 FY14 FY15 FY16 performance. at risk of losing significant portions of their I&G allocation due to lack of All UNM HSC I&G and RPSP FY11 FY12 FY13 FY14 FY15 FY16 performance. Funding Focus on Results. Although methods vary, 32 states have implemented
All UNM HSC I&G and RPSP I&G Formula Funding higher education funding formulas that, at least in part, reward colleges and Funding Focus on Results. Although methods vary, 32 states have implemented universities for improving student persistence, degree completion, or other I&G Formula Funding higher education funding formulas that, at least in part, reward colleges and Source: DFA General Fund Summaries outcomes. Another five states are currently transitioning to some type of universities for improving student persistence, degree completion, or other performance-based funding mechanism. New Mexico joined this effort in Source: DFA General Fund Summaries outcomes. Another five states are currently transitioning to some type of FY13, and since then a portion of general fund appropriations has been based Certificate/Degree performance-based funding mechanism. New Mexico joined this effort in Production on an institution’s performance and student success. FY13, and since then a portion of general fund appropriations has been based (in thousands) Certificate/Degree 25 Production on an institution’s performance and student success. A performance-based I&G funding formula is a step in the right direction, but (in thousands) New Mexico should consider steps toward aligning all fiscal components of 25 A performance-based I&G funding formula is a step in the right direction, but higher education with improved outcomes, including research and public 20 New Mexico should consider steps toward aligning all fiscal components of service projects, student aid, and capital projects funding. To ensure higher education with improved outcomes, including research and public alignment of these components, the state may wish to consider establishing a 20 service projects, student aid, and capital projects funding. To ensure 15 statewide attainment goal so all institutions and stakeholders know what New alignment of these components, the state may wish to consider establishing a Mexico expects to gain from its investment in higher education.
15 statewide attainment goal so all institutions and stakeholders know what New 10 New Mexico’s I&G funding formula focuses on key, shared outcome Mexico expects to gain from its investment in higher education. measures: (1) total certificate and degree awards; (2) awards earned in
science, technology, engineering mathematics, and health (STEMH) fields; 10 New Mexico’s I&G funding formula focuses on key, shared outcome 5 and (3) awards earned by financially at-risk students. However, recognizing measures: (1) total certificate and degree awards; (2) awards earned in the different missions and populations served by higher education institutions, science, technology, engineering mathematics, and health (STEMH) fields; mission-specific measures have also been added to the formula. For research 5 0 and (3) awards earned by financially at-risk students. However, recognizing institutions, mission measures reward grants and contracts from federal and the different missions and populations served by higher education institutions,
FY11 FY12 FY13 FY14 FY15 private sources. For all other institutions, mission measures reward the mission-specific measures have also been added to the formula. For research 0 Certificates Associate number of students who reach milestones of 30 and 60 credit hours as well as institutions, mission measures reward grants and contracts from federal and dual credit enrollment. Finally, the current I&G formula also provides funding
FY11 FY12 FY13 FY14 FY15 private sources. For all other institutions, mission measures reward the Bachelor All Graduate based on completion of student credit hours.
Certificates Associate number of students who reach milestones of 30 and 60 credit hours as well as Source: HED FY17 Formula Data, LFC Files dual credit enrollment. Finally, the current I&G formula also provides funding Previous versions of the formula awarded funding based on growth in student Bachelor All Graduate based on completion of student credit hours. credit hours and facility footprint, among other factors. As the state
Source: HED FY17 Formula Data, LFC Files Previous versions of the formula awarded funding based on growth in student credit hours and facility footprint, among other factors. As the state 29 PolicyEducationPolicy Analysis: Analysis: Education Education PagePage 11 11
transitioned to a performance-based formula, funding allocated under the Undergraduate Awards Per transitioned to a performance-based formula, funding allocated under the Undergraduate Awards Perprevious version of the funding formula continued as the “base” 100 FTE appropriation,previous with versiona portion of thethe base funding reduced andformula then used continued to incentivize as the “base” 100 FTE NM US performance.appropriation, This base with reduction, a portion in addition of the tobase “new reduced money,” and amounted then used to to incentivize NM US Research 19.3 22.8 about $4performance.0 million out ofTh $615is base million reduction, in FY16 inI&G addition appropriations. to “new money,” amounted to ComprehensiveResearch 17.6 19.321.9 22.8 about $40 million out of $615 million in FY16 I&G appropriations. To ease the transition to the new formula, two measures were put in place that Tw o-YearComprehensive 33.7 17.623.9 21.9 helped Toto easemitigate the transitiondisruptive tochanges the new in formula funding, two: (1) measures a hold- harmlesswere put in place that TwSource: o-Year NCES, IPEDS Completions,33.7 23.9 Financial & Enrollment Surveys (2012-2013) mechanism for institutions that improve performance over time but lose Source: NCES, IPEDS Completions, helped to mitigate disruptive changes in funding: (1) a hold-harmless
Financial & Enrollment Surveys (2012-2013)fundingmechanism year over year for and institutions (2) a stop -lossthat measureimprove that performance prevents institutions over time but lose not performing at a sufficient rate from losing more than 1 percent of I&G Undergraduates and Total funding year over year and (2) a stop-loss measure that prevents institutions Funding per FTE funding.not Reg performingarding the stop at -aloss sufficient measure, rate higher from education losing stakeholdersmore than have1 percent of I&G All I&GUndergraduates Revenues, 2012-2013 and Total questioned whether New Mexico truly has a performance-based funding (in Fundingthousands) per FTE formulafunding. if institutions Regarding are only the subjectstop-loss to losingmeasure, 1 percent higher ofeducation I&G funding stakeholders have All I&G Revenues,NM 2012-2013US when they questioned fail to improve whether outcomes. New Mexico truly has a performance-based funding (in thousands) Research $15.3 $18.2 formula if institutions are only subject to losing 1 percent of I&G funding NM US Comprehensive $11.5 $10.9 During whenthe 2015 they interim, fail to institutions improve outcomes. asserted several equity issues exist in the FY16 performance -based formula. Specifically, several colleges reported that Tw o-YearResearch $7.2 $15.3$6.8 $18.2 smaller Duringinstitutions the 2015were interim,at a disadvantage institutions andasserted would several need equityto increase issues exist in the Source:Comprehensive NCES, IPEDS Completions,$11.5 Financial $10.9 & Enrollment Surveys outcomesFY16 at a performance greater rate -thanbased larger formula. institutions Specifically, in order severalto receive colleges more reported that Tw o-Year $7.2 $6.8 fundingsmaller through institutionsthe performance were-based at a formula.disadvantage In response, and would LFC staffneed to increase Source: NCES, IPEDS Completions, Financialproduced a scenario in which all colleges and universities improve & Enrollment Surveys outcomes at a greater rate than larger institutions in order to receive more Distribution of I&G performance at the same rate, the results of which were run through the funding through the performance-based formula. In response, LFC staff Funding FY16 performance formula. Although the expected result of this scenario would be institutionsproduced gain funding a scenario at a similar in whichrate as performanceall colleges improvement and universities, the improve
scenarioperformance instead showed at thewide same variance rate, in thethe amountresults ofof fundingwhich comparedwere run through the Distribution of I&G Funding FY16 performance formula. Although the expected result of this scenario would be FY16 Base with the number of awards. This indicates it costs some colleges and Funding universitiesinstitutions more to gaingraduate funding students at thana similar others. rate Conversely, as performance an alternative improvement , the 93.5% ($574 million) explanationscenario offered instead by several showed postsecondary wide variance stakeholders in the amount suggested of somefunding compared
institutionswith are the more number efficient of at graduatingawards. Thisstudents indicates with less it I&G costs funding. some colleges and FY16 Base Funding universities more to graduate students than others. Conversely, an alternative 93.5% ($574 Nonetheless, the disparity in institutional funding and the number of degrees million) explanation offered by several postsecondary stakeholders suggested some produced under the scenario became magnified as more money was reduced institutions are more efficient at graduating students with less I&G funding. from the base appropriation and applied to performance, despite equal
improvement among all institutions. As a result of these findings, LFC staff Performance suggestNonetheless,s limiting the reductionthe disparity in the in base institutional appropriation funding to prevent and theinequities number of degrees Funding Awards 6.5% STEMH in funding.produced The stateunder should the scenarioalso consider became an magnifiedequity adjustment as more for mone thosey was reduced 27 % ($40 million) 13.5 % from the base appropriation and applied to performance, despite equal institutions that (1) show improvement over time and (2) have high cost structures.improvement among all institutions. As a result of these findings, LFC staff
Performance suggests limiting the reduction in the base appropriation to prevent inequities Funding Awards 6.5% STEMHWorkforcein funding. Needs. The Despite state shouldsignificant also investment consider inan higher equity education, adjustment for those 27 % ($40 million) 13.5degree % attainment among the nation’s young adults (ages 25-34) lags behind institutions that (1) show improvement over time and (2) have high cost many other developed nations, including South Korea, Japan, and the United structures. Kingdom. About 60 percent of young adults in South Korea have a At-Risk *EOC SCH 13.5 % postsecondary degree, compared with 44 percent in the United States and only 25 % Despite significant investment in higher education, 34 percentWorkforce in New Mexico. Needs. Efforts to improve the number of degree-holding Mission Specific 20 % degree attainment among the nation’s young adults (ages 25-34) lags behind Base Operating U.S. citizens in recent years have incorporated methods for improving college 1 % many other developed nations, including South Korea, Japan, and the United access for low-income and first-generation students. These efforts are well- *End -of-Course student credit hours At-intentioned,Risk Kingdom. but evidence About suggests 60 percent colleges ofand younguniversities adults must in also South provide Korea have a EOC SCH Source: LFC Files 13.5academic % postsecondary supports for degree,students compared throughout with their 44 college percent years in the to United improve States and only 25 % completion rates. Current graduation rates indicate significant potential for Mission Specific 34 percent in New Mexico. Efforts to improve the number of degree-holding 20 % Base Operating U.S. citizens in recent years have incorporated methods for improving college 1 % access for low-income and first-generation students. These efforts are well- End-of-Course student credit hours intentioned, but evidence suggests colleges and universities must also provide Source: LFC Files academic supports for students throughout their college years to improve
completion rates. Current graduation rates indicate significant potential for 30 Policy Analysis: Education Policy Analysis: Education PageEducation 12
Page 12 improvement. The national six-year graduation rate for students at public
baccalaureate-granting institutions in 2013 was 57.6 percent; New Mexico’s improvement. The national six-year graduation rate for students at public graduation rate was 41.7 percent. Community college completion is much FY15 Estimated lower – 19.4 percent of community college students graduate in three years in baccalaureate-granting institutions in 2013 was 57.6 percent; New Mexico’s Per-Student the United States, 13 percent for New Mexico’s community college students. graduation rate was 41.7 percent. Community college completion is much Outcomes-Based By strengthening supports that help students complete their degree programs, FY15 Estimated lower – 19.4 percent of community college students graduate in three years in Funding by State institutions can get the most out of investments already made in currently Per-Student the United States, 13 percent for New Mexico’s community college students. Outcomes-Based $0 $4,000 $8,000 enrolled students. By strengthening supports that help students complete their degree programs, Funding by State ND institutions can get the most out of investments already made in currently NV To help increase attainment rates in a strategic way, at least 30 states have $0 $4,000 $8,000 OH enrolled students. TN implemented a statewide attainment goal to improve the percent of state ND MS residents who have a postsecondary credential. As an example, Tennessee’s NV To help increase attainment rates in a strategic way, at least 30 states have U.S. (Avg) “Drive to 55” initiative seeks to increase the number of residents with a OH NM postsecondary degree to 55 percent by 2025. To achieve this goal, Tennessee TN implemented a statewide attainment goal to improve the percent of state WY MS residents who have a postsecondary credential. As an example, Tennessee’s ME has incorporated three initiatives that: (1) provide tuition-free community U.S. (Avg) AR college with additional mentoring programs, (2) encourage students to return “Drive to 55” initiative seeks to increase the number of residents with a FL NM to college to complete their degree program, and (3) provide incentives to postsecondary degree to 55 percent by 2025. To achieve this goal, Tennessee TX WY MN encourage collaboration between higher education and industry to fill skills ME has incorporated three initiatives that: (1) provide tuition-free community IN gaps across the state. AR college with additional mentoring programs, (2) encourage students to return MO FL MT TX to college to complete their degree program, and (3) provide incentives to HI As New Mexico ventures into results-oriented fiscal policy, the state should MN encourage collaboration between higher education and industry to fill skills MI consider setting an attainment goal that incorporates workforce needs, IN gaps across the state. PA challenges institutions to improve the number of students they graduate, and MO MA NC aims to close gaps in attainment for underrepresented populations. This will MT WI allow institutions to benchmark performance each year against a statewide HI As New Mexico ventures into results-oriented fiscal policy, the state should OR standard and will set the tone as higher education stakeholders come together MI consider setting an attainment goal that incorporates workforce needs, WA PA challenges institutions to improve the number of students they graduate, and AZ to discuss the I&G funding formula each year. MA UT NC aims to close gaps in attainment for underrepresented populations. This will IL Research and Public Service Projects. The state spends a minimum of WI allow institutions to benchmark performance each year against a statewide Source: HCM Strategists $130 million in general fund revenues on state agencies and research and OR standard and will set the tone as higher education stakeholders come together public service projects administered by colleges and universities. As part of a WA AZ to discuss the I&G funding formula each year. program’s or project’s annual budget request, an institution submits a UT narrative describing goals and objectives, annual performance targets, and IL Research and Public Service Projects. The state spends a minimum of State Agencies Affiliated with prior-year performance results. However, once a program or project receives Source: HCM Strategists Higher Education Institutions funding, HED provides little oversight of whether funded programs address $130 million in general fund revenues on state agencies and research and state priorities and use cost-effective and evidence-based methods. Because public service projects administered by colleges and universities. As part of a • N.M. Department of Agriculture program’s or project’s annual budget request, an institution submits a • Agriculture Experiment Station many of these programs and projects have received multiple years of support, • Cooperative Extension Service the department has a sufficient record and reason to scrutinize whether present narrative describing goals and objectives, annual performance targets, and • Bureau of Geology and Natural funding is based on proposed outcome measures and the program State Agencies Affiliated with prior-year performance results. However, once a program or project receives Resources performance is consistent with industry standards or benchmarks. Higher Education Institutions • Bureau of Mine Safety funding, HED provides little oversight of whether funded programs address • Children’s Hospital HED’s last review of research and public service projects, which looked at 25 • N.M. Department of Agriculture state priorities and use cost-effective and evidence-based methods. Because • Tingley Hospital • • Agriculture Experiment Station many of these programs and projects have received multiple years of support, Office of Medical Investigator percent of the projects, was in 2003. For a variety of reasons, HED has not • Poison and Drug Information • completed any recent reviews. LFC last completed an evaluation of select Cooperative Extension Service the department has a sufficient record and reason to scrutinize whether present Center • Bureau of Geology and Natural funding is based on proposed outcome measures and the program research and public service projects in January 2008. While a number of the Resources performance is consistent with industry standards or benchmarks. LFC’s recommendations have become common practice, a thorough review • Bureau of Mine Safety of research and public service projects and their alignment with state priorities
• Children’s Hospital is needed. Some of these programs and projects serve statewide
• Tingley Hospital HED’s last review of research and public service projects, which looked at 25 constituencies; many serve specific communities and do so successfully. A • Office of Medical Investigator percent of the projects, was in 2003. For a variety of reasons, HED has not review and analysis of existing efforts could lead to improved coordination, • Poison and Drug Information completed any recent reviews. LFC last completed an evaluation of select an expansion or scaling-up of services to help more communities, or a Center research and public service projects in January 2008. While a number of the revision or termination of programs that fail to provide sufficient services in a LFC’s recommendations have become common practice, a thorough review of research and public service projects and their alignment with state priorities is needed. Some of these programs and projects serve statewide
constituencies; many serve specific communities and do so successfully. A review and analysis of existing efforts could lead to improved coordination, an expansion or scaling-up of services to help more communities, or a
revision or termination of programs that fail to provide sufficient services in a 31 Policy Analysis: Education PageEducationPolicyPolicyPolicy 13 Analysis: Analysis: Analysis: Education Education Education PagePagePage 13 13 13 cost-effective manner. Further, although many research and public service Public Higher Education Net projectscostcost reportcost-effective-effective-effective performance manner. manner. manner. measures Further, Further, Further, showing although although although their progressmany many many research inresearch research advancing and and and thepublic public public service service service Tuition Revenue per FTE state’s interests, many such projects report measures that lack substantive PublicPublicPublic Higher Higher Higher Education Education Education Net Net Net projectsprojectsprojects report report report performance performance performance measures measures measures showing showing showing their their their progress progress progress in in advancingin advancing advancing the the the 5 Year % value. A review of these measures may prove helpful in prioritizing existing state’sstate’sstate’s interests, interests, interests, many many many such such such projects projects projects report report report measu measu measuresresres that that that lack lack lack substantive substantive substantive TuitionTuitionFY09Tuition Revenue RevenueFY14 RevenueChange per per per FTE FTE FTEresearch and public service projects when funding sources are limited. U.S. $4,560 $5,777 26.7%5 5Year 5Year Year % % % value.value.value. A A reviewA review review of of ofthese these these measures measures measures may may may prove prove prove helpful helpful helpful in in prioritizingin prioritizing prioritizing existing existing existing FY09FY09FY09 FY14FY14FY14 ChangeChangeChange NM $2,074 $3,760 81.3% Boostingresearchresearchresearch Educational and and and public public public Attainment service service service projects projects projects with whenFinancial when when funding funding funding Aid sources. sources Insources addition are are are limited. limited.to limited. U.S.U.S.U.S. $4,560$4,560$4,560 $5,777$5,777$5,777 26.7%26.7%funding26.7% institutions directly, the state provides students and professionals with Source: SHEEO, SHEEF FY14 NMNMNM $2,074$2,074$2,074$3,760$3,760$3,760 81.3%81.3%financial81.3%BoostingBoosting Boostingaid in the Educational Educational formEducational of grants, Attainment Attainment Attainmentscholarships, with with andwith Financial loanFinancial Financials. Low Aid Aidtuition Aid. . In . In Inaddition addition addition to to to policiesfundingfunding andfunding the institutions institutions Legislativeinstitutions directly, directly, Lotterydirectly, the Tuitionthe the state state state providesScholarship provides provides students students studentsProgram and and andprovide professionals professionals professionals with with with Source:Source:Source: SHEEO, SHEEO, SHEEO, SHEEF SHEEF SHEEF FY14 FY14 FY14 recent high school graduates with broad access to state institutions but do not financialfinancialfinancial aid aid aid in in inthe the the form form form of of ofgrants, grants, grants, scholarships, scholarships, scholarships, and and and loan loan loans.s. s. Low Low Low tuition tuition tuition Net Cost of College addresspoliciespolicies otherpolicies barriers and and and the tothe the collegeLegislative Legislative Legislative completion. Lottery Lottery Lottery Scholarship Tuition Tuition Tuition andScholarship Scholarship Scholarship loan repayment Program Program Program provide provide provide Attendance as Percent of programsrecentrecentrecent support high high high Newschool school school Mexico graduates graduates graduates residents with with with seekingbroad broad broad access highaccess access-demand to to stateto state state professional institutions institutions institutions but but but do do donot not not Family Income, Lowest credentials,addressaddressaddress such other other otheras dentistry,barriers barriers barriers to variousto collegeto college college healthcare completion. completion. completion. professions Scholarship Scholarship Scholarship, and teachers.and and and loan loan loan repayment repayment repayment IncomeNetNetNet Cost Cost Quintile* Cost of of College of College College Both funding students in school and recruiting and retaining licensed AttendanceAttendanceAttendance(2012-2013) as as asPercent Percent Percent of ofprofessionals of programsprogramsprograms with support support financialsupport New New aidNew Mexicoincentives Mexico Mexico residents residentscan residents boost seeking seekingthe seeking state’s high high higheducational-demand-demand-demand professional professional professional FamilyFamilyFamily Income, Income, Income, Lowest Lowest Lowest credentials,credentials,credentials, such such such as as asdentistry, dentistry, dentistry, various various various healthcare healthcare healthcare professions professions professions, ,and ,and and teachers. teachers. teachers. 80% levels. IncomeIncomeIncome Quintile* Quintile* Quintile* BothBothBoth funding fundingfunding students studentsstudents in in in school schoolschool and andand recruiting recruitingrecruiting and andand retaining retainingretaining licensed licensedlicensed 70% (2012-2013) (2012(2012-2013)-2013) Appropriations,professionalsprofessionalsprofessionals Tuition, with with with financial financial andfinancial Financial aid aid aid incentives incentives incentives Aid. Whilecan can can boost lowboost boost tuitionthe the the state’s state’s ratesstate’s educational educational educational 60% 80%80%80% and significalevels.levels.levels. nt state appropriations improve access to a postsecondary 50% education, this approach is inadequate, particularly for low-income and first 70%70%70% 40% generationAppropriations,Appropriations,Appropriations, students. Tuition, Tuition, Tuition, and and and Financial Financial Financial Aid. Aid. Aid. While While While low low low tuition tuition tuition rates rates rates 60%60%60% 30% andandand significa significasignificantnt nt state statestate appropriations appropriationsappropriations improve improveimprove access accessaccess to to to a a postsa postspostsecondaryecondaryecondary 20%50%50%50% New Mexicoeducation,education,education, provides this this this fourapproach approach approach-year institutions is is inadequateis inadequate inadequate with, an,particularly ,particularly averageparticularly of for 53for for percentlow low low-income-income -ofincome and and and first first first total I&G revenues – for two-year institutions the amount is closer to 47 10%40%40%40% generationgeneration students. students. percent generation– and, along students. with local support, significantly reduces dependence on 0%30%30%30% Four-Year Two-Year tuition revenue. However, this tuition burden is not experienced equally by 20%20%20%Coll./Univ. College studentsNewNew Newbecause Mexico Mexico Mexico of provides providestuition provides andfour four four -financialyear-year-year institutions institutions institutionsaid policies with with with anand an anaverage averagea averagestudent’s of of of53 53 53percent percent percent of of of 10%New10%10% Mexico WICHE States resources.totaltotaltotal ForI& I& G I&example,G Grevenues revenues revenues for –students – for –for for two two intwo -theyear-year- yearlowest institutions institutions institutions 20 percent the the ofthe amount income,amount amount is theis closeris closer closer to to to47 47 47 United0%0%0% States net costpercentpercent percentof attending – – and, –and, and, collegealong along along with (tuition,with with local local local fees, support, support, support,books, significantly significantlyroom significantly and board) reduces reduces reduces ranges dependence dependence dependence on on on *First-time,FourFour fullFour--timeYear-Year- undergraduatesYear TwoTwoTwo-Year-Year-Year from 43tuitiontuition percenttuition revenue. revenue. torevenue. 52 perce However, However, However,nt of the this student’sthis this tuition tuition tuition household burden burden burden income;is is notis not not experienced forexperienced experienced students equally equally equally by by by Source: NCHEMS,Coll./Univ.Coll./Univ.Coll./Univ. NCSL (Oct.College2015)CollegeCollegein the median income quintile, the net cost is 10 percent to 14 percent of studentsstudentsstudents because becausebecause of of of tuition tuitiontuition and andand financial financialfinancial aid aidaid policies policiespolicies and andand a a student’sa student’sstudent’s NewNewNew Mexico Mexico Mexico WICHEWICHEWICHE States States Stateshouseholdresources.resources.resources. income. For For For example, example, example, for for for students students students in in thein the the lowest lowest lowest 20 20 20percent percent percent of of income,of income, income, the the the
UnitedUnitedUnited States States States netnetnet cost cost cost of of ofattending attending attending college college college (tuition, (tuition, (tuition, fees, fees, fees, books, books, books, room room room and and and board) board) board) ranges ranges ranges Legislative Lottery Scholarship Program *First-time, full-time undergraduates fromfromfrom 43 43 43percent percent percent to to 52to 52 52perce perce percentnt ofnt of theof the the student’s student’s student’s household household household income; income; income; for for for students students students *First*First-time,-time, full full-time-time undergraduates undergraduates The LegislativeSource:Source:Source: NCHEMS, NCHEMS, Lottery NCHEMS, NCSL Tuition NCSL NCSL (Oct. (Oct. Scholarship(Oct.2015)2015)2015) in Actin inthe wasthe the median enactedmedian median inincome income 2014income to quintile,significantly quintile, quintile, the changthe the net net enet thecost cost state’scost is is 10is primary10 10percent percent percent financial to to to14 14 14percent percent percent of of of
aid scholarship program. Generally, startinghouseholdhousehold householdin FY15, freshmenincome. income. income. and sophomore students are eligible to receive tuition scholarships for seven semesters and must complete 15 credit hours per semester to maintain scholarship eligibility. More senior students can receive the scholarship for up to eight semesters. All students must maintain a 2.5 grade LegislativeLegislativeLegislative Lottery Lottery Lottery Scholarship Scholarship Scholarship Program Program Program point average. Even after adding near ly $5 0 million from the general fund and other revenues to the lottery tuition fund in recent years, scholarships will not cover the full cost of tuition. Instead, a scholarship will be the average tuition level at eachTheTheT heLegislativeinstitution, Legislative Legislative reduced Lottery Lottery Lottery byTuition Tuitiona Tuition percentag Scholarship Scholarship Scholarshipe to maintain Act Act Act was wastotal was enacted enactedfund enacted solvency. in in 2014 in 2014 2014 Additionalto to significantlyto significantly significantly revenues chang chang changwille beethe ethe added the state’s state’s state’s to primarythe primary primary financial financial financial fundaid aidthrough aidscholarship scholarship scholarship FY17 program.to program. program.maintain Generally, Generally, relatively Generally, startinghigh starting starting scholarship in in FY15,in FY15, FY15, levelsfreshmen freshmen freshmen for students.and and and sophomore sophomore sophomore It is uncertain students students students how are are reductionsare eligible eligible eligible to into receive to receive receive tuition tuition tuition enrollmentscholarshipsscholarshipsscholarships will affect for for fseventheor seven sevenstrained semesters semesters semesters lottery andtuition and and must mustfund. must complete Additioncomplete completeally, 15 15 15thecredit credit creditfall hours2016 hours hours semesterper per per semester semester semester will be to theto maintainto maintainlast maintain in which scholarship scholarship scholarship the eligibility. eligibility. eligibility. programMoreMoreMore payssenior senior senior for studentsthe students studentseighth cansemester can can receive receive receive for somethe the the scholarship students,scholarship scholarship resulting for for forup up in upto someto eightto eight eight savings semesters semesters semesters for the. Allprogram.. All. Allstudents students students must must must maintain maintain maintain a a2.5 a2.5 2.5grade grade grade pointpointpoint average. average. average. Even Even Even after after after adding adding adding near near near ly ly $ly 5$ 05$ 05million 0million million from from from the the thegeneral general general fund fund fund and and and other other other revenues revenues revenues to to theto the thelottery lottery lottery tuition tuition tuition fund fund fund inin recentin recent recent years years years, scholarships, scholarships, scholarships willInstitutions will willnot not not cover cover cover do the thenot the full fullcharge fullcost cost cost of theof tuition.of tuition.same tuition. Instead,amount Instead, Instead, ofa a scholarshiptuition ascholarship scholarship and willfees will will be tobe betheall the theaveragestudents. average average tuition tuition tuition level level level atat eachat each each institution, institution, institution, reduced reduced reduced by by bya apercentag apercentag percentag e eto eto maintainto maintain maintain total total total fund fund fund solvency. solvency. solvency. Additional Additional Additional revenues revenues revenues will will willbe be beadded added added to to theto the the Published tuition rates vary, by program, resident status, and level of study. fundfundfund through through through FY17 FY17 FY17 to to tomaintain maintain maintainThese relatively relatively ratesrelatively are high high furtherhigh scholarship scholarship scholarship affected levels bylevels levels institutional for for forstudents. students. students. financial It It is Itis uncertainis aiduncertain uncertain policies how how howthat reductions reductions reductions in in in enrollmentenrollmentenrollment will will willaffect affect affect the the thestrained strained strained lottery lottery lottery tuition tuition tuition fund. fund. fund. Addition Addition Additionally,ally,ally, the the the fall fall fall2016 2016 2016 semester semester semester will will willbe be bethe the the last last last in in whichin which which the the the programprogramprogram pays pays pays for for forthe the theeighth eighth eighth semester providesemester semester awardsfor for forsome some some to students, students students, students, whoresulting resulting resulting bring in in specificsome in some some savings savingstalents, savings for skills,for forthe the theprogram. or program. program.experiences to the institution . For example, public institutions charge higher tuition rates for nonresident students but use tuition revenues from these students to InstitutionsInstitutionsInstitutions do do donot not not charge charge charge the the the same same same amount amount amount of of tuitionof tuition tuition and and and fees fees fees to to allto all allstudents. students. students. PublishedPublishedPublished tuition tuition tuition r atesr atesrates vary, vary, vary, by by byprogram, program, program, resident resident resident status, status, status, and and and level level level of of ofstudy. study. study. TheseTheseThese rates rates rates are are are further further further affected affected affected by by byinstitutional institutional institutional financial financial financial aid aid aid policies policies policies that that that provideprovideprovide awards awards awards to to studentsto students students who who who bring bring bring specific specific specific talents, talents, talents, skills, skills, skills, or or experiencesor experiences experiences to to to thethethe institution institution institution. For. For. For example, example, example, public public public institutions institutions institutions char char chargege gehigher higher higher tuition tuition tuition rates rates rates for for for nonnonnonresidentresidentresident students studentsstudents but butbut use useuse tuition tuitiontuition revenues revenuesrevenues from fromfrom these thesethese students studentsstudents to to to 32 Policy Analysis: Education Education Page 14 Policy Analysis: Education Page 14 underwrite institutional scholarships and grants for others – particularly New Mexico Student students who demonstrate high academic success (and low financial need). underwrite institutional scholarships and grants for others – particularly New Mexico Student students who demonstrate high academic success (and low financial need). Grant and Aid While it is difficult to compare tuition rates charged to individual students Programs Grant and Aid While it is difficult to compare tuition rates charged to individual students given the varying institutional aid awarded, these rates are lower than an Programs $140 given the varying institutional aid awarded, these rates are lower than an $140 institution’s published rate. institution’s published rate.
$120 $120 As public institutions, colleges should reveal more to policymakers, as well as As public institutions, colleges should reveal more to policymakers, as well as $100 the public, about how much they charge which students and how much they $100 the public, about how much they charge which students and how much they award in institutional aid to reduce the cost of attendance for certain students. award in institutional aid to reduce the cost of attendance for certain students. $80 This information is critical to determine the correct balance between funding $80 This information is critical to determine the correct balance between funding students and institutions directly and increasing the state’s education students and institutions directly and increasing the state’s education $60 $60 attainment rate. attainment rate. $40 $40 State Financial Aid Programs. The state supports about 25 financial aid State Financial Aid Programs. The state supports about 25 financial aid $20 programs administered by HED. The Legislative Lottery Scholarship $20 programs administered by HED. The Legislative Lottery Scholarship Program (LLSP) is the largest in terms of awards granted annually and has the Program (LLSP) is the largest in terms of awards granted annually and has the $0 $0 largest individual scholarship amount. But the state funds many other need- largest individual scholarship amount. But the state funds many other need- based programs, totaling an average $25 million in annual general fund FY14 based programs, totaling an average $25 million in annual general fund FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 support. These programs target veterans, firefighters, health professionals, support. These programs target veterans, firefighters, health professionals, Grant Aid with a Need teachers, and others. In addition, other statutory tuition waiver or scholarship Grant Aid with a Need teachers, and others. In addition, other statutory tuition waiver or scholarship Component Component Grant Aid without a Need programs administered by institutions exist for foster children, athletes, and Grant Aid without a Need programs administered by institutions exist for foster children, athletes, and Component Component Non-Grant Aid undocumented students. National experts have called on states to collapse Non-Grant Aid undocumented students. National experts have called on states to collapse multiple, small, need-based and specialty aid programs into one or two multiple, small, need-based and specialty aid programs into one or two Source: NASSGAP Surveys, programs to eliminate confusion for student applicants and make the aid FY09-FY14 Source: NASSGAP Surveys, programs to eliminate confusion for student applicants and make the aid process more transparent. FY09-FY14 process more transparent.
While the LLSP has received great attention and review by the Legislature While the LLSP has received great attention and review by the Legislature Three-Year Change in and executive, other programs have not. HED submits annual reports on state Three-Year Change in Enrollment and executive, other programs have not. HED submits annual reports on state 2.0% program totals but the state’s financial aid or institution-administered waiver Enrollment 2.0% program totals but the state’s financial aid or institution-administered waiver programs have not been sufficiently reviewed in recent years. In FY12 and programs have not been sufficiently reviewed in recent years. In FY12 and prior years, the I&G funding formula accounted for institutional aid programs, prior years, the I&G funding formula accounted for institutional aid programs, 0.0% but recent formula changes do not calculate these aid costs. A review of state 0.0% but recent formula changes do not calculate these aid costs. A review of state and institutional aid programs would provide a benchmark for considering program revisions and alignment with state educational goals. and institutional aid programs would provide a benchmark for considering -2.0% program revisions and alignment with state educational goals. Enrollment Trends. The most recently available data indicate New Mexico -2.0% institutions are experiencing enrollment declines that outpace any other state. Enrollment Trends. The most recently available data indicate New Mexico -4.0% Enrollments among New Mexico institutions during the spring 2015 semester institutions are experiencing enrollment declines that outpace any other state. -4.0% were down 8.3 percent compared with spring 2014, while nationwide Enrollments among New Mexico institutions during the spring 2015 semester enrollments declined 1.9 percent. Although this reduction in the number of -6.0% were down 8.3 percent compared with spring 2014, while nationwide students attending New Mexico institutions may have short-term positive enrollments declined 1.9 percent. Although this reduction in the number of -6.0% effects, such as temporary relief to the lottery tuition fund, declining students attending New Mexico institutions may have short-term positive -8.0% enrollment translates to a loss of tuition and fee revenue, requiring institutions effects, such as temporary relief to the lottery tuition fund, declining to retool programs and make adjustments to current resources. For example, -8.0% enrollment translates to a loss of tuition and fee revenue, requiring institutions the University of New Mexico experienced an estimated reduction of $1.9 to retool programs and make adjustments to current resources. For example, -10.0% million in tuition and fee revenue due to a 2 percent drop in fall 2015 the University of New Mexico experienced an estimated reduction of $1.9 Spring Spring Spring enrollment. Several universities are responding to the loss of revenue by 2013 2014 2015 -10.0% million in tuition and fee revenue due to a 2 percent drop in fall 2015 leaving vacant positions unfilled. Although the National Center for Education Spring Spring Spring enrollment. Several universities are responding to the loss of revenue by U.S. New Mexico Statistics anticipates long-term enrollment trends will pick up over the next 2013 2014 2015 eight years, institutions should proceed cautiously as they plan new degree leaving vacant positions unfilled. Although the National Center for Education Source: National Student Clearinghouse offerings, propose expansions to existing facilities, or consider additional U.S. New Mexico Statistics anticipates long-term enrollment trends will pick up over the next eight years, institutions should proceed cautiously as they plan new degree programs. Source: National Student Clearinghouse offerings, propose expansions to existing facilities, or consider additional programs. 33 Economic Development & Workforce Training PolicyPolicy Analysis: Analysis: Economic Economic Development Development and Workforce and Workforce Training Training PagePage 1 1 ew Mexico has significantly expanded funding for economicew development, Mexico has attempting significantly to growexpanded the funding for Neconomyeconomic and add jobs development, at a faster rate, butattempting there is no to grow the Economic Development comprehensive planeconomy to guide and these add investments,jobs at a faster and rate,many but there is no Report Card N programscomprehensive do not report plan outcomesto guide theseto demonstrate investments, and many EconomicPage 97 Development Report Card effectiveness.programs The dogaps notin reportingreport andoutcomes accountability to demonstrate Page 97 prevent the state from determining whether funding for many economiceffectiveness. development programs The gaps is well in spent reporting or not. Inand the accountability meantime,prevent the state’s the state economy from continues determining to lag whether neighboring funding for many states andeconomic the national development average for programsjob creation, is andwell the spent state or not. In the has not meantime,yet reached prethe-recession state’s economyemployment continues levels. to lag neighboring states and the national average for job creation, and the state Effortshas To not Boost yet reachedJob Growth pre-recession employment levels. FY15 Over-the-Year The Legislature provided a “full toolbox” of incentives for economic Job Growth by State developmentEfforts over the lastTo few Boost years to makeJob New Growth Mexico a more financially 5.0% attractive location for business, passing a significant tax reduction bill in 2013, adding a suite of incentives in 2015, and significantly increasing 4.5% FY15 Over-the-Year The Legislature provided a “full toolbox” of incentives for economic Job Growth by Statefunding for Local Economic Development Act (LEDA) projects in 2014 and 4.0% 2015. LEDAdevelopment can be used over to helpthe lastexisting few localyears businesses to make expand, New Mexico but it is a more financially attractive location for business, passing a significant tax reduction bill in 3.5% 5.0% traditionally used as a “closing fund” to recruit businesses, and New Mexico’s fund is now2013, one addingof the largesta suite in theof wincentivesestern United in States,2015, eclipsingand significantly the increasing 3.0% 4.5% closing fundfunding in Arizo forna Local and matching Economic the fund Development in Texas. Act (LEDA) projects in 2014 and 2.5% 4.0% 2015. LEDA can be used to help existing local businesses expand, but it is However, the state’s job growth rate remains relatively low, and the 2.0% traditionally used as a “closing fund” to recruit businesses, and New Mexico’s 3.5% 1.6% Economic Development Department (EDD) assisted in the creation of fewer 1.5% jobs in FY15fund than is nowin FY14 one despiteof the the largest enhanced in thetax climatewestern and United spending States, eclipsing the 3.0% closing fund in Arizona and matching the fund in Texas. 1.0% more than twice as much in LEDA funds. This raises concerns the 2.5% department might have given LEDA funding to companies that would have 0.5% located inHowever, the state regardless the state’s of the jobincentive growth, or thatrate the remains increased relativelyfunding low, and the 2.0% 0.0% 1.6%led to largerEconomic awards for Development similar projects Department. Irrespective (EDD) of these assisted possible issues,in the creation of fewer UT TX CO US AZ NM OK 1.5% it appearsjobs closing in -FY15fund dolla thanrs, in tax FY14 rates, despiteand incentives the enha arenced not thetax onlyclimate and spending bottleneckmore slowing th anjob growth.twice asNevertheless, much in it LEDAis likely manyfunds businesses. This andraises concerns the 1.0% Source: WSD some site selection companies remain unaware of the lucrative changes to the state’s taxesdepartment and incentives. might The have Legislature given LEDA appropriated funding an additional to companies $250 that would have 0.5% thousand locatedto the Economic in the stateDevelopment regardless Partnership, of the incentive which markets, or that the statethe increased funding 0.0% and recruitsled businesses, to larger awardsto advertise for thesimilar state’s projects development. Irrespective potential. ofGiven these possible issues, UT TX CO US AZ NMtheOK significantit appears investment closing in the-fund LEDA dolla closingrs, tax fund, rates, it might and beincentives useful to are not the only provide additionalbottleneck funding slowing to jobadvertise growth. the state.Nevertheless, Economic it developmentis likely many businesses and Source: WSDadvertisingsome should site use selection the Tourism companies Department’s remain “New unaware Mexico of True” the lucrativebrand changes to the New Mexico, on a per capita basis, so all state advertising is coordinated under a single brand image. is funding the LEDA closing fund by state’s taxes and incentives. The Legislature appropriated an additional $250 15 times as much as Texas. thousand to the Economic Development Partnership, which markets the state Unfortunately, EDD reported fewer Many Issues. Low tax rates and lucrative tax incentives alone are not jobs were created in FY15 than in enough toand achieve recruits long -businesses,term business to growth advertise. Additionally, the state’s there development is little or potential. Given FY14 despite spending about twice no correlationthe signbetweenificant the statesinvestment experiencing in the the LEDA greatest closing job growth fund, and itthe might be useful to as much in LEDA funds. state’s taxprovide rates. For additional example, Californiafunding toand advertise Texas consistently the state. rank Economicin the development top 10 statesadvertising for job growth, should and use two the cities Tourism within eachDepartment’s state often rank“New in theMexico True” brand New Mexico, on a per capita topbasis, five forso growth,all state yet advertising the states are is polarcoordinated opposites under in terms a single of effective brand tax image. is funding the LEDA closing fund by 15 times as much as Texas. Unfortunately, EDD reported fewer Many Issues. Low tax rates and lucrative tax incentives alone are not jobs were created in FY15 than in enough to achieve long-term business growth. Additionally, there is little or FY14 despite spending about twice no correlation between the states experiencing the greatest job growth and the as much in LEDA funds. state’s tax rates. For example, California and Texas consistently rank in the top 10 states for job growth, and two cities within each state often rank in the 34 top five for growth, yet the states are polar opposites in terms of effective tax Economic Development Policy Analysis: EconomicPolicy Development Analysis: and Economic Workforce Development Training and Workforce& Workforce Training Training Page 2 Page 2
rates. In a variety of surveys, business executives almost invariably list rates. In a variety of surveys, rates.business In executivesa variety ofalmost surveys, invariably business list executives Policy almost Analysis: invariably Economic list Development and Workforce Training skilled labor, available real estate,skilled and infrastructurelabor, available (including real estate, high and-quality infrastructure (including high-quality skilled labor, available real estate, and infrastructure (including high-quality Page 2 educational infrastructure) as theeducational most important infrastructure) assets when as the choos mostinging important aa assets when choosing a business location.. Often,Often, aa state’sstate’sbusiness lacklack ofof comprehensive comprehensivelocation. Often, planningplanning a state’s toto lack improveimprove of comprehensive planning to improve these structural assets contributes to poor job growth. rates. In a variety of surveys, business executives almost invariably list these structural assets contributes theseto poor structural job growth assets. contributes to poor job growth. skilled labor, available real estate, and infrastructure (including high-quality A continuing issue with New Mexico’s economic development efforts is the educational infrastructure) as the most important assets when choosing a A continuing issue with New Mexico’sA continuing economic issue development with New Mexico’sefforts is economicthe development efforts is the business location. Often, a state’s lack of comprehensive planning to improve searchsearch forfor aa silversilver bulletbullet – a singlesinglesearch propro gramfor a silveror incentive bullet –that a singlewill cure pro gramthe or incentive that will cure the these structural assets contributes to poor job growth. ststate’s economic ills. This ignoresstate’s the economic multitude ills. of long This--term,term, ignores structuralstructural the multitude of long-term, structural challenges New Mexico faces, includingchallenges high New school Mexico dropout faces, rates, including lack ofhigh school dropout rates, lack of A continuing issue with New Mexico’s economic development efforts is the search for a silver bullet – a single program or incentive that will cure the infrastructureinfrastructure andand availableavailable buildingsbuildingsinfrastructure forfor businessesbusinesses and available,, regulatoryregulatory buildings conconcerns, for and businesses , regulatory concerns, and a skilled workforce. state’s economic ills. This ignores the multitude of long-term, structural a skilled workforce. a skilled workforce. challenges New Mexico faces, including high school dropout rates, lack of Export Growth and Manufacturing infrastructure and available buildings for businesses, regulatory concerns, and Export Growth and ManufacturingExport Growth and Manufacturing a skilled workforce. New Mexico continues to shed manufacturing jobs despite significant growth in exports. Goods exports grew 42 percent New Mexico continues to shed manufacturing New Mexico jobs continues despite significant to shed manufacturing growth in exports. jobs despite Goods significantexports grew growth 42 percent in exports. Goods exports grew 42 percent in 2012, fell by 9 percent in 2013, and grew 41 percent in 2014, reaching a record $3.8 billion. Las Cruces and Export Growth and Manufacturing in 2012, fell by 9 percent in 2013, inand 2012, grew fell 41 by percent 9 percent in 2014, in 2013, reaching and grewa record 41 percent$3.8 billion. in 2014, Las reaching Cruces anda record $3.8 billion. Las Cruces and Farmington ranked first and second in the country for cities with the greatest export growth, and Santa Fe ranked fifth. Farmington ranked first and second inFarmington the country ranked for cities first withand secondthe greatest in the export country growth, for cities and withSanta the Fe greatest ranked exportfifth. growth, andNew Santa Mexico Fe rankedcontinues fifth. to shed manufacturing jobs despite significant growth in exports. Goods exports grew 42 percent Exports to Mexico represent the largest share of total exports and continue to increase, growing 33 percent in 2013 and Exports to Mexico represent the largestExports share to of Mexico total exports represent and the continue largest to share increase, of total growing exports 33 and percent continue in 2013 to increase, and growing 33in 2012,percent fell inby 2013 9 percent and in 2013, and grew 41 percent in 2014, reaching a record $3.8 billion. Las Cruces and 93 percent in 2014. The U.S. Department of Commerce estimates New Mexico’s exports support nearly 17 thousand 93 percent in 2014. The U.S. Department 93 percent of Commerce in 2014. Theestimates U.S. DepartmentNew Mexico’s of Commerceexports support estimates nearly New 17 thousandMexico’s exports supportFarmington nearly 17ranked thousand first and second in the country for cities with the greatest export growth, and Santa Fe ranked fifth. U.S. jobs. However, the state struggles to maintain its manufacturing workforce, losing jobs in the sector during the last Exports to Mexico represent the largest share of total exports and continue to increase, growing 33 percent in 2013 and U.S. jobs. However, the state strugglesU.S .to jobs. maintain However, its manufacturing the state struggles workforce, to maintain losing jobs its manufacturingin the sector during workforce, the last losing jobs in the sector during the last three years. This could indicate many of the products are manufactured in other states and simply consolidated or 93 percent in 2014. The U.S. Department of Commerce estimates New Mexico’s exports support nearly 17 thousand three years. This could indicate many three of years. the products This could are manufacturedindicate many in of other the productsstates and are simply manufactured consolidated in other or states and simply consolidated or warehoused in New Mexico before leaving the country. The loss of jobs has not yet been stemmed by the changes made U.S. jobs. However, the state struggles to maintain its manufacturing workforce, losing jobs in the sector during the last warehoused in New Mexico before leaving warehoused the country. in New The Mexico loss ofbefore jobs leavinghas not theyet country.been stemmed The loss by ofthe jobs changes has not made yet been stemmed by the changes made by the 2013 tax package, which resulted in Ernst and Young declaring New Mexico “best in the West” for manufacturing three years. This could indicate many of the products are manufactured in other states and simply consolidated or by the 2013 tax package, which resulted by the in Ernst2013 taxand package, Young declaring which resulted New Mexico in Ernst “best and in Young the West” declaring for manufacturing New Mexico “best in the West”warehoused for manufacturing in New Mexico before leaving the country. The loss of jobs has not yet been stemmed by the changes made from a taxation standpoint. from a taxation standpoint. from a taxation standpoint. by the 2013 tax package, which resulted in Ernst and Young declaring New Mexico “best in the West” for manufacturing from a taxation standpoint. Coordination and Evidence-Based Funding Coordination and Evidence-BasedCoordination andFunding Evidence-Based Funding Coordination and Evidence-Based Funding Accountability remains a concern Accountability remains a concern AccountabilityBased on LFC remains analysis a concern dating to 2009, New Mexico suffers from economic for LEDA awards. EDD posts Based on LFC analysis dating toBased 2009, onNew LFC Mexico analysis suffers dating from to 2009,economic New Mexico Accountabilitysuffers from remains economic a concern Based on LFC analysis dating to 2009, New Mexico suffers from economic for LEDA awards. EDD posts for LEDA awards. EDD posts for LEDA awards. EDD posts award amounts and company development program fragmentation and duplication and still lacks a development program fragmentation and duplication and still lacks a award amounts and company awarddevelopment amounts programand company fragmentation development and duplication program fragmentationand still lacks and a duplicationaward andamounts still andlacks company a names on its website but does not comprehensive strategic plan. Additionally, the state has no overall economic names on its website but does not namescomprehensive on its website strategic but does plan. not Additionally, comprehensive the state strategic has no plan. overall Additionally, economic the state hasnames no onoverall its website economic but does not comprehensive strategic plan. Additionally, the state has no overall economic list jobs announced or private development branding strategy as it does for tourism. Texas and other states list jobs announced or private list jobs announced or private listdevelopment jobs announced branding or strategyprivate asdevelopment it does for tourism. branding Texas strategy and as other it does states for tourism. Texas and other states development branding strategy as it does for tourism. Texas and other states investment levels. In addition, the investment levels. In addition, the investment levels. In addition, the investmentare using levels. branding In addition,strategies the to market their areas as business friendly and are using branding strategies to market their areas as business friendly and department does not report jobs are using branding strategies to marketare using their branding areas asstrategies business to friendly market andtheir areas asdepartment business does friendly not report and jobs department does not report jobs departmentoften target does specif notic reportindustry jobs sectors. Without a clear focus or brand, New often target specific industry sectors. Without a clear focus or brand, New actually created. often target specific industry sectors.often targetWithout specif a clearic industry focus or sectors. brand, NewWithout a clearactually focus created. or brand, New actually created. actually created. Mexico’s scattershot approach fails to leverage state and local efforts to Mexico’s scattershot approach failsMexico’s to leverage scattershot state approachand local fails efforts to leverageto state and local efforts to recruit business. EDD and the Economic Development Partnership should recruit business. EDD and the Economic Development Partnership should recruit business. EDD and the Economicrecruit business. Development EDD andPartnership the Economic should Development Partnership should adopt the Tourism Department’s strategic brand and use the agency’s adopt thethe TourismTourism Department’sDepartment’sadopt stratestrate thegic Tourism brand andandDepartment’s uusese thethe agency’sagency’sstrategic brand and use the agency’s coordination with local partners as a model for economic development. coordination with local partnerss asascoordination aa modelmodel forfor witheconomiceconomic local partnerdevelopment.development.s as a model for economic development. Effective Use of State Dollars. Many of the state’s economic Effective Use of State Dollars. Many of the state’s economic Many of the state’s economic development programs do not report outcomes demonstrating cost Effective Use of State Dollars.Effective Many Use ofof theState state’s Dollars. economic effectiveness, making it difficult to prioritize funding. Additionally, without a development programs do notdevelopment report outcomes programs demonstrating do not report cost outcomes demonstrating cost effectiveness, making it difficult to prioritize funding. Additionally, without a statewide strategy, it is difficult for policymakers to effectively invest in effectiveness, making it difficult toeffectiveness, prioritize funding. making Additionally, it difficult to withoutprioritize a funding. Additionally, without a economic development. Funding should be prioritized to those select statewide strategy, it is difficult for policymakers to effectively invest in statewide strategy, it is difficultstatewide for policy strategymakers, toit iseffectively difficult forinvest policy in makers to effectively invest in programs shown to be the most cost-effective, such as business incubators, or economic development. Funding should be prioritized to those select economic development. Fundingeconomic should developmbe prioritizedent. Ftounding those shouldselect be prioritizedWorkforce to those Solutions select that address skill gaps and other structural deficiencies, such as Integrated programs shownshown toto bebe thethe mostmost costcostprograms--effective shown,, suchsuch to asas be bb usinethe mostssss incubators,incubators, cost-effective oror , such as busineDepartmentss incubators, Report Card or Basic Education and Skills Training (I-BEST) and apprenticeship training Workforce Solutions that address skill gaps and other structural deficiencies, such as Integrated Page 100 programs. Programs that provide long-term enhancement of New Mexico’s Workforce Solutions thatWorkforce address skill Solutions gaps and otherthat structural address deficiencies skill gaps ,and such other as Integratedstructural deficiencies, such as Integrated Department Report Card Basic Education and Skills Training (I-BEST) and apprenticeship training assets, including infrastructure and education, should be funded before Department Report Card BasicDepartment Education Report and CardSkills TrainingBasic (IEducation-BEST) and and apprenticeship Skills Training training (I-BEST) and apprenticeship training Page 100 programs. Programs that provide long-term enhancement of New Mexico’s programs that act as short-term stopgaps and that cost the state significantly Page 100 programs.Page Programs 100 that provideprograms. long-term Penhancerogramsment that ofprovide New Mexicolong-term’s enhancement of New Mexico’s assets, including infrastructure and education, should be funded before more in the long run. Additionally, efforts to improve job creation often assets, including infrastructure assetsand education,, including should infrastructure be funded and beforeeducation, should be funded before focus on business recruitment efforts, one of the three levers of economic programs that act as short--termterm stopgapsstopgapsprograms andand that thatthat act cost as short thethe state-stateterm significantlysignificantlystopgaps and that cost the state significantly development, but this can leave the other two levers, business creation and more in the long run. Additionally,more effortsin the tolong improve run. Additionally,job creation oftenefforts to improve job creation often business expansion, without programs or funding. focusfocus onon businessbusiness recruitmentrecruitment efforteffortfocuss,s, ononeone business ofof thethe threethreerecruitment leverslevers ofofeffort economiceconomics, one of the three levers of economic development, but this can leave development,the other two butlevers, this businesscan leave creation the other and two levers, business creation and business expansion, without programsbusiness or funding. expansion, without programs or funding. 35 Policy Analysis: Economic Development and Workforce Training PageEconomic 3 Development Policy Analysis: Economic Development and Workforce Training & WorkforceCost Training Per Job. LFC is analyzing available data to determine cost- Page 3 effectiveness for many programs. (See “Cost Per Job” in the LFC Volume III for rankings.) Many tax incentives are “stackable,” and companies often receive Costassistance Per from Job. a variety LFC of isprograms analyzing to creat availablee jobs, resultingdata to indetermine a cost- 2014 New Mexico total costeffectiveness per job higher for than many any programs. one line item. (See Reporting “Cost Per and Job” data in quality the LFC Volume Unemployment Insurance issues regarding jobs created add to the difficulty in precisely estimating the for rankings.) Many tax incentives are “stackable,” and companies often Benefit Highlights cost perIII job. Accurately measuring this would necessitate legislation National 2014 requiringreceive companies assistance using anyfrom of aNew variety Mexico’s of programs existing taxto creatincentivese jobs, or resulting in a 2014 NewRanking Mexico total cost per job higher than any one line item. Reporting and data quality 11th discretionary funding to publicly disclose employment data, although a law ExhaustionUnemployment Insurance 43.3% Highest in passed issuesin 2010 regarding requires jobssuch createddisclosure add for to newthe difficultyeconomic indevelopment precisely estimating the Rate Benefit Highlights the Nation incentives.cost per job. Accurately measuring this would necessitate legislation National 2014 5th Highest requiring companies using any of New Mexico’s existing tax incentives or Average 19.1 Ranking in the Duration w eeks 11th Creatingdiscretionary an Effective funding to Workforce publicly disclose employment data, although a law Exhaustion Nation 43.3% Highest in passed in 2010 requires such disclosure for new economic development AverageRate Weekly 25th in thethe NationThe state’sincentives. workforce training and development programs face increasing $306.52 Benefit Nation5th Highestpressur e to produce and retrain employees for current and prospective job Average 19.1 Amount in the opportunities, especially in light of underemployment and regional Duration w eeks Source: WSDNation unemploymentCreating levels. an New Effective Mexico’s programs Workforce are mostly funded with Average federal and private sector revenues, with limited support from the state. More Weekly 25th in theimportantly The, thestate’s workforce workforce training training and development and development programs, noprograms matter the face increasing $306.52 Benefit Nationfunding pressursource,e are to notproduce grounded and in retrain a statewide employees plan, not for well current-coordinated, and prospective job Amount FY15 UI Trust Fund and not opportunities,comprehensive inespecially addressing populationin light or oflocal underemployment economic needs. and regional Performance by Source: WSD unemployment levels. New Mexico’s programs are mostly funded with Quarter Careerfederal and T andraining private. Laggingsector revenues, high school with graduation limited support rates infrom New the state. More (in millions) Mexico produce significant drains on the state’s economy. According to the $160 importantly, the workforce training and development programs, no matter the U.S. Census,funding more source, than 220are notthousand grounded adults in in a Newstatewide Mexico plan, lack not a highwell -coordinated, $140 school diplomaand not comprehensiveor equivalent. National in addressing research population suggests adultsor local without economic a needs. FY15 UI Trust Fund high school credential are more likely to live in poverty and rely on public $120 Performance by assistance. An LFC evaluation found that increasing the number of students $100 Quarter who graduateCareer annually and byT raining2,600 would. Lagging result in anhigh estimated school $700 graduation million in rates in New (in millions) net benefitsMexico to taxproducepayers, significantsociety, and drains these onstudents the state’s over economy.their lifetimes. According to the $80 $160 Additionally,U.S. Census,to improve more economic than 220 outcomes thousand, the adults state shouldin New focus Mexico on lack a high $60 $140 implementingschool targeted diploma, evidence or equivalent.-based dropout National prevention research strategies. suggests adults without a $40 high school credential are more likely to live in poverty and rely on public $120 Investinassistanceg in research. An-based LFC training evaluation and foundbasic thateducation increasing proficiency the number is of students $20 $100 essentialwho to improvinggraduate annuallyjob opportunities; by 2,600 however,would result adult in education an estimated efforts $700 million in $- also neednet to benefitsbe coordin to atedtax payers,with th esociety, state’s workforceand these system students to enhanceover their lifetimes. $80Q1 Q2 Q3 Q4 their poAdditionally,tential impact. tWitho improve this in economicmind, federal outcomes workforce, the development state should focus on Total$60 Contribution Revenue funding has shifted to support state needs. The Workforce Innovation and Received Opportunityimplementing Act (WIOA) targeted, signed, evidenceinto law -inbased July dropout2014, is preventiondesigned to strategies.help Total$40 Benefit Payout job seekers access employment, education, training, and support services to succeedInvestin in theg inlabor re searchmarket-b andased to training match employersand basic with education the skilled proficiency is $20 Source: WSD workersessential they need to toimproving compete in job the opportunities;global economy. however, WIOA isadult the firsteducation efforts $- congressionalalso need refo rmto bein coordin15 yearsated ofwith the th epublic state’s workforce workforce system. system to enhance Q1 Q2 Q3 Q4Highlightstheir ofpo tentialWIOA impact. include With strategic this inalign minmentd, federal of workforceworkforce development Total Contribution Revenuedevelopment funding programs, has shifted regional to support collaboration, state needs. promoting The Workforce work-based Innovation and Received training,Opportunity and investment Act in (WIOA) services ,for signed disconnected into law youth. in July 2014, is designed to help Total Benefit Payout job seekers access employment, education, training, and support services Unemploymentto succeed. New in theMexico’s labor unemploymentmarket and torate, match 6.4 p ercentemployers at the endwith the skilled Source: WSDof FY15, exceeded the national average of 6.2 percent, indicating New Mexico workersis either stillthey struggling need to tocompete recover fromin the the global recession economy. or is in aWIOA new is the first congressional reform in 15 years of the public workforce system. Highlights of WIOA include strategic alignment of workforce development programs, regional collaboration, promoting work-based training, and investment in services for disconnected youth.
Unemployment. New Mexico’s unemployment rate, 6.4 percent at the end of FY15, exceeded the national average of 6.2 percent, indicating New 36 Mexico is either still struggling to recover from the recession or is in a new Economic DevelopmentPolicy Analysis: Economic Development and Workforce Training Page 4 Policy Analysis: Economic Development and Workforce Training & Workforce Training Page 4 normal of low growth. Additionally, when people stop seeking employment, they technically exit the workforce and are no longer counted in the
unemployment rate, resulting in an artificially low number. If these people normal of low growth. Additionally, when people stop seeking employment, stay in the state, they continue to draw on social services, costing the state they technically exit the workforce and are no longer counted in the Unemployment Insurance Comparison of Surrounding significant resources. unemployment rate, resulting in an artificially low number. If these people States Weekly Unemployment Insurance stay in the state, they continue to draw on social services, costing the state Benefit Amounts Unemployment Insurance. In 2015, New Mexico implemented a new Comparison of Surrounding significant resources. Weekly Benefit employer contribution structure with tax rates that vary by employer and are States Weekly State Amount primarily dependent on the employer’s experience rating and the overall fiscal Benefit Amounts Unemployment Insurance. In 2015, New Mexico implemented a new Min. Max. condition of the UI trust fund. This new computation structure was a result of Arizona $126 $240 significant stakeholder input and discussion; however, some employers Weekly Benefit employer contribution structure with tax rates that vary by employer and are $40 $450 experienced substantial UI tax increases due to their individual experience State Amount primarily dependent on the employer’s experience rating and the overall fiscal California Colorado $25 $532 rating. It is important to note an employer’s contribution rate can be lowered Min. Max. condition of the UI trust fund. This new computation structure was a result of Kansas $118 $474 relatively quickly because benefit charges are based on the previous three Arizona $126 $240 significant stakeholder input and discussion; however, some employers years of experience. Therefore, as employers engage in practices to reduce Nevada $16 $412 California $40 $450 experienced substantial UI tax increases due to their individual experience benefit charges, in conjunction with trust fund reserves growing, the UI New Mexico $77 $412 rating. It is important to note an employer’s contribution rate can be lowered system will stabilize and contribution rates may decline. Colorado $25 $532 Oklahoma $16 $490 relatively quickly because benefit charges are based on the previous three Kansas $118 $474 Texas $64 $465 years of experience. Therefore, as employers engage in practices to reduce Unemployment Insurance Benefits. When an employee becomes Nevada $16 $412 Utah $26 $496 unemployed, the individual is eligible to file a UI claim with the Workforce benefit charges, in conjunction with trust fund reserves growing, the UI New Mexico $77 $412 Wyoming $34 $475 Solutions Department (WSD). To be eligible for benefits the claimant must system will stabilize and contribution rates may decline. Average $54 $445 meet monetary and non monetary requirements such as earning sufficient Oklahoma $16 $490 Source: WSD wages during a base period of time, and being able, available, and actively Texas $64 $465 Unemployment Insurance Benefits. When an employee becomes searching for work. The base wage period is 12 months, during which an
Utah $26 $496 unemployed, the individual is eligible to file a UI claim with the Workforce average wage determination is used to calculate benefits. Benefits are available for up to 26 weeks and are equal to 53.5 percent of the average Wyoming $34 $475 Solutions Department (WSD). To be eligible for benefits the claimant must Unemployment Insurance Comparison of weekly wage of the claimant’s base period. Average $54 $445 meet monetary and non monetary requirements such as earning sufficient wages during a base period of time, and being able, available, and actively Surrounding States Source: WSD Average Weekly Benefit The analysis of regional minimum, maximum, and average benefits indicates searching for work. The base wage period is 12 months, during which an Amounts and Duration that New Mexico is in general alignment with surrounding states. However, average wage determination is used to calculate benefits. Benefits are the duration of benefits is significantly above average, resulting in longer Average Average available for up to 26 weeks and are equal to 53.5 percent of the average State Weekly Duration durations of unemployment and larger draws from the fund. The eligibility of Unemployment Insurance 26 weeks is federally mandated and therefore not adjustable; however best Comparison of weekly wage of the claimant’s base period. Benefit in Weeks practice in other states has focused on reducing the duration of benefits by Surrounding States Arizona $224 16.0 implementing programs to re-employ workers quicker. As a secondary Average Weekly Benefit The analysis of regional minimum, maximum, and average benefits indicates California $303 18.1 benefit, reducing duration would also reduce benefit charges to employers Amounts and Duration that New Mexico is in general alignment with surrounding states. However, Colorado $374 14.9 and, therefore, possibly reduce the employer contribution rate. the duration of benefits is significantly above average, resulting in longer $358 13.6 Average Average Kansas UI is financed by a quarterly tax State Weekly Duration durations of unemployment and larger draws from the fund. The eligibility of Nevada $318 16.1 State Unemployment Insurance Tax. on employers. An employer’s tax will vary based on their experience rating Benefit in Weeks 26 weeks is federally mandated and therefore not adjustable; however best New Mexico $307 19.1 benefit ratio - the amount of claims filed during the previous three years, practice in other states has focused on reducing the duration of benefits by Oklahoma $324 16.6 Arizona $224 16.0 divided by the employer’s average taxable payroll. After an employer’s implementing programs to re-employ workers quicker. As a secondary Texas $360 15.9 experience rating is determined, a reserve factor is added to establish the final California $303 18.1 benefit, reducing duration would also reduce benefit charges to employers Utah $352 13.2 contribution rate. The reserve factor is based on the solvency of the Colorado $374 14.9 and, therefore, possibly reduce the employer contribution rate. Wyoming $360 14.6 unemployment trust fund, between 0.5 percent and 4.0 percent. $358 13.6 Average $328 15.8 Kansas Source: WSD Nevada $318 16.1 State Unemployment Insurance Tax. UI is financed by a quarterly tax Unemployment Trust Fund. Prior to the Great Recession, New Mexico maintained the second healthiest UI trust fund in the nation. However, as of New Mexico $307 19.1 on employers. An employer’s tax will vary based on their experience rating benefit ratio - the amount of claims filed during the previous three years, the third quarter of FY15, New Mexico’s fund balance was down to $64.3 Oklahoma $324 16.6 divided by the employer’s average taxable payroll. After an employer’s million from a high of $557 million in 2008. Texas $360 15.9 experience rating is determined, a reserve factor is added to establish the final Utah $352 13.2 contribution rate. The reserve factor is based on the solvency of the Wyoming $360 14.6 unemployment trust fund, between 0.5 percent and 4.0 percent. Average $328 15.8
Source: WSD Unemployment Trust Fund. Prior to the Great Recession, New Mexico maintained the second healthiest UI trust fund in the nation. However, as of the third quarter of FY15, New Mexico’s fund balance was down to $64.3 million from a high of $557 million in 2008.
37 Health Care
Policy PolicyAnalysis: Analysis: Health and Health Human and Services Human Services
mproving the overall health of New Mexicans Total Medicaid mproving the overall health of New Mexicans EnrollmentTotal Medicaid remains an elusive goal. While the 2010 passage of Enrollment remains an elusive goal. While the 2010 passage of 1,000,000 the federal Affordable Care Act expanded Medicaid 1,000,000 I the federal Affordable Care Act expanded Medicaid coverage and made health insurance more affordable for 900,000 I 900,000 thousandscoverage of New and Mexicans, made health declining insurance federal more support affordable for 800,000 in 2017thousands will place of additional New Mexicans, financial decliningpressure onfederal a support 800,000 700,000 in 2017 will place additional financial pressure on a system already struggling to provide adequate primary 700,000 system already struggling to provide adequate primary 600,000 and behavioral health care to its citizens. The lack of transparent data and inconsistent leadership, such as 600,000 and behavioral health care to its citizens. The lack of 500,000 from thetransparent state’s Behavioral data andHealth in consistentCollaborative leadership, further , such as 400,000500,000 impede fromthe state’s the state’s ability Behavioralto understand Health the effect Collaborativeiveness , further of the current millions dedicated to health care in the 300,000400,000 impede the state’s ability to understand the effectiveness state. Dofespit thee thecurrent challenges, millions with dedicatedvigilant evaluation to healt ofh care in the 200,000300,000 spending priorities and allocation of limited resources to initiativesstate. proven Despit toe work,the challenges, the state canwith mitigate vigilant the evaluation of 100,000200 ,000 crisis situationspending of itspriorities current healthand allocation care system. of li mited resources to - 100,000 initiatives proven to work, the state can mitigate the 15 16 10 11 12 13 14 ------Jul Jul Jul Jul Jul *Jul *Jul Healthcrisis Care situation for Low of Income its current Families health care system. - *2015 & 2016 projected 15 16 10 11 12 13 14 - - - Source:- HSD- - - By the beginning of FY17, an estimated 250 thousand newly eligible Jul Jul Jul Jul Jul *Jul New*Jul MexicansHealth will receiveCare health for care Low under Income Medicaid and Families another 44 Centennial*20 15Care& 2016. HSD projected received Source: HSDthousand will obtain insurance coverage through the NM Health federal approval for a Section 1115 Exchange By (NMHIX) the beginni. This ngexpansion of FY17, of insured an estimated New Mexicans 250 thousand under the newly eligible Medicaid waiver to implement New Mexicans will receive health care under Medicaid and another 44 Centennial Care beginning January Affordable Care Act (ACA) is reducing the cost of uncompensated care 1, 2014.Centennial Key elements Care. ofHSD the receivedfor the healththousand care providerswill obtain – and insurance the state’s coverageobligation tothrough reimburse the NM Health waiver federalinclude approval(1) consolidate for a Section the them 1115 – andExchange is improving (NMHIX) the health. Th ofis the expansion most vulnerable. of insured Yet New, increased Mexicans under the Medicaid waiver to implement state’s 12 waivers (except coverage Affordablecomes at increased Care Act cost (ACA)s, particularly is reducing as federal the supportcost of beginsuncompensated care developmentalCentennial disabilities) Care beginning into a Januaryto decline in January 2017. If the state is to control costs and still make single 1, 2014.waiver Keyto elementsreduce of the for the health care providers – and the state’s obligation to reimburse administrativewaiver includecomplexity; (1) consolidate (2) headway the themimproving – and the is improvingstate’s poor the health health statistics of the, mostit must vulnerable. diligently Yet, increased assess the ongoing implementation of Centennial Care, New Mexico’s promotestate’s integrated 12 waiverscare and (except coverage comes at increased costs, particularly as federal support begins improve case management; 3) Medicaid reorganization that became effective January 1, 2014, developmental disabilities) into a to decline in January 2017. If the state is to control costs and still make integratesingle physical waiver and behavioralto reduceconcurrent with ACA. health care (provided by fewer headway improving the state’s poor health statistics, it must diligently managedadministrative care organization complexity;s); and; (2) (4) paymentpromote reform integrated targeted toward care In andits June assess 2015 thereview ongoing of the implementationfirst year of Medicaid of Centennial under Centennial Care, New Mexico’s payingimprove for improvedcase management;patient Care 3), LFC Medicaid program evaluatorsreorganizat foundion threethat emergingbecame themes:effective growing January 1, 2014, outcomes.integrate The physicalnew waiver and also behavioral costs of Medicaid,concurrent the with state’s ACA. general inability to determine trends in the includedhealth rewards care for wellness(provided and by amountfewer and quality of care enrollees are receiving, and the need for for certainmanaged emergency care roomorganization related s); and; co-pays.(4) payment reform targeted towardadditional In controlits June and 2015 transparency review of regardingthe first yearthe stateof Medicaid’s Medicaid under Centennial paying for improved pbudget.atient Care, LFC program evaluators found three emerging themes: growing Centennialoutcomes. Care TheContractors new waiver also costs of Medicaid, the state’s general inability to determine trends in the providingincluded physical, rewards behavioral, for wellnessand Improved and Access to Care. At the end of 2013, the U.S. uninsured long-term services: amount and quality of care enrollees are receiving, and the need for for certain emergency room relatedrate for adults aged 18 and older was 14.5 percent and New Mexico additional control and transparency regarding the state’s Medicaid • Blueco -Crosspays. Blue Shield ranked 5th highest in the country with 18.6 percent of New Mexicans • Presbyterian uninsured.budget. In January 2014, ACA and Medicaid expansion took effect • MolinaCentennial Care Contractorsand health insurance options for New Mexicans increased considerably. • Unitedproviding Health physical, Care behavioral,By andthe endImproved of 2014, theAccess national to uninsured Care. At rate the was end 11.7 of percent2013, theand U.S. uninsured long-term services: rate for adults aged 18 and older was 14.5 percent and New Mexico • Blue Cross Blue Shield ranked 5th highest in the country with 18.6 percent of New Mexicans • Presbyterian uninsured. In January 2014, ACA and Medicaid expansion took effect • Molina and health insurance options for New Mexicans increased considerably. • United Health Care By the end of 2014, the national uninsured rate was 11.7 percent and 38 Policy Analysis: Health Care and Human Services Page 2
Policy Analysis: Health Care and Human Services Health Care New Mexico’s rate had dropped to 14.5 percent, improving the state’s Page 2 ranking to 8th highest in the country (and 2nd highest among the Medicaid expansion states). Further, in January 2015, the New York Times reported the number of Americans experiencing financial distress New Mexico’s rate had dropped to 14.5 percent, improving the state’s from medical bills started to decline after nearly a decade of increasing. ranking to 8th highest in the country (and 2nd highest among the This could indicate the ACA not only provides uninsured people with Medicaid expansion states). Further, in January 2015, the New York health insurance but also improves their financial security, a major goal Times reported the number of Americans experiencing financial distress Human Services of the law. Nevertheless, despite overall improved access to health care, from medical bills started to decline after nearly a decade of increasing. Department Report Card experts in the field note ongoing challenges to access, particularly with This could indicate the ACA not only provides uninsured people with Page 102 respect to primary health care in New Mexico’s rural populations. health insurance but also improves their financial security, a major goal Human Services of the law. Nevertheless, despite overall improved access to health care, Medicaid Expansion. Under the Affordable Care Act (ACA), states Department Report Card experts in the field note ongoing challenges to access, particularly with have the option to expand Medicaid to include all persons with incomes Page 102 up to 138 percent of the federal poverty level, or about $1,814 per month respect to primary health care in New Mexico’s rural populations. for a single person (based on 2015 levels). A year ago, the Human Many states, including New Mexico, are realizing savings and revenue Services Department estimated approximately 215,721 individuals would Medicaid Expansion. Under the Affordable Care Act (ACA), states gains from Medicaid expansion. An enroll in Medicaid by the end of FY16 but now estimates as many as have the option to expand Medicaid to include all persons with incomes October 2015 report from the 249,484 will enroll and that enrollment will grow to nearly 261,585 by up to 138 percent of the federal poverty level, or about $1,814 per month University of New Mexico Bureau of the end of FY17. Business and Economic Research for a single person (based on 2015 levels). A year ago, the Human Many states, including New Mexico, concluded, although the state will are realizing savings and revenue Services Department estimated approximately 215,721 individuals would pick up an increasing portion of the The federal government covered 100 percent of the cost for these newly gains from Medicaid expansion. An enroll in Medicaid by the end of FY16 but now estimates as many as costs of expansion (a full 10 percent eligible adults in calendar years 2014, 2015, and 2016. However, by 2020), “The program is basically October 2015 report from the beginning January 1, 2017, the federal match drops to 95 percent, with an 249,484 will enroll and that enrollment will grow to nearly 261,585 by paying for itself.” University of New Mexico Bureau of the end of FY17. estimated $41 million impact to the state’s general fund in fiscal year Business and Economic Research However, while some states 2017. Federal support will continue to decrease until reaching 90 percent concluded, although the state will identified over $300 million in for calendar 2020 and beyond. pick up an increasing portion of the The federal government covered 100 percent of the cost for these newly savings generated by Medicaid costs of expansion (a full 10 percent eligible adults in calendar years 2014, 2015, and 2016. However, expansion and others include To address the uncertainty of covering a large new Medicaid population, projected savings into their agency by 2020), “The program is basically beginning January 1, 2017, the federal match drops to 95 percent, with an most states, including New Mexico, included risk-sharing arrangements paying for itself.” budgets, New Mexico has not done estimated $41 million impact to the state’s general fund in fiscal year as well with respect to quantifying in their managed-care contracts. Under a risk corridor, managed-care However, while some states 2017. Federal support will continue to decrease until reaching 90 percent the positive impacts of Medicaid organizations (MCOs) return payments to states and the federal expansion. identified over $300 million in for calendar 2020 and beyond. government if average benefits per enrollee fall below a certain level and savings generated by Medicaid receive additional payments if costs exceed a certain level. Early expansion and others include To address the uncertainty of covering a large new Medicaid population, evidence indicates the newly expanded population may cost less than projected savings into their agency most states, including New Mexico, included risk-sharing arrangements first expected. Settlement of the risk corridor agreements will be budgets, New Mexico has not done completed later in 2015; however, the federal Centers for Medicare and as well with respect to quantifying in their managed-care contracts. Under a risk corridor, managed-care Medicaid Services reports a greater likelihood funds will be returned to the positive impacts of Medicaid organizations (MCOs) return payments to states and the federal the states and the federal government. Further, enrollment of the newly expansion. government if average benefits per enrollee fall below a certain level and eligible population is anticipated to eventually flatten somewhat as the receive additional payments if costs exceed a certain level. Early majority of eligible persons take advantage of the new benefit. evidence indicates the newly expanded population may cost less than first expected. Settlement of the risk corridor agreements will be Nevertheless, even if the expanded population is not as expensive as once completed later in 2015; however, the federal Centers for Medicare and thought, declining federal support combined with greater-than-expected Medicaid Services reports a greater likelihood funds will be returned to enrollment will soon result in significant impacts on state resources. The the states and the federal government. Further, enrollment of the newly state can only hope to meet the increasing demand and turn around the eligible population is anticipated to eventually flatten somewhat as the dismal healthcare outcomes for its low income and fragile populations if it can successfully leverage every federal dollar and direct scarce state majority of eligible persons take advantage of the new benefit. resource toward efficient initiatives proven to bend cost curves and bring incremental but measurable improvement. Nevertheless, even if the expanded population is not as expensive as once thought, declining federal support combined with greater-than-expected Centennial Care. With New Mexico’s reorganization of Medicaid enrollment will soon result in significant impacts on state resources. The administration under Centennial Care, the number of managed-care state can only hope to meet the increasing demand and turn around the dismal healthcare outcomes for its low income and fragile populations if it can successfully leverage every federal dollar and direct scarce state resource toward efficient initiatives proven to bend cost curves and bring incremental but measurable improvement.
Centennial Care. With New Mexico’s reorganization of Medicaid administration under Centennial Care, the number of managed-care 39 HealthPolicy Analysis: Health Care Care and Human Services PagePolicy 3 Analysis: Health Care and Human Services Page 3 organizations (MCOs) was reduced from seven to four. The four Centennialorganizations Care providers (MCOs) are Blue was Cross reduc Blueed Shield from of sevenNew Mexico, to four. The four Molina HealthcareCentennial of Care New Mexico,providers Presbyterian are Blue CrossHealth BluePlan, andShield United of New Mexico, HealthcareMolina, which Healthcare were competitively of New Mexico, procured Presbyterian. Behavioral Health health Plan, and United services Healthcarecovered by, Medicaidwhich werewere “competitivelycarved in” to Centennial procured Care. Behavioral to health promote integration of physical and behavioral health. Behavioral health services covered by Medicaid were “carved in” to Centennial Care to services promoteoutside of integration Medicaid, supportedof physical by andstate behavioral general fund health. and other Behavioral health federal funds, are still provided through the single state entity, services outside of Medicaid, supported by state general fund and other OptumHealth, or contracted directly by agencies. federal funds, are still provided through the single state entity,
LFC EvaluationOptumHealth, Sheds or Lightcontracted on First directly Year by of agencies. Centennial Care. In its evaluation, the LFC examined cost management components and goals of LFCCentennial Evaluation Care, including Sheds an Light assessment on First of baseline Year ofspending Centennial Care. prior to Inimplementation, its evaluation, thethe rateLFC setting examine processd cost for management the Medicaid components and managedgoals care ofprogram, Centennial and oversightCare, including of managed an assessment care organization of baseline spending Medicaid Spending fiscal requirementsprior to implementation, for Centennial theCare, rate including setting examinationprocess for of the Medicaid (in millions) administrativemanaged costs. care program, and oversight of managed care organization
7,000 Medicaid Spending fiscal requirements for Centennial Care, including examination of While managed care systems are becoming the (in millions) Cost-Containmentadministrative. costs. 6,000 new normal for healthcare delivery because they tend to help assure 7,000 access, improve quality, and achieve budget certainty, an initial concern 5,000 of an LFCCost evaluation-Containment of Centennial. While managedCare was carethat systemscertain costare -becoming the 6,000 new normal for healthcare delivery because they tend to help assure 4,000 containment measures were scaled back or delayed, while direct care costs escalatedaccess, pastimprove trends quality and benchmarks., and achieve Further, budget expected certainty savings, an initial concern 5,000 3,000 resultingof from an moreLFC clients evaluation accessing of MedicaidCentennial and dependingCare was less that on certain cost- 4,000 state resourcescontainment were not measures as readily wer quantifiede scaled in backNew Mexicoor delayed, compared while direct care 2,000 with whatcosts evaluators escalated noticed past in othertrends states and. benchmarks. Further, expected savings
1,000 3,000 resulting from more clients accessing Medicaid and depending less on The evaluationstate resources raised concerns were not about as readilythe HSD quantified decision toin rollNew back Mexico a compared number of payment and service delivery reforms that linked provider 0 2,000 with what evaluators noticed in other states. payments to good client outcomes during the Centennial Care rollout.
FY13 FY14 1,000 LFC recommended HSD strengthen contract requirements for MCOs to FY15 est FY16 est FY17 req incorporateThe payment evaluation and raiseddelivery concerns reforms, butabout HSD the indi HSDcated decision it would to roll back a Federal0 Funds allow MCOsnumber to pilotof payment a number and of diverseservice payment delivery strategies reforms, with that the linked provider Other State Funds expectationpayments it would to capturegood client a “wide outcomes swath ofduring data” theand Centennialbe able to Care rollout.
General FY13Fund FY14 leverageLFC the most recommend effective edmodels HSD across strengthen providers. contract requirements for MCOs to FY15 est FY16 est Note: excludes administration. FY17 req incorporate payment and delivery reforms, but HSD indicated it would Federal Funds Other costallow related MCOs findings to pilot in the a evaluationnumber of focused diverse on payment HSD ensuring strategies , with the OtherSource: State HSD Funds MCOs areexpectation paid appropriate it would rates capturefor parti culara “wide groups swath (“cohorts”) of data based” and be able to on health risk factors and that MCOs spend appropriate sums on clinical General Fund leverage the most effective models across providers. services and quality improvement versus administration, marketing, and Note: excludes administration.profits. Further, to increase confidence in the many critical programmatic decisionsOther the department cost related is responsiblefindings in for, the HSD evaluation will need focused to be moreon HSD ensuring Source: HSDtransparent MCOs and areopen paid with appropriate data and policyrates forevaluation particular to ensuregroups state(“cohorts”) based on health risk factors and that MCOs spend appropriate sums on clinical lawmakers can objectively asses how Centennial Care is performing. services and quality improvement versus administration, marketing, and The LFCprofits. evaluation Further, also foundto increase more detailedconfidence information in the many and reporting critical programmatic is neededdecisions to leverage the Medicaiddepartment savings is responsible and increase for, the HSD Legislature’s will need to be more ability totransparent budget at anda detailedopen with level data. Detailed and policyassumptions evaluation behind to ensure state actuarial analyses (the basis for the largest expenditure projections) are lawmakers can objectively asses how Centennial Care is performing. poorly understood and proposed and ongoing policy initiatives are rarely accompanied with detailed business cases, which would include The LFC evaluation also found more detailed information and reporting is needed to leverage Medicaid savings and increase the Legislature’s ability to budget at a detailed level. Detailed assumptions behind actuarial analyses (the basis for the largest expenditure projections) are
poorly understood and proposed and ongoing policy initiatives are rarely 40 accompanied with detailed business cases, which would include HealthPolicy Analysis: Care Health Care and Human Services Policy Analysis: Health Care and Human Services Page 4 Page 4 timelines, expected return on investment, expected outcomes, and closely timelines, expected return on investment, expected outcomes, and closely linked performance targets to assess program performance. Equally, the Uninsured New Mexicans: linked performance targets to assess program performance. Equally, the agency generally resists reporting on efficiency performance measures 1999* 24% that would reveal cost per person or how accurately or efficiently it Uninsured New Mexicans: agency generally resists reporting on efficiency performance measures 2006* 22.7% performs its own work, such as managing managed care organization 1999* 24% that would reveal cost per person or how accurately or efficiently it 2012* 21.4% 2006* 22.7% 2013** (Baseline) 20.2% contracts. 2012* 21.4% performs its own work, such as managing managed care organization 2014** 15.3% 2013** (Baseline) 20.2% contracts. 2015 (June 30)** 13.1% New Mexico’s Health Insurance Exchange. As part of its effort to 2014** 15.3% *Source: U.S. Census Bureau increase coverage and improve the collective health and well-being of 2015 (June 30)** 13.1% New Mexico’s Health Insurance Exchange. As part of its effort to New Mexicans, a state-based marketplace for buying health insurance **Source: Gallup-Healthways Well- increase coverage and improve the collective health and well-being of Being Index under the 2010 federal Affordable Care Act called the New Mexico *Source: U.S. Census Bureau **Source: Gallup-Healthways Well- New Mexicans, a state-based marketplace for buying health insurance Health Insurance Exchange (NMHIX) was established. Although NMHIX helped accelerate Medicaid expansion, enrollment in the Being Index under the 2010 federal Affordable Care Act called the New Mexico Health Insurance Exchange (NMHIX) was established. Although exchange remains below estimates. The latest estimate is 44 thousand out NMHIX helped accelerate Medicaid expansion, enrollment in the of an estimated pool of 180 thousand qualifying residents, including roughly 150 thousand eligible for subsidies, have enrolled. New Mexico exchange remains below estimates. The latest estimate is 44 thousand out For more information about is the only state-based exchange that did not initially implement its own of an estimated pool of 180 thousand qualifying residents, including uncompensated care costs in New Mexico, view the LFC October 27, marketplace and remains on the federal platform, HealthCare.gov. roughly 150 thousand eligible for subsidies, have enrolled. New Mexico NMHIX did implement a small business marketplace, enrolling 877 For more information about 2015 Health Notes Uncompensated is the only state-based exchange that did not initially implement its own Care in New Mexico After the people as of March 2015 at a high cost of $21 thousand per person. In an uncompensated care costs in New Affordable Care Act. Mexico, view the LFC October 27, marketplace and remains on the federal platform, HealthCare.gov. October 2015 evaluation, LFC recommended changes to improve business processes, transparency, and outcomes that included enhanced 2015 Health Notes Uncompensated NMHIX did implement a small business marketplace, enrolling 877 Care in New Mexico After the people as of March 2015 at a high cost of $21 thousand per person. In an website content, comprehensive procurement procedures, increased Affordable Care Act. October 2015 evaluation, LFC recommended changes to improve interaction with stakeholders, revised IT oversight, and revised business processes, transparency, and outcomes that included enhanced performance measures tied to enrollment. The report concluded that, with House Memorial 33 (2015) an estimated cost $15 million a year to operate, the state may need to website content, comprehensive procurement procedures, increased requested the LFC and the restructure the NMHIX to reduce overhead if enrollment remains low. interaction with stakeholders, revised IT oversight, and revised Department of Health study the
effects of the Patient Protection and performance measures tied to enrollment. The report concluded that, with Affordable Care Act on Safety Net Care Pool. The Centennial Care waiver replaced the Sole House Memorial 33 (2015) an estimated cost $15 million a year to operate, the state may need to uncompensated care and other requested the LFC and the Community Provider (SCP) fund with the safety net care pool (SNCP), a restructure the NMHIX to reduce overhead if enrollment remains low. healthcare costs in New Mexico state and federal payment program administered by HSD, with county Department of Health study the hospitals. effects of the Patient Protection and funds supporting the state share of Medicaid expenditures. In 2014, Affordable Care Act on updates to the Indigent Hospital and County Health Care Act created Safety Net Care Pool. The Centennial Care waiver replaced the Sole uncompensated care and other mandatory county contributions to the SNCP equivalent to a 1/12th of a Community Provider (SCP) fund with the safety net care pool (SNCP), a healthcare costs in New Mexico state and federal payment program administered by HSD, with county cent gross receipts tax (Bernalillo and Sandoval counties are exempt). hospitals. SNCP uncompensated care reimbursements to hospitals are capped at a funds supporting the state share of Medicaid expenditures. In 2014, updates to the Indigent Hospital and County Health Care Act created maximum of $68.9 million per year for the five years of the Centennial Care waiver and are allocated according to hospital size. mandatory county contributions to the SNCP equivalent to a 1/12th of a
cent gross receipts tax (Bernalillo and Sandoval counties are exempt). SNCP is divided into two pools. The uncompensated care pool receives SNCP uncompensated care reimbursements to hospitals are capped at a 92 percent of SNCP funding, or a total of $344 million over the five
maximum of $68.9 million per year for the five years of the Centennial years of the waiver. As noted, these funds are used to reimburse the 28
Care waiver and are allocated according to hospital size. safety net qualified hospitals for actual uncompensated care costs. The hospital improvement incentive (HQII) portion of the pool receives 8 percent of SNCP funding, or a total of $29.4 million over the five years SNCP is divided into two pools. The uncompensated care pool receives 92 percent of SNCP funding, or a total of $344 million over the five of the waiver. The HQII pool is intended to incentivize healthcare improvements at safety net hospitals along 25 improvement measures. years of the waiver. As noted, these funds are used to reimburse the 28 safety net qualified hospitals for actual uncompensated care costs. The Distributions will begin with a total of $2.8 million in the second year of the waiver and rise to $12 million by the fifth year, calendar year 2018. hospital improvement incentive (HQII) portion of the pool receives 8 In CY16, allocations will be based on meeting minimum state percent of SNCP funding, or a total of $29.4 million over the five years performance levels for those measures; CY17 and CY18 allocations will of the waiver. The HQII pool is intended to incentivize healthcare be based on hospitals meeting or exceeding improvement targets. improvements at safety net hospitals along 25 improvement measures. Distributions will begin with a total of $2.8 million in the second year of the waiver and rise to $12 million by the fifth year, calendar year 2018. In CY16, allocations will be based on meeting minimum state performance levels for those measures; CY17 and CY18 allocations will 41 be based on hospitals meeting or exceeding improvement targets. Policy Analysis: Health Care and Human Services Page 5 HealthPolicy Analysis: Care Health Care and Human Services Page 5 Medical Insurance Pool. The New Mexico Medical Insurance Pool (NMMIP) was established in 1987 to provide access to health insurance to peopleMedical denied health Insurance insurance Pool coverage. The and New considered Mexico uninsurable. Medical Insurance Pool The pool(NMMIP) is funded wasthrough establi assessmentsshed in 1987 on health to provide insurance access providers; to health insurance the providers subsequently receive tax credits that reduce transfers from premiumto tax people revenues denied to the health general insurance fund. As coverage a result ofand the considered ACA and uninsurable. MedicaidThe expansion, pool is fundedthe number through of people assessments remaining on in health the pool insurance has providers; fallen dramatically,the providers and subsequently the pool may receiveno longer tax be creditsnecessary. that However, reduce trans fers from Behavioral Health the NMMIPpremium board taxrecently revenues voted to to theadd generala one-year fund. delay As to a itsresult plan of to the ACA and Collaborative Report transitionMedicaid members expansion,out of the pool, the after number which of it willpeople transition remaining a third inof the pool has Card Page 106 membersfallen who dramatically,have other insurance and the options pool may out ofno thelonger pool be each necessary. year However, Behavioral Health over threethe years, NMMIP starting board in 2017. recently voted to add a one-year delay to its plan to Collaborative Report transition members out of the pool, after which it will transition a third of Card Page 106 LFC staffmembers estimate whothe board’s have otherrevised insurance timeframe options would reduceout of general the pool each year fund transfersover three by $80 years, million starting over fourin 2017. years compared with transfers if the pool were discontinued in 2016. This cost estimate assumes all members transitioned out of the pool move to insurance available through LFCthe exchange, staff estimate but it isthe possible board’s some revised members timeframe might end would up on reduce general People Receiving Medicaid,fund which transfers would byincrease $80 millionthe costs over to the four state. years In addition, compared about with transfers if Behavioral Health the pool were discontinued in 2016. This cost estimate assumes all Services 1,000 pool members without viable insurance options could remain in the pool.members If the pool transitioned were to move out out allof membersthe pool with move other to insurance insurance available 140,000 options inthrough 2016 but the remain exchange, open butindefinitely it is possible for these some members members without might end up on People Receiving 120,000 other options,Medicaid, most whichof whom would are either increase on dialysis the costs or areto theundocumented state. In addition, about Behavioral Health immigrants, general fund transfers over four years would be reduced by Services 1,000 pool members without viable insurance options could remain in 100,000 $32 millionthe pool.compared If the with pool moving were outto moveall members out all in members 2016. However, with other insurance 140,000 proponentsoptions of the in plan 2016 to butdelay remain moving open members indefinitely out of forthe thesepool untilmembers without 80,000 2017 report moving members in 2016 could cause significant disruption 120,000 other options, most of whom are either on dialysis or are undocumented 60,000 to the exchange market, particularly in light of the decision by Blue Cross andimmigrants, Blue Shield generalto no longer fund participate transfers inover the exchange.four years would be reduced by 40,000100,000 $32 million compared with moving out all members in 2016. However, proponents of the plan to delay moving members out of the pool until 20,00080,000 Behavioral2017 report Health moving members in 2016 could cause significant disruption to the exchange market, particularly in light of the decision by Blue 060,000 In 2015, New Mexico began to see improvements in behavioral health 2 Cross and Blue Shield to no longer participate in the exchange. Q such as more people with access to care, stabilization of provider
40,000 15 SFY10 SFY11 SFY12 SFY14 SFY13 transitions, and new strategic planning efforts for the Behavioral Health CY Q3CY15 Collaborative. Still, New Mexico continues to lead the nation in alcohol- 20,000 Behavioral Health Note: Beginning January 2015, HSD related death rates and is among the worst states for drug overdose began reporting data on a calendar deaths, suicide, and serious mental illness, despite a more than $500 year basis. Includes0 Centennial Care, In 2015, New Mexico began to see improvements in behavioral health
Medicaid fee-for-service, and non- 2 million investment in behavioral health services in FY15.
Medicaid. Q such as more people with access to care, stabilization of provider 15 SFY10 SFY11 SFY12 SFY14 Source: HSDSFY13 Fragmetransitions,ntation and and Poor new Datastrategic. The planning Behavioral efforts Health for Providers’ the Behavioral Health CY Association Q3CY15 Collaborative. notes fragmentation Still, New in Mexico New Mexico’scontinues system, to lead thelack nation of in alcohol- Note: Beginning January 2015, HSD consistent,related valid deathand reliablerates anddata ,is and among limited the information worst states regarding for drug overdose began reporting data on a calendar outcomes of treatment all contribute to New Mexico’s poor behavioral year basis. Includes Centennial Care, deaths, suicide, and serious mental illness, despite a more than $500 Medicaid fee-for-service, and non- health statisticsmillion investmentand complicate in behavioral efforts to improvehealth services the system in FY15, despite. Medicaid. ongoing efforts and broad support to do so. In short, even with increasing Source: HSDnumbersFragme of peoplentation served asand reported Poor by Data HSD., outcomesThe Behavioral and reported Health Providers’ consumerAssociation experience continuenotes fragmentation to demonstrate ain behavioral New Mexico’s health system system, lack of not working as it should. consistent, valid and reliable data, and limited information regarding outcomes of treatment all contribute to New Mexico’s poor behavioral health statistics and complicate efforts to improve the system, despite ongoing efforts and broad support to do so. In short, even with increasing numbers of people served as reported by HSD, outcomes and reported consumer experience continue to demonstrate a behavioral health system not working as it should.
42 HealthPolicy Analysis: CareHealth Care and Human Services Policy Analysis: Health Care and Human Services Page 6 Page 6 Provider Audits and Transitions. Throughout 2015, HSD worked Provider Audits and Transitions. Throughout 2015, HSD worked with community leaders to rebuild capacity in affected areas following with community leaders to rebuild capacity in affected areas following New Mexico has the second highest the closure and replacement of 12 New Mexico behavioral health the closure and replacement of 12 New Mexico behavioral health drug overdose rate in the nation. providers in 2013. According to the Attorney General’s Office (NMAG), New Mexico has the second highest three of the 15 New Mexico behavioral health provider investigations drug overdose rate in the nation. providers in 2013. According to the Attorney General’s Office (NMAG), Rio Arriba County has the highest resulting from the 2013 audits have been completed. In the last three of the 15 New Mexico behavioral health provider investigations overdose rate in the state; Bernalillo legislative session, NMAG received a $1.8 million special appropriation Rio Arriba County has the highest resulting from the 2013 audits have been completed. In the last County has the highest number of deaths by overdose. for the investigations and a contractor has been hired to complete the overdose rate in the state; Bernalillo legislative session, NMAG received a $1.8 million special appropriation County has the highest number of remaining audits by the end of calendar year 2015. deaths by overdose. for the investigations and a contractor has been hired to complete the New Mexico’s alcohol-related death rate is more than twice the national Behavioral Health Collaborative. The 17-member Behavioral remaining audits by the end of calendar year 2015. rate. New Mexico’s alcohol-related death Health Purchasing Collaborative is responsible for coordinating New rate is more than twice the national Behavioral Health Collaborative. The 17-member Behavioral Mexico’s statewide behavioral health system. Yet, continued interest on rate. Health Purchasing Collaborative is responsible for coordinating New behalf of statutorily identified members is unclear; the collaborative has not met consistently each quarter as required by statute and has lacked a Mexico’s statewide behavioral health system. Yet, continued interest on quorum when it did meet, preventing it from taking action on agenda behalf of statutorily identified members is unclear; the collaborative has items. not met consistently each quarter as required by statute and has lacked a quorum when it did meet, preventing it from taking action on agenda Nevertheless, in FY15 the collaborative kicked off strategic planning items. FQHC Payor and Patient Mix efforts centered on finance, workforce, and regulatory environment as a (millions) focus over the next two years. Workgroups identified key areas, such as Nevertheless, in FY15 the collaborative kicked off strategic planning FY13 FY14 Change incentivizing provider payments for health outcomes, “untangling” the regulatory environment to promote access and flexibility, and finding FQHC Payor and Patient Mix efforts centered on finance, workforce, and regulatory environment as a Medicaid Billed ways to expand and retain behavioral health providers. In the next fiscal (millions) focus over the next two years. Workgroups identified key areas, such as Charges $60.6 $95.6 57.70% year, workgroups will develop action plans, including timelines and incentivizing provider payments for health outcomes, “untangling” the FY13 FY14 Change Uninsured/ expected outcomes, for the identified goals. Medicaid regulatory environment to promote access and flexibility, and finding Self Pay Billed ways to expand and retain behavioral health providers. In the next fiscal Billed Charges $60.6 $95.6 57.70% year, workgroups will develop action plans, including timelines and Charges $56.0 $46.3 17.30% Healthcare Access Uninsured/ expected outcomes, for the identified goals. Medicaid With the Affordable Care Act (ACA) and changing public health needs Patients 26% 38% 11.70% Self Pay – decreased uninsured rates, potential for improved access to healthcare, Billed Healthcare Access Uninsured reduced pressure on state funded safety-net healthcare services – Charges $56.0 $46.3 17.30% Patients 42% 31% 11.20% strategies to promote public health in New Mexico require revamping. Sources HRSA, NMPCA Medicaid With the Affordable Care Act (ACA) and changing public health needs Rethinking the way services are provided and paid for and the Patients 26% 38% 11.70% populations served has the potential to improve care, reduce costs, and – decreased uninsured rates, potential for improved access to healthcare, improve population health. Uninsured reduced pressure on state funded safety-net healthcare services – Patients 42% 31% 11.20% strategies to promote public health in New Mexico require revamping. Certain services and policies, originating prior to ACA, are geared Sources HRSA, NMPCA Rethinking the way services are provided and paid for and the toward populations that gained access to care after Medicaid expansion populations served has the potential to improve care, reduce costs, and or through the New Mexico Health Exchange. For example, the improve population health. Department of Health (DOH) contracts with rural and primary health clinics (RPHC) and federally qualified health clinics (FQHC) for Department of Health primary care, school-based health centers, and other services in Certain services and policies, originating prior to ACA, are geared Report Card toward populations that gained access to care after Medicaid expansion underserved areas of the state. Many services are provided to Page 108 individuals who are either on, or are eligible for, Medicaid or subsidized or through the New Mexico Health Exchange. For example, the insurance under ACA; but, the services are primarily funded with Department of Health (DOH) contracts with rural and primary health general fund and tobacco settlement revenue. clinics (RPHC) and federally qualified health clinics (FQHC) for Department of Health primary care, school-based health centers, and other services in New Mexico FQHCs increased Medicaid patients and charges while Report Card underserved areas of the state. Many services are provided to reducing uninsured billings, calling into question the need to continue Page 108 individuals who are either on, or are eligible for, Medicaid or subsidized funding clinics, at current levels, through public health contracts. insurance under ACA; but, the services are primarily funded with According to the New Mexico Primary Care Association, the improved general fund and tobacco settlement revenue.
New Mexico FQHCs increased Medicaid patients and charges while reducing uninsured billings, calling into question the need to continue funding clinics, at current levels, through public health contracts. 43 According to the New Mexico Primary Care Association, the improved Policy Analysis: Health Care and Human Services Page 7 HealthPolicy Analysis: Care Health Care and Human Services Page 7 financial picture of FQHCs allowed the centers to offer staff salary increases and build capacity around the state. Additionally, with improvedfinancial billing it picturemay be possibleof FQHCs to reduce allowed reliance the centerson the generalto offer staff salary fund andincreases other state and funds build and shiftcapacity costs aroundto other thepayer state.s. Shifting Additionally, with A recent national survey conducted strategiesimproved toward reaching billing groups it may not be covered possible by the to ACAreduce or whoreliance have on the general by the Kaiser Family Foundation of difficulty fundnavigating and ottheher complexities state funds of andthe healthcareshift costs system to other would payer s. Shifting newly insured individuals under 400 help to ensure limited state resources are effectively used. percentA ofrecent the federal national poverty survey level conducted strategies toward reaching groups not covered by the ACA or who have found bythat the insuranceKaiser Family facilitates Foundation of difficulty navigating the complexities of the healthcare system would access to health care, indicating Chemical Dependency Units. Recently, DOH began piloting a new newly insured individuals under 400 help to ensure limited state resources are effectively used. that adultspercent who ofgained the federalcoverage poverty in chemical level dependency model that may increase access to care and reduce 2014 arefound that insurance facilitatesreliance on the general fund. Historically, chemical dependency units access to health care, indicating Chemical Dependency Units. Recently, DOH began piloting a new • were unable to bill Medicaid, but with structural changes allowing morthate likelyadults towho be gainedlinked coverageto in regular care, chemical chemicaldependency dependency units to attain model a new that licens maye ,increase the unit saccess may soon to care and reduce 2014 are • less likely to postpone care be able relianceto bill Medicaid. on the general Additionally, fund. Historically,the department chemical opened dependencyan units when they need it, and intensive outpatient program (IOP) with 16 slots and will soon add an • more likely to be linked to were unable to bill Medicaid, but with structural changes allowing • more likely to use preventive additional 16 slots. IOP is covered under Medicaid and may create an servicesregular than care, those who chemical dependency units to attain a new license, the units may soon remained• less uninsured. likely to postponeavenue care bybe which able theto statebill canMedicaid. bill Medicaid Additionally, for chemical the dependency department opened an when they need it, and unit treatmentintensive if patients outpatient are not program amenable (IOP) to outpatient with 16 slotstreatment. and willIf soon add an • more likely to use preventivesuccessfuladditional, the model 16 shouldslots. IOPbe copied is covered at the under other Medicaidtwo chemical and may create an But, newly insuredservices adults than those dependencywho units. • continueremained to seek uninsured.services from avenue by which the state can bill Medicaid for chemical dependency community clinics and health Healthcareunit Wtreatmentorkforce. if Accesspatients to are care not is amenabledirectly affected to outpatient by the treatment. If centers, successful, the model should be copied at the other two chemical • face some access barriers state’s healthcare workforce and is one of the primary challenges to comparedBut, newly with insured adults adultsinsured effectivelydependency implementing units. healthcare reform. Ten counties in New before• continue2014, to seek servicesMexico from have shortages of primary care providers, certified nurse community clinics and health • are not as settled into regular practitioners, and clinical nurse specialists Access (CNP/CNS). to care Seven is directly counties affected by the care ascen theirters, previously insured Healthcare Workforce. counterparts• face , some access barriershave a state’ssurplus healthcareof physicians workforce compared and withis one national of the averages,primary challenges to • have compareddifficulty withfinding adults a insuredaccordingeffectively to the New implementingMexico Healthcare healthcare Workforce reform. Committee. Ten Thecounties in New provider,before 2014, remainingMexico counties have are consideredshortages toof haveprimary “mild care shortages” providers or ,be certified nurse • have problems navigating the • are not as settled into regularlacking onepractitioners, to 10 providers. and Strategiesclinical nurse to improve specialists healthcare (CNP/CNS). workforce Seven counties health caresystem as their and previously health insuredinclude increasing the number of residencies in rural areas, increasing insurance networks, counterparts, have a surplus of physicians compared with national averages, • have misunderstandings about the use of tele-health (such as project ECHO), and increasing • according to the New Mexico Healthcare Workforce Committee. The how to haveuse coverage difficulty and whenfindingeducational a capacity. to seekprovider, care, and remaining counties are considered to have “mild shortages” or be • have• concernshave problems about outnavigating-of- In Newthe Mexicolacking the one ratio to of10 psychiatrists providers. Strategiesto the population to improve is 1 to healthcare 2,970 workforce pocket healthcosts. system and inhealth urban areasinclude and increasing1 to 21,276 thein rural number areas ofaccording residencies to the in University rural areas, increasing insurance networks, of New Mexico Department of Psychiatry. Additionally, 29 New • have misunderstandings about the use of tele-health (such as project ECHO), and increasing how to use coverage andMexico when educationalcounties are capacity. considered mental health shortage areas. to seek care, and Psychiatric emergency services via tele-health, direct tele-behavioral • have concerns about healthout-of- services,In New and Mexico child psychiatrythe ratio ofassessments psychiatrists and toconsultation the population are is 1 to 2,970 pocket costs. all strategiesin urban that could areas be and developed 1 to 21,276 to help in respond rural areas to state according behavioral to the University healthcare workforce needs. of New Mexico Department of Psychiatry. Additionally, 29 New VaccineMexico Purchasing counties Act. Duringare considered the 2015 legislative mental sessionhealth, theshort age areas. Vaccine PurchasingPsychiatric Act, emergency was authorized services requiring via tele health-health, insurers direct and tele-behavioral group healthhealth plans services, to reimburse and child the psychiatrystate for the assessments costs of vaccines and consultation are purchasedall by strategies the state thatfor couldinsured be children. developed Under to helpthe respondact, DOH to is state behavioral required tohealthcare bill each plan workforce for the immunizationneeds. costs of insured children. In the past, DOH provided no-cost vaccinations to most children in the state and Vaccinemost health Purchasing insurers and plans Act. participated During thein the 2015 program. legislative session, the Vaccine Purchasing Act, was authorized requiring health insurers and group health plans to reimburse the state for the costs of vaccines purchased by the state for insured children. Under the act, DOH is required to bill each plan for the immunization costs of insured children. In the past, DOH provided no-cost vaccinations to most children in the state and most health insurers and plans participated in the program.
44 Health Care Policy Analysis: Health Care andPolicy Human Analysis: Services Health Care and Human Services Page 8 Page 8
In the first quarter of FY16 the Indepartment the first quarterbilled insurersof FY16 and the plans department billed insurers and plans about $5 million and expects to billabout for $5about million $20 millionand expects by the to endbill offor about $20 million by the end of the fiscal year. Additionally, the department submitted a budget the fiscal year. Additionally, thethe departmentfiscal year. submittedAdditionally, a budget the department submitted a budget adjustment request to increase amounts in the vaccine purchasing fund by adjustment request to increase amountsadjustment in the vaccinerequest topurchasing increase amountsfund by in the vaccine purchasing fund by $4 million. Implementation of the act$4 million.has been Implementation prompt, but according of the act to ahas been prompt, but according to a letter sent from the Legislative Health and Human Services Committee to letter sent from the Legislative Healthletter and sent Human from theServices Legislative Committee Health to and Human Services Committee to the department, insurers and plans are complaining that bills are arriving the department, insurers and plans theare department,complaining insurers that bills and are plans arriving are complaining that bills are arriving without explanation as to why the entity is being billed and that the bills without explanation as to why the entity is being billed and that the bills often contain erroneous calculationsoften of the contain amount erroneous for vaccines. calculations of the amount for vaccines.
Teen Pregnancy Teen Pregnancy Teen Pregnancy
With 2,980 adolescents giving birth in With2013, 2,980 New adolescentsMexico’s teen giving birth birthrate inis consistently2013, New Mexico’s the highest teen in birththe nationrate is andconsistently the highest in the nation and costs taxpayers $84 million annually. The LFC’s Effective Practices to Reduce Teen Pregnancy, Including the Use of costs taxpayers $84 million annually. The LFC’s Effective Practices to Reduce Teen Pregnancy, Including the Use of School-Based Health Centers (SpringSchool 2015)- Basedanalyzed Healt teenh Centers pregnancy (Spring trends 2015) and analyzed characteristics teen pregnancyin New Mexico, trends and characteristics in New Mexico,
reviewed teen pregnancy prevention reviewedefforts, and teen identified pregnancy evidence prevention-based efforts, teen pregnancyand identified prevention evidence strategies.-based teen pregnancy prevention strategies. Statistically, children born to teens are more likely than children born to older parents to live in poverty, enter school Statistically, children born to teens areStatistically, more likely childrenthan children born toborn teens to olderare more parents likely to thanlive inchildren poverty, born enter to schoololder parents to live in poverty, enter school academically behind their peers, experience academically maltreatment, behind andtheir become peers, experience incarcerated. maltreatment, and become incarcerated.
Children born to teens account for 11Children percent born of allto birthsteens inaccount New Mexico.for 11 percent Teen parentsof all births share in commo New Mexico.n at-risk Teen parents share common at-risk characteristics and are more likely to live in a specific region, be an older teen, and already have a child. School characteristics and are more likely to live in a specific region, be an older teen, and already have a child. School districts report they are not implementing districts the state’sreport theyhealth are education not implementing standards the and state’s overall health efforts education across agenciesstandards and overall efforts across agencies are not coordinated or targeted. are not coordinated or targeted.
Existing interventions and funds may be leveraged to increase access to the most effective forms of clinical pregnancy Existing interventions and funds may beExisting leveraged interventions to increase and access funds tomay the be most leveraged effective to formsincrease of clinical access pregnancy to the most effective forms of clinical pregnancy prevention methods. Coordinated and comprehensive prevention efforts found in other states, including training and prevention methods. Coordinated and comprehensive prevention efforts found in other states, including training and technical assistance, accelerate declines technical in births assistance, to teens. accelerate declines in births to teens.
New Mexico should develop a comprehensive New Mexico and shouldcoordinated develop teen a comprehensivepregnancy prevention and coordinated strategy, provide teen pregnancy training prevention strategy, provide training and technical assistance to providers, and implement best practices related to the most effective clinical prevention and technical assistance to providers, and and technical implement assistance best practices to providers, related andto the implement most effective best practices clinical prevention related to the most effective clinical prevention methods. The Legislature should continue methods. prioritizing The Legislature investments should in the continue programs prioritizing that improve investments outcomes in thefor teenprograms that improve outcomes for teen parents and their children. parents and their children.
Income and Food SecurityIncome and Food Security
Under the Temporary Assistance Underfor Needy the TFamiliesemporary (T AssistanceANF) program, for Needy Families (TANF) program,
states receive a federal block grantstates to provide receive cash a federal assistance block and grant work to provide cash assistance and work
support programs to low-income supportfamilies. programs The TANF to low caseload-income sawfamilies. The TANF caseload saw significant increases during the economicsignificant recession, increases peaking during theat 21,514 economic recession, peaking at 21,514 cases (54,802 recipients) in Decembercases 2010,(54,802 an recipients)increase of in 57 December percent. 2010, an increase of 57 percent. However, since the beginning of 2011However, the number since theof casesbeginning has dropped, of 2011 the number of cases has dropped, and for FY16 is projected to be 13,000,and for downFY16 0.3is projectedpercent from to be FY15. 13,000, down 0.3 percent from FY15. The decline is partly due to the implementation of a 15 percent benefit The decline is partly due to the implementationThe decline is ofpartly a 15 due percent to the benefit implementation of a 15 percent benefit reduction in benefits in FY11 (as well as changes in eligibility criteria reduction in benefits in FY11 (as reductionwell as changes in benefits in eligibility in FY11 (ascriteria well as changes in eligibility criteria including stricter job search requirements),including stricter the easejob searchof obtaining requirements), the ease of obtaining Supplemental Nutritional Assistance program (SNAP—formally food Supplemental Nutritional AssistanceSupplemental program (SNAPNutritional—formally Assistance food program (SNAP—formally food stamp) benefits, and the increase in clients with Social Security disability stamp) benefits, and the increase instamp clients) benefits, with Social and Securithe increasety disability in clients with Social Security disability coverage impacted program participation. Effective August 1, 2015, the coverage impacted program participation. Effective August 1, 2015, the department implemented a 7.5 percentdepartment increase implemented in the casha 7.5 benefit percent increase in the cash benefit amount which may have a modest impact on enrollment. amount which may have a modest impactamount on which enrollment. may have a modest impact on enrollment. 45
PolicyHealth Analysis: Health Care Care and Human Services PagePolicy 9 Analysis: Health Care and Human Services Page 9 Growth in federal SNAP expenditures has increased from $675 million in FY15 toGrowth a projected in federal $682 million SNAP FY17. expenditures SNAP cases has increasedmore than doubledfrom $675 million in Temporary since the beginning of the recession with an April 2010 increase of the Assistance for Needy FY15 to a projected $682 million FY17. SNAP cases more than doubled Temporary SNAP grosssince incomethe beginning test from of 130 the percent recession to 165 with percent an April of the 2010 federa increasel of the AssistanceFamilies for Needy Expenditures poverty SNAPlevel (FPL gross) contributing income test to aboutfrom 10130 percent percent of theto increase.165 percent of the federal Families poverty level (FPL) contributing to about 10 percent of the increase. $140 Expenditures In FY15 HSD proposed work requirement changes for SNAP (food $120 $140 stamp) recipients. The first is federally mandated and requires healthy adults withoutIn FY15 children HSD toproposed work 20 hourswork perrequirement week or otherwise changes limits for SNAP (food $100 $120 benefitsstamp) to 3 recipients.months in Thea 3 -firstyear isperiod. federally A mandatedsecond and and more requires healthy $80 controversialadults change without not children federally tomandated work 20 requires hours healthyper week adults or ageotherwise limits $100 16 - 59 benefitswith children to 63 yearsmonths or older in toa participate3-year period.in employment A second and and more
millions $60 $80 trainingcontroversial (E&T). While changethere are not exemptions federally (not mandated working requires more than healthy 30 adults age $40 hours/week,16 - 59not within a childrendrug/alcoholic 6 years rehab or older program, to participate not in a county,in employment and millions $60 tribe, ortraining pueblo with(E&T). a high While unemployment there are exemptions rate, etc.) advocates (not working argue more than 30 $20 HSD lackshours/week, the capacity not to in provide a drug/alcoholic assistance and rehab oversight program, to expand not in a county, $40 E&T to some 63 thousand additional recipients. $- tribe, or pueblo with a high unemployment rate, etc.) advocates argue
$2011 13 14 HSD lacks the capacity to provide assistance and oversight to expand FY FY12 FY FY FY15 ProtectingE&T to someVulnerable 63 thousand Populations additional recipients.
$- FY16 Est FY17 Req 11 13 14 Administration The health of a community is not only related to the physical health of FY FY12 FY FY FY15 individualsProtecting but also the treatmentVulnerable of populations Populations at risk of abuse or Support Services FY16 Est
neglect.FY17 Req New Mexico’s efforts to protect those populations have Cash Assistance Administration producedThe mixed health results. of a community is not only related to the physical health of individuals but also the treatment of populations at risk of abuse or SupportSource: Services LFC Files Child Abuseneglect. and New Neglect. Mexico’s Over efforts2,600 New to Mexicoprotect children those arepopulations in have Cash Assistance the careproduced of the Children, mixed results. Youth and Families Department’s (CYFD) Protective Services Division, responsible for investigating reports of Temporary Source: LFC Fileschild abuse and neglect, protecting children at risk, and overseeing Assistance for Needy Child Abuse and Neglect. Over 2,600 New Mexico children are in Families Cases adoption and foster care. Currently, the average monthly caseload is 20.1 forthe permanency care of theplanners Children, and 11.3Youth for andinvestigators. Families TheDepartment’s Child (CYFD) 22,000 WelfareProtective League ofServices America Division, recommends responsible 12 to 15for casesinvestigating for a reports of Temporary child abuse and neglect, protecting children at risk, and overseeing Assistance for Needy permanency planner and 12 for investigators. Adding to system stress, the costadoption of foster andcare fosterand support care. Currently,is increasing the due average in particular monthly to caseload is 20,000 Families Cases specialized20.1 fosterfor permanency care and maintenance planners andcosts. 11.3 High for caseloadsinvestigators. and The Child 22,000 increasingWelfare severity League of maltrea oftment America has led torecommends staff burnout and12 turnover.to 15 cases for a 18,000 permanency planner and 12 for investigators. Adding to system stress, Neglectthe and cost abuse of fosteraffect carea child’s and support emotional, is increasing physiological due andin particular to 20,000 behavioral health. In FY15, the agency continued to report an increase in 16,000 specialized foster care and maintenance costs. High caseloads and the number of children subjected to repeat maltreatment. An LFC evaluationincreasing found 36severity percen oft maltreaof childrentment who has ledare tothe st affvictim burnout of aand turnover. 18,000 14,000 substantiated case of maltreatment will be abused or neglected again before theyNeglect are 18. and The abusereport foundaffect CYFD a child’sdedicate demotional, little resources physiological for and preventivebehavioral services health. In FY15, the agency continued to report an increase in 12,00016,000 the number of children subjected to repeat maltreatment. An LFC Juvenileevaluation Justice. found Juvenile 36 percenJusticet ofServices, children which who proarevides the victim of a 10,00014,000 prevention,substantiated intervention, case and ofaftercare maltreatment services forwill delinquent be abused youth, or has neglected again five juvenilebefore justice they are facilities 18. The that report can foundhouse CYFDup to 286dedicate committedd little resources for 2015 2011 youths. preventHowever,ive secureservices juvenile facilities on average maintained 85 FY 12,000FY 2007 FY 2009 FY FY 2013 empty beds in FY15, which may be a result of increasing front-end Source: HSD Monthly Statistical Reports services, such as those provided by juvenile justice advisory committees (JJACs)Juvenile. JJACs advocatesJustice. forJuvenile the prevention Justice ofServices, delinquency, which provides 10,000 prevention, intervention, and aftercare services for delinquent youth, has five juvenile justice facilities that can house up to 286 committed 2015 2011 youths. However, secure juvenile facilities on average maintained 85 FY FY 2007 FY 2009 FY FY 2013 empty beds in FY15, which may be a result of increasing front-end 46 Source: HSD Monthly Statistical Reports services, such as those provided by juvenile justice advisory committees (JJACs). JJACs advocates for the prevention of delinquency, Health Care Policy Analysis: Health Care and Human Services Policy Analysis: Health Care and Human Services Page 10 Page 10
alternatives to secure detention, improvement of the juvenile justice alternatives to secure detention, improvement of the juvenile justice JJC uses the Casey Life Skills system, and the development of a continuum of graduated sanctions for JJC uses the Casey Life Skills system, and the development of a continuum of graduated sanctions for Assessment to evaluate youth in Assessment to evaluate youth in juveniles in local communities. In FY14, JJAC worked with 21 juveniles in local communities. In FY14, JJAC worked with 21 areas such as areas such as continuum sites to serve almost 8,000 youth. The Juvenile Community continuum sites to serve almost 8,000 youth. The Juvenile Community • permanency, • permanency, Corrections (JJC) program is an alternative treatment for youth on Corrections (JJC) program is an alternative treatment for youth on • daily living, • daily living, • self-care, probation or supervised release. • self-care, probation or supervised release. • relationships, • relationships, • communication, Child Health. Using 2013 data, the Annie E. Casey Foundation, in its • communication, Child Health. Using 2013 data, the Annie E. Casey Foundation, in its • housing, annual Kids Count Data Book ranked New Mexico 48th for children’s • housing, annual Kids Count Data Book ranked New Mexico 48th for children’s • money management, health. New Mexico’s family and community rankings were partially • money management, • work, and, health. New Mexico’s family and community rankings were partially • based on teen birth rates, currently at 43 per 1,000. The teen birth rate • work, and, career and education based on teen birth rates, currently at 43 per 1,000. The teen birth rate planning. has decreased significantly since 2009 for girls 15 to 17 years of age • career and education has decreased significantly since 2009 for girls 15 to 17 years of age from 36 to 22 per 1,000. According to the foundation, teenage planning. Public school staff, families, juvenile from 36 to 22 per 1,000. According to the foundation, teenage childbearing can have long-term negative effects for both the mother probation officers, the client , and and the newborn. Teens are at higher risk of bearing low-birthweight Public school staff, families, juvenile other stakeholders are engaged to childbearing can have long-term negative effects for both the mother babies and the babies are more likely to be born into families with probation officers, the client , and and the newborn. Teens are at higher risk of bearing low-birthweight support youth in these key domain other stakeholders are engaged to areas. In FY13, JJC provided limited educational backgrounds and economic resources. support youth in these key domain babies and the babies are more likely to be born into families with services for 1,075 youth statewide. areas. In FY13, JJC provided limited educational backgrounds and economic resources. Other health ranking indicators include the percent of low-birth weight services for 1,075 youth statewide. babies, children without health insurance, children who abuse alcohol, Other health ranking indicators include the percent of low-birth weight and child and teen deaths. In New Mexico, 8.9 percent of babies were babies, children without health insurance, children who abuse alcohol, low-birthweight babies and have a high probability of experiencing and child and teen deaths. In New Mexico, 8.9 percent of babies were developmental problems, and disabilities and are at greater risk of dying low-birthweight babies and have a high probability of experiencing within the first year of life. Nine percent of children lacked health developmental problems, and disabilities and are at greater risk of dying insurance and are more likely to receive treatment after a condition has worsened, putting them at greater risk of hospitalization. within the first year of life. Nine percent of children lacked health insurance and are more likely to receive treatment after a condition has Developmental Disabilities Medicaid Waiver Status. In FY15, worsened, putting them at greater risk of hospitalization. the waiver program for individuals with developmental disabilities (DD waiver) received $1 million to implement provider rate increases. The Developmental Disabilities Medicaid Waiver Status. In FY15, increases were not implemented at the beginning of the fiscal year but the waiver program for individuals with developmental disabilities (DD occurred in the October-November time period when changes were waiver) received $1 million to implement provider rate increases. The approved on New Mexico’s Medicaid waiver application. increases were not implemented at the beginning of the fiscal year but Compensating providers, the department made the rate increases occurred in the October-November time period when changes were retroactive to the beginning of the fiscal year. According to the approved on New Mexico’s Medicaid waiver application. department, federal Medicaid authorities disapproved of the retroactive rate increases and will require the state to refund $2.2 million for the Compensating providers, the department made the rate increases retroactive portion of the increases. The Developmental Disabilities retroactive to the beginning of the fiscal year. According to the Waiver Program made progress covering more people reducing the department, federal Medicaid authorities disapproved of the retroactive waiting list and reducing the cost per client. rate increases and will require the state to refund $2.2 million for the retroactive portion of the increases. The Developmental Disabilities Waiver Program made progress covering more people reducing the waiting list and reducing the cost per client.
47 Policy Analysis: Public Safety and Justice PagePublic 1 Safety and Justice
Policy Analysis: Public Safetyrime and rates Justice are dropping nationally, but crime rates in Page 1 New Mexico, along with incarceration rates, are on C the rise, despite general fund spending on public safety and the judiciaryrime rates increasing are dropping 4 percent nationally, each of thebut last crime rates in four years. Together,New Mexico,the public along safety with and incarcerationjudical agencies rates, are on Department of Public represent almost 10 percent of the state’s general fund Safety Report Card C the rise, despite general fund spending on public Page 115 expenditures.safety andWhile the judiciarythese agency increasing budgets 4 percentmake up each a of the last significantfour years.portion Together,of all state the spending,public safety perhaps and judicalmore agencies Department of Publicsignificant represent are the almost indirect 10costs pe ofrcent crime of – brokenthe stat families,e’s general fund Safety Report Card damages to victims, loss of employment, and other social expenditures. While these agency budgets make up a Page 115 consequences that impact New Mexico’s quality of life and the verysignificant real price portion taxpayers of mustall statepay tospending, address thperhapsese more humansignificant and community are the needs. indirect Given costs the of state’scrime –limited broken families, dollarsdam and agesthe high to pricevictims, of failing loss toof protectemploy thement, public, and it isother social criticalconsequences that the state thatspend impact its crimin Newal Mexico’sjustice dollars quality on of life and evidencethe-based very programs real price proven taxpayers to make communitiesmust pay to safer. address these human and community needs. Given the state’s limited Historical New Publicdollars Safety and the high price of failing to protect the public, it is Mexico Crime Counts The 2013critical New Mexico that violent the crimestate rate spend was 597 itsper 100crimin thousandal residents,justice dollars on 80,000 162 percentevidence of the national-based average, programs according proven to the lates tot makeFBI data communities available. safer. 70,000 Within the mountain region, only Nevada had a comparable rate (161 percent of the national average). The 2013 data ranked New Mexico as the second 60,000 Historical New most dangerousPublic state Safety and the leader in aggravated assault. Over the last Mexico Crime Countsdecade, national and regional violent crime rates fell and total crime rates in 50,000 the regionThe fell 2013 15 percent. New Mexico violent crime rate was 597 per 100 thousand residents, 80,000 40,000 162 percent of the national average, according to the latest FBI data available. Between 2012 and 2013, New Mexico was the only state in the region and 70,000 Within the mountain region, only Nevada had a comparable rate (161 percent 30,000 one of onlyof the three national in the nationaverage). to see The an 2013increase data in rankedboth violent New cri Mexicome and as the second property rates. While violent crime rates fell 2 percent in the region, violent 60,000 most dangerous state and the leader in aggravated assault. Over the last 20,000 crime in New Mexico rose by 7 percent. Similarly, property crime rose 3 decade, national and regional violent crime rates fell and total crime rates in 50,000 percent in New Mexico in 2013 while the regional rate dropped 4 percent. 10,000 Nationally,the regiononly Louisiana fell 15 percent. and North Dakota experienced growth in both 40,000 categories, although growth in those states was significantly lower than New - Mexico.Between 2012 and 2013, New Mexico was the only state in the region and
30,0002009 2010 2011 2012 one of only three in the nation to see an increase in both violent crime and Recruitment,property Retention, rates. While and violent Pay crime. For ratemanys fell years, 2 percent much inof thethe region, violent Property crime total 20,000 discussioncrime about in public New safetyMexico spending rose byhas 7been percent. focus edSimilarly, on noncompetitive property crime rose 3 Violent crime total officer salariespercent and in theNewir impact Mexico on hiringin 2013 qualified while staff.the regionalIn response rate to thosedropped 4 percent. 10,000Source: Federal Bureau of concerns, the Department of Public Safety (DPS) merged the Motor Investigations Nationally, only Louisiana and North Dakota experienced growth in both Transportationcategories, Division, although the Special growth Investigations in those states Division, was significantly and the New lower than New - Mexico Mexico.State Police Division into one program effective July 1, 2015. The consolidation was intended to alleviate fragmented operations, difficulties in 2009 2010 2011 sharing2012 information and communications, silos in officer skills, limited career Recruitment, Retention, and Pay. For many years, much of the Property crime total opportunities, and lack of equitable pay. discussion about public safety spending has been focused on noncompetitive Violent crime total officer salaries and their impact on hiring qualified staff. In response to those Source: Federal Bureau of concerns, the Department of Public Safety (DPS) merged the Motor Investigations Transportation Division, the Special Investigations Division, and the New Mexico State Police Division into one program effective July 1, 2015. The consolidation was intended to alleviate fragmented operations, difficulties in sharing information and communications, silos in officer skills, limited career opportunities, and lack of equitable pay. 48 Policy Analysis: Public Safety and Justice Public Safety andPolicy Analysis: Justice Public Safety and Justice Page 2 Page 2
Average Five-Year Officer In the 2013 interim, the department presented a three-phase, $10 million plan Average Five-Year Officer In the 2013 interim, the department presented a three-phase, $10 million plan Strength to overhaul the salary structure, with the goal of paying officers toward the Strength to overhaul the salary structure, with the goal of paying officers toward the Average top among the New Mexico public safety market. DPS received $6.2 million Average top among the New Mexico public safety market. DPS received $6.2 million Number in the last two legislative sessions to implement the new pay plan, and the Number in the last two legislative sessions to implement the new pay plan, and the of NMSP Authorized of NMSP Authorized department requested $4 million to implement the final phase in FY17. Phase department requested $4 million to implement the final phase in FY17. Phase Officers Strength Officers Strength one brought pay parity within the officer ranks while phase two of the plan one brought pay parity within the officer ranks while phase two of the plan FY13 508 567 th FY13 508 567 th moved starting officer pay from 11 to sixth in the state among public safety moved starting officer pay from 11 to sixth in the state among public safety FY14 508 567 FY14 508 567 agencies in the state. Phase three should bring starting pay into the top three agencies in the state. Phase three should bring starting pay into the top three FY15 492 567 in the market. FY15 492 567 in the market. MERGER 7/1/2015 MERGER 7/1/2015 FY16 - Data Systems and Data Sharing. DPS is the central hub of criminal FY16 - Data Systems and Data Sharing. DPS is the central hub of criminal Projected* 673 737 justice information in the state, serving local, county, state, tribal, federal, and Projected* 673 737 justice information in the state, serving local, county, state, tribal, federal, and FY17 - international law enforcement agencies. DPS conducts crime and traffic Projected* 674 737 FY17 - international law enforcement agencies. DPS conducts crime and traffic enforcement projects to address crime, traffic, and community policing Projected* 674 737 *includes FTE merged into state police enforcement projects to address crime, traffic, and community policing Source: Department of Public Safety concerns. DPS also uses a “smart” roadside system to track commercial *includes FTE merged into state police vehicles within the state and ensure their safe operation. Nationally, for every Source: Department of Public Safety concerns. DPS also uses a “smart” roadside system to track commercial vehicles within the state and ensure their safe operation. Nationally, for every Previous LFC analysis expressed four vehicles inspected, one vehicle is out of compliance. In FY17, DPS will concern there would be little begin measuring their rates against the national rate to better gauge Previous LFC analysis expressed four vehicles inspected, one vehicle is out of compliance. In FY17, DPS will increase in statewide manpower as enforcement effectiveness and more effectively patrol hotspots. concern there would be little begin measuring their rates against the national rate to better gauge a result of the pay plan fixes. In increase in statewide manpower as response, the Legislature a result of the pay plan fixes. In enforcement effectiveness and more effectively patrol hotspots. appropriated $4 million for extra The department should be able to communicate with agencies around the state response, the Legislature recruit schools and salary but some law enforcement data systems are incompatible. A centralized appropriated $4 million for extra The department should be able to communicate with agencies around the state adjustments. database of criminal information would enable law enforcement and judicial recruit schools and salary but some law enforcement data systems are incompatible. A centralized agencies to more effectively protect citizens. The department is working to adjustments. database of criminal information would enable law enforcement and judicial Corrections implement a new computer-aided dispatch program and a centralized criminal agencies to more effectively protect citizens. The department is working to Department General justice database to streamline communication with public safety entities Fund Appropriation Corrections statewide. implement a new computer-aided dispatch program and a centralized criminal History Department General justice database to streamline communication with public safety entities FY13-FY16 Fund Appropriation statewide. $295 Corrections History $290 FY13-FY16 $295 Over the past 10 years, the New Mexico Corrections Department (NMCD) Corrections $285 prison population has grown by 600 inmates, or 8 percent. The general fund $290 $280 budget has increased $50 million, or 20 percent, during this period, not Over the past 10 years, the New Mexico Corrections Department (NMCD) including an additional total of $7 million appropriated to cover projected $285 prison population has grown by 600 inmates, or 8 percent. The general fund $275 shortfalls in FY15 and FY16. millions budget has increased $50 million, or 20 percent, during this period, not $280 $270 including an additional total of $7 million appropriated to cover projected General fund appropriations for correctional departments in the surrounding $275 shortfalls in FY15 and FY16. $265 states have increased an average of 2 percent per year over the last three millions years, while NMCD’s budget has grown an average of 3 percent per year over $270 $260 the last three years. Some states’ average spending slowed over the last three General fund appropriations for correctional departments in the surrounding years: Oklahoma increased funding 2 percent after three years of no, or $255 $265 states have increased an average of 2 percent per year over the last three negative, growth, with similar experiences in Texas and Wyoming. years, while NMCD’s budget has grown an average of 3 percent per year over $250 $260 the last three years. Some states’ average spending slowed over the last three Year over year, prison populations grew in New Mexico, a trend reflected years: Oklahoma increased funding 2 percent after three years of no, or FY13 FY14 FY15 FY16 throughout the United States. The New Mexico male population is growing $255 negative, growth, with similar experiences in Texas and Wyoming. Source: LFC files an average of 1 percent a year; however, the female population is growing an $250 average of 5 percent a year -- in 2015 alone, the population of women grew Year over year, prison populations grew in New Mexico, a trend reflected Recidivism reduction is an 11 percent. Populations continue to rise for a number of reasons, but FY13 FY14 FY15 FY16 throughout the United States. The New Mexico male population is growing important component in slowing the recidivism plays a large role. Of the 4,000 prisoners entering the system in growth of prison populations. Source: LFC files an average of 1 percent a year; however, the female population is growing an FY14, 26 percent were for parole violations. average of 5 percent a year -- in 2015 alone, the population of women grew Recidivism reduction is an 11 percent. Populations continue to rise for a number of reasons, but important component in slowing the recidivism plays a large role. Of the 4,000 prisoners entering the system in growth of prison populations. FY14, 26 percent were for parole violations. 49 Policy Analysis: Public Safety and Justice PagePublicPolicy 3 Analysis: Safety Public Safety and and Justice Justice Page 3 10 Year Population Forecast 8,000 1400 Causes of Parole 10 Year Population Forecast Hearing Cancelations 7,000 8,000 1200 1400 CausesFY15 of Parole 6,000 250 Hearing Cancelations 7,000 1000 1200 FY15 5,000 6,000 800 250 1000 200 4,000 5,000 600 3,000 800 female population male population 4,000 Actual Projected 400 150 200 2,000 600 3,000 1,000 200 female population
male population Actual Projected 100 400 150 0 2,000 0 200
2002 1,0002003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 100 0 Male Female 0 Source: New Mexico Sentencing Commission 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50 Male Female
Other Although prison populations are quickly rising, New Mexico incarcerates a smaller share of the population than many othersSource: in New the Mexico mountain Sentencing region. Commission 0 Wyoming has the smallest prisoner population but the fifth highest incarceration rate in the mountain region, 396 prisoners for every 100 Needs parole plan Other Although prison populations are quickly rising, New Mexico incarcerates a Missing Paperwork
Case already heard thousand residents. Oklahoma incarcerates over 700 inmates per 100 smaller share of the population than many others in the mountain region. Needs progress report thousand residents while Utah incarcerates only 244 per 100 thousand Source: Adult Parole Board residentsWyoming. has the smallest prisoner population but the fifth highest incarceration rate in the mountain region, 396 prisoners for every 100 Needs parole plan Missing Paperwork Case already heard Recidivism.thousand New residents. Mexico has Oklahomathe highest recidivismincarcerates rate ofover the surrounding700 inmates per 100
Surrounding state Needs progressi report ncarceration states, althoughthousand there residents could bewhi somele Utahvariance incarcerate due to somes only states 244 publish pering 100 thousand rates per 100,000Source: residents: Adult Parole Boardolder ratesresidents or .app lying different assumptions or different calculation methodologies. 1. Oklahoma: 715 (3.9M total pop.) 2. Texas: 636 (26.5M total pop.) Recidivism. New Mexico has the highest recidivism rate of the surrounding LFC has identified a number of cost-effective recidivism reduction programs, 3. Arizona:Surrounding 620 (6.6 Mstate total pop.)incarceration states, although there could be some variance due to some states publishing 4. Nevada: 468 (2.8M total pop.) many of which need to be funded consistently and reassessed periodically. rates per 100,000 residents: 5. Wyoming: 396 (580T total pop.) Drug courtsolder keep rates offenders or app outlying of prison different and with assumptions their families orand differentconnect calculation 6. Colorado: 387 (5.3M total pop.) them tomethodologies. available services. Residential drug abuse treatment programs 7. New1. Oklahoma:Mexico: 328 715 (2M (3total.9M pop.) total pop.) 8. Utah:2. Texas 244 (2.9: 636M total (26.5 pop.)M total pop.)(RDAP) have been implemented, but there is little information about their 3. Arizona: 620 (6.6M total pop.)effectivenessLFC hatas this identified time. a number of cost-effective recidivism reduction programs, 4. Nevada: 468 (2.8M total pop.) many of which need to be funded consistently and reassessed periodically. 5. Wyoming: 396 (580T total pop.)LFC studiesDrug courtsindicate keep education offendersal programs out of prisonin prison and arewith a theirhighly families cost- and connect 6. Colorado: 387 (5.3M total pop.)effectivethem way toto reduceavailable recidivism. services. For everyResidential $600 spent drug per inmateabuse, thetreatment state programs 7. New Mexico: 328 (2M total pop.)sees a 12 percent reduction in recidivism over the first six years from release. 8. Utah: 244 (2.9M total pop.) (RDAP) have been implemented, but there is little information about their Corrections Department Providingeffectiveness health resources at this fortime. released inmates also slows recidivism. In Report Card FY15, NMCD assisted 65 percent of release-eligible-inmates submit a Yes- Page 113 NM application, which determines qualifications for Medicaid assistance on release.L FC studies indicate educational programs in prison are a highly cost- effective way to reduce recidivism. For every $600 spent per inmate, the state sees a 12 percent reduction in recidivism over the first six years from release. Parole and Release Eligible Inmates. In 2012, LFC estimated Corrections Departmentan ywhereProviding from 200 health to 300 resources inmates eligible for released for release inmates were spendingalso slows their recidivism . In Report Card parole FY15,terms inNMCD prison. assisted Release 65-eligible percent-inmates of release (REI)- eligiblecost the-inmates state an submit a Yes- Page 113 NM application, which determines qualifications for Medicaid assistance on release.
Parole and Release Eligible Inmates. In 2012, LFC estimated anywhere from 200 to 300 inmates eligible for release were spending their parole terms in prison. Release-eligible-inmates (REI) cost the state an 50 Policy Analysis: Public Safety and Justice Public Safety and Justice Policy Analysis: Public Safety and Justice Page 4 Page 4
estimated $10.3 million in FY14. The leading causes for REIs staying in estimated $10.3 million in FY14. The leading causes for REIs staying in prison include a lack of community resources for parolees, administrative prison include a lack of community resources for parolees, administrative issues causing parole hearings to be canceled, and inmates not participating in issues causing parole hearings to be canceled, and inmates not participating in Contracted Medical the parole process. Additionally, some REIs, once their sentences have run Contracted Medical the parole process. Additionally, some REIs, once their sentences have run Services out, are released without community supervision – posing a public safety risk. Services out, are released without community supervision – posing a public safety risk. (in millions) In 2012, New Mexico was 14th in the nation for “maxing out” inmate (in millions) In 2012, New Mexico was 14th in the nation for “maxing out” inmate $50 $50 sentences or releasing inmates straight into the community without sentences or releasing inmates straight into the community without supervision, according to a report from the Pew Charitable Trusts. supervision, according to a report from the Pew Charitable Trusts. $45 $45
$40 The Adult Parole Board (APB) experienced a 9 percent reduction in cancelled $40 The Adult Parole Board (APB) experienced a 9 percent reduction in cancelled parole hearings in FY15. NMCD started keeping better records and directed parole hearings in FY15. NMCD started keeping better records and directed $35 APB to provide parole hearing lists each month to ensure the facilities are $35 APB to provide parole hearing lists each month to ensure the facilities are following internal deadlines and release schedules. following internal deadlines and release schedules. $30 millions $30 Health Care. The department could save significantly on inmate medical millions $25 Health Care. The department could save significantly on inmate medical services with improved management of its contractors. In FY16, medical $25 services with improved management of its contractors. In FY16, medical $20 service contracts total 14 percent of the total budget. NMCD entered into a contract with Corizon Health Incorporated in FY11 and decreased spending $20 service contracts total 14 percent of the total budget. NMCD entered into a contract with Corizon Health Incorporated in FY11 and decreased spending $15 by $4 million in FY13, after which costs have climbed every year. This contract expires in May 2016. Negotiating performance benchmarks that $15 by $4 million in FY13, after which costs have climbed every year. This $10 penalize Corizon for failing to reach performance targets could help to contract expires in May 2016. Negotiating performance benchmarks that contain costs, and bonuses could help achieve hard-to-complete prison needs, $10 penalize Corizon for failing to reach performance targets could help to $5 such as nurse staffing at the prisons. contain costs, and bonuses could help achieve hard-to-complete prison needs, $5 $0 such as nurse staffing at the prisons. NMCD has realized savings of almost $580 thousand in healthcare costs by
$0 FY11 FY12 FY13 FY14 FY15 FY16 billing for Medicaid reimbursement for inmate inpatient stays longer than 24 NMCD has realized savings of almost $580 thousand in healthcare costs by Source: LFC files hours. With Medicaid expansion, NMCD could realize general fund savings
FY11 FY12 FY13 FY14 FY15 FY16 billing for Medicaid reimbursement for inmate inpatient stays longer than 24 between $2.9 million and $6.6 million from inmate hospital admissions and between $1 million and $4.4 million in general fund savings for correctional Source: LFC files hours. With Medicaid expansion, NMCD could realize general fund savings between $2.9 million and $6.6 million from inmate hospital admissions and community services. between $1 million and $4.4 million in general fund savings for correctional community services. Public Defender Department
Adequate representation for the accused is critical to the fairness of the NMCD successfully guided about Public Defender Department 65 percent of inmates through pre- judicial system. It is, in fact, a constitutional right protected by the Sixth release Medicaid enrollment Amendment. Nevertheless, while the consequences of incompetent counsel Adequate representation for the accused is critical to the fairness of the applications in the last three are substantial, public defender offices often struggle for sufficient funding. NMCD successfully guided about quarters of FY15. To increase the quality of representation, the Public Defender Commission 65 percent of inmates through pre- judicial system. It is, in fact, a constitutional right protected by the Sixth (PDC) supports an $85 hourly rate; however, the Law Offices of the Public release Medicaid enrollment Amendment. Nevertheless, while the consequences of incompetent counsel applications in the last three are substantial, public defender offices often struggle for sufficient funding. Defender (LOPD) has repeatedly stated it cannot fiscally support the rate quarters of FY15. To increase the quality of representation, the Public Defender Commission NMCD requested an additional because of other budget priorities. This discrepancy between the policy goals $2.4 million to treat inmates with of PDC and LOPD, which make up the Public Defender Department (PDD), (PDC) supports an $85 hourly rate; however, the Law Offices of the Public hepatitis C, an example of inmate has caused operations to continue without a concrete strategy, leaving PDD Defender (LOPD) has repeatedly stated it cannot fiscally support the rate healthcare growth. Twelve weeks unable to fill vacancies, compensate contract counsel adequately, or pay staff because of other budget priorities. This discrepancy between the policy goals of treatment cost $90 thousand per NMCD requested an additional inmate. The department is working attorneys appropriately. Both PDC and LOPD are committed to bettering $2.4 million to treat inmates with of PDC and LOPD, which make up the Public Defender Department (PDD), towards drug pricing agreements to indigent defense, but without cost projections for either stance, it is difficult hepatitis C, an example of inmate has caused operations to continue without a concrete strategy, leaving PDD defray costs. to form a coherent policy. healthcare growth. Twelve weeks of treatment cost $90 thousand per unable to fill vacancies, compensate contract counsel adequately, or pay staff inmate. The department is working attorneys appropriately. Both PDC and LOPD are committed to bettering In FY15, the Public Defender Department (PDD) contracted counsel in 23.8 towards drug pricing agreements to indigent defense, but without cost projections for either stance, it is difficult thousand cases at a total cost of $9.1 million statewide. In Bernalillo County defray costs. to form a coherent policy. 3,700 cases, 15 percent of the statewide total, were contracted out at a cost of
In FY15, the Public Defender Department (PDD) contracted counsel in 23.8 thousand cases at a total cost of $9.1 million statewide. In Bernalillo County 3,700 cases, 15 percent of the statewide total, were contracted out at a cost of 51 Policy Analysis: Public Safety and Justice Page 5 PublicPolicy Analysis: Safety Public Safety and and Justice Justice Page 5 $1.7 million. In a move that should have reduced the need for contract attorneys and indirectly addressed the issue of contract compensation, the Legislature$1.7 funded million. 30 Inadditional a move positionsthat should for haveFY16. reduced However, the PDneedD for contract 2015 JudicialSalaries continuesattorneys to maintain and aindirectly high vacancy addressed rate andthe haissues 36.5 of fundedcontract vacant compensation, the Compared with positions.L egislatureThe Legislature funded also increased30 additional funding positionsfor contract forattorneys FY16. by 20However, PDD National Mean and percent in FY16. 2015Median JudicialSalaries continues to maintain a high vacancy rate and has 36.5 funded vacant (in thousands)Compared with positions. The Legislature also increased funding for contract attorneys by 20 180 More than half of the vacancies are support positions that, if filled, would National Mean and 160 allow attorneyspercent into FY16.focus on caseload instead of administrative tasks. To 140 Median (in thousands) reduce costs, PDD should either open an alternate defender office to take 120 180 conflict casesMore thatthan otherwise half of wouldthe vacancies be contracted, are supportor open satelliteposition officess that, inif filled, would 100 160 rural countiesallow where attorneys contract to counsel focus ison difficult caseload to find instead and, thus, of expeadministrativensive. tasks. To 80 140 reduce costs, PDD should either open an alternate defender office to take 60 120 conflict cases that otherwise would be contracted, or open satellite offices in 40 Courts 100 20 rural counties where contract counsel is difficult to find and, thus, expensive. 80 The National Center for State Courts ranks New Mexico’s Supreme Court 0 th 60 justice salaries second lowest in the country, 48 out of 51 among the states 40 and the CourtsDistrict of Columbia. Low judge salaries result in difficulty for the 20 judiciary to acquire experienced, qualified lawyers from successful private The National Center for State Courts ranks New Mexico’s Supreme Court 0 law firms due to reluctance to move to a position with less pay,th regardless of Supreme Court Appellate Court prestige.justice This causes salaries the second appointment lowest and in theelection country, of young 48 out judges of 51 with among the states and the District of Columbia. Low judge salaries result in difficulty for the General Jurisdiction narrow experience. judiciary to acquire experienced, qualified lawyers from successful private Mean Median New Mexico law firms dueThe to reluctanceimplementation to move of the to Odyssey a position case with management less pay, regardless of Source: National Center for State Case Management. Supreme Court Appellate Court system wasprestige cited. inThis the causesState of the the appointmentJudiciary as oneand ofelection the AOC’s of youngmain judges with accomplishments; however, the impact of the system on staff workload and
General Jurisdiction narrow experience. efficiency varies. AOC states the duties of court clerks has changed with the Mean Median New Mexicocase management system, requiring a higher level of competency and Case Management. The implementation of the Odyssey case management Source: National Center for Statecomputer proficiency from employees. While the courts have not requested any additionalsystem court was clerks cited since in the the implementation,State of the Judiciary AOC states as courtone ofclerk thes AOC’s main Administrative Office of are overworkedaccomplishments; and underpaid, however, with a statewide the impact turnover of the rate system of 32 percent on staff in workload and the Courts Report Card FY15. efficiency varies. AOC states the duties of court clerks has changed with the Page 117 case management system, requiring a higher level of competency and AOC’s nextcomputer IT initiatives proficiency are electronic from employees. filing for Whilecriminal the cases courts and haveself- not requested filing forany pro additional se litigants court at kiosks clerks and since eventually the implementation, online. Additionally, AOC statesthe court clerks Administrative Office oOdysseyf are system overworked requires and consistent underpaid, upgrades with a statewideto continue turnover functioning rate of 32 percent in the Courts Report Cardproperly, FY15. as well as to expand into other data sharing capacities and reduce Page 117 staff workload. The courts currently operate using Odyssey V.13 and will need to upgradeAOC’s tonext Odyssey IT initiatives V.16 by FY17. are electronic filing for criminal cases and self- filing for pro se litigants at kiosks and eventually online. Additionally, the Odyssey system requires consistent upgrades to continue functioning properly, as well as to expand into other data sharing capacities and reduce staff workload. The courts currently operate using Odyssey V.13 and will need to upgrade to Odyssey V.16 by FY17.
52 Public InfrastructurePolicy Analysis: Infrastructure Policy Analysis: Infrastructure Page 1 Page 1
alling energy-related revenues and other volatile
alling energy-related revenues and other volatile economic factors negatively impact the capacity economic factors negatively impact the capacity Capital Outlay available for funding state and local infrastructure Bonding Capacity F Capital Outlay available for funding state and local infrastructure Uses for 2016 needs. Investments in infrastructure for roads, water Bonding Capacity F (in millions) systems, prisons, hospitals, and other public safety facilities Uses for 2016 needs. Investments in infrastructure for roads, water (in millions) $111.2 continue to be one of the many fiscal challenges facing systems, prisons, hospitals, and other public safety facilities $186.6 policymakers. As in past years, capital outlay requests from $111.2 continue to be one of the many fiscal challenges facing $186.6 state and local entities in 2016 are far greater than available policymakers. As in past years, capital outlay requests from funding, $1.8 billion in requests compared with $485.4 state and local entities in 2016 are far greater than available $20.6 million in capacity from all sources.
funding, $1.8 billion in requests compared with $485.4 $13.4 $140.2 $13.4 As lawmakers seek an equitable distribution of capital funds among state- $20.6 million in capacity from all sources. Severance Tax Bonds owned and local capital needs, they must be attentive to the millions of $13.4 $140.2 $13.4 As lawmakers seek an equitable distribution of capital funds among state- General Obligation Bonds dollars appropriated in previous years that remain unexpended. As reported Supplemental Severance Tax * to the Legislative Finance Committee, more than $242 million appropriated Severance Tax Bonds owned and local capital needs, they must be attentive to the millions of Water Project Fund for 1,778 local projects from 2012 through 2015 remains unexpended. General Obligation Bonds dollars appropriated in previous years that remain unexpended. As reported Colonias Project Fund Supplemental Severance Tax * to the Legislative Finance Committee, more than $242 million appropriated Tribal Infrastructure Fund Over several administrations, there has been much talk and failed legislation Water Project Fund for 1,778 local projects from 2012 through 2015 remains unexpended. * For public school construction intended to improve the capital process. Think New Mexico, a nonpartisan Colonias Project Fund Source: LFC organization known for educating the public and policymakers about serious
Tribal Infrastructure Fund Over several administrations, there has been much talk and failed legislation issues facing New Mexico, will propose capital outlay reform legislation in intended to improve the capital process. Think New Mexico, a nonpartisan 2016. The goal of Think New Mexico is to develop a “transparent, merit- * For public school construction Source: LFC organization known for educating the public and policymakers about serious based system for funding the state’s public infrastructure” while still issues facing New Mexico, will propose capital outlay reform legislation in maintaining legislative authority may be the solution toward an equitable and accountable distribution of New Mexico’s limited dollars. 2016. The goal of Think New Mexico is to develop a “transparent, merit- Percent of Unexpended Capital based system for funding the state’s public infrastructure” while still Balances By Fund maintaining legislative authority may be the solution toward an equitable and Capital Outlay accountable distribution of New Mexico’s limited dollars. 2009-2015 Percent of 2016 Capital Funding Outlook. As detailed in Volume III, net senior Unexpended Capital severance tax bond (STB) capacity is $140.2 million. Earmarked funds for Balances By Fund Capital Outlay 20% water infrastructure, colonias, and tribal infrastructure total $47.4 million, 2009-2015 65% 33.8 percent of the total of net STB capacity. Laws 2015, Chapter 63, (House 2016 Capital Funding Outlook. As detailed in Volume III, net senior Bill 236) amended the Severance Tax Bonding Act to increase the amount of revenue transferred to the severance tax permanent fund. To hold severance tax bond (STB) capacity is $140.2 million. Earmarked funds for 12% 20% water infrastructure, colonias, and tribal infrastructure total $47.4 million, beneficiaries of earmarked severance tax bonds harmless, in FY16 the tribal infrastructure and colonias percentage of STB increased from 5 percent to 6.5 33.8 percent of the total of net STB capacity. Laws 2015, Chapter 63, (House 65% 3% percent of senior severance tax bond capacity. In fiscal year 2017 and Bill 236) amended the Severance Tax Bonding Act to increase the amount of subsequent years, 5.5 percent will be earmarked for both funds. The revenue transferred to the severance tax permanent fund. To hold General Fund allocations of earmarked funds in 2015 totaling $62 million are listed on the 12% beneficiaries of earmarked severance tax bonds harmless, in FY16 the tribal Severance Tax Bond LFC website. infrastructure and colonias percentage of STB increased from 5 percent to 6.5 3% percent of senior severance tax bond capacity. In fiscal year 2017 and General Obligation Bond The supplemental sponge issuance dedicated for public school construction is subsequent years, 5.5 percent will be earmarked for both funds. The Other State Funds expected to be about $111.2 million, significantly reduced from previous General Fund estimates due to the application of Chapter 63. The final capacity estimates allocations of earmarked funds in 2015 totaling $62 million are listed on the Source: LFC will be released in January 2016. General obligation bond (GOB) capacity is Severance Tax Bond LFC website. $186.6 million, or approximately 0.33 percent of net taxable value of property. Authorizing no more than the stated capacity maintains a flat mill General Obligation Bond The supplemental sponge issuance dedicated for public school construction is Other State Funds expected to be about $111.2 million, significantly reduced from previous estimates due to the application of Chapter 63. The final capacity estimates Source: LFC will be released in January 2016. General obligation bond (GOB) capacity is $186.6 million, or approximately 0.33 percent of net taxable value of property. Authorizing no more than the stated capacity maintains a flat mill 53 Policy Analysis: Infrastructure Page 2 Public Infrastructure Policy Analysis: Infrastructure Page 2 levy. Consensus revenue estimates indicate no nonrecurring general fund monies will be available for capital outlay in 2016.
Senior Severance Tax Bonds levy. Consensus revenue estimates indicate no nonrecurring general fund . The Legislature appropriated or authorized more Earmarked Funds 2012 - 2015 Unexpended monies Fundswill be available for capital outlay in 2016. than $1.5 billion between 2009 and 2015 for 3,583 capital projects. As of (in millions) Senior Severance Tax BondsSeptember 2015, approximately $1 billion from all funding sources for Projects Unexpended Funds. The Legislature appropriated or authorized more Fund EarmarkedAw arded Amount FundsBalance 2012 - 20152,845 p r o j e c t s r e mains outstanding, including $87.4 million earmarked for (in millions) water, $41.8than million$1.5 billion for colonias between, and 2009 $36.2 and million 2015 for tribal3,583 infrastructure capital projects. As of Water 110 $101.0 $87.4 September 2015, approximately $1 billion from all funding sources for Colonias 142 Projects$51.4 $41.8 funds. Of the total amount unexpended, 3 percent was appropriated from the Tribal Fund108 Aw arded$40.1Amount$36.2 Balancegeneral fund.2,845 Aspr oofje Septembercts remain 2015s ou,t sbalancestanding, for including projects costing$87.4 million$1 million earmarked for Total Water360 110$192.5 $101.0$165.4 or$87.4 greaterwater total, $41.8more than million $784.8 for million colonias for, and229 projects,$36.2 million approximate for tribally 78 infrastructure Source:Colonias Capital Projects142 Monitoring System$51.4 percent$41.8 offunds all unexpended. Of the total bala amountnces. unexpended, 3 percent was appropriated from the Tribal 108 $40.1 $36.2 general fund. As of September 2015, balances for projects costing $1 million
2009-2015 Capital Outlay All Fund Sources Total 360 $192.5 $165.4 or greater total more than $784.8 million for 229 projects, approximately 78 Source: Capital Projects Monitoring System percent of all unexpended"Outstanding" bala Projectsnces. Only (in millions) Number Percent 2009-2015 Capital Outlay All Fund Sources of Amount Amount Amount Expended Year Projects Appropriated "Outstanding"Expended UnexpendedProjects Only for Year Status of Projects Greater 2009 1 $10.0 (in$8.8 millions) $1.2 88% than $1 Million Number Percent 2010 0 $0.0 $0.0 $0.0 100% G Project on schedule 146 of Amount Amount Amount Expended Behind schedule or 2011 Year 31 Projects $41.7Appropriated$28.6Expended $13.1Unexpended69% for Year Status of Projects Greater Y little activity 63 2012 232 $176.9 $115.5 $61.4 66% 2009 1 $10.0 $8.8 $1.2 88% No activity thanor bonds $1 Million 2013 491 0 $214.7 $72.7 $142.0 34% R not soldProject on schedule 20 146 2010 $0.0 $0.0 $0.0 100% G 2014 934 $454.6 $46.1 $408.5 10% Total ActiveBehind Projects schedule or229 2011 31 $41.7 $28.6 $13.1 69% 2015 1,156 $378.7 $0.3 $378.4 0% Other reportY little information: activity 63 2012 232 $176.9 $115.5 $61.4 66% Appropriation Total 2,845 $1,276.6 $272.0 $1,004.6 No activity or bonds 2013 491 $214.7 $72.7 $142.0 34% expendedR not orsold project Note:20 Data includes projects for w ater, colonias and tribal earmarked funds. B complete 20 2014 934 $454.6 Source: Capital$46.1 Projects Monitoring System$408.5 10% Total Active Projects 229 Additional funds 2015 1,156 $378.7 $0.3 $378.4 0% Other report information: X needed 4 Authorized but Unissued Bonds. Severance tax bonds authorized in AppropriationSource: LFC Total 2,845 $1,276.6 $272.0 $1,004.6 2014 and 2015 totaling $18.6 million for 102 projects remain unissued ($7.3 expended or project Note: Data includes projects for w ater, colonias and tribal earmarked funds. million in 2014 and $11.3 million in 2015). As of September 29, 2015, 33 B complete 20 Source: Capital Projects Monitoring System Additional funds projects in 15 counties in the amount of $1.7 million do not comply with audit
X needed requirements4 in accordance with Executive Order 2013-006, which requires Authorized but Unissued Bonds. Severance tax bonds authorized in Source:grantees LFC to have timely annual audits and must have remedied material 2014 and 2015 totaling $18.6 million for 102 projects remain unissued ($7.3 weaknesses and significant deficiencies. The Legislature appropriated $160 million in 2014 and $11.3 million in 2015). As of September 29, 2015, 33 Office of State Auditor Awards to thousand to the Office of the State Auditor (OSA) in FY16 to assist small Small Communities for Audits politicalprojects subdivisions in 15 with counties meeting in financialthe amount reporting of $1.7 requirements million do. not comply with audit requirements in accordance with Executive Order 2013-006, which requires • 60 awards granted to 30 State Debtgrantees. According to have totimely 2013 annualdata from audits the U.S.and mustCensus have Survey remedied of material entities in 16 counties in FY15 Governmentweaknesses Finance, and the significantcombined state deficiencies. and local debtThe perLegislature-capita for appropriated New $160 • 61 awards granted to 33 entitiesOffice in of 16 State counties Auditor in FY16 Awards Mexico to thousandwas $7,828. to the The Office per-capita of the average State Auditorfor all states(OSA) was in higherFY16 toat assist small • $1Small60 thousand Communities requested for by Audits $9,531, politicalindicating subdivisions New Mexico with has not meeting over-leveraged financial its reporting residents requirements relative to . OSA in FY17 to help small other states. political• 60 subdivisions awards granted fulfill to 30 financial reporting State Debt. According to 2013 data from the U.S. Census Survey of entities in 16 counties in FY15 requirements. In New Mexico, state government accounted for 44.3 percent of the total • 61 awards granted to 33 Government Finance, the combined state and local debt per-capita for New amount Mexicoof outstanding was $7,828.long-term Thestate perand- capitalocal government average for debt, all while states local was higher at entities in 16 counties in FY16governments accounted for 55.4 percent. Nationally, state governments • $160 thousand requested by $9,531, indicating New Mexico has not over-leveraged its residents relative to account for 38.5 percent of the debt, with local governments accounting for OSA in FY17 to help small other states. political subdivisions fulfill 61.5 percent. financial reporting requirements. In New Mexico, state government accounted for 44.3 percent of the total amount of outstanding long-term state and local government debt, while local governments accounted for 55.4 percent. Nationally, state governments account for 38.5 percent of the debt, with local governments accounting for
61.5 percent. 54 Policy Analysis: Infrastructure Page 3 Public InfrastructurePolicy Analysis: Infrastructure Page 3
Criteria and Assigned Points for . State agencies, higher education institutions, special Funding Requests Criteria and Assigned Points for Prioritizing Senior Citizen and tribal schools requested $647.6 million for capital projects: $288.4 Funding Requests. State agencies, higher education institutions, special Projects (100 Points Possible) Prioritizing Senior Citizen and tribal schools requested $647.6 million for capital projects: $288.4 million from STB capacity, $331.1 million from general obligation bond Projects (100 Points Possible) • Completeness of application million from STB capacity, $331.1 million from general obligation bond (GOB) capacity, and $28.1 million from other state funds. The LFC staff • Completeness of application (5 points) (GOB) capacity, and $28.1 million from other state funds. The LFC staff “framework” for consideration by the full Legislature is based on criteria (5 points) • Compliance with Executive • Compliance with Executive “framework” for consideration by the full Legislature is based on criteria Order 2013-06 (10 points) indicated in the sidebar, as well as site visits (16 during the interim), review Order 2013-06 (10 points) indicated in the sidebar, as well as site visits (16 during the interim), review • Infrastructure Capital of infrastructure capital improvement plans, monthly meetings with major • Infrastructure Capital of infrastructure capital improvement plans, monthly meetings with major Improvement Plan (10 points) departments, and testimony at hearings held in the interim. Improvement Plan (10 points) departments, and testimony at hearings held in the interim. • • Description & need (20 points) Description & need (20 points) • • Planning (10 points) Planning (10 points) The following summaries reflect the most critical projects impacting public • The following summaries reflect the most critical projects impacting public • Feasibility, readiness to Feasibility, readiness to health and safety and ongoing projects requiring additional funds to complete. proceed & timeline (25 points) health and safety and ongoing projects requiring additional funds to complete. proceed & timeline (25 points) • Cost benefit (5 points) Other requests, including authorization to expend money for capital from • Cost benefit (5 points) Other requests, including authorization to expend money for capital from • Asset management (15 points) “other state funds,” and LFC staff-proposed dollars for capital from all state • Asset management (15 points) “other state funds,” and LFC staff-proposed dollars for capital from all state funding sources are summarized in Volume III. funding sources are summarized in Volume III. Criteria for Prioritizing Higher Criteria for Prioritizing Higher Education Needs Education Needs Aging and Long-Term Services Department. ALTSD received capital Aging and Long-Term Services Department. ALTSD received capital • Student, faculty, and public • Student, faculty, and public safety outlay requests totaling $40.5 million for senior centers statewide. ALTSD safety outlay requests totaling $40.5 million for senior centers statewide. ALTSD • Project completion and area agencies on aging rated and recommended $24.6 million for 119 • Project completion and area agencies on aging rated and recommended $24.6 million for 119 • Funding from other sources projects statewide by applying criteria and allocating points to prioritize • Funding from other sources projects statewide by applying criteria and allocating points to prioritize • Project readiness projects in five categories: code compliance, meals and other equipment, • Project readiness • Facility condition index renovations, vehicles and construction and major additions statewide. The projects in five categories: code compliance, meals and other equipment, • • Facility condition index Full-time student enrollment major requests are for senior center construction projects in Rio Rancho renovations, vehicles and construction and major additions statewide. The trends • Full-time student enrollment major requests are for senior center construction projects in Rio Rancho • Programmatic use of building ($11.9 million), Taos ($1.2 million), Albuquerque ($913 thousand), Tijeras trends ($11.9 million), Taos ($1.2 million), Albuquerque ($913 thousand), Tijeras • Energy-efficiency standards ($806 thousand), and Mora County ($550 thousand). The LFC staff • Programmatic use of building • Space utilization for framework proposes nearly $24.1 million for projects with a useful life • Energy-efficiency standards ($806 thousand), and Mora County ($550 thousand). The LFC staff Instructional & General needs expectancy of 10 years or more. • Space utilization for framework proposes nearly $24.1 million for projects with a useful life Funding Criteria for Critical Instructional & General needs expectancy of 10 years or more. . The Higher Investments in State Assets Higher Education Institutions and Special Schools Education Department (HED) held hearings in Santa Fe, Albuquerque, Funding Criteria for Critical • Project will eliminate potential Investments in State Assets Higher Education Institutions and Special Schools. The Higher or actual health and safety Socorro, Las Cruces, and Roswell. All secondary institutions, the three Education Department (HED) held hearings in Santa Fe, Albuquerque, hazards and liability issues. special schools, Dine College, the Institute of American Indian Arts, Navajo • Project will eliminate potential Socorro, Las Cruces, and Roswell. All secondary institutions, the three • Project will address backlog of Technical College, and Southwestern Indian Polytechnic Institute presented or actual health and safety “deferred” maintenance and hazards and liability issues. special schools, Dine College, the Institute of American Indian Arts, Navajo requests totaling $253.2 million for infrastructure projects statewide. With prevent deterioration of state- significant consensus, the staff of LFC, HED, and Department of Finance and • Project will address backlog of Technical College, and Southwestern Indian Polytechnic Institute presented owned assets, including “deferred” maintenance and requests totaling $253.2 million for infrastructure projects statewide. With projects of cultural or historical Administration developed a framework for the most critical infrastructure needs impacting the health and safety of the students, faculty, and the general prevent deterioration of state- significant consensus, the staff of LFC, HED, and Department of Finance and significance. owned assets, including • Project is necessary to comply public. projects of cultural or historical Administration developed a framework for the most critical infrastructure with state or federal licensing, significance. needs impacting the health and safety of the students, faculty, and the general certification, or regulatory New Mexico School for the Deaf. NMSD requested $2.4 million for • Project is necessary to comply requirements. public. • Request is included in state renovations to Delgado Hall. The renovations include abatement of with state or federal licensing, five-year capital improvement hazardous materials and to address code violations. certification, or regulatory plan for projects ready to requirements. New Mexico School for the Deaf. NMSD requested $2.4 million for commence or require New Mexico School for the Blind and Visually Impaired. NMSBVI • Request is included in state renovations to Delgado Hall. The renovations include abatement of additional funding for five-year capital improvement hazardous materials and to address code violations. completion. requested nearly $825 thousand for renovations to Garrett Dormitory. Due to plan for projects ready to • Investment provides future a decrease in allocations from the public school capital outlay fund to commence or require New Mexico School for the Blind and Visually Impaired. NMSBVI operating cost-savings with a complete deficiencies, the school used funds budgeted for specialized additional funding for reasonable expected rate of equipment. completion. requested nearly $825 thousand for renovations to Garrett Dormitory. Due to return. • • Investment provides future a decrease in allocations from the public school capital outlay fund to Project provides direct services to students, staff, or Institutions, especially those contributing matching funds to the projects, are operating cost-savings with a complete deficiencies, the school used funds budgeted for specialized the general public. encouraged to proceed with the plan and design phase to allow construction reasonable expected rate of equipment. return. • Project provides direct services to students, staff, or Institutions, especially those contributing matching funds to the projects, are the general public. encouraged to proceed with the plan and design phase to allow construction 55 PolicyPolicy Analysis:Public Analysis: Infrastructure Infrastructure Infrastructure PagePage 4 4
NMSU- NMSUMain - Main and renovationsand renovations to move forwardto move as forward soon as asthe soon voters as approve the voters the bondsapprove in the bonds in NovemberNovember 2016. The2016. LFC Thestaff LFCframework staff frameworkproposes more proposes than $133more.5 than $133.5 million inmillion spending in spendingfor 33 projects. for 33 projects.
Library LibraryGeneral GeneralObligation Obligation Bond Request. Bond Request.The New Mexico The New Library Mexico Library AssociationAssociation (NMLA) (NMLA)requested requested$17.5 million $17.5 on millionbehalf of on public behalf libraries, of public libraries, public schoolpublic libraries, school libraries,academic libraries,academic and libraries, tribal public and triballibraries. public Public libraries. Public libraries,libraries, public school public libraries, school andlibraries, tribal librandaries tribal will libr allocatearies willfunds allocate based funds based on population and full-time-equivalent student enrollment. New Mexico on population and full-time-equivalent student enrollment. New Mexico Williams Hall colleges and universities will continue to use funds toward electronic Williams Hall colleges and universities will continue to use funds toward electronic resources (academic journals, electronic reference books, electronic books, educationalresources films, (academicetc.) to provide journals, resources electronic to studentsreference regardless books, electronic of books, institutioneducational or course work,films, particularly etc.) to inprovide rural areas. resources The LFC to recommends students regardless of $3 millioninstitution for public or couschoolrse work,libraries, particularly $3 million in for rural public areas. libraries, The LFC$3.5 recommends million for$3 academicmillion forlibraries, public and school $500 thousandlibraries, for $ 3tribal million libraries. for public libraries, $3.5 million for academic libraries, and $500 thousand for tribal libraries. Public Education Department. PED requested $14.5 million to replace aged andPublic high mileageEducation school Department buses and $2.5. PEDmillion requested for construction $14.5 million or to replace renovationaged of and prekindergarten high mileage classrooms.school buses PEDand $2.5owns millionand operates for construction or Williams Hall approximatelyrenovation 900 schoolof prekindergartenbuses statewide. Inclassrooms. accordance with PED Section owns 22- 8-and operates 27, NMSA 1978, buses are required to be replaced every 12 years. The LFC NMSU -GallupWilliams Hall approximately 900 school buses statewide. In accordance with Section 22-8- staff framework proposes $3 million for school buses and $2 million for 27, NMSA 1978, buses are required to be replaced every 12 years. The LFC NMSU -Gallup prekindergarten classroom construction. staff framework proposes $3 million for school buses and $2 million for Children,prekindergarte Youth andn Familiesclassroom Department construction.. CYFD requested nearly $3.6 mill ion for improvements to the Youth Diagnostic and Development Center (YDDC)Children, in AlbuquerqueYouth and, to Families the John Paul Department Taylor Juvenile. CYFD Center requested in nearly Las Cruces,$3.6 millEagleion Nest for improvementsReintegration Centerto the, andYouth Henry Diagnostic Perea Childand Development AdvocacyCenter Center (YDDC) in Valencia in AlbuquerqueCounty. CYFD’s, to prioritythe John request Paul isTaylor to purchase Juvenile Center in furniture,Las fixtures Cruces,, and equipmentEagle Nest for aReintegration proposed new siteCenter for ,child and protective Henry Perea Child McClure Hall Before services Advocacycurrently under Center review in Valencia by the GeneralCounty .Servic CYFD’ses Department priority request (GSD). is to purchase The framework includes a portion of the requested funding for the furniture furniture, fixtures, and equipment for a proposed new site for child protective McClure Hall Before and equipmenservicest. currently The LFC under staff review framework by the proposes General $Servic2.3 milliones Department for (GSD). improvements at the YDDC campus, the John Paul Taylor Juvenile Center, The framework includes a portion of the requested funding for the furniture and the Eagle Nest, and Henry Perea facilities. and equipment. The LFC staff framework proposes $2.3 million for New Mexicoimprovements Corrections at the DepartmentYDDC campus,. NMCD the John requested Paul Taylornearly $41Juvenile Center, million andfor securitythe Eagle upgrades, Nest, and improvements Henry Perea to facilities heating,. ventilation and air conditioning (HVAC), and other infrastructure improvements at correctional facilitiesNew statewide Mexico. The Corrections department operates Department six public. NMCDprison campusesrequested nearly $41 McClure Hall After totaling million2.5 million for securitysquare feet, upgrades, ranging improvementsin age from 33 to to heating, 70 years ventilation old, and air
NMSU -Carlsbad housing conditioningover 7,000 inmates, (HVAC) and, andexceeding other infrastructuretheir 30-year life improvements span. NMCD at correctional recently facilitiesreported morestatewide than $300. The million department is needed operatesover the nextsix fivepublic years prison to campuses McClure Hall After address totalingthe backlog 2.5 ofmillion deficiencies square at feet, the facilitiesranging andin age described from 33curre tont 70 years old, facility conditions as similar to those that led to the 1980 riot. The NMSU -Carlsbad housing over 7,000 inmates, and exceeding their 30-year life span. NMCD Legislaturerecently should reported seriously more consider than the $300 department’s million is requestneeded to over fund the master next five years to planning and a facility condition assessment to determine short- and long- address the backlog of deficiencies at the facilities and described current term prison needs and to examine the merits of building a new facility versus investingfacility more state conditions money into as the similar current topoorly those designed that ledand agedto the prisons. 1980 riot. The The LFCLegislature staff framework should proposes seriously $4 consider million forthe mechanical department’s upgrades, request $ 4to fund master million forplanning security and upgrades a facility, and $condit1.5 millionion assessment for renovations to determineand repairs . short- and long- Old Boilers- NMSU Carlsbad term prison needs and to examine the merits of building a new facility versus investing more state money into the current poorly designed and aged prisons. The LFC staff framework proposes $4 million for mechanical upgrades, $4 million for security upgrades, and $1.5 million for renovations and repairs. Old Boilers- NMSU Carlsbad 56 Policy Analysis: Infrastructure Public InfrastructurePolicy Analysis: Infrastructure Page 5 Page 5
Cultural Affairs Department. The department requested $21.6 million to Cultural Affairs Department. The department requested $21.6 million to New Mexico Corrections Dept New Mexico Corrections Dept preserve and renovate museums and monuments statewide, including exhibit preserve and renovate museums and monuments statewide, including exhibit upgrades, equipment, storage expansion, and replacement of high-mileage upgrades, equipment, storage expansion, and replacement of high-mileage bookmobiles. The department is responsible for 191 buildings with over 1.3 bookmobiles. The department is responsible for 191 buildings with over 1.3 million square feet valued at $650 million and the buildings contain million square feet valued at $650 million and the buildings contain irreplaceable art and artifacts valued at more than $300 million. The LFC irreplaceable art and artifacts valued at more than $300 million. The LFC staff framework proposes $5 million to address major life, health, and safety staff framework proposes $5 million to address major life, health, and safety repairs at museums, monuments, and historic sites statewide. repairs at museums, monuments, and historic sites statewide. Obsolete Security Monitors Department of Health. DOH requested $26 million to address patient
Obsolete Security Monitors Department of Health. DOH requested $26 million to address patient health and safety issues impacted by aged infrastructure and a backlog of health and safety issues impacted by aged infrastructure and a backlog of repairs and to complete the final phase of constructing, furnishing, and repairs and to complete the final phase of constructing, furnishing, and equipping the Meadows long-term care facility in Las Vegas. DOH facilities equipping the Meadows long-term care facility in Las Vegas. DOH facilities have been cited for code violations by the Joint Commission (an independent, have been cited for code violations by the Joint Commission (an independent, not-for-profit accreditation organization), the state Fire Marshal, and the state not-for-profit accreditation organization), the state Fire Marshal, and the state Health Facility Licensing and Certification Bureau. The LFC staff framework proposes nearly $9.2 million to complete construction, furnishing, and Health Facility Licensing and Certification Bureau. The LFC staff framework equipping of the Meadows long-term care nursing facility and to address proposes nearly $9.2 million to complete construction, furnishing, and patient health and safety and deficiency issues at state-owned health facilities equipping of the Meadows long-term care nursing facility and to address Waterlines statewide, including $150 thousand for specialized equipment for the state Waterlines patient health and safety and deficiency issues at state-owned health facilities Scientific Laboratory Division. statewide, including $150 thousand for specialized equipment for the state Cultural Affairs Department
Cultural Affairs Department Scientific Laboratory Division. Department of Public Safety. DPS requested over $6 million to purchase easements and to plan, design, and construct the Texico port of entry. The Department of Public Safety. DPS requested over $6 million to purchase existing port is a public safety hazard and is inadequate for truck entrances. easements and to plan, design, and construct the Texico port of entry. The The department also requested funds to plan and design a new evidence existing port is a public safety hazard and is inadequate for truck entrances. center and crime lab in Santa Fe. The evidence and records are currently The department also requested funds to plan and design a new evidence housed in five different facilities, and the crime laboratory is at a crisis point center and crime lab in Santa Fe. The evidence and records are currently with a lack of space and at high risk for cross-contamination. DPS also housed in five different facilities, and the crime laboratory is at a crisis point Center for Contemporary Art Before requested funds to plan and design a state police complex in Albuquerque, and to complete the renovations and expansion of the Roswell district office. with a lack of space and at high risk for cross-contamination. DPS also Center for Contemporary Art Before requested funds to plan and design a state police complex in Albuquerque, The LFC staff framework proposes $10.4 million for the Texico Port of and to complete the renovations and expansion of the Roswell district office. Entry; for renovations to state police district offices statewide; and to plan, The LFC staff framework proposes $10.4 million for the Texico Port of design, and construct the evidence center and crime laboratory in Santa Fe.
Entry; for renovations to state police district offices statewide; and to plan, General Services Department. The Facilities Management Division design, and construct the evidence center and crime laboratory in Santa Fe. (FMD) of GSD is responsible for the repairs and maintenance of 6.8 million square feet of space throughout the state. The FMD requested over $22.5
General Services Department. The Facilities Management Division Center for Contemporary Art After million to address major renovations and repairs at facilities statewide, (FMD) of GSD is responsible for the repairs and maintenance of 6.8 million including demolition. A new statewide facility assessment is in the final square feet of space throughout the state. The FMD requested over $22.5 Cultural Affairs Department stages and will provide a facility condition index (FCI) for each building Center for Contemporary Art After million to address major renovations and repairs at facilities statewide, under FMD jurisdiction, including identifying the immediate deficiencies including demolition. A new statewide facility assessment is in the final impacting the security and safety of the staff and public.
Cultural Affairs Department stages and will provide a facility condition index (FCI) for each building under FMD jurisdiction, including identifying the immediate deficiencies The initial GSD request included $20 million to purchase and renovate an impacting the security and safety of the staff and public. existing facility in Albuquerque to relocate CYFD Child Protective Services currently housed in a substandard facility. GSD will take a different approach The initial GSD request included $20 million to purchase and renovate an and will issue a request for proposals, for a long-term lease for a building that
existing facility in Albuquerque to relocate CYFD Child Protective Services Lincoln National Monument will adequately meet CYFD needs to consolidate services for the children currently housed in a substandard facility. GSD will take a different approach under their care.
and will issue a request for proposals, for a long-term lease for a building that
Lincoln National Monument will adequately meet CYFD needs to consolidate services for the children under their care.
57 PolicyPolicy Analysis:Public Analysis: Infrastructure Infrastructure Infrastructure PagePage 6 6
The LFC staff framework proposes $4 million to preserve and restore Department of Health The LFC staff framework proposes $4 million to preserve and restore facilities statewide, including demolition of structures deemed unsafe and Department of Health facilities statewide, including demolition of structures deemed unsafe and unusable, as well as asbestos remediation. Additional funds requested by FMD forunusable, facilities as underwell asits asbestosjurisdiction remediation. are proposed Additional but listed fundsunder requested by FMD for facilities under its jurisdiction are proposed but listed under individual agencies. individual agencies. Capitol Buildings Planning Commission. The Capitol Buildings
Planning Commission (CBPC), in partnership with GSD, continued to work Capitol Buildings Planning Commission. The Capitol Buildings with state agencies and the courts to implement the State Master Plan for Planning Commission (CBPC), in partnership with GSD, continued to work Santa Fe,with Albuquerque, state agencies Las Crucesand the, and courts Los Lunasto implement metropolitan the areas.State TheMaster Plan for NMBHI Aged Infrastructure five-yearSanta master Fe, p lanAlbuquerque, implementation Las strategyCruces ,recommends and Los Lunas constructing metropolitan new areas. The facilities in a cost-effective manner, phasing in projects over several years, NMBHI Aged Infrastructure five-year master plan implementation strategy recommends constructing new redirecting lease revenue to fund capital costs, minimizing multiple moves, facilities in a cost-effective manner, phasing in projects over several years, and relocating agencies from leased space to state-owned space. During the redirecting lease revenue to fund capital costs, minimizing multiple moves, interim, the consultants provided CBPC with an update of office space standardsand for relocating New Mexico. agencies The fro consultantm leased spacerecommended to state -theowned following space. During the
allocationinterim, method: the consultants provided CBPC with an update of office space
standards for New Mexico. The consultant recommended the following • allocationEstablish maximummethod: square foot allocations for primary office space, • Provide guidance on the number and type of occupants to NMBHI Ponderosa accommodate• Establish present maximum and future square requirements, foot alloc ations for primary office space, • Continue to encourage “open office” space layout concepts, • Provide guidance on the number and type of occupants to • Encourage private office space only when functionally required, NMBHI Ponderosa accommodate present and future requirements, • Adopt a consistent method to identify, measure and assign space for • Continue to encourage “open office” space layout concepts, both owned and leased space, • Encourage private office space only when functionally required, • Provide user-friendly planning forms. • Adopt a consistent method to identify, measure and assign space for
The consultants bothmet withowned representatives and leased space,from GSD, DFA, DOT, and LFC to further discuss• Providethe proposed user- friendlystate space planning standard forms. of 215 square foot of
NM Veterans’ Home Pool Tunnel Piping “primary office” space per full time equivalency. DFA reported the consensus was to not pursue statewide implementation of the standards by rule or The consultants met with representatives from GSD, DFA, DOT, and LFC to Bernalillo Metro Court statute.further DFA reporteddiscuss a thenew proposedstandard cou staldte create space an standardentitlement of issue 215 andsquare foot of
the cost“primary of complying office” with space the per proposed full time space equivalency. standard DFAis unknown. reported In the consensus NM Veterans’ Home Pool Tunnel Pipingaddition, DFA suggested any state space standard should apply to all branches was to not pursue statewide implementation of the standards by rule or of government, not just the executive branch. Finally, SHARE currently does Bernalillo Metro Court not havestatute. the capacity DFA reportedto capture a thnewe num standardbers but cou isld close create to antying entitlement actual issue and employeesthe tocost a particular of complying space. with the proposed space standard is unknown. In addition, DFA suggested any state space standard should apply to all branches The decisionof government was for GSD, not to just proceed the executive with implement branching. Finally,the space SHARE standards currently does under itsnot current have theauthority capacity without to capturea new rulethe. numGSDbers will but only is applyclose theto tying actual
Unfinished 4th floor standardsemployees to buildings to a underparticular Facilities space. Management Division’s jurisdiction and to new construction, new leases and major renovations. The standards will notThe be applieddecision retroactively was for GSD to agencies to proceed already with occupying implement space.ing the GSD space standards reportedunder using its the current new standards authority on awithout trial basis a onewf 215 rule square. GSD feet perwill full only- apply the time -equivalent employee and the standard appears to be working well. Unfinished 4th floor standards to buildings under Facilities Management Division’s jurisdiction
and to new construction, new leases and major renovations. The standards Local Government and Tribal Entity Requests. According to the Infrastructurewill not Capital be applied Improvement retroactively Plan to(ICIP) agencies compiled already by occupyingthe Local space. GSD Governmentreported Division using of the DFA, new local, standards tribal, onand a othertrial basispolitical of 215subdivisions square feet per full- time-equivalent employee and the standard appears to be working well. th submitted nearly $3 billion of infrastructure needs. The top five priorities Unfinished 4 floor total $1.2 billion for five major categories: water, transportation, quality of Local Government and Tribal Entity Requests. According to the Infrastructure Capital Improvement Plan (ICIP) compiled by the Local Government Division of DFA, local, tribal, and other political subdivisions
th submitted nearly $3 billion of infrastructure needs. The top five priorities Unfinished 4 floor total $1.2 billion for five major categories: water, transportation, quality of 58 Policy Analysis: Infrastructure Public InfrastructurePolicy Analysis: Infrastructure Page 7 Page 7
life (libraries, parks, senior centers, community and cultural centers, etc.), life (libraries, parks, senior centers, community and cultural centers, etc.),
environment (utilities, landfills, clean energy, solid waste, etc.), and public environment (utilities, landfills, clean energy, solid waste, etc.), and public Local FY17 Requests Local FY17 Requests safety. A listing of the top five priorities for all governmental entities safety. A listing of the top five priorities for all governmental entities Top 5 Priorities by Category Top 5 Priorities by Category (estimated project costs) participating in ICIP is available through LFC or the Local Government (estimated project costs) participating in ICIP is available through LFC or the Local Government Requested Division. Requested Division. Category Amount Category Amount Water $416,174,708 The top priorities range in the millions of dollars, placing legislators in the Water $416,174,708 The top priorities range in the millions of dollars, placing legislators in the Transportation $376,446,156 position of funding only a small portion of the amount needed to complete Transportation $376,446,156 position of funding only a small portion of the amount needed to complete Quality of Life $247,145,420 even a phase of a project. According to concerns expressed at the Mayor’s Quality of Life $247,145,420 even a phase of a project. According to concerns expressed at the Mayor’s Environment $52,584,532 Summit in Albuquerque and the New Mexico Association Board of Directors, Environment $52,584,532 Summit in Albuquerque and the New Mexico Association Board of Directors, Public Safety $47,251,596 the piece-meal funding of local projects is increasing the strain of Public Safety $47,251,596 the piece-meal funding of local projects is increasing the strain of Economic Development $33,858,337 administrative resources on local governments. Economic Development $33,858,337 administrative resources on local governments. Housing $13,164,010 Housing $13,164,010 Health $28,262,000 New Local Project Tracking. In June 2015, staff of the LFC began Health $28,262,000 New Local Project Tracking. In June 2015, staff of the LFC began Public Education $2,816,305 developing a report to track state funds appropriated between $300 thousand Public Education $2,816,305 developing a report to track state funds appropriated between $300 thousand Other Education $1,930,000 and $1 million for local capital projects. The data for the report is derived Other Education $1,930,000 and $1 million for local capital projects. The data for the report is derived Total $1,219,633,064 from the Capital Project Monitoring System (CPMS) operated and maintained Source: DFA-Local Government Division by the Department of Finance and Administration. LFC staff introduced the Total $1,219,633,064 from the Capital Project Monitoring System (CPMS) operated and maintained Source: DFA-Local Government Division by the Department of Finance and Administration. LFC staff introduced the new tracking system at the recently held Mayor’s Summit, the Association of
new tracking system at the recently held Mayor’s Summit, the Association of Counties Board of Directors meeting, and to the New Mexico Municipal League Association. LFC staff, with the assistance of the Capital Outlay Counties Board of Directors meeting, and to the New Mexico Municipal League Association. LFC staff, with the assistance of the Capital Outlay Bureau of DFA, emphasized the most important steps needed to address inadequacies of the report are as follows: Bureau of DFA, emphasized the most important steps needed to address
inadequacies of the report are as follows: FY16 NMDOT • Update CPMS monthly as is required in the grant agreements Revenue by Source executed between the state and the local entity, FY16 NMDOT • Update CPMS monthly as is required in the grant agreements (in millions) • Comply with the governor’s executive order requiring updated audits, Revenue by Source executed between the state and the local entity, • Delay certification of readiness to the Board of Finance for the bond (in millions) • Comply with the governor’s executive order requiring updated audits, sale if the project is not ready to proceed. All grantees have two $83.7 • Delay certification of readiness to the Board of Finance for the bond years to certify for a bond sale before the authorization is voided. sale if the project is not ready to proceed. All grantees have two $83.7 years to certify for a bond sale before the authorization is voided. LFC staff anticipates data entry into CPMS by state and local entities will improve for future quarterly reports. LFC staff anticipates data entry into CPMS by state and local entities will improve for future quarterly reports. Transportation Infrastructure
Transportation Infrastructure New Mexico’s statewide transportation infrastructure network, 30 thousand $376.8 $401.6 lane miles of interstate corridors and U.S. and state highways, is maintained
by the New Mexico Department of Transportation (NMDOT). Construction New Mexico’s statewide transportation infrastructure network, 30 thousand needs of the transportation network have increased as routine maintenance $376.8 $401.6 lane miles of interstate corridors and U.S. and state highways, is maintained State Revenues has been deferred and expenses have increased. At the same time, road fund by the New Mexico Department of Transportation (NMDOT). Construction revenue growth is not keeping pace with inflation, and debt service payments needs of the transportation network have increased as routine maintenance Federal require a sizeable share of revenue. State Revenues has been deferred and expenses have increased. At the same time, road fund revenue growth is not keeping pace with inflation, and debt service payments Other Overview of the State Road Fund. The state road fund is composed of Federal require a sizeable share of revenue. revenues from gasoline tax, special fuel (diesel) tax, weight-distance tax on Source: NMDOT commercial trucking, vehicle registration fees, and other fee and permit Other Overview of the State Road Fund. The state road fund is composed of assessments. In FY15, the road fund realized revenues of $397 million, an revenues from gasoline tax, special fuel (diesel) tax, weight-distance tax on increase of 4.1 percent attributable to strength in gasoline, special fuels, and Source: NMDOT commercial trucking, vehicle registration fees, and other fee and permit weight-distance tax receipts. Despite the strong growth, FY15 road fund
assessments. In FY15, the road fund realized revenues of $397 million, an increase of 4.1 percent attributable to strength in gasoline, special fuels, and weight-distance tax receipts. Despite the strong growth, FY15 road fund
59 Policy Analysis: Infrastructure Page 8
revenues remain 0.4 percent below their FY07 peak, meanwhile U.S. inflation reduced purchasing power by 14.2 percent over this same period. NMDOT
estimates road fund growth of 2.1 percent between FY16 and FY17. The road fund revenue forecast for FY17 anticipates total revenue of $403.4 million, an increase of 1.3 percent since FY07.
Near-flat road fund revenues over the last decade is related to a plateau in
gasoline tax revenue brought on by gains in passenger vehicle efficiency, Public Infrastructurefewer vehicle-miles traveled per-capita, and slow population growth. New Policy Analysis: InfrastructureMexico has the lowest gasoline tax in the southwest region at 17 cents per Page 8 gallon. The tax was last changed in 1995 when it was decreased by 3 cents
per gallon. Because the unit tax is not indexed to inflation, the purchasing power ofrevenues the fuel taxremai revenuen 0.4 haspercent eroded below over theirtime. FY07 peak, meanwhile U.S. inflation reduced purchasing power by 14.2 percent over this same period. NMDOT
FY16 Projected Special estimatesfuels tax roadand weightfund growth-distance of tax2.1 revenuespercent between are driven FY16 by andnational FY17. The road Debt Service Funding consumerfund demand revenue and forecast tend to for be FY17 closely anticipates related to total the rstateevenue of ofthe $403.4 U.S. million, an (in millions) economy; strengthening consumer demand leads to increased consumer increase of 1.3 percent since FY07. spending and increased freight movement. While strength in the weight- distance revenue is encouraging, it is highly sensitive to changes in national Near-flat road fund revenues over the last decade is related to a plateau in economic conditions. NMDOT noted the slowing growth rate of special fuels Federal $101.7 Highway tax revenuegasoline is pri marilytax revenue due to increasingbrought onefficiency by gains in heavyin passenger trucks. vehicle efficiency, Admin fewer vehicle-miles traveled per-capita, and slow population growth. New
Mexico has the lowestState Roadgasoline Fund By tax Source in the southwest region at 17 cents per gallon. The tax was last changed(in millions) in 1995 when it was decreased by 3 cents
$10.4 $450 per gallon. Because the unit tax is not indexed to inflation, the purchasing Highway $400 Infrastructure power of the fuel tax revenue has eroded over $30.8time. $27.9 $28.9 $21.4 $30.9 $30.4 $34.1 $28.8 Fund $350 $29.7 $27.5 $79.4 $73.7 $77.7 $79.0 $73.4 $74.1 $76.2 FY16 Projected $300 Special$72.2 fuels $72.9tax and weight$75.6 -distance tax revenues are driven by national Debt Service Funding $31.3 $250 consumer$77.4 demand and tend to be closely related$79.6 $to80 .8the $ 83state.7 of the U.S. (in millions) $75.5 $69.6 $74.9 $72.8 $73.5 $75.4 $200 economy; strengthening consumer demand leads to increased consumer State Road spending and increased freight movement. While$98.2 $99.3strength $101.2 in the weight- $150 $101.5 $85.6 $88.0 $91.1 $92.3 $92.6 $92.9 Fund distance revenue is encouraging, it is highly sensitive to changes in national $100 Federal economic conditions. NMDOT noted the slowing growth rate of special fuels $101.7 $50 $107.7 $108.1 $109.2 $109.3 $105.0 $111.8 $108.0 $110.8 $111.6 $110.3 Highway tax revenue is primarily due to increasing efficiency in heavy trucks.
$0 $0 150 Admin $50 $100 $ FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Est. FY16 Est. FY17 Est
Source: NMDOT State Road Fund By Source Gasoline Tax Special Fuel Tax Weight/Distance(in millions)Vehicle Registration Other
Soruce: NMDOT $10.4 $450 Highway $400 Infrastructure $30.8 $27.9 $28.9 Between FY07 and$21.4 FY15, the purchasing$30.9 power$30.4 of the$34 .1road $28.8 fund decreased Fund $350 $29.7 $27.5 $79.4 by 14.5 percent. $73.7The decrease was driven by a real reduction of$77.7 revenue $79.0 $73.4 $74.1 $76.2 collected over$300 that time$72.2 period $72.9 and inflation$75.6 in construction-related costs
$31.3 totaling 14.2$250 percent.$77.4 $79.6 $80.8 $83.7 $75.5 $69.6 $74.9 $72.8 $73.5 $75.4 $200 State Road Debt Constraints and Outlook. Declining revenues are further $101.5 $88.0 $91.1 $92.3 $92.6 $92.9 $98.2 $99.3 $101.2 Fund constrained$150 by the significant,$85.6 long-term debt obligations associated with the $100 Governor Richardson’s Investment Partnership projects. The total outstanding principal on$50 transportation$107.7 $108.1 infrastructure $109.2 $109.3 debt $ 105is. 0 currently$111.8 $1.44$108.0 billion.$110.8 $111.6In $110.3
$0 FY16, NMDOT$0 will pay $141 million in debt service. When the effects of 150 $50
$100 debt$ service are FYaccounted08 FY09 for, FY10road fundFY11 purchasingFY12 FY13 powerFY14 for operations,FY15 Est. FY16 Est. FY17 Est
Source: NMDOTroad maintenance and construction decreased 32 percent since 1999. Gasoline Tax Special Fuel Tax Weight/Distance Vehicle Registration Other
Soruce: NMDOT
Between FY07 and FY15, the purchasing power of the road fund decreased by 14.5 percent. The decrease was driven by a real reduction of revenue collected over that time period and inflation in construction-related costs
totaling 14.2 percent.
Debt Constraints and Outlook. Declining revenues are further constrained by the significant, long-term debt obligations associated with the
Governor Richardson’s Investment Partnership projects. The total outstanding principal on transportation infrastructure debt is currently $1.44 billion. In FY16, NMDOT will pay $141 million in debt service. When the effects of debt service are accounted for, road fund purchasing power for operations, road maintenance and construction decreased 32 percent since 1999. 60 Policy Analysis: Infrastructure Page 9 Public InfrastructurePolicy Analysis: Infrastructure Page 9
To decrease debt obligations, NMDOT refinanced previously issued bonds to To decrease debt obligations, NMDOT refinanced previously issued bonds to take advantage of current low interest rates. NMDOT credits several debt take advantage of current low interest rates. NMDOT credits several debt restructurings with saving $78.6 million since 2010. At this point, NMDOT restructurings with saving $78.6 million since 2010. At this point, NMDOT Statewide Pavement does not anticipate further savings from restructuring in the coming fiscal Statewide Pavement does not anticipate further savings from restructuring in the coming fiscal Miles Preserved by years. Miles Preserved by Fiscal Year years. Fiscal Year 4,000 New Mexico’s Transportation Needs. NMDOT conducts annual road 4,000 New Mexico’s Transportation Needs. NMDOT conducts annual road condition assessments of all system-wide lane miles. The assessment uses condition assessments of all system-wide lane miles. The assessment uses 3,500 state-of-the-art imaging equipment to determine roadway conditions 3,500 state-of-the-art imaging equipment to determine roadway conditions throughout the state. The results show New Mexico roadways are in throughout the state. The results show New Mexico roadways are in 3,000 significantly worse condition than previously thought: in FY12, 84.5 percent 3,000 significantly worse condition than previously thought: in FY12, 84.5 percent of non-interstate lane miles were reported in good or fair condition; In FY14, of non-interstate lane miles were reported in good or fair condition; In FY14, 2,500 the assessment showed only 68 percent were in good or fair condition. 2,500 the assessment showed only 68 percent were in good or fair condition.
NMDOT’s asset condition estimate shows that, at current funding levels, New 2,000 NMDOT’s asset condition estimate shows that, at current funding levels, New 2,000 Mexico roadways will continue to deteriorate while the current overall Mexico roadways will continue to deteriorate while the current overall pavement condition rating (PCR) of New Mexico roads is fair, given the 1,500 pavement condition rating (PCR) of New Mexico roads is fair, given the 1,500 current annual budget of $120 million for pavement preservation, NMDOT current annual budget of $120 million for pavement preservation, NMDOT estimates average PCR will decline to poor in 10 years. The average estimates average PCR will decline to poor in 10 years. The average 1,000 1,000 maintenance cost per lane mile increases dramatically as conditions maintenance cost per lane mile increases dramatically as conditions deteriorate: $12 thousand to $36 thousand for roads in fair condition; up to deteriorate: $12 thousand to $36 thousand for roads in fair condition; up to 500 500 $280 thousand for roads in poor condition; and up to $1.5 million for roads in $280 thousand for roads in poor condition; and up to $1.5 million for roads in very poor condition that require reconstruction. very poor condition that require reconstruction. 0 0 The NMDOT 10-year condition analysis shows 5.1 percent of bridges are The NMDOT 10-year condition analysis shows 5.1 percent of bridges are FY09 FY10 FY11 FY12 FY13 FY14 FY15
FY09 FY10 FY11 FY12 FY13 FY14 FY15 structurally deficient. Given the continuation of bridge funding at $93 million structurally deficient. Given the continuation of bridge funding at $93 million Source: NMDOT per year, 1.4 percent of bridges will be structurally deficient in 10 years. Source: NMDOT per year, 1.4 percent of bridges will be structurally deficient in 10 years. However, NMDOT analysis suggests bridge funding could be reduced by $18 However, NMDOT analysis suggests bridge funding could be reduced by $18 million while still improving overall bridge condition. Achieving balance in million while still improving overall bridge condition. Achieving balance in bridge and road funding is critical to keeping the system in the best condition
bridge and road funding is critical to keeping the system in the best condition possible given the resources available.
possible given the resources available. Selected Motor Vehicle Sales State Highway Maintenance Program. NMDOT estimates total system- State Highway Maintenance Program. NMDOT estimates total system- Tax Rates wide maintenance needs to be $273.1 million in FY16. The current $166.1 Selected Motor Vehicle Sales million maintenance budget for FY16 leaves a maintenance gap of $107 Tax Rates wide maintenance needs to be $273.1 million in FY16. The current $166.1 State Tax Rate Note s million maintenance budget for FY16 leaves a maintenance gap of $107 million. The maintenance gap estimate represents the per-year cost of State Tax Rate Note s Plus up to 3% implementing a regular maintenance schedule for roads statewide based on million. The maintenance gap estimate represents the per-year cost of Arizona 5.60% in local rates. Plus up to 3% State tax of current road conditions. Arizona 5.60% in local rates. implementing a regular maintenance schedule for roads statewide based on current road conditions. 7.62% 2.9% plus State tax of Colorado (Denver) local rates. Construction Needs. NMDOT estimates the FY16 need for construction 7.62% 2.9% plus New Mexico 3.00% to be $591.3 million. The largest need is for roadway reconstruction and Colorado (Denver) local rates. Construction Needs. NMDOT estimates the FY16 need for construction Oklahoma 3.25% rehabilitation, estimated at $452.6 million. In addition to roadway New Mexico 3.00% to be $591.3 million. The largest need is for roadway reconstruction and Texas 6.25% construction, an additional $125 million is needed to replace and repair Oklahoma 3.25% rehabilitation, estimated at $452.6 million. In addition to roadway State tax of bridges across the state. The current funding available for new construction is Texas 6.25% construction, an additional $125 million is needed to replace and repair 6.85% 4.7% plus $229 million leaving a gap of $362.3 million for FY16. In FY15, NMDOT (SLC) local rates. State tax of bridges across the state. The current funding available for new construction is Utah provided a list of $640.5 million in unfunded road projects across the state the 6.85% 4.7% plus $229 million leaving a gap of $362.3 million for FY16. In FY15, NMDOT Source: NMDOT department considers high-priority but which are currently not funded through Utah (SLC) local rates. provided a list of $640.5 million in unfunded road projects across the state the the State Transportation Improvement Plan. Source: NMDOT department considers high-priority but which are currently not funded through
the State Transportation Improvement Plan.
61 Policy Analysis: Infrastructure Page 10 PolicyPublic Analysis: InfrastructureInfrastructure Page 10 State Transportation Improvement Plan (STIP). NMDOT’s Policy Analysis: Infrastructureconstruction funding is distributed through the STIP process. The STIP is a
Page 10 four-year, federally mandated, multi-modal transportation plan created State Gasoline State Transportation Improvement Plan (STIP). NMDOT’s through consultation among NMDOT officials, engineers, local and regional Tax Rates construction funding is distributed through the STIP process. The STIP is a governments, metropolitan and regional planning organizations (MPOs and (in cents per gallon) fourState-year, Transportationfederally mandated, Improvement multi-modal transpoPlan rtation(STIP). plan NMDOT’s created State Gasoline RPOs), other state agencies, and the public. Once stakeholders statewide have Arizona 19 throughconstruction consultation funding among is distributed NMDOT through officials, the engineers, STIP process. local Theand STIPregional is a Tax Rates identified the highest priority projects in the state, NMDOT works with the California 48.7 governments,four-year, federally metropolitan mandated, and regional multi -planningmodal transpo organizationsrtation plan(MPOs created and (in centsState perGasoline gallon) Federal Highway Administration (FHWA) to determine which projects Colorado 22 RPOs),through other consultation state agencies, among and NMDOT the public. officials, Once stakeholdersengineers, local statewide and regional have Arizona Tax Rates 19 Oklahoma 17 should beidentified governments,funded and the what highest metropolitan the statepriority funding and projects regional match in thewillplanning state,be. All NMDOTorganizations of the projects works (MPOs with theand California(in cents per gallon)48.7 Nevada 33.1 which receiveRPOs), funding other are state then agencies, placed into and thethe STIP.public. Once stakeholders statewide have ColoradoArizona 2219 Federal Highway Administration (FHWA) to determine which projects New Mexico 17 identified the highest priority projects in the state, NMDOT works with the OklahomaCalifornia 48.717 should be funded and what the state funding match will be. All of the projects Texas 20 The FY16Federal STIP contains Highway a total Administration of 124 NMDOT (FHWA) lead projects to determine at a total whichcost projects NevadaColorado 33.122 which receive funding are then placed into the STIP. Utah 24.5 of $260.9 shouldmillion be, comprisingfunded and what$225.1 the million state funding in federal match funds will be.and All $35.8 of the projects NewOklahoma Mexico 1717 Source: The Tax Foundation million fromwhich the statereceive road funding fund. are then placed into the STIP. TexasNevada 33.120 The FY16 STIP contains a total of 124 NMDOT lead projects at a total cost
UtahNew Mexico 24.517 of $260.9 million, comprising $225.1 million in federal funds and $35.8 Legislative Options for Increasing Revenues. The Legislature has a Texas Source: The Tax Foundation20 millionThe FY16 from STIPthe state contains road fund.a total of 124 NMDOT lead projects at a total cost number of options to increase state road fund revenues, including stricter Utah 24.5 of $260.9 million, comprising $225.1 million in federal funds and $35.8 enforcement of existing rules, tax code changes and increases, and Source: The Tax Foundation Legislativemillion from Options the state roadfor fund.Increasing Revenues. The Legislature has a authorizing existing bonding capacity for road construction and maintenance. number of options to increase state road fund revenues, including stricter To prevent further deterioration of New Mexico’s transportation network, enforcementLegislative ofOptions existing for rules, Increasing tax code Revenues. changes Theand Legislatureincreases, hasand a some or all of these options should be pursued. authorizingnumber of existing options bonding to increase capacity state for road road fund construction revenues ,and including maintenance. stricter
Tenforcemento prevent further of existingdeterioration rules, of taxNew code Mexico’s changes transportation and increases, network, and Fuel Tax Increase. Many states have addressed the loss of purchasing someauthorizing or all of existing these options bonding should capacity be pursued. for road construction and maintenance. power from gas tax revenue by increasing the tax and adding other To prevent further deterioration of New Mexico’s transportation network, mechanisms to index taxes to inflation. Utah recently converted a unit tax on some or all of these optionsMany should states behave pursued. addressed the loss of purchasing fuel to a Fuelpercentage Tax -Increase.based, or ad valorem, tax of 12 percent on gasoline and power from gas tax revenue by increasing the tax and adding other diesel fuel. The tax set a minimum “floor” price per gallon of $2.45 and a mechanismsFuel Tax toIncrease. index taxes Many to inflat statesion. have Utah addressed recently converted the loss aof unit purchasing tax on maximum “ceiling” price of $3.33 per gallon. The Utah tax model will allow fuelpower to a percentagefrom gas -taxbased, revenue or ad valorem,by increasing tax of 12the percent tax and on gasolineadding otherand the effectivemechanisms gas tax rate to indexto fluctuate taxes to between inflation. 29.4 Utah cents recently and 40converted cents per a unit tax on diesel fuel. The tax set a minimum “floor” price per gallon of $2.45 and a $160 gallon. fuel to a percentage-based, or ad valorem, tax of 12 percent on gasoline and Motor Vehicle Excisemaximum Tax “ceiling” Distribution price of $3.33 History per gallon. The Utah tax model will allow diesel fuel. The tax set a minimum “floor” price per gallon of $2.45 and a General Fund the effective gas tax rate to fluctuate between 29.4 cents and 40 cents per $140 maximum “ceiling” price of $3.33 per gallon. The Utah tax model will allow gallon. Local Government Road Fund the effective gas tax rate to fluctuate between 29.4 cents and 40 cents per
$120 $160 Road Fund gallon. $160 Motor Vehicle Excise Tax Distribution History Motor Vehicle Excise Tax Distribution History Forecast General Fund $100 $140 General Fund $140 Local Government Road Fund Local Government Road Fund Motor Vehicle Excise $80 $120 Road Fund Rate $120 increased from 2.0%Road Fund to 3.0% in millions Forecast FY 1988 Forecast $60 $100 $100
Motor Vehicle Excise $40 $80 Motor Vehicle Excise $80 Rate increased from 2.0% toRate 3.0% increased in from 2.0% millions to 3.0% in millions FY 1988 FY 1988 $20 $60 $60
$0 $40 $40 89 91 93 05 07 09
FY11 FY87 FY88 FY FY90 FY FY92 FY FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY FY06 FY FY08 FY FY10 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
$20 $20 NMDOT 2/9/2015
$0 $0
89 91 93 05 07 09 89 91 93 05 07 09 FY11 FY87 FY88 FY FY90 FY FY92 FY FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY FY06 FY FY08 FY FY10 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY11 FY87 FY88 FY FY90 FY FY92 FY FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY FY06 FY FY08 FY FY10 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 NMDOT 2/9/2015 NMDOT 2/9/2015
62 Policy Analysis: Infrastructure Page 11
Policy Analysis: Infrastructure Policy Analysis: InfrastructurePolicy Analysis: Infrastructure Motor Vehicle Excise Tax. As of the August revenue estimate, New Page 11 Public Infrastructure Mexico anticipated receiving $143 million in FY15 from a 3 percent excise Page 11 Page 11 tax on motor vehicle sales in the state. New Mexico’s motor vehicle excise Motor Vehicle Excise Tax. As of the August revenue estimate, New tax is significantly lower than surrounding states. Increasing the tax by 1 Motor Vehicle Excise Tax.Motor As of Vehiclethe August Excise revenue Tax estimate,. As of Newthe August revenue estimate, New percent would raise approximately $44 million and leave New Mexico’s tax Mexico anticipated receiving $143 million in FY15 from a 3 percent excise Mexico anticipated receiving $143Mexico million anticipated in FY15 receiving from a 3 $143percent million excise in FY15 from a 3 percent excise rate 2.25 percent below Texas, 1.6 percent below Arizona, and 3.62 percent tax on motor vehicle sales in the state. New Mexico’s motor vehicle excise below Denver, Colorado. tax on motor vehicle sales in the state. New Mexico’s motor vehicle excise tax onis significantlymotor vehicle lower sales thanin the surrounding state. New states.Mexico’s Increasing motor vehiclethe tax excise by 1 Summary of 2014 Water Projects, tax is significantly lower than taxsurrounding is significantly states. lowerIncreasing than thesurrounding tax by 1 states. Increasing the tax by 1 percent would raise approximately $44 million and leave New Mexico’s tax by Oversight Agency Passenger Rail. The transportation revenue subcommittee held a hearing ratepercent 2.25 would percent raise below approximately Texas, 1.6percent $44percent millionwould below raise and Arizona, leaveapproximately New and Mexico’s3.62 $44 percent million tax and leave New Mexico’s tax on the feasibility of selling the Rail Runner commuter rail service that Amount Balance ratebelow 2. 25Denver, percent Colorado. below Texas, 1.6rate percent2.25 percent below below Arizona, Texas, and 1.63.62 percent percent below Arizona, and 3.62 percent operates between Belen and Santa Fe. The presentation concluded that, given DFA $504.0 $504.0 below Denver, Colorado. below Denver, Colorado. $475 million in bonds outstanding and annual operating budget of $27 million Summary of 2014 Water Projects, EMNRD $6,200.0 $4,186.1 Summary of 2014 Water The Projects, transportation revenue subcommittee held a hearing with fare revenue of $3.1 million, it is unlikely the Rail Runner can be sold. Summaryby Oversight of 2014 Water Agency Projects, Passenger Rail. OSE $21,903.0 $20,296.1 by Oversight Agency Passengeron theby Oversightfeasibility Rail Agency. ofThe selling transportation thePassenger Rail revenue Runner Rail subcommitteecommuter. The transportation rail held service a hearing revenue that subcommittee held a hearing Amount Balance on the feasibility of selling the Rail Runner commuterIA D rail service$442.7 that $442.7 Amount Balance operateson the feasibility betweenAmount Be oflenBalance selling and Santa the Fe.Rail The Runner presentation commuter concluded rail service that, given that Water Infrastructure DFA $504.0 $504.0 operates between Belen and Santaoperates Fe. The between presentation Belen concludedand Santa that,Fe. The given presentation NMEDconcluded that,$53,221.7 given $48,431.0 DFA $504.0 $504.0 DFA$475 million in$504.0 bonds outstanding$504.0 and annual operating budget of $27 million EMNRD $6,200.0 $4,186.1 $475 million in bonds outstanding$475 and million annual inoperating bonds outstanding budget of $27 and million annual operating Dept.budget of Ag. of $27$1,160.0 million $971.6 Water was the primary focus of the 2014 capital outlay bill, with $86.2 EMNRD $6,200.0 $4,186.1 EMNRDwith fare revenue$6,200.0 of $3.1$4,186.1 million, it is unlikely the Rail Runner can be sold. OSE $21,903.0 $20,296.1 with fare revenue of $3.1 million,with it is fare unlikely revenue the ofRail $3.1 Runner million, can it be is sold.unlikely the Rail RunnerTotal can $83,431.5be sold. $74,831.5 million appropriated for 200 storage, delivery, and treatment projects. Due to OSE $21,903.0 $20,296.1 OSE $21,903.0 $20,296.1 Source: LFC Files IA D $442.7 $442.7 $2.3 million of the funding being dedicated to two fund transfers and bonds IA D $442.7 $442.7 IA D $442.7 $442.7 NMED $53,221.7 $48,431.0 Water Infrastructure not being sold for nine projects totaling $486 thousand, $83.4 million of these Water Infrastructure NMED $53,221.7 $48,431.0 NMED Water I$53,221.7nfrastructure $48,431.0 appropriations is available for 189 projects. As of October 2015, nearly three- Dept. of Ag. $1,160.0 $971.6 Funding for Inactive 2014 fifths of the funding was dedicated to projects that were inactive, meaning not Dept. of Ag. $1,160.0 $971.6 Dept.Water of Ag. was $1,160.0the primary $971.6 focus of the 2014 capital outlay bill, with $86.2 Total $83,431.5 $74,831.5 millionWater wasappropriated the primary for 200focus storage, Waterof the delivery, was2014 the capital and primary treatment outlay focus bill,projects. of with the Due$86.22014 to capital outlayWater bill, Projects, with by$86.2 Agency a single penny had been drawn from the state’s appropriation. Additionally, Total $83,431.5 $74,831.5 Total $83,431.5 $74,831.5 Source: LFC Files $2.3million million appropriated of the funding for 200 beingstorage,million dedicated delivery, appropriated to andtwo treatment fund for 200 transfers storage,projects. and delivery, Due bonds to and treatmentAgency projects. DueAmount to $74.8 million, or 90 percent, was unspent. Only 10 of the 189 projects were Source: LFC Files Source: LFC Files not$2.3 being million sold of for the nine funding projects being totaling$2.3 dedicated million $486 toofthousand, twothe fundingfund $83.4 transfers being million dedicatedand of bonds these to two fund transfersNMED and bonds$40,411.1 complete. New Mexico continues to face significant water infrastructure issues, with an estimated $1 billion in needs statewide. appropriationsnot being sold foris available nine projects for 189 totalingnot projects. being $486 sold As thousand, forof Octobernine projects$83.4 2015, million totaling near lyof three $these486- thousand, $83.4OSE million of these$7,830.0
Funding for Inactive 2014 fifthsappropriations of the funding is available was dedicated for 189appropriations projects.to projects As that isof available Octoberwere inactive, 2015,for 189 nearmeaning projects.ly three not As- of October DFA2015, nearly three$504.0- The Energy, Minerals and Natural Resources Department (EMNRD) received WaterFunding Projects, for Inactive by Agency 2014 fifthsFunding of the for funding Inactive wa 2014s dedicated fifths to projectsof the funding that we ware sinactive, dedicated meaning to projects not that were inactive, meaning not a single penny had been drawn from the state’s appropriation. Additionally, IA D $442.7 $6.2 million for watershed restoration and had made the most progress in Water Projects, by Agency a Watersingle Projects, penny had by Agency been drawn afrom single the penny state’s had appropriation been drawn. Additionally,from the state’s appropriation. Additionally, Agency Amount $74.8 million, or 90 percent, was unspent. Only 10 of the 189 projects were Dept. of Ag. $125.0 spending funds by taking a proactive approach, setting up grant agreements, Agency Amount $74.8Agency million, orAmount 90 percent, wa$74.8s unspen million,t. Only or 1090 ofpercent, the 189 wa projectss unspen wet. reOnly 10 of the 189 projects were NMED $40,411.1 complete. New Mexico continues to face significant water infrastructure Total $49,312.8 and working with other partners before the money was received. While NMED $40,411.1 complete.NMED New $40,411.1Mexico continuescomplete. to face New significant Mexico water continues infrastructure to face significant water infrastructure OSE $7,830.0 issues, with an estimated $1 billion in needs statewide. Source: LFC Files EMNRD is overseeing just 7 percent of the funding, the agency accounted for OSE $7,830.0 issuesOSE , with an estimated$7,830.0 $1 billionissues in needs, with statewide.an estimated $1 billion in needs statewide. 23 percent of spending through October 2015. DFA $504.0 The Energy, Minerals and Natural Resources Department (EMNRD) received DFA $504.0 DFA $504.0 IA D $442.7 $6.2The Energy,million Mineralsfor watershed and Natural restorationThe Resources Energy, and hadMineralsDepartment made and the (EMNRD) Natural most progress Resources received in Department (EMNRD) received Water Trust Board Update IA D $442.7 IA D $442.7 Dept. of Ag. $125.0 spending$6.2 millio fundsn for by watershed taking a proactiverestoration$6.2 millioapproach, andn hadfor settingmadewatershed theup grant mostrestoration agreements,progress and in had made the most progress in Dept. of Ag. $125.0 Dept. of Ag. $125.0 In addition to the funding appropriated in the 2014 capital outlay bill – and in accordance with § 7-27-10.1(B) NMSA Total $49,312.8 spendingand working funds with by takingother apartners proactivespending before approach, funds the money bysetting taking wasup a grant proactivereceived. agreements, approach,While setting up grant agreements, 1978, which allocates ten percent of annual severance tax bonding capacity to the Water Project Fund – $33 million Total Source:$49,312.8 LFC Files EMNRDandTotal working is overseeing with$49,312.8 other just partners 7 percentand before workingof the thefunding, withmoney otherthe wasagency partners received. accounted before While forthe money waswas received. made available While for 22 water projects through the Water Trust Board (WTB). This funding is tracked in the
Source: LFC Files EMNRD is overseeingSource: LFC Files just 7 percentEMNRD of the is funding,overseeing the just agency 7 percent accounted of the for funding, the agencyLegislative accounted Finance forCommittee’s quarterly capital outlay report, and $27.5 million of 2014 funding is unspent. The Water 23 percent of spending through October 2015. 23 percent of spending through October 2015. Project Fund received $32.4 million to be awarded through WTB in 2015. 23 percent of spending through October 2015.
In response to concerns about the current award process – where WTB requests the passage of a bill that lists Water Trust Board Update Water Trust Board Update Water Trust Board Update essentially all applicants, regardless of qualifications or likelihood of final approval – usurping the Legislature’s
appropriating authority, WTB changed its application and project review timeline beginning with the 2016 cycle. In addition to the funding appropriated in the 2014 capital outlay bill – and in accordance with § 7-27-10.1(B) NMSA According to NMFA staff, a refined list will be available to the Legislature in January 2016, and the process could further In addition to the funding appropriated in the 2014 capital outlay bill – and in accordance with § 7-27-10.1(B) NMSA In1978, addition which to allocates the funding ten appropriatedpercent of annual in the severance 2014 capital tax outlaybonding bill capacity– and in to accordance the Water withProject § 7 Fund-27-10.1(B) – $33 NMSAmillion change to conform to the interim New Mexico Finance Authority Oversight Committee’s request to see a refined list 1978,was made which available allocates forten 2 percent2 water of1978,projects annual which throughseverance allocates the tax Waterten bonding percent Trust capacity ofBoard annual to(WTB). theseverance Water This Projecttaxfunding bonding Fund is tracked capacity– $33 millionin to the the Water Project Fund – $33 million during the interim. Legislativewas made Financeavailable Committee’s for 22 water quarterly wasprojects made capital through available outlay the report, forWater 2 2and waterTrust $27.5 Boardprojects million (WTB). ofthrough 2014 This fundingthe funding Water is unspent. Trustis tracked Board The inWater (WTB).the This funding is tracked in the
ProjectLegislative Fund Finance received Committee’s $32.4 million quarterly toLegislative be awarded capital Finance outlay through Committee’sreport, WTB and in 2015. $27.5 quarterly million capital of 2014 outlay funding report, is andunspent. $27.5 The million Water of 2014 funding is unspent. The Water
Project Fund received $32.4 million toProject be awarded Fund received through $32.4WTB inmillion 2015. to be awarded through WTB in 2015. The New Mexico Environment Department (NMED) oversaw the four largest In response to concerns about the current award process – where WTB requests the passage of a bill that lists In response to concerns about theIn current response award to concernsprocess –about where the WTB current requests award the process passage – where of a billWTB that requests lists the passage of a bill that lists completed projects, totaling $745 thousand, including constructing a water essentially all applicants, regardless of qualifications or likelihood of final approval – usurping the Legislature’s approessentiallypriating all authority,applicants, WTB regardless changedessentially of its qualifications application all applicants, andor likelihood project regardless reviewof finalof timeline qualificationsapproval beginning – usurpingor likelihood with thethe Legislature’sof2016 final cycle. approval – usurping the Legislature’s storage tank in Belen and making improvements to the water systems in Agua Accordingappropriating to NMFAauthority, staff, WTB a refined changed listappro will its priatingbe application available authority, to and the WTBLegislatureproject changed review in January itstimeline application 2016, beginning and and the projectwith process the review could2016 furthertimelinecycle. beginning with the 2016 cycle.
changeAccording to toconform NMFA staff,to the a interimrefined NewlistAccording will Mexico be available to Finance NMFA to staff, Authoritythe Legislaturea refined Oversight list in will January Committee’s be available 2016, andtorequest the the Legislature process to see acould inrefined January further list 2016, and the process could further duringchange the to interim.conform to the interim Newchange Mexico to conform Finance to Authority the interim Oversight New Mexico Committee’s Finance request Authority to seeOversight a refined Committee’s list request to see a refined list during the interim. during the interim.
The New Mexico Environment Department (NMED) oversaw the four largest The New Mexico Environment Department (NMED) oversaw the four largest completedThe New Mexico projects, Environment totaling $745 Department thousand, (NMED)including oversawconstructing the four a water largest storagecompleted tank projects, in Belen totaling and making $745completed thousand,improvements projects, including to the totaling constructing water $745systems thousand, a water in Agua including constructing a water storage tank in Belen and makingstorage improvements tank in Belen to the and wate makingr systems improvements in Agua to the water systems in Agua 63 Policy Analysis: Infrastructure Page 12
Fria, Ruidoso, and Cedar Crest. Projects overseen by NMED received 64 Public Infrastructurepercent of the appropriations and accounted for 56 percent of expenditures. Policy Analysis: Infrastructure
Page 12 Public Schools PSCOC Award Allocations Fria, Ruidoso, and Cedar Crest. Projects overseen by NMED received 64 FY15 to FY17 (est.) Through percentthe Public of the School appropriations Capital Outlay and account Counciled (PSCOC),for 56 percent the ofstate expenditures. has (in thousands) made significant progress ensuring children are taught in adequately sized,
FY16 FY17 well-lit, safe, and attractive buildings. The facility condition index (FCI) FY15 est. est. improvedPublic from 66.7 Schools percent in FY05 to 36.2 percent in FY15. However, the PSCOC PSCOC Award AllocationsFCI increased slightly by 0.7 percent from FY14 to FY15. The FCI reflects a Projects $198.2FY15$184.8 to FY17$107.3 (est.) ratio of theThrough cost of therepair Public and improvementSchool Capital against Outlay the Council value of (PSCOC),the facility the so state has Lease (in thousands) that a lowermade number significant reflects progress a building ensuring in betterchildren condition. are taught The in averageadequately sized, Assistance FY16 FY17 well-lit, safe, and attractive buildings. The facility condition index (FCI) $14.6 $15.0FY15 $14.6 weighted New Mexico condition index (wNMCI), the measure used by the est. est. Total $212.8 $199.8 $121.9 state to determineimproved iffrom school 66.7 facilities percent meetin FY05 the educationalto 36.2 percent needs in ofFY15. students, However, the PSCOC FCI increased slightly by 0.7 percent from FY14 to FY15. The FCI reflects a Source: PSFA improved from 40.5 percent in FY05 to 19 percent in FY15. The state uses Projects $198.2 $184.8 $107.3 ratio of the cost of repair and improvement against the value of the facility so the wNMCI to rank every facility in terms of relative need, from greatest to Lease least. Withthat athe lower drastic number improvement reflects ain building the condition in better of condition.public school The average Assistance $14.6 $15.0 facilities,$14.6 weighted focus has New shifted Mexico to funding condition improvements index (wNMCI), that willthe meextendasure the used by the Total $212.8 $199.8 $121.9useful lifestate of facilities to determine and ensure if school effective facilities maintenance. meet the educationalLaws 2015, needsChapter of students, Statewide Average 93, (Senateimproved Bill 128) from granted 40.5 PSCOCpercent inauthority FY05 toto 19allocate percent up into FY15.$15 million The state uses wNMCI Source: PSFA from thethe public wNMCI school to rankcapital every outlay facility fund in for terms building of relative systems need, needs from in greatest to 30% existing leastpublic. schools.With the Whiledrastic the improvement percent of schoolin the districtscondition with of poorpublic school maintenancefacilities, improved focus slightly has shifted from toFY14 funding to FY15,improvements the Public that Schoolwill extend the Facility Authorityuseful life estimates of facilities 77 percentand ensure of public effective schools maintenance. are getting Laws less than2015, Chapter 25% Statewide Average 93, (Senate Bill 128) granted PSCOC authority to allocate up to $15 million wNMCI the standard life expectancy from existing building systems. from the public school capital outlay fund for building systems needs in 20% 30% Gallup McKinleyexisting Countypublic schools.Schools (GMCS) While reopenedthe percent the ofZuni school lawsuit districts in 2014 with poor and filedmaintenance an amended improvedcomplaint inslightly 2015 inclfromuding FY14 PSCOC to FY15, as a defendant.the Public School Because ofFac theility district’s Authority low estimates bonding 77capacity percent and of high public capital schools needs, are GMCSgetting less than 15% 25% is concernedthe standardit is unable life to expectancy build facilities from with existing above building adequacy systems. items, such as extension of utilities to the school construction site, teacherages, additional 10% 20% building securityGallup McKinley features, auxiliary County Schoolsgyms, and (GMCS) additional reopened athletic the fields. Zuni lawsuit in 2014 and filed an amended complaint in 2015 including PSCOC as a defendant. In additionBecause to school of the construction, district’s low the bonding Legislature capacity established and high the capital broadband needs, GMCS 15% 5% deficiencyis correctionconcerned programit is unable (BDCP) to build during facilities the 2014 with legislativeabove adequacy session items to , such as address educationextension technologyof utilities needsto the overschool the construction next five years. site, teacherages, Preliminary additional 0% 10% data indicatesbuilding 41 securityschools features,lack access auxiliary to fiber gyms, optics and infrastructureadditional athletic and fields.92 percent of schools need wireless network upgrades. The Federal 2012 2013 2014 2015 2016 - - - - - CommunicationsIn addition Commission’s to school construction, (FCC) schools the and Legislature libraries universalestablished service the broadband 5% support program, commonly known as the E-rate program, helps schools and
2011 2012 2013 2014 2015 deficiency correction program (BDCP) during the 2014 legislative session to libraries obtainaddress affordable education broadband. technology The needs E-rate over program the next will five cover years. up to 90Preliminary Source: PSFA percent of the cost of installing fiber optics. The E-rate program will also 0% data indicates 41 schools lack access to fiber optics infrastructure and 92 match uppercent 85 percent of ofschools the cost need for internalwireless equipment, network suchupgrades. as wired andThe Federal 2012 2013 2014 2015 2016 - - - - wireless- networkCommunications equipment Commission’s, but funding (FCC)is capped schools to $150 and perlibraries student universal over service five year.support However, program, several commonly implementation known issues as the exist E-rate including program, how helps future schools and 2011 2012 2013 2014 requests2015 from school districts for E-rate funding will align and be libraries obtain affordable broadband. The E-rate program will cover up to 90 Source: PSFAcoordinated,percen thet timelineof the cost for implementation,of installing fiber prioritization optics. The of projects,E-rate program budget will also constraints, and the role of public and private entities. match up 85 percent of the cost for internal equipment, such as wired and
wireless network equipment, but funding is capped to $150 per student over
five year. However, several implementation issues exist including how future requests from school districts for E-rate funding will align and be
coordinated, the timeline for implementation, prioritization of projects, budget constraints, and the role of public and private entities.
64 Policy Analysis: Infrastructure Public InfrastructurePolicy Analysis: Infrastructure Page 13 Page 13
Information Technology Information Technology
District Average While New Mexico has implemented fundamental elements of good IT District Average While New Mexico has implemented fundamental elements of good IT Facility Maintenance infrastructure and governance, critical components still need improvement to Facility Maintenance infrastructure and governance, critical components still need improvement to Assessment Report Assessment Report ensure the millions in annual state IT expenditures are wisely spent. The ensure the millions in annual state IT expenditures are wisely spent. The Scores Scores responsibilities of the state chief information officer, the Project Certification 2011-Present responsibilities of the state chief information officer, the Project Certification 2011-Present Committee that certifies funding in approved phases for large IT projects, and Committee that certifies funding in approved phases for large IT projects, and the IT Commission (ITC) must be better defined and policies and processes the IT Commission (ITC) must be better defined and policies and processes 3% 3% strengthened to improve state IT strategic planning and project oversight. strengthened to improve state IT strategic planning and project oversight.
Information Technology Commission. In FY14, the ITC began Information Technology Commission. In FY14, the ITC began 19% meeting quarterly as required by statute; however, the last meeting was over a 19% meeting quarterly as required by statute; however, the last meeting was over a 49% 49% year ago, in October 2014. Consequently, critical work, such as developing a year ago, in October 2014. Consequently, critical work, such as developing a statewide IT plan and revisiting outdated statutes and rules, remain statewide IT plan and revisiting outdated statutes and rules, remain 29% 29% unaddressed. Further, the commission chair resigned during the hiatus and unaddressed. Further, the commission chair resigned during the hiatus and has yet to be replaced. In a November 2015 presentation before the has yet to be replaced. In a November 2015 presentation before the legislative Science, Technology, and Telecommunications Committee legislative Science, Technology, and Telecommunications Committee (STTC), the Department of Information Technology (DoIT) secretary (STTC), the Department of Information Technology (DoIT) secretary Poor Marginal Poor Marginal submitted a proposal to replace the ITC with an IT Advisory Board that submitted a proposal to replace the ITC with an IT Advisory Board that Satisfactory Good would develop a three-year IT strategic plan and propose new rules. Satisfactory Good would develop a three-year IT strategic plan and propose new rules. However, STTC chose not to act on the proposal and instead asked DoIT to However, STTC chose not to act on the proposal and instead asked DoIT to Source: PSFA spend additional time on improving the ITC. Source: PSFA spend additional time on improving the ITC.
Department of Information Technology. DoIT continues to provide a . DoIT continues to provide a “top 10” report card for the state’s most costly IT projects; however, the Department of Information Technology department could do more to increase transparency of state IT projects as “top 10” report card for the state’s most costly IT projects; however, the department could do more to increase transparency of state IT projects as other states and the federal government have done. LFC staff long FY17 State Agency other states and the federal government have done. LFC staff long recommended the agency formalize standards and processes, verify agency- FY17 State Agency IT Requests reported data when appropriate and develop a more formal and automated IT recommended the agency formalize standards and processes, verify agency- (in thousands) IT Requests project “dashboard” to provide better tracking and improve managing project reported data when appropriate and develop a more formal and automated IT Agency (in thousands) status and funding information. Existing methods to track agency project project “dashboard” to provide better tracking and improve managing project Agency Request Agency AOC $903.3 status, develop reports, and assess agency compliance with standards and Agency Request status and funding information. Existing methods to track agency project TRD $16,273.7 Project Certification Committee requests is not sufficient and has allowed AOC $903.3 status, develop reports, and assess agency compliance with standards and DFA $3,074.0 some projects to “fly under the radar.” TRD $16,273.7 Project Certification Committee requests is not sufficient and has allowed some projects to “fly under the radar.” GSD $2,410.2 DFA $3,074.0 DoIT $2,500.0 Although state agencies are increasingly purchasing cloud-based solutions,
GSD $2,410.2 PERA $4,200.0 the state does not have a cloud computing policy. LFC staff recommends Although state agencies are increasingly purchasing cloud-based solutions, DoIT $2,500.0 SPO $1,500.0 DoIT develop a cloud computing policy and provide it to the ITC for review PERA $4,200.0 the state does not have a cloud computing policy. LFC staff recommends DCA $700.0 and approval, and that the General Services Department (GSD) and DoIT SPO $1,500.0 DoIT develop a cloud computing policy and provide it to the ITC for review HSD $32,000.0 develop state policy for agencies to purchase IT cloud-based solutions. DCA $700.0 and approval, and that the General Services Department (GSD) and DoIT WSD $637.3 HSD $32,000.0 develop state policy for agencies to purchase IT cloud-based solutions. DOH $10,434.9 IT Evaluations. Throughout the fiscal year, LFC Program Evaluation staff WSD $637.3 CY FD $10,117.5 review IT projects for functionality, efficiency and effectiveness. Among its findings, staff found the need to modernize the IT system that tracks oil and DOH $10,434.9 IT Evaluations. Throughout the fiscal year, LFC Program Evaluation staff NMCD $12,500.0 gas activity; continued weakness in the management of the statewide financial CY FD $10,117.5 review IT projects for functionality, efficiency and effectiveness. Among its DPS $3,108.2 findings, staff found the need to modernize the IT system that tracks oil and Total $100,359.1 and personnel IT system; and security issues in the IT system for the health NMCD $12,500.0 insurance exchange. DPS $3,108.2 gas activity; continued weakness in the management of the statewide financial Note: Some agency requests are and personnel IT system; and security issues in the IT system for the health for multiple projects and amounts Total $100,359.1 shown include all funding sources. insurance exchange. ONGARD. The Legislature appropriated $6 million in 2012 to the Taxation Note: Some agency requests are Source: LFC and Revenue Department (TRD) to stabilize and begin modernizing the Oil for multiple projects and amounts and Natural Gas Administration and Revenue Database (ONGARD). The shown include all funding sources. ONGARD. The Legislature appropriated $6 million in 2012 to the Taxation Source: LFC and Revenue Department (TRD) to stabilize and begin modernizing the Oil and Natural Gas Administration and Revenue Database (ONGARD). The
65 PolicyPolicyPublic Analysis: Analysis: Infrastructure Infrastructure Infrastructure PagePage 14 14
ONGARDONGARD stabilization stabilization effort was effort completed was completed on time and on ontime budget and andon budget and yieldedyielded the most the detailed most detailedONGARD ONGARD system documentation system documentation in many years. in many In years. In InformationInformation technology technology statutes statutes and rules have not been updated to addition,addition, the stabilization the stabilization project successfullyproject successfully improved improvedONGARD ONGARDby by and rules have not been updatedupdating to it to run on currently supported hardware and software. Last year, reflectreflect and andguide guide current current updating it to run on currently supported hardware and software. Last year, infrastructure and practices. the ONGARD service center initiated a business process analysis to infrastructure and practices. the ONGARD service center initiated a business process analysis to determine the extent of the limitations and additional needs of the current systemdetermine and influence the extentthe design of the of limitations a replacement and additionalsystem. Onceneeds theof the current system and influence the design of a replacement system. Once the comprehensive business process analysis is complete, it will be possible to evaluatcomprehensivee the costs, risks, business and feasibilityprocess analysisof each isoption complete compared, it will with be possible to maintainingevaluat thee existing,the costs, outdated risks, system.and feasibility The gathering of each of requirements,option compared with The Department of Information businessmaintaining processes, andthe reportingexisting, and outdated data needs system. is critical The to gatheringdetermining of the requirements, TechnologyThe Department and General of S ervicesInformation Department have not issued new technologybusiness platformprocesses, for and the ONGAreportingRD andsystem. data needs is critical to determining the Technology and General Services procurementDepartment guidancehave not forissued new technology platform for the ONGARD system. purchasingprocurement cloud- basedguidance solutions. Efor-Procurement. LFC also evaluated the General Services Department’s
purchasing cloud-based solutions.(GSD) E State-Procurement. Purchasing Division LFC also and theevaluated status of the procurement General Servicesautomation. Department’s GSD has undertaken initiatives to automate some procurement processes with (GSD) State Purchasing Division and the status of procurement automation. minimalGSD success. has undertaken After spending initiatives nearly to $1automate million someon the procurement e-Procurement processes with module in SHARE, it is not currently functioning, though GSD has made some processminimal improvements. success. After GSD sp implementedending nearly a web $1- basedmillion electronic on the bide-Procurement system,module improving in SHAREvendor registration,, it is not automatingcurrently functionthe bid processing, though from startGSD has made Although the ONGARD system has to finish,some and process ensuring improvements. process standardization. GSD implemented The state has a madeweb- basedsizeable electronic bid served the state well over the past system, improving vendor registration, automating the bid process from start 20 Althoughyears, theit ONGARDneeds to systembe investmentshas in various SHARE modules, including those supporting the modernized.served the state well over the pastprocurement to finish, process and, ensuringwithout a processclear plan standardization. for deploying the The resources. state has LFC made sizeable 20 years, it needs to staffbe recommendsinvestments DoIT in developvarious a SHAREcomprehensive modules, implementation including planthose for thesupporting the SHARE modules the state owns. modernized. procurement process, without a clear plan for deploying the resources. LFC staff recommends DoIT develop a comprehensive implementation plan for the NMHIX.SHARE As part modules of the the evaluation state owns. of the New Mexico Health Insurance
Exchange (NMHIX), a marketplace for health insurance created by the state in response to the federal Affordable Care Act, LFC staff determined the NMHIX. As part of the evaluation of the New Mexico Health Insurance exchange spent $48 million for the IT systems. The IT investment did not As early as 2009, GSD reported result inExchange full implementation (NMHIX), ofa marketplacethe individual for exc healthhange , insuranceand implementing created by the state the full implementation of the in response to the federal Affordable Care Act, LFC staff determined the SHARE eProcurement module the small business exchange was expensive, given the number of enrollees. couldAs notearly be asaccomplished 2009, GS Duntil reported New Mexicoexchange is the spent only $48state -millionbased exchange for the thatIT systemsdid not initially. The ITimplement investment did not SHAREthe hasfull been implementation upgraded. of itsthe own result marketplace in full implementationand remains on theof thefederal individual platform, exc HealthCare.gov.hange, and implementing
SHARE eProcurement moduleThree theother small states business have moved exchange or are was considering expensive, moving given to thethe numberfederally of enrollees. could not be accomplished untilsupported New model Mexico due is theto onlyIT issues state -basedand financial exchange problems. that did not NMHIX initially implement SHARE has been upgraded. implementits owned its marketplace small business and marketplace,remains on enrollingthe federal 877 platform, people as HealthCare.gov. of March 2015 at a high cost of $21 thousand per person. LFC determined Three other states have moved or are considering moving to the federally NMHIXsupported information model security due processes to IT need issuess improvement and financial to ensure problems. systems NMHIX securityimplement and complianceed its small with businessfederal requirementsmarketplace, andenrolling industry 877 best people as of practices.March 2015 at a high cost of $21 thousand per person. LFC determined
NMHIX information security processes needs improvement to ensure systems security and compliance with federal requirements and industry best practices.
66 Natural Resources
Policy Analysis: Natural Resources Policy Analysis: Natural Resources Page 1 Page 1
Given the status of adjudications, it anaging New Mexico’s natural resources requires a Given the status of adjudications, it anaging New Mexico’s natural resources requires a is unclear if the state is prepared to is unclear if the state is prepared to implement constitutionally required balance between protecting the environment for implement constitutionally required balance between protecting the environment for priority administration in times of priority administration in times of future generations and maximizing the economic shortage. Moreover, strict priority future generations and maximizing the economic shortage. Moreover, strict priority M M administration of water rights, even benefits natural resources provide. After oil production administration of water rights, even benefits natural resources provide. After oil production in fully adjudicated basins, has the in fully adjudicated basins, has the surged in recent years, leading to increased economic activity surged in recent years, leading to increased economic activity potential to cause hundreds of potential to cause hundreds of millions of dollars in economic and state revenues, the price of oil fell dramatically in the millions of dollars in economic and state revenues, the price of oil fell dramatically in the damage as junior users face the damage as junior users face the possibility of being cut off second half of 2014 and industry activity slowed possibility of being cut off second half of 2014 and industry activity slowed completely. The Office of the State considerably. The uptick in production corresponded with a completely. The Office of the State considerably. The uptick in production corresponded with a Engineer is exploring a new Engineer is exploring a new approach to adjudications along disproportionately large increase in the volume of oil spilled approach to adjudications along disproportionately large increase in the volume of oil spilled with alternative water management in FY15, highlighting concerns about water quality and other with alternative water management strategies, such as water leasing in FY15, highlighting concerns about water quality and other and shortage-sharing agreements. environmental impacts. While most of the state saw heavy strategies, such as water leasing and shortage-sharing agreements. environmental impacts. While most of the state saw heavy precipitation and drought relief in 2014 and 2015, New Adjudication Progress by Basin precipitation and drought relief in 2014 and 2015, New October 2015 Mexico continues to face long-term water scarcity. Adjudication Progress by Basin Mexico continues to face long-term water scarcity. NORTHERN NEW MEXICO ADJUDICATIONS October 2015 % Acre s NORTHERN NEW MEXICO ADJUDICATIONS Stream System Adjudicated Water Management San Juan 13% % Acre s Stream System Adjudicated Water Management Jemez 100% Despite above-average precipitation during the first 10 months of the “water Red River 100% San Juan 13% Zuni 0% year” – from October 2014 to July 2015 – two-fifths of the state was still in Jemez 100% Despite above-average precipitation during the first 10 months of the “water Rio San Jose 0% drought or abnormally dry, affecting nearly two-thirds of New Mexicans, as Red River 100% year” – from October 2014 to July 2015 – two-fifths of the state was still in Rio Chama 99% recently as October 2015. Water administrators continue to plan for times of Zuni 0% Taos/Hondo 100% shortage, and an update to the state water plan is expected by 2017. Rio San Jose 0% drought or abnormally dry, affecting nearly two-thirds of New Mexicans, as Santa Cruz/Truchas 100% Rio Chama 99% recently as October 2015. Water administrators continue to plan for times of Nambe/Pojoaque/Tesuque 100% Taos/Hondo 100% Santa Fe 74% Adjudication, the legal process to establish who shortage, and an update to the state water plan is expected by 2017. Priority Administration. Santa Cruz/Truchas 100% Subtotals 61% owns the water and how much and with what priority date, continues at a SOUTHERN NEW MEXICO ADJUDICATIONS Nambe/Pojoaque/Tesuque 100% glacial pace. The Office of the State Engineer (OSE) spent $18.4 million from Santa Fe 74% Priority Administration. Adjudication, the legal process to establish who % Acre s Stream System Adjudicated FY12 to FY15 to adjudicate 5,341 acres, a cost of approximately $3,450 per Subtotals 61% owns the water and how much and with what priority date, continues at a Nutt Hockett 100% acre. Based on the rate of progress from FY12 to FY15, completing ongoing SOUTHERN NEW MEXICO ADJUDICATIONS glacial pace. The Office of the State Engineer (OSE) spent $18.4 million from Rincon Valley 79% % Acre s Northern Mesilla 19% adjudications will take 113 years and an additional $549 million if the Stream System Adjudicated FY12 to FY15 to adjudicate 5,341 acres, a cost of approximately $3,450 per Southern Mesilla 19% agency’s approach to the process and funding levels do not change. Nutt Hockett 100% acre. Based on the rate of progress from FY12 to FY15, completing ongoing Outlying Areas 33% Rincon Valley 79% Lower Rio Grande Subtotals 40% Northern Mesilla 19% adjudications will take 113 years and an additional $549 million if the Animas Underground 0% Recent court decisions emphasize the Legislature’s crucial role in crafting Southern Mesilla 19% agency’s approach to the process and funding levels do not change. Subtotals 34% water policy, notably the state Supreme Court decision affirming OSE’s Outlying Areas 33% PECOS ADJUDICATION statutory authority to enforce priority administration in unadjudicated areas % Acre s Lower Rio Grande Subtotals 40% Stream System Adjudicated through active water resource management (AWRM). OSE is developing Animas Underground 0% Recent court decisions emphasize the Legislature’s crucial role in crafting Cow Creek 0% basin-specific rules to implement AWRM and expects to finalize some of 34% water policy, notably the state Supreme Court decision affirming OSE’s Subtotals Gallinas 95% these rules by the end of 2015. The agency could attempt to enforce priorities PECOS ADJUDICATION statutory authority to enforce priority administration in unadjudicated areas Upper Pecos (Ground Water) 96% % Acre s under provisions of the framework AWRM rules, but either approach would Stream System through active water resource management (AWRM). OSE is developing Upper Pecos (Surface Water) undetermined Adjudicated Pecos Supplemental/Misc. 23% likely invite legal a challenge. Cow Creek 0% basin-specific rules to implement AWRM and expects to finalize some of Hondo Basin 100% Gallinas 95% these rules by the end of 2015. The agency could attempt to enforce priorities Fort Sumner Irrigation District 0% Native American Water Rights Settlements. Water rights belonging to Upper Pecos (Ground Water) 96% under provisions of the framework AWRM rules, but either approach would Fort Sumner (Ground Water) 100% tribes, nations, and pueblos are difficult to adjudicate and often are negotiated Upper Pecos (Surface Water) undetermined Pecos Valley Aretesian Conservancy District 96% Pecos Supplemental/Misc. 23% likely invite legal a challenge. through settlements. A 2015 capital outlay appropriation and the Interstate River Pumpers 100% Hondo Basin 100% Stream Commission’s (ISC) decision to apply that funding to the Taos Carlsbad Underground 3% Fort Sumner Irrigation District 0% Native American Water Rights Settlements. Water rights belonging to Carlsbad Irrigation District 100% settlement fulfilled the state’s obligation in that case. Still, federal funding Fort Sumner (Ground Water) 100% tribes, nations, and pueblos are difficult to adjudicate and often are negotiated Penasco undetermined required for the court to begin finalizing the settlement is not fully Pecos Valley Aretesian Subtotals 87% Conservancy District 96% appropriated. New Mexico’s remaining share of settlements with the Navajo through settlements. A 2015 capital outlay appropriation and the Interstate Active Grand Totals 65% Nation and the Nambe, Pojoaque, and Tesuque pueblos total $60.8 million. River Pumpers 100% Stream Commission’s (ISC) decision to apply that funding to the Taos Source: Office of the State Engineer Carlsbad Underground 3% Carlsbad Irrigation District 100% settlement fulfilled the state’s obligation in that case. Still, federal funding Penasco undetermined required for the court to begin finalizing the settlement is not fully Subtotals 87% appropriated. New Mexico’s remaining share of settlements with the Navajo Active Grand Totals 65% Source: Office of the State Engineer Nation and the Nambe, Pojoaque, and Tesuque pueblos total $60.8 million. 67 NaturalPolicy Analysis: Resources Natural Resources Policy Analysis: Natural Resources Page 2 Page 2
PlanningPlanning and Litigation and Litigation. Statute. requires Statute a reviewrequires of thea review state water of the plan state water plan every five years to address long-term water planning and budgeting while NumberNumber of of every five years to address long-term water planning and budgeting while UnprotestedUnprotested and and maintainingmaintaining short-term short adaptability-term adaptability to address tocontingencies. address contingencies. The most The most UnaggrievedUnaggrieved Water Water recent reviewrecent wasreview performed was performed in 2013. Asin 2013.the state As water the planstate must water integrate plan must integrate RightsRights Backlogged Backlogged 16 regional16 regional water plans water in aplans manner in aconsistent manner withconsistent statewide with priorities, statewide ISC priorities, ISC 1,6001,600 releasedreleased a Regional a Regional Water Planning Water HandbookPlanning Handbookto provide consistencyto provide andconsistency and accountabilityaccountability in updating in updatingregional water regional plans. water In theplans. summer In theof 2015 summer, ISC of 2015, ISC 1,4001,400 staff andstaff consultants and consultants worked withworked regional with steering regional committees steering tocommittees facilitate to facilitate and finalizeand finalizedraft plans draft. Finalized plans. Finalizedregional plans regional are expected plans a rein expectedlate 2016 in late 2016 1,200 with an updated state water plan anticipated in 2017. 1,200 with an updated state water plan anticipated in 2017.
1,000 High oil and gas exploration and production in recent years, ongoing 1,000 adjudications,High oiland and litigation gas explorationregarding interand- basinproduction transfers in continuerecent yearsto , ongoing 800 challengeadjudications, New Mexico’s and water litigation managers regarding and policymakers inter-basin. Still,transfers with continue to 800 budget challengeincreases inNew FY15 Mexico’s and FY16 waterto address managers the water and rights policymakers application. Still, with 600 backlog,budget which increaseswas the result in FY15of increased and FY16 demand to in address recent years, the water the agency rights application 600 accomplishedbacklog, the which state engineer’swas the result goal of incuttingcreased the demandbacklog in recenthalf by years, the the agency 400 end of accomplished2015; from a peak the ofstate 1,532 engineer’s in August goal 2014 of to cutting 631 as the of Septemberbacklog in half by the 400 2015. end Beyond of 2015; intrastate from management a peak of 1,532decisions, in August New Mexico’s 2014 to interstate631 as of September 200 compact2015. obligations Beyond are everintrastate present management and a feasibility decisions, study of New a diversion Mexico’s interstate project to be funded under the Arizona Water Settlement Act (AWSA) loom. 200 compact obligations are ever present and a feasibility study of a diversion 0 project to be funded under the Arizona Water Settlement Act (AWSA) loom. Interstate Compacts. Texas filed suit against New Mexico in the U.S. 0 FY12 FY13 FY14 FY15 Supreme Court in January 2013, claiming widespread groundwater pumping FY16Q1 in the lowerInterstate Rio Grande Compacts Valley .south Texas of Elephant filed suit Butte against Reservoir New reduced Mexico in the U.S.
Source:FY12 OSEFY13 ReportsFY14 FY15 deliveriesSupreme at the NewCourt Mexico in January-Texas 2013, border claiming in violation widespread of the Rio groundwater Grande pumping CompactFY16Q1 in. the The lower federal Rio government Grande Valleyintervened south in Marchof Elephant 2014, arguingButte ReservoirNew reduced Source: OSE Reports Mexico’sdeliveries Lower Rio at Grandethe New water Mexico users -mustTexas have border permission in violation from the of U.S the. Rio Grande For fiscal years 2014 through 2016, BureauCompact of Reclamation. The (BOR) federal to governmentpump groundwater intervened south ofin ElephantMarch 2014, Butte. arguing New the New Mexico Legislature A specialMexico’s master Lowerwas appointed Rio Grande and waterheard usersarguments must onhave New permission Mexico’s from the U.S. appropriated a total of $10.5 million motion to dismiss in August 2015, but the motion will likely be denied. to OSEFor andfiscal the years Attorney 2014 General’s through 2016, Bureau of Reclamation (BOR) to pump groundwater south of Elephant Butte. Officethe for specializedNew Mexico attorneys Legislatureand A special master was appointed and heard arguments on New Mexico’s technical experts for interstate Gila River Diversion. Under the AWSA, enacted by Congress in 2004 to appropriated a total of $10.5 million motion to dismiss in August 2015, but the motion will likely be denied. streamto OSElitigation. and theIn Attorneycomparison, General’s resolve water use disputes among Arizona, New Mexico, and Native TexasOffice appropriated for specialized $10 million attorneys – Americanand communities, New Mexico has the option to use $66 million in $5 milliontechnical for bothexperts the 2014for- 2015interstate Gila River Diversion. Under the AWSA, enacted by Congress in 2004 to and 2016-17 bienniums – for federal funds to meet water supply demands in Catron, Luna, Hidalgo, and stream litigation. In comparison, investigations and legal expenses Grant counties.resolve waterThe law use also disputesallows up toamong 14 thousand Arizona, additional New acre- Mexico,feet of and Native resultingTexas from appropriated this litigation. $10 These million water – fromAmerican the Gila communities, and San Francisco New riversMexico to be has used the in optionNew Mexico to use but $66 million in figures$5 millionwork out for toboth $3.5 the million 2014 -2015requires compensation to downstream users across the state line for the and 2016-17 bienniums – for federal funds to meet water supply demands in Catron, Luna, Hidalgo, and annually for New Mexico versus delivery costs of an equal amount of Central Arizona Project water. The $2.5investiga annually tionsfor Texas. and legal expenses Grant counties. The law also allows up to 14 thousand additional acre-feet of resulting from this litigation. Thesefederal waterDepartment from theof the Gila Interior and Sanapproved Francisco moving rivers forward to be with used feasibility in New Mexico but figures work out to $3.5 millionstudies requiresin November compensation 2015. While to New downstream Mexico is eligibleusers toacross receive the between state line for the annually for New Mexico versus$34 milliondelivery and costs$62 million of an inequal additional amount funding of Central for a diversion Arizona projectProject, water. The $2.5 annually for Texas. BOR has expressed uncertainty about the full availability of this funding. federal Department of the Interior approved moving forward with feasibility In accordancestudies within November the federal 2015 law, .ISC While designate Newd Mexico the New is Mexico eligible Central to receive between Office of the State Arizona$34 Project million (CAP) and Entity$62 ,million representing in additional 13 political funding subdivisions, for a diversion to project, Engineer Report negotiaBORte and has finalize expressed the New uncertainty Mexico u niaboutt agreement the full with availability BOR. Estimates of this funding. Card Page 126 on the cost of the project range up to $1 billion. With the state not committed to fundingIn accordance the project withand the the federal federal funds law, insufficientISC designate to coverd the thisNew cost, Mexico Central Office of the State BOR requiredArizona the Project CAP Entity (CAP) to agreeEntity to, securerepresenting funding 13commitments political subdivisions,for to Engineer Report negotiate and finalize the New Mexico unit agreement with BOR. Estimates Card Page 126 on the cost of the project range up to $1 billion. With the state not committed to funding the project and the federal funds insufficient to cover this cost, BOR required the CAP Entity to agree to secure funding commitments for 68 Policy Analysis: Natural Resources Natural ResourcesPolicy Analysis: Natural Resources Page 3 Page 3
any excess costs before construction can start. With additional agreements any excess costs before construction can start. With additional agreements still to be negotiated and required federal studies yet to begin, potential still to be negotiated and required federal studies yet to begin, potential construction is years away. construction is years away. Water Quality. New Mexico, through the Environment Department Water Quality. New Mexico, through the Environment Department (NMED) and OSE and along with many other states, is challenging a recently (NMED) and OSE and along with many other states, is challenging a recently released federal rule that requires a federal permit to pollute certain released federal rule that requires a federal permit to pollute certain waterways which were previously unprotected. Two federal courts have waterways which were previously unprotected. Two federal courts have Federal and State stopped implementation of the rule pending resolution of the legal challenges. Federal and State stopped implementation of the rule pending resolution of the legal challenges. Funding The rule’s impact in New Mexico could be extensive because a large portion Funding The rule’s impact in New Mexico could be extensive because a large portion for Forest Fuel of the state’s surface waterways are naturally ephemeral or intermittent and Reduction were not covered by prior federal clean water regulations. for Forest Fuel of the state’s surface waterways are naturally ephemeral or intermittent and (in millions) Reduction were not covered by prior federal clean water regulations. $10 (in millions) Gold King Mine Spill. An August 2015 breach at the Gold King Mine in $9 $10 Colorado, caused by federal contractors, contaminated the Animas and San Gold King Mine Spill. An August 2015 breach at the Gold King Mine in $8 $9 Juan rivers with millions of gallons of wastewater carrying heavy metals. Colorado, caused by federal contractors, contaminated the Animas and San $7 Emergency funds totaling $1.25 million were allocated to NMED and the $8 Juan rivers with millions of gallons of wastewater carrying heavy metals. $6 Department of Homeland Security and Emergency Management for response $7 Emergency funds totaling $1.25 million were allocated to NMED and the $5 and monitoring efforts. NMED and other partners are developing a long-term $6 Department of Homeland Security and Emergency Management for response $4 monitoring plan to identify the impacts of the spill and to generate the data $5 and monitoring efforts. NMED and other partners are developing a long-term $3 needed to assess potential risks. $4 monitoring plan to identify the impacts of the spill and to generate the data $2 $3 needed to assess potential risks. $1 Fires, Forests, and Watershed Health $2 $0 In recent years, severe forest fires led to evacuations, structural damage, $1 Fires, Forests, and Watershed Health
FFY09 FFY10 FFY11 FFY12 FFY13 FFY14 FFY15 FFY16 increased public health costs, and negatively impacted tourism. Additionally, $0 post-fire flooding impacted the quality of watersheds, highlighting the need to In recent years, severe forest fires led to evacuations, structural damage, Federal (including ARRA) secure clean water supplies for New Mexicans. Wildfires damage soil,
FFY09 FFY10 FFY11 FFY12 FFY13 FFY14 FFY15 FFY16 increased public health costs, and negatively impacted tourism. Additionally, making affected areas more prone to erosion and evaporation and carrying State Severance Tax post-fire flooding impacted the quality of watersheds, highlighting the need to Bonds/General Fund sediment and ash into rivers and streams, damaging water quality, clogging Federal (including ARRA) treatment plants, and negatively impacting fishing and recreational activities. secure clean water supplies for New Mexicans. Wildfires damage soil, Source: EMNRD making affected areas more prone to erosion and evaporation and carrying State Severance Tax While drought conditions contributing to the risk of fire are beyond anyone’s Bonds/General Fund sediment and ash into rivers and streams, damaging water quality, clogging treatment plants, and negatively impacting fishing and recreational activities. control, the threat of forest fires highlights the importance of hazardous fuel Source: EMNRD reduction across private and public land. House Bill 38 (2015), passed nearly unanimously by the Legislature, proposed to establish an advisory board While drought conditions contributing to the risk of fire are beyond anyone’s representing a variety of stakeholders to adopt best management practices and control, the threat of forest fires highlights the importance of hazardous fuel prioritize forest and watershed project funding. The governor vetoed the bill reduction across private and public land. House Bill 38 (2015), passed nearly Energy, Minerals and and $2.5 million in appropriations contingent on its enactment. State forestry unanimously by the Legislature, proposed to establish an advisory board Natural Resources officials will treat and restore 7,700 acres with $6.2 million in capital outlay representing a variety of stakeholders to adopt best management practices and Department Report funding from the 2014 legislative session. Still, New Mexico’s efforts prioritize forest and watershed project funding. The governor vetoed the bill Card Page 124 continue to fall well short of the acreage experts estimate should be treated Energy, Minerals and and $2.5 million in appropriations contingent on its enactment. State forestry annually to thin overgrown forests so they are more resilient to fire, drought, Natural Resources officials will treat and restore 7,700 acres with $6.2 million in capital outlay insects, and disease. Department Report funding from the 2014 legislative session. Still, New Mexico’s efforts Card Page 124 continue to fall well short of the acreage experts estimate should be treated Energy Development annually to thin overgrown forests so they are more resilient to fire, drought, insects, and disease. Renewable Energy. New Mexico could reap economic benefits from its renewable energy potential as demand increases with other states needing to import more electricity to meet renewable portfolio standards. Transmission Energy Development
Renewable Energy. New Mexico could reap economic benefits from its renewable energy potential as demand increases with other states needing to import more electricity to meet renewable portfolio standards. Transmission 69 PolicyNaturalPolicy Analysis: Analysis: Natural Resources Natural Resources Resources PagePage 4 4
capacity,capacity, bottlenecks bottlenecks, and long, andinterconnection long interconnection paths limit pathsthe viability limit theof viability of NewNew Mexico Mexico Net Net exportingexporting renewable renewable energy becauseenergy itbecause is generated it is fargenerated from major far fromload major load ElectricityElectricityGenerationGeneration centers centers and export and marketsexport . markets While .upgrading While upgradingNew Mexico’s New existing Mexico’s grid existing grid by Fuelby Fuel Type, Type, FY15 FY15 offers offerssubstantial substantial economic econo developmentmic development opportunities opportunities, it also presents, it also presents environmental challenges and right-of-way issues on federal and tribal lands. environmental challenges and right-of-way issues on federal and tribal lands. 6% 2% 6% 2% The Renewable Energy Transmission Authority (RETA) board voted to cease operationsThe thisRenewable past summer Energy due Transmissionto the governor’s Authority veto of (RETA)a $200 thousand board voted to cease specialoperations appropriation this topast support summer the d ueauthority’s to the governor’s operations veto in ofFY16 a $200. thousand However,special the authority appropriation has since tosecure supportd a commitment the authority’s for funding operations from one in FY16. 28% of its However,project partners, the authority Clean Linehas sinceEnergy. secure Whiled a commitment project partners for fundinghad from one 28% 64% previouslyof itsdeclined project to assistpartners, RETA, Clean the acquisition Line Energy. of rights While of way project through partners had tribal land on the Western Spirit line significantly improved the likelihood of 64% previously declined to assist RETA, the acquisition of rights of way through projecttribal completion, land on prompting the Western Clean Spirit Line to line fund significantly RETA’s operations improved. the likelihood of project completion, prompting Clean Line to fund RETA’s operations. Despite the dramatic decline in the price Oil Production and Regulation. Coal Natural Gas of oil which began last summer, the active rig count peaked in December 2014 andOil NewProduction Mexico saw and record Regu levelslation of. productionDespite the in dramatic FY15. declineWhile in the price Solar Wind Coal Natural Gasoperatoofrs roilea cwhichted to rbeganeduced lastpric esummers by low, ethering activethe nu mrigbe rcount of ac tpeakedive rigs , in December Source: Energy Information improv2014ed tec handnolo gNewy ma yMexico contrib usawte to crecordontinu edlevels produ cofti oproductionn gains. in FY15. While Solar AdministrationWind operators reacted to reduced prices by lowering the number of active rigs, Source: Energy Information improved technology may contribute to continued production gains. New Mexico’s own Renewable Oil Production and Active Rig Count Administration 140 140 Portfolio Standards require that 20 percent of all electricity sold by 120 120 New Mexico’s own Renewable Oil Production and Active Rig Count investor-owned electric utilities, and 100 140 100 140 10 Portfoliopercent sold Standards by cooperatives, require that 20 comepercent from ofrenewable all electricity energy sold by 80 120 80 120 resources by 2020. Just 8 percent investor-owned electric utilities, and 60 100 60 100 of 10the percentstate’s soldtotal byelectricity cooperatives, active rigs production came from such 40 80 40 80 come from renewable energymillions of barrels sources in FY15. 20 20 resources by 2020. Just 8 percent 60 60
of the state’s total electricity 0 0 active rigs productionBarrels of Oilcame Spilled from such 40 40 millions of barrels sourcesand in Produced FY15. 2010 20 2011 2012 2013 2014 2015 20 25 160 0 Oil Production Active Rigs 0 Sources: EMNRD and Baker-Hughes Barrels of Oil Spilled140
20 and Produced 2010 2011 2012 2013 2014 2015 120 Oil and Gas Spills. Despite a significant increase in Oil Conservation 25 160 Oil Production Active Rigs Division (OCD) inspections, the number and volume of oil spills increased 15 100 Sources: EMNRD and Baker-Hughes 140dramatically in FY15. While oil production grew by 21 percent, the volume 20 80 of oil spilled increased by 61 percent. This disproportionate increase could be 120 10 60 attributedOil toand an inabilityGas Spills. to monitor Despite the industrya significant as it quicklyincrease expanded, in Oil Conservation Division (OCD) inspections, the number and volume of oil spills increased
spilled (thousands) produced (millions)100reduced effectiveness of inspections, or increased reporting of spills due to a 15 40 5 greaterdramatically level of oversight in FY15. by OCD While. oil production grew by 21 percent, the volume 20 80 of oil spilled increased by 61 percent. This disproportionate increase could be 10 0 0 60 Spills attributedof natural togas an and inability wastewater to monitorfrom oil the and industry gas production as it quickly also expanded, continued an upward trend in FY15. In fall 2014, researchers reported the
spilled (thousands) produced (millions) reduced effectiveness of inspections, or increased reporting of spills due to a 40 5 FY11 FY12 FY13 FY14 FY15 highestgreater concentration level of of oversight methane gasby OCDwas found. in the Four Corners region. While the satellite observations behind the report were not detailed enough to Spilled Produced 20 reveal Spillsthe actual of sourcesnatural ofgas the andmethane, wastewater likely candidates from oil i ncludeand gas venting production also 0 0 from oil and gas activities, coal mines, and natural gas seeps. continued an upward trend in FY15. In fall 2014, researchers reported the
FY11 FY12 FY13 FY14 FY15 highest concentration of methane gas was found in the Four Corners region. While the satellite observations behind the report were not detailed enough to Spilled Produced reveal the actual sources of the methane, likely candidates include venting from oil and gas activities, coal mines, and natural gas seeps.
70 Government Administration Policy Analysis: General Government Policy Analysis: General Government Page 1 Page 1
he state’s current compensation approach is he state’s current compensation approach is inefficient in recruiting and retaining in the most inefficient in recruiting and retaining in the most critical services areas, including corrections, health critical services areas, including corrections, health T care, and child protective services. The current benefit-rich T care, and child protective services. The current benefit-rich Total Compensation compensation packages are costly to the state but fail to Total Compensation compensation packages are costly to the state but fail to Comparison Comparison Private Sector Versus State attract high-quality employees to the most critical jobs. The Private Sector Versus State attract high-quality employees to the most critical jobs. The Government state’s compensation approach should be re-examined to Government state’s compensation approach should be re-examined to Salary Benefit provide the incentives necessary to ensure consistent delivery Salary Benefit provide the incentives necessary to ensure consistent delivery Pvt. Sector 70% 30% of essential services. Pvt. Sector 70% 30% of essential services. Colorado 68% 32% Texas 66% 34% Colorado 68% 32% Cost and Composition Nevada 65% 35% Texas 66% 34% Cost and Composition Arizona 62% 38% In FY16, appropriations to the personal services and employee benefits Nevada 65% 35% Oklahoma 60% 40% category (PS&EB) totaled $1.66 billion, making PS&EB one of the largest Arizona 62% 38% In FY16, appropriations to the personal services and employee benefits Kansas 59% 41% expenses in the budget. As of October 1, 2015, 22,669 employees were in Oklahoma 60% 40% category (PS&EB) totaled $1.66 billion, making PS&EB one of the largest state service. New Mexico 57% 43%
Kansas 59% 41% expenses in the budget. As of October 1, 2015, 22,669 employees were in state service. Utah 56% 44% In the four years following the 2008 recession, agencies maintained high New Mexico 57% 43% Wyoming 55% 45% vacancy rates and state employment remains about 3,000 below peak levels Source: SPO Utah 56% 44% In the four years following the 2008 recession, agencies maintained high even as PS&EB budgets have increased. The resulting surplus PS&EB funding has been used to cover contracting, operational expenses, General Wyoming 55% 45% vacancy rates and state employment remains about 3,000 below peak levels Source: SPO Services Department risk rates and health insurance increases, and the costs even as PS&EB budgets have increased. The resulting surplus PS&EB of the AFSCME union settlement with minimal or no additional Legislative funding has been used to cover contracting, operational expenses, General appropriations. Services Department risk rates and health insurance increases, and the costs of the AFSCME union settlement with minimal or no additional Legislative Personnel Services and Employee Benefits Appropriations appropriations. Baseline FTE Headcount and Authorized FTE (total of top 20 agencies by fiscal year)
23,000 $1.30 21,914 Personnel Services and Employee Benefits Appropriations 21,790 22,000 Baseline FTE Headcount and Authorized FTE 21,115 $1.25 (total of top 20 agencies by fiscal year) 20,747 20,494 20,710 21,000 20,494 23,000 $1.30 20,471 20,334 21,914 19,863 $1.20 21,790 20,000 22,000 19,066 21,115 $1.25 20,747 20,494 20,710 19,000 $1.15 21,000 20,494 17,901 in billions 20,334 20,471 17,983 17,870 number of FTE 17,796 $1.20 18,000 17,475 19,863 $1.10 20,000 When compared with both public PS&EB appropriations 17,000 19,066 and private sectors, New Mexico 19,000 $1.15 contributes significantly more $1.05 16,000
17,901 in billions toward the cost of employee 17,983 17,870
number of FTE 17,796 18,000 17,475 medical and retirement benefits. $1.10 15,000 $1.00 When compared with both public PS&EB appropriations FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 and private sectors, New Mexico 17,000 Total Appropriations Authorized FTE Baseline FTE Headcount contributes significantly more $1.05 Source: LFC Files toward the cost of employee 16,000 medical and retirement benefits. 15,000 $1.00 Compensation Components. Salary, the largest component of the state’s FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 total compensation package, accounts for $43.6 thousand, or 57.4 percent, of Total Appropriations Authorized FTE Baseline FTE Headcount average total compensation while benefits account for $29.7 thousand, or 42.6 Source: LFC Files percent. New Mexico’s total compensation package is benefit-rich when
Compensation Components. Salary, the largest component of the state’s total compensation package, accounts for $43.6 thousand, or 57.4 percent, of
average total compensation while benefits account for $29.7 thousand, or 42.6 percent. New Mexico’s total compensation package is benefit-rich when 71 Policy Analysis: General Government Page 2 GovernmentPolicy Analysis: General Government Administration Page 2 compared with the private sector, which provides 70 percent of total compensation in salary and 30 percent in benefits.
compared Compensationwith the private Component sector, Comparisonwhich provides 70 percent of total
Components of Total compensation in salary and 30 percent inState benefits. and State of New Component Private Industry Compensation Local Gov't Mexico Compensation Component Comparison Avg. Salary $ 43,576 Wages and Salary 70% 64.5% 57.4% Components of Total State and State of New Benefits Benefits Component Private30% Industry 36.0% 42.6% Compensation Local Gov't Mexico FICA/Medicare $ 3,334 Paid Leave 7% 7.3% 8.1% Avg. Salary $ 43,576 Wages and Salary 70% 64.5% 57.4% PERA $ 7,404 Special Pay 3% 0.8% 0.2% Benefits Benefits 30% 36.0% 42.6% Retiree Health $ 872 Insurance 8% 12.0% 20.1% FICA/Medicare $ 3,334 Paid Leave 7% 7.3% 8.1% Paid Leave $ 6,369 Health 8% 11.7% 18.9% PERA $ 7,404 Insurance $ 11,674 Retirement/Savings Special Pay 4% 3%9.9% 0.8%9.8% 0.2% Retiree Health $ 872 Total Benefits $ 29,652 Defined Benefit Insurance 2% 8%9.0% 12.0%9.8% 20.1% TotalPaid Leave $ 73,228 $ 6,369 Defined Contribution Health 2% 8%0.8% 11.7%0.0% 18.9% Insurance Source:$ SPO 11,674 Legally RequiredRetirement/Savings 8% 4%5.9% 9.9%4.4% 9.8%
Total Benefits $ 29,652 Defined Benefit 2% Source:9.0% SPO 9.8%
Total $ 73,228 For the past Defined several Contribution years, SPO noted in its annual report2% the components0.8% of 0.0% Source: SPOstate compensation are unbalanced relative to other state and local Legally Required 8% 5.9% 4.4% governments. New Mexico’s challenge in compensation is to provide the Source: SPO most effective combination of salary and benefits for recruitment and retentionFor of the high past-quality several employees.years, SPO However,noted in itsthe annual executive report has the notcomponents of presentedstate a comprehensivecompensation compensation are unbalanced plan to relativethe Legislature to other for severalstate and local years. governments. New Mexico’s challenge in compensation is to provide the most effective combination of salary and benefits for recruitment and Limitsretention of Total Compensationof high-quality Approach.employees. Total However, compensation the accountsexecutive has not for all employee costs to employers, but does not provide a mechanism to presented a comprehensive compensation plan to the Legislature for several evaluateyears the . perceived benefits to the employee. Because employee value
benefits subjectively based on their individual circumstances, the employer
cost and the employee perception of total compensation may be very different.Limits For example, of Total younger Compensation workers likely Approach. value health Total insurance compensation and accounts Turnover Rate by Position retirementfor benefitsall employee less than costs their to older employers, counterparts, but doesthough not both provide pay similar a mechanism to Position Turnover evaluate the perceived benefits to the employee. Because employee value amounts for the benefits. Lack of employee choice in pension and medical Correctional benefits subjectively based on their individual circumstances, the employer Officers 14% insurance options may result in employees receiving a benefit they value less cost and the employee perception of total compensation may be very DOH Nurs es 25% than the cost of providing that benefit. Miner'sTurnover Hospital Rate by Position different. For example, younger workers likely value health insurance and retirement benefits less thanThe theirrecession older hadcounterparts, a profound though effect both on pay similar NursesPosition 25%TurnoverCompensation Adequacy. PublicCorrectional Safety agency amountspersonnel for policy; the benefits. during tLheack recession, of employee no salary choice increases in pension were and medical Dispatchers Officers 26% 14%appropriatedinsurance by the options Legislature may result and agencies in employees severely receiving restricted a benefitor stopped they value less Child Protective providinthang employee the cost ofsalary providing increases that albenefit.together. The stagnation of wages ServicesDOH Nurs es 29% 25%resulted in compaction in the pay system as new employees were hired at Miner's Hospital Court Clerks 32% salary levels at or close to those of incumbent employees. Pay freezes had the Nurses 25% Compensation Adequacy. The recession had a profound effect on Source: SPO greatest effect on high-demand fields, such as health care, information Public Safety agency personnel policy; during the recession, no salary increases were technology and public safety; the combination of high market demand and Dispatchers 26% appropriated by the Legislature and agencies severely restricted or stopped stagnant state wages resulted in salaries falling behind market rates. The state- Child Protective to-marketprovidin pay disparityg employee is hindering salary theincreases state’s abilityaltogether. to recruit The andstagnation retain of wages Services 29% resulted in compaction in the pay system as new employees were hired at qualified employees in the highest demand and most difficult to fill Court Clerks 32% occupations.salary levels at or close to those of incumbent employees. Pay freezes had the Source: SPO greatest effect on high-demand fields, such as health care, information
technology and public safety; the combination of high market demand and stagnant state wages resulted in salaries falling behind market rates. The state- to-market pay disparity is hindering the state’s ability to recruit and retain
qualified employees in the highest demand and most difficult to fill occupations.
72 Policy Analysis: General Government Government AdministrationPolicy Analysis: General Government Page 3 Page 3
The size of the state-to-market pay gap differs significantly between job The size of the state-to-market pay gap differs significantly between job fields, or occupational groups, but also between jobs in the same occupational fields, or occupational groups, but also between jobs in the same occupational group. For example, in IT job classifications, New Mexico pays database group. For example, in IT job classifications, New Mexico pays database The governor vetoed $1.1 million administrators 10 percent over the market but pays IT applications developers The governor vetoed $1.1 million administrators 10 percent over the market but pays IT applications developers for a 3 percent salary increase for between 2 percent and 11 percent below the market. for a 3 percent salary increase for between 2 percent and 11 percent below the market. nurses and related staff contained nurses and related staff contained in the 2015 General Appropriations Targeted Increases. In a 2015 report to LFC, SPO identified correctional in the 2015 General Appropriations In a 2015 report to LFC, SPO identified correctional Act but voiced support for a Act but voiced support for a Targeted Increases. targeted increase approach in the officers, IT, healthcare, social service, and public safety workers as difficult targeted increase approach in the officers, IT, healthcare, social service, and public safety workers as difficult veto message. to recruit and retain due to salaries below market levels. veto message. to recruit and retain due to salaries below market levels. FY16 Salary Comparison
FY16 Salary Comparison State of NM Versus NM and National Average
State of NM Versus NM and National Average National Median NM Median State of NM Median Job Title Annual Salary Annual Salary Salary FY16 National Median NM Median State of NM Median Job Title Annual Salary Annual Salary Salary FY16 Registered Nurses $ 66,640 $ 64,650 $ 58,688 LPN/LVN $ 42,490 $ 46,300 $ 35,613 Registered Nurses $ 66,640 $ 64,650 $ 58,688
LPN/LVN $ 42,490 $ 46,300 $ 35,613 Social Workers (CYFD) $ 42,120 $ 38,210 $ 43,890
FY17 1 Percent Compensation Social Workers (CYFD) $ 42,120 $ 38,210 $ 43,890 Corrections officers $ 39,780 $ - $ 35,674 Cost (in thousands) probation/parole $ 49,060 $ 35,310 $ 41,606 FY17 1 Percent Compensation Corrections officers $ 39,780 $ - $ 35,674 General Source: LFC Files Cost Fund General Fund (in thousands) probation/parole $ 49,060 $ 35,310 $ 41,606 Branch Share Cos t Turnover. Employee retention is critical to addressing the overall vacancy General Source: LFC Files Legislative 100% $ 112.0 rate in state government and ensuring consistent delivery of services. Data Fund General Fund Judicial 92% $ 2,026.2 collected by SPO shows most of the targeted job families have turnover rates Branch Share Cos t Turnover. Employee retention is critical to addressing the overall vacancy over 20 percent while the statewide average turnover rate was 14 percent. Executive 50% $ 6,238.5 Legislative 100% $ 112.0 rate in state government and ensuring consistent delivery of services. Data Higher Ed. 58% $ 7,097.2 Judicial 92% $ 2,026.2 collected by SPO shows most of the targeted job families have turnover rates Overtime and Other Costs. High turnover rates drive up vacancy rates over 20 percent while the statewide average turnover rate was 14 percent. Public and increase the workload of existing staff. In FY15, the state of New Mexico Executive 50% $ 6,238.5 Schools 89% $ 19,624.9 paid overtime costs of $41.2 million, of which $30.3 million, or 75 percent, Higher Ed. 58% $ 7,097.2 Total $ 35,098.8 Overtime and Other Costs. High turnover rates drive up vacancy rates was directed to positions in corrections, IT, health care, public safety, and Source: LFC files Public and increase the workload of existing staff. In FY15, the state of New Mexico social services. In addition, SPO reports that state-employed nurses received Schools 89% $ 19,624.9 average pay of $28.50 per hour but, due to a shortage of nurses, the paid overtime costs of $41.2 million, of which $30.3 million, or 75 percent, Department of Health is currently paying staffing firms over $50 per hour for Total $ 35,098.8 was directed to positions in corrections, IT, health care, public safety, and Source: LFC files nursing services. The cost of increasing salaries for state employees will be social services. In addition, SPO reports that state-employed nurses received Legislative Salary partially offset by savings in overtime and contractual service payments. average pay of $28.50 per hour but, due to a shortage of nurses, the Increase History
State of NM Department of Health is currently paying staffing firms over $50 per hour for CPI Compensation Adjustment nursing services. The cost of increasing salaries for state employees will be FY12 3.2% 0.0% Legislative Salary partially offset by savings in overtime and contractual service payments. FY13 2.1% 0.0% Increase History In 2013, SPO completed an analysis comparing state of New Mexico pay in FY14 1.5% 1.0% 152 benchmark job classifications with an eight state comparator market. The CPI State of NM Compensation Adjustment FY15 1.6% 3.0% analysis found that New Mexico lags the market by 9.8 percent on average. FY12 3.2% 0.0% FY16 0.0% Additionally, the analysis found that, while New Mexico is generally behind FY13 2.1% 0.0% the comparator market, the gap is not uniform, suggesting the state must take In 2013, SPO completed an analysis comparing state of New Mexico pay in Source: LFC files a multi-faceted approach to addressing compensation. FY14 1.5% 1.0% 152 benchmark job classifications with an eight state comparator market. The
FY15 1.6% 3.0% analysis found that New Mexico lags the market by 9.8 percent on average. Targeted Increases. Salary increases targeted to job classifications that are FY16 0.0% Additionally, the analysis found that, while New Mexico is generally behind furthest behind the market and that face the most significant recruitment and the comparator market, the gap is not uniform, suggesting the state must take Source: LFC files a multi-faceted approach to addressing compensation.
Targeted Increases. Salary increases targeted to job classifications that are furthest behind the market and that face the most significant recruitment and 73 PolicyGovernmentPolicy Analysis: Analysis: General General Government Government Administration PagePage 4 4
retentionretention issues are issu necessaryes are necessary to begin toto close begin the to state close-to -themarket state pay-to gap-market. pay gap. BecauseBecause pension pension plan consultants plan consultants This approachThis approach will be mostwill successfulbe most successful if it is coordinated if it is coordinatedwith the executive with the executive projectproject weaker weaker investment investment earnings earnings over the next 7 to 10 years, the and includesand includes an across a-nthe across-board- thesalary-board structure salary adjustment structure. adjustmentEven without. Even without over the next 7 to 10 years, executivethe leadership, the Legislature can provide increases to specific job statestate should should limit thelimit time the a time retiree a retiree executive leadership, the Legislature can provide increases to specific job can participate in a return-to-work classifications as it did during the 2015 session when $1.1 million was can participate in a return-to-work classifications as it did during the 2015 session when $1.1 million was program; consider legislation to provided for pay increases for nurses and related staff. program; consider legislation to provided for pay increases for nurses and related staff. prevent wage spiking before retirement;prevent eliminatewage spikingpension before benefitretirement; cost-of- livingeliminate adjustments pension Salary Structure Adjustments. The Legislature provided funding for untilbenefit at least cost age-of -living65; evaluate adjustments salary structureSalary adjustmentsStructure inAdjustments two of the past. three The fiscal Legislature years. The provided use of funding for hybriuntild pension at least plan ageoptions 65;; andevaluate modest salary structure structure adjustments adjustments keeps the in pay two plan of thefrom past falling three further fiscal behind years. The use of restructurehybrid retireepension health plan care. options ; theand market modest but structureis an inefficient adjustments way to keeps address the insufficient pay plan fromcompensation. falling further behind restructure retiree health care. Becausethe structure market adjustments but is an doinefficient not addres ways inequities to address in pay insufficient disparity orcom pensation. pay compaction, they are best used in conjunction with targeted increases. Investment Return Because structure adjustments do not address inequities in pay disparity or pay compaction, they are best used in conjunction with targeted increases. AssumptionsInvestment Return Other State Approaches. LFC staff worked with state legislative staff NMPERA Assumptions7.75% from Texas,Other Utah, State Wyoming, Approaches Arizona,. Oklahoma,LFC staff Nevada, worked and with Colorado state legislativeto staff NMERB 7.75% determine what actions those states have taken on compensation increases NMPERA 7.75% from Texas, Utah, Wyoming, Arizona, Oklahoma, Nevada, and Colorado to NMSIC 7.00% over the past five fiscal years (FY12-FY16). Of the seven states surveyed, all NMERB 7.75% determine what actions those states have taken on compensation increases CalPERS 7.50% reported providing salary increases over that time period. All states used an NMSIC 7.00% NY State across-theover-board the pastincrease five fiscalin conjunction years (FY12 with-FY16). a targeted Of the or sevenmerit -statesbased surveyed, all TeachersCalPERS 7.50% 7.50% increase.reported For example, providing the salarystate of increases Texas in overFY16 that provided time period.all executive All states used an NationalNY State employeesacross a -2.5the -boardpercent increaseincrease andin conjunctionincluded an withadditional a targeted 8 percent or merit-based AverageTeachers 7.68% 7.50% increaseincrease. for correctional For example, officers, the 2 statepercent of Texasfor registered in FY16 and provided licensed all executive National Source: LFC vocationalemployees nurses in athe 2.5 highest percent turnover increase areas ofand the state,included and basean increasesadditional 8 percent Average 7.68% to selected agencies to provide targeted and/or merit-based, salary increases to Pension plans are taking a more increase for correctional officers, 2 percent for registered and licensed Source: LFC agency staff. conservative approach toward vocational nurses in the highest turnover areas of the state, and base increases return assumptions because of to selected agencies to provide targeted and/or merit-based, salary increases to weakP ensionmarket plansperformance. are taking More a more agency staff. thanconservative two-thirds of stateapproach systems towardBenefit s havereturn lowered assumptions return assumptions because of sinceweak 2008. market The average performance. of 7.68 MorePensions . Currently, 80 thousand retirees receive a monthly pension percentthan is twothe- thirdslowest ofsince state 1989. systems benefit Benefitfrom the states, an increase of 5 percent from the prior year, totaling $2 The peak was 8.1 percent in 2001. have lowered return assumptionsbillion in benefit payments in FY15. One hundred thousand more are
since 2008. The average of 7.68counting Pensions on those benefits. Currently when they, 80 reti thousandre over the retirees next 30 receiveyears. However, a monthly pension percent is the lowest since 1989.the state’s benefit wo rkforcefrom the is statemore, anfortunate increase than of 5most percent New from Mexico the priorworkers year,. totaling $2 ThePERA peak wasChange 8.1 percent In in 2001.According billion to thein Nationalbenefit Institutepayments on Retirementin FY15. Security,One hundred New Mexico thousand is more are Unfunded Actuarial one of the 12 weakest states in terms of financial security for its seniors. Accrued Liability counting on those benefits when they retire over the next 30 years. However, the state’s workforce is more fortunate than most New Mexico workers. 7,000 Post-Pension Reform. Despite increasing contributions and reducing PERA Change In According to the National Institute on Retirement Security, New Mexico is 6,000 benefits the past two years, the state’s two pension systems, the Public Unfunded Actuarial one of the 12 weakest states in terms of financial security for its seniors. 5,000 Accrued Liability Employees Retirement Association (PERA) and Educational Retirement Board (ERB), report increases in both liabilities and the time needed to pay 7,000 4,000 off thosePost liabilities,-Pension in part Reform. because of Despitelower than increasing expected marketcontribut returnsions for and reducing 3,0006,000 FY15. Whilebenefits the thestate’s past pension two systemsyears, arethe consideredstate’s two secure pension using acsystems,tuarial the Public 2,0005,000 methodsEmployees, their combined Retirement unfunded Association liability – the (PERA) gap betw eenand assets Educational and the Retirement millions of dollars obligationBoard to retirees (ERB), paid report off overincreases time –in g rewboth by liabilities $700 hundred and themillion time, to needed to pay 1,000 4,000 $11.3 billionoff those for FY15liabilities,. But the in state’spart because actual debt of lowercould bethan much expected higher ifmarket the returns for 03,000 two pensionFY15. systems While do the not state’s achieve pension investment systems earnings are considered of 7.75 percent secure in atusing actuarial least six of the next 10 years, which may be challenging given the weakened 2,000FY11 FY12 FY13 FY14 FY15 methods, their combined unfunded liability – the gap between assets and the millions of dollars economy.obligation Lowering to the retirees assumption paid offby 1over percent, time to – 6.75 grew percent, by $700 could hundred add million, to 1,000Source: LFC files and PERA another $4 billion or more to these amortized liabilities and possibly require $11.3 billion for FY15. But the state’s actual debt could be much higher if the even more changes, including looking at different ways to deliver benefits. 0 two pension systems do not achieve investment earnings of 7.75 percent in at least six of the next 10 years, which may be challenging given the weakened FY11 FY12 FY13 FY14 FY15 economy. Lowering the assumption by 1 percent, to 6.75 percent, could add Source: LFC files and PERA another $4 billion or more to these amortized liabilities and possibly require even more changes, including looking at different ways to deliver benefits. 74 Government Administration Policy Analysis: General Government Policy Analysis: General Government Page 5 Page 5
Reducing Expenses. With the state’s two pension systems on a path to Reducing Expenses. With the state’s two pension systems on a path to sustainability, assuming they achieve their earnings assumption most years, sustainability, assuming they achieve their earnings assumption most years,
PERA and ERB could consolidate in administration, customer service, and PERA and ERB could consolidate in administration, customer service, and investments and save money through certain joint operations. Consolidation investments and save money through certain joint operations. Consolidation ERB Change In ERB Change In in administration could include a unified call center, for example. The two in administration could include a unified call center, for example. The two Unfunded Actuarial Unfunded Actuarial investment divisions also overlap significantly. The programs have access to investment divisions also overlap significantly. The programs have access to Accrued Liability the same indexes, markets and consultants, whether active or passive Accrued Liability the same indexes, markets and consultants, whether active or passive 6,800 investments, and could leverage scale in manager fee negotiations. In 6,800 investments, and could leverage scale in manager fee negotiations. In addition, their risk and asset allocation strategies are more similar than addition, their risk and asset allocation strategies are more similar than 6,600 6,600 different. The State Investment Council is less suitable for merging operations different. The State Investment Council is less suitable for merging operations 6,400 because it does not have the same liquidity needs as PERA and ERB who 6,400 because it does not have the same liquidity needs as PERA and ERB who must continue to make benefit payments even in years with poor returns. 6,200 must continue to make benefit payments even in years with poor returns. 6,200 6,000 Hybrid Pension Plans. The persistence of defined-benefit (DB) pension systems for public employees continues to pressure state budgets. According 6,000 Hybrid Pension Plans. The persistence of defined-benefit (DB) pension 5,800 systems for public employees continues to pressure state budgets. According millions of dollars to some industry reports, defined-contribution (DC) plans can produce the 5,800 5,600 millions of dollars to some industry reports, defined-contribution (DC) plans can produce the same level of asset accumulation as DB plans over time. The transition from DB plans to hybrid pension plans coincides with a workforce that has become 5,600 same level of asset accumulation as DB plans over time. The transition from 5,400 more mobile, preferring retirement savings employees can take with them DB plans to hybrid pension plans coincides with a workforce that has become 5,400 5,200 from job to job. DB systems work the best where employees stay with one more mobile, preferring retirement savings employees can take with them employer. The Legislature should consider a memorial to study hybrid FY11 FY12 FY13 5,200 from job to job. DB systems work the best where employees stay with one FY14 FY15 pension plan options that contribute to secure, broad-based pension coverage. employer. The Legislature should consider a memorial to study hybrid Source: LFC files and ERB FY11 FY12 FY13 FY14 FY15 pension plan options that contribute to secure, broad-based pension coverage. Most pension systems for education, including New Mexico’s, favor the minority who work in a single system for their entire work life, at the expense Source: LFC files and ERB Most pension systems for education, including New Mexico’s, favor the of the majority who leave the system earlier in their careers. According to minority who work in a single system for their entire work life, at the expense some industry reports, nearly all teachers are enrolled in plans that base
of the majority who leave the system earlier in their careers. According to retirement income on a percentage of average salary the last few years of employment and half of all teachers exit their school systems before their some industry reports, nearly all teachers are enrolled in plans that base pensions vest. Younger teachers might be better off if pensions were based on retirement income on a percentage of average salary the last few years of NMRHCA Assets at a fixed percentage of annual salary, instead of being so heavily back-loaded. employment and half of all teachers exit their school systems before their Fiscal-Year-End pensions vest. Younger teachers might be better off if pensions were based on 1,200 Retiree Health Benefits. According to some industry reports, only one NMRHCA Assets at a fixed percentage of annual salary, instead of being so heavily back-loaded. quarter of large employers still offer retiree health benefit plans. Among these Fiscal-Year-End 1,000 large employers, nearly all offer health benefits to early retirees. However, 1,200 Retiree Health Benefits. According to some industry reports, only one some employers are exploring new ways of delivering retiree health benefits, quarter of large employers still offer retiree health benefit plans. Among these 800 including using a defined contribution approach, with or without the use of 1,000 large employers, nearly all offer health benefits to early retirees. However, privatized or public exchanges established by the Affordable Care Act. 600 some employers are exploring new ways of delivering retiree health benefits, Health Benefit Eligibility. The agencies of the Interagency Benefits 800 including using a defined contribution approach, with or without the use of 400 Advisory Committee (IBAC) have different criteria regarding an employee’s privatized or public exchanges established by the Affordable Care Act. eligibility to qualify for health benefits. Albuquerque Public Schools (APS), millions of dollars 600 200 for instance, requires a 30 hour work week to qualify for healthcare benefits Health Benefit Eligibility. The agencies of the Interagency Benefits which matches the employer mandate for the Affordable Care Act. The 400 Advisory Committee (IBAC) have different criteria regarding an employee’s 0 General Services Department (GSD) has a 20 hour minimum for state
eligibility to qualify for health benefits. Albuquerque Public Schools (APS), FY16 FY20 FY25 FY30 FY35 employees. The New Mexico Public Schools Insurance Authority millions of dollars -200 200 for instance, requires a 30 hour work week to qualify for healthcare benefits (NMPSIA), which covers all but Albuquerque Public School employees, also which matches the employer mandate for the Affordable Care Act. The -400 has a 20 hour minimum but will allow 15 hours if requested by a school 0 General Services Department (GSD) has a 20 hour minimum for state board. Requiring a part-time employee to work 30 hours a week to qualify for Source: LFC files and NMRHCA benefits may allow more employees to be covered by Medicaid, where the
FY16 FY20 FY25 FY30 FY35 employees. The New Mexico Public Schools Insurance Authority -200 benefits are better, or receive premium assistance on the healthcare exchange. (NMPSIA), which covers all but Albuquerque Public School employees, also -400 has a 20 hour minimum but will allow 15 hours if requested by a school board. Requiring a part-time employee to work 30 hours a week to qualify for Source: LFC files and NMRHCA benefits may allow more employees to be covered by Medicaid, where the
benefits are better, or receive premium assistance on the healthcare exchange. 75 Policy Analysis: General Government Page 6 GovernmentPolicyPolicy Analysis:Analysis: GeneralGeneral GovernmentGovernment Administration PagePage 66 Design. In the past year, the IBAC employee plans increased premiums less than the industry trend of 4 percent. Premium costs across the IBAC agencies are close to the national median which is $6,251 for single coverage, with the
The top 10 cost-management employeeDesign.Design. paying In Inalmost thethe pastpast 20 percent,year,year, thethe and IBACIBAC $17,545 employeeemployee for family plansplans coverage increasedincreased, with premiumspremiums lessless
strategies executed in 2014: the employeethanthan thethe paying industryindustry almost trendtrend 30 ofof percent. 44 percent.percent. Under PremiuPremiu NMPSIAmm costscosts and acrossacross APS thetheplans IBACIBAC, agenciesagencies
employeesareare close closepay a totohigher thethe nationalnationalpercentage medianmedian of the whichpremiumwhich isis $6,251than$6,251 the forfornational singlesingle median coverage,coverage,. withwith thethe • TheMedical top and 10 dependent cost-management audits The top 10 cost-managementFor allemployee employeeIBAC plans payingpaying, workers almostalmost pay the2020 percent,samepercent, percentage andand $17,545$17,545 for single forfor and familyfamily family coveragecoverage ,, withwith • strategies executed in 2014: strategiesNo coverage execute for dworking in 2014: coverage thethe which employeeemployee is becoming payingpaying less almostalmost common 3030. The percent.percent. IBAC UagenciesUndernder NMPSIANMPSIA continue to andand be APSAPS plansplans,, spouses and additional tiers to •address multiple dependents interestedemployeesemployees in employee paypay aawellness higherhigher , percentage percentagealthough to ofof differ thethe ingpremiumpremium degrees. thanthan The thethe IBAC nationalnational medianmedian.. • MedicalMedical andand dependentdependent auditsaudits
agencies have also analyzed benefits to see if they would be subject to the • Value-based contracts with ForFor allall IBACIBAC plansplans,, workersworkers paypay thethe samesame percentagepercentage forfor singlesingle andand familyfamily •• No coverage for working providersNo coverageincluding thefor use ofworking high -costcoverage plan tax which when isit becomingtakes effect less in 2018, common with. theThe NM IBAC Retiree agencies Health continue to be spouses and additional tiers to coverage which is becoming less common. The IBAC agencies continue to be highspouses performance and networksadditional tiersCare to Authorityinterested (NM inRHCA) employee position wellnessing itself, although to make changes to differ if necessary.ing degrees. The IBAC addressaddress multiplemultiple dependentsdependents interested in employee wellness, although to differing degrees. The IBAC
• Reference-based pricing (plan agencies have also analyzed benefits to see if they would be subject to the • Value-based contracts with agencies haveThe average also analyzed worker inbenefits New Mexico to see earns if they $7,500 would less bethan subject to the • setsValue pricing-based for procedurescontracts withCost -Shighharing.-cost plan tax when it takes effect in 2018, with the NM Retiree Health withproviders providersvarying pricesincludingincluding such thethe as use usethe ofof national high- costmedian plan – taxthe averagewhen it governmenttakes effect worker in 2018, even with less thebecause NM ofRetiree Health kneehighhigh and performanceperformancehip replacements networksnetworks) CareCare AuthorityAuthority ((NMNMRHCA)RHCA) positionpositioninging itselfitself toto makemake changeschanges ifif necessary.necessary. costly post-employment benefits – yet faces cost-sharing on health benefits
• •• Bundled ReferencReferenc paymentsee--basedbased (payments pricingpricing (plan(planclose to the national median. In addition, because of differences in approaches for multiplesetssets pricing pricingor similiar forfor services proceduresprocedures to benefit CCostost design,--SSharing.haring. premiums TheThe vary averageaverage. For workerinstance,worker inin the NewNew average MexicoMexico teacher earnsearns pay $7,500$7,500s a lessless thanthan are under one episode of care) withwith varyingvarying pricesprices suchsuch higher asas thethepremium nationalnational but medianmedianhas lower –– theoutthe - ofaverageaverage-pocket governmentgovernmentcosts at the serviceworkerworker level. eveneven The lessless becausebecause ofof • Reducekneekneed andandemergency hiphip replacementsreplacements room )average) state employee, on the other hand, pays a lower premium but has costlycostly postpost--employmentemployment benefitsbenefits –– yetyet facesfaces costcost--sharingsharing onon healthhealth benefitsbenefits visits with incentives •• BundledBundled paymentspayments ((paymentspaymentshigher closecloseout-of to-topocket thethe nationalnational costs. C medianomparedmedian.. InwithIn addition,addition, the nationa bbecauseecausel median, ofof differences differencesmost out-of in-in approachesapproaches • Negativeforfor multiplemultiple payment oror adjustments similiarsimiliar servicesservices pocket to tocosts benefitbenefit are comparable design,design, premiumspremiums across IBAC varyvary plans.. ForFor, exceptinstance,instance, for thedeductiblesthe averageaverage and teacherteacher paypayss aa for areunnecessary under one episodehospital of care)out- of -pocket maximums. According to a recent Kaiser employer benefits are under one episode of care) higherhigher premiumpremium butbut hashas lowerlower outout--ofof--pocketpocket costscosts atat thethe serviceservice level.level. TheThe readmissions and hospital- survey, the average deductible is now $1,300 and maximum out-of-pocket •• acquired ReduceReduce conditionsdd emergencyemergency roomroom average state employee, on the other hand, pays a lower premium but has average state employee, on the other hand, pays a lower premium but has visitsvisits withwith incentivesincentives between $1,500 and $6,000; most IBAC plans are well below those averages. • Changes in how specialty drug higher out-of-pocket costs. Compared with the national median, most out-of- higher out-of-pocket costs. Compared with the national median, most out-of- •• charges NegativeNegative are administered paymentpayment adjustmentsadjustments pocket costs are comparable across IBAC plans, except for deductibles and Financing.pocket This costs fall are, IBAC comparable will seek across new IBACbids for plans contracts, except to providefor deductibles and • Worksiteforfor clinics,unnecessaryunnecessary tele-health hospitalhospital outout--ofof--pocketpocket maximumsmaximums.. AccordingAccording toto aa recentrecent KaiserKaiser employeremployer benefitsbenefits readmissions and hospitalmedical,- dental, and vision benefits to approximately 192 thousand members. • readmissions and hospital- Healthacquired literacy conditionsprograms From FY12survey,survey, to FY15,thethe averageaverage per-member deductibledeductible costs among isis nownow the $1,300 $1,300IBAC agencies andand maximummaximum increased outout --ofof--pocketpocket acquired conditions from 4between betweenpercent for $1,500$1,500 retirees andand to $6,000;$6,000; 30 percent mostmost for IBACIBAC educators plansplans under areare well wellthe APS belowbelow plans. thosethose averages.averages. • Changes in how specialty drug • Changes in how specialty drugThe predominant method of payment under the current contracts is fee-for- chargescharges areare administeredadministered service, which pays providers for each service regardless of outcomes. In this Financing.Financing. ThisThis fallfall,, IBACIBAC willwill seekseek nnewew bidsbids forfor contractscontracts toto provideprovide •• WorksiteWorksite clinics,clinics, teletele--healthhealth next purchasing round, covering fiscal years 2017 to 2021, IBAC will put
medical,medical, dentaldental,, andand visionvision benefitsbenefits toto aapproximatelypproximately 192192 thousandthousand membersmembers.. more emphasis on health plans and delivery systems that can offer value- •• HealthHealth literacyliteracy programsprograms FromFrom FY12FY12 toto FY15,FY15, perper--membermember costscosts amongamong thethe IBACIBAC agenciesagencies increasedincreased based reimbursementfrom 4 percent strategies. for retirees How to this30 percentwill play for out educators depends underon how the APS plans. competitivefrom the4 percent provider for marketplace retirees to is 30in the percent different for geographic educators areas. under the APS plans. The predominant method of payment under the current contracts is fee-for- The predominant method of payment under the current contracts is fee-for- service,service, whichwhich payspays providersproviders forfor eacheach serviceservice regardlessregardless ofof outcomeoutcomess.. InIn thisthis Improving the Deliverynext purchasingof Healthcare round, Benefits covering in New fiscal Mexico years 2017 to 2021, IBAC will put next purchasing round, covering fiscal years 2017 to 2021, IBAC will put IBAC should consolidate under one authority;moremore emph emphwhichasisasis would onon allow healthhealth direct plansplans contracting andand deliverydelivery with high systemssystems-value delivery thatthat cancan offeroffer valuevalue-- systems. The authority could offer hospitalsbasedbased andreimbursementreimbursement physician groups strategies.strategies. patient Howvolume.How thisthis In willreturn,will playplay the outgroupsout dependsdepends onon howhow could agree to reach targets for cost, qualitycompetitivecompetitive and patient thethe providersatisfactionprovider marketplacemarketplace. In addition, istheis inin state thethe differentshoulddifferent require geographicgeographic all areas.areas. public and private payers to participate in an all payer claims database (APCD). To date, 12 states have legislatively-mandated APCDs, and 5 states have voluntary APCD submissions from payers, which are
intended to help healthcareImprovingImproving purchasers, thethe practitioners, DeliveryDelivery of ofand HealthcareHealthcare consumers make BenefitsBenefits informed inin decisions. NewNew MexicoMexico
IBACIBAC shouldshould consolidateconsolidate underunder one one authority;authority; whichwhich wouldwould allowallow directdirect contractingcontracting withwith highhigh--valuevalue deliverydelivery systems.systems. TheThe authorityauthority couldcould offeroffer hospitalshospitals andand physicianphysician groupsgroups patientpatient volume.volume. InIn return,return, thethe groupsgroups couldcould agreeagree toto reachreach targettargetss forfor cost, cost, qualityquality andand patientpatient satisfactionsatisfaction.. InIn addition,addition, thethe statestate shouldshould requirerequire allall publicpublic andand privateprivate payerspayers toto participateparticipate inin aann allall payerpayer claimsclaims databasedatabase (APCD).(APCD). ToTo date,date, 1212 statesstates havehave legislativelylegislatively--mandatedmandated APCDs,APCDs, and and 55 statesstates havehave voluntaryvoluntary APCDAPCD submissionssubmissions fromfrom payerspayers,, whichwhich areare intendedintended toto helphelp healthcarehealthcare purchasers,purchasers, practitioners,practitioners, andand consumersconsumers makemake informedinformed decisions.decisions.
76 Investments Report
Policy Analysis: Investments Report Policy Analysis: Investments Report Page 1 Page 1
ne of the most important responsibilities of a state ne of the most important responsibilities of a state investment program is the fiduciary obligation to investment program is the fiduciary obligation to ERB Total Portfolio safeguard the fund for future generations. A carefully ERB Total Portfolio safeguard the fund for future generations. A carefully Returns O Returns O crafted, diversified portfolio balances risk and return. The use As of June 30, 2015 As of June 30, 2015 crafted, diversified portfolio balances risk and return. The use Ending Balance: $11.4B of alternative investments can increase potential returns, but Ending Balance: $11.4B of alternative investments can increase potential returns, but 12 comes with risks that necessitate an increase in due diligence 12 comes with risks that necessitate an increase in due diligence 9.8% 10.1% and risk analysis. New Mexico’s investment agencies – the 9.8% 10.1% and risk analysis. New Mexico’s investment agencies – the 10 10 Educational Retirement Board (ERB), Public Employees Educational Retirement Board (ERB), Public Employees Retirement Association (PERA) and State Investment Council Retirement Association (PERA) and State Investment Council 8 8 6.9% (SIC) – have recently implemented investment policy changes (SIC) – have recently implemented investment policy changes 6.9% 6 to diversify their portfolios through an increase in alternative
6 to diversify their portfolios through an increase in alternative billions of dollars investments and, in turn, have increased their use of expensive 4.0% active managers. While fund performance has potential, long- billions of dollars investments and, in turn, have increased their use of expensive 4 4.0% term returns have disappointed, performing below their targets 4 active managers. While fund performance has potential, long- term returns have disappointed, performing below their targets 2 and below similar public funds.
2 and below similar public funds. 0 Performance Overview 1-Year 3-Year 5-Year 10-Year Return (%) 0 Performance Overview Target 7.75% Returns on the state’s four investment funds, the two pension funds and 1-Year 3-Year 5-Year 10-Year Source: Agency Investment Reports the land grant and severance tax permanent funds invested by SIC, were Return (%) *not annualized Target 7.75% Returns on the state’s four investment funds, the two pension funds and below expectations with low percentage gains for most of FY15. While
Source: Agency Investment Reports impacted by broad market volatility, aggregate fund value increased the land grant and severance tax permanent funds invested by SIC, were *not annualized below expectations with low percentage gains for most of FY15. While minimally by $500 million, or 1.1 percent, representing the net effect of SIC Total Portfolio contributions, distributions, and investments returns for the one-year impacted by broad market volatility, aggregate fund value increased Returns
minimally by $500 million, or 1.1 percent, representing the net effect of As of June 30, 2015 period ending June 30, 2015. SIC Total Portfolio Ending Balance: contributions, distributions, and investments returns for the one-year LGPF $14.8B Returns STPF $4.4B Asset Values for Fiscal Year Ended June 30, 2015 As of June 30, 2015 period ending June 30, 2015. 16 (in billions) Ending Balance: LGPF $14.8B 14 Annual ERB PERA LGPF STPF Total Asset Values for Fiscal Year Ended June 30, 2015 STPF $4.4B 12 Asset Values $ 11.4 $ 14.5 $ 14.8 $ 4.5 $ 45.2 16 (in billions) 10.5% 10.7% 10.1% 10.3% Value Change $ 0.1 $ (0.1) $ 0.6 $ (0.1) $ 0.5 10 14 Annual ERB PERA LGPF STPF Total Percent Change 0.9% -0.7% 4.2% 2.2% 1.1% 8 12 Asset Values $ 11.4 $ 14.5 $ 14.8 $ 4.5 $ 45.2 Source: Investment Agency Reports 10.7% 6.3% 10.5% 5.7% 10.1% 10.3% Value Change $ 0.1 $ (0.1) $ 0.6 $ (0.1) $ 0.5 6 10 billions of dollars 3.4% Short- and Long-Term Returns. The one-, three-, and five-year returns for Percent Change 0.9% -0.7% 4.2% 2.2% 1.1% 4 3.2% 8 the investment agencies’ portfolios challenged their respective annual targets, Source: Investment Agency Reports 2 6.3% 7.5 percent for SIC and 7.75 percent for ERB and PERA. Ten-year returns fell 5.7% 6 short of long-term targets because they reflect investment performance during billions of dollars 0 3.4% The one-, three-, and five-year returns for 1-Year 3-Year 5-Year 10-Year the years of the global financial crisis and subsequent recovery. Also, long- 4 Short- and Long-Term Returns. 3.2% the investment agencies’ portfolios challenged their respective annual targets, LGPF Return (%) term returns were penalized by policy restrictions that, at the time, did not STPF Return (%) 2 7.5 percent for SIC and 7.75 percent for ERB and PERA. Ten-year returns fell Target 7.5% permit investment in potentially more profitable but riskier alternative Source: Agency Investment Reports investment classes. short of long-term targets because they reflect investment performance during *not annualized 0 1-Year 3-Year 5-Year 10-Year the years of the global financial crisis and subsequent recovery. Also, long- LGPF Return (%) term returns were penalized by policy restrictions that, at the time, did not Differences in the performance of the three investment agencies can be STPF Return (%) explained by how the returns generated by these agencies differed from that of Target 7.5% permit investment in potentially more profitable but riskier alternative Source: Agency Investment Reports investment classes. *not annualized
Differences in the performance of the three investment agencies can be explained by how the returns generated by these agencies differed from that of 77 PolicyInvestmentsPolicy Analysis: Analysis: Investments Investments Report Report Report PagePage 2 2
the typicalthe typicalinstitutional institutional investment investment fund, the rolefund, of thea strategic role of asset a strategic allocation asset allocation in an investment program and how management and consultants added or in an investment program and how management and consultants added or subtracted value. subtracted value.
Peer Comparisons. The funds’ performances are mixed when compared with similarPeer Comparisonspublic funds. .All Theof funds’the funds, performances except the are PERA mixed fund when, compared with similar public funds. All of the funds, except the PERA fund, outperformed the median of the peer funds in the one-year period while none of the Newoutperformed Mexico investment the median funds didof thebetter peer than funds the median in the onein the-year three period-, five -while none of and tenthe-year New periods. Mexico investment funds did better than the median in the three-, five- and ten-year periods.
TUCS Universe Rankings
(public fundsTUCS > $1 Universe billion) Rankings For Period Ending June 30, 2015
0 (public funds > $1 billion) For Period Ending June 30, 2015 PERA Total Portfolio 20 027 Returns 40 As ofPERA June 30,Total 2015 Portfolio 40 20 5027 51 52 48 Ending Balance:Returns $14.5B 56 60 60 40 66 12 60 As of June 30, 2015 40 70 5178 48 Ending10.6% Balance:10.6% $14.5B 7950 56 60 52 60 86 80 88
lower decile is best 66 12 60 90 10 70 100 78 10.6% 10.6% 79 86 801 Year88 3 Year 5 Year 10 Year lower decile is best 90 8 10 100 PERA ERB LGPF STPF 5.8% 1 Year 3 Year Source: Agency5 Year Investment Reports 10 Year 6 8 PERA ERB LGPF STPF
billions of dollars To compare the three investment plans on a similar basis, analystsSource: Agencyuse the Investment Reports 4 5.8% 6 Wilshire Trust Universe Comparison Service (TUCS), a national benchmark
2.0% service for the performance and allocation of institutional assets that includes 2
billions of dollars To compare the three investment plans on a similar basis, analysts use the 4 comparison with approximately 77 public funds with more than $1 billion in assets. WilshireOver the courseTrust ofUniverse the one fiscalComparison year, the ServiceERB fund (TUCS), outperformed a national and benchmark 0 2.0% ranked servicehigh in forthe thesecond performance quartile, exceeding and allocation the ranking of institutional of the LGPF assets and that includes 1-2Year 3-Year 5-Year 10-Year Return (%) STPF, cwhichomparison ended within the approximately 40th and 50th 77 percentile public fundsrespectively, with more while than the $1 billion in Target 7.75% PERA assfundets. struggled, Over the ending course the of y earthe inone the fiscal 88th percentile.year, the ERBOver fundthe three outperformed-, and Source: Agency Investment Reports 0 *not annualized five, andranked ten- yearhigh periods in the, allsecond but onequartile, of New exceeding Mexico theinvestment ranking f unds’of the LGPF and 1-Year 3-Year 5-Year 10 -Yearrankings among peer funds fell below the median; the ERB fund was in the 48th Return (%) STPF, which ended in the 40th and 50th percentile respectively, while the Target 7.75% percentilePERA on the fund 10- yearstruggled, ranking. ending On the the three year-year in and the fiv 88the-year percentile. rankings, theOver the three-, Source: Agency Investment ReportsLGPF was the best performer among New Mexico funds, with returns that put it *not annualized fivest , and ten-year periods, all but one of Newnd Mexico investment funds’ in the 51 percentile for the three-year returns and in the 52 percentile for the th rankings among peer funds fell below the median; the ERB fund was in the 48 five-year returns. percentile on the 10-year ranking. On the three-year and five-year rankings, the
Staff fromLGPF all was three the bestinvestment performer agencies among acknowledgeNew Mexicos funds,their respective with returns that put it st nd performancein the rankings51 percentile over the for time the periods three-year reviewed returns are and impacted in the by52 policy percentile for the five-year returns. limitations of their asset allocations and by extreme economic conditions due to the recession . Since the market downturn of 2008, SIC, ERB, and PERA have broadlyStaff diversified from andall rebalanced three investment their portfolio agencies holdings acknowledgethrough investmentss their respective in alternativeperformance assets, suchrankings as real over assets, the real time estate periods, and privatereviewed equity, are asimpacted well by policy as soughtlimitations to increase of thetheir overa assetll liquidity allocations of the and portfolios by extreme through economic investments conditions due to in shorter term, higher liquid investments. As the agencies adjusted their the recession. Since the market downturn of 2008, SIC, ERB, and PERA have investment policies to permit increasingly diversified portfolios, the volatility of equity marketsbroadly haddiversified a stronger and impact rebalanced on their their returns portfolio, which isholdings reflected through in the investments
short-termin alternative performance assets, rankings such. If as the real investment assets, real agencies estate continue, and private to meet equity, as well as sought to increase the overall liquidity of the portfolios through investments in shorter term, higher liquid investments. As the agencies adjusted their investment policies to permit increasingly diversified portfolios, the volatility of equity markets had a stronger impact on their returns, which is reflected in the short-term performance rankings. If the investment agencies continue to meet 78 Investments Report
Policy Analysis: Investments Report Policy Analysis: Investments Report Page 3 Page 3
or exceed their annual return targets in the short- and mid-terms, the long-term or exceed their annual return targets in the short- and mid-terms, the long-term Investment Agency Investment Agency Asset Allocation (10 years and greater) performance rankings should improve over time. Asset Allocation (10 years and greater) performance rankings should improve over time. Long-Term Targets Long-Term Targets versus Actuals versus Actuals For FY15, ERB reported paying fees equal to 73 basis as of June 30, 2015 Management Fees. For FY15, ERB reported paying fees equal to 73 basis as of June 30, 2015 Management Fees. 100% points, or 0.73 percent, of its fund value, the highest proportion among the 100% points, or 0.73 percent, of its fund value, the highest proportion among the investment agencies. investment agencies.
90% 90% FY15 Investment Portfolio Fees FY15 Investment Portfolio Fees Annual Cost Annual Cost 80% 80% Management Performance (in basis Management Performance (in basis Fees Fees Total Fees points) Fees Fees Total Fees 70% points) ERB $ 99,904,034 $ 28,818,863 $128,722,897 73 70% ERB $ 99,904,034 $ 28,818,863 $128,722,897 73 PERA $ 65,470,351 $ 33,571,215 $ 99,041,566 42 60% PERA $ 65,470,351 $ 33,571,215 $ 99,041,566 42 SIC $119,052,445 $ 34,104,695 $153,157,140 57 60% SIC $119,052,445 $ 34,104,695 $153,157,140 57 Source: Investment Agency Reports 50% Source: Investment Agency Reports 50% This may be attributed, in large part, to the portfolio’s sizable allocation 40% increase to opportunistic credit investments. This is an alternative investment This may be attributed, in large part, to the portfolio’s sizable allocation category with a risk profile higher than traditional investments, although lower 40% increase to opportunistic credit investments. This is an alternative investment 30% in risk than private equity various and other alternative investments. Because of category with a risk profile higher than traditional investments, although lower the need for greater diligence, higher risk assets generally cost more to manage. 30% in risk than private equity various and other alternative investments. Because of 20% The opportunistic credit investments have performed well for the ERB the need for greater diligence, higher risk assets generally cost more to manage. portfolio. PERA and SIC have little to no investments in this asset class.
20% The opportunistic credit investments have performed well for the ERB 10% portfolio. PERA and SIC have little to no investments in this asset class. PERA presented the lowest dollar amount and proportion of fees paid by the three investment agencies for investments during the fiscal year, with $99 10% 0% PERA presented the lowest dollar amount and proportion of fees paid by the million spent for management and performance, an amount equal to 42 basis
Actual Actual Actual points, or 0.42 percent of the fund value. PERA has actively pursued lowering three investment agencies for investments during the fiscal year, with $99 Target Target Target PERA ERB SIC their management fees. The majority of management fees were attributed to the 0% million spent for management and performance, an amount equal to 42 basis alternative investments allocation, with hedge funds accounting for nearly 40 Cash
Actual Actual Actual points, or 0.42 percent of the fund value. PERA has actively pursued lowering Target Target Target percent of all fees. Real Assets PERA ERB SIC their management fees. The majority of management fees were attributed to the Risk Parity alternative investments allocation, with hedge funds accounting for nearly 40 SIC paid a large portion of its fees in fiscal year 2015 for investments in hedge Cash Liquid Alpha/GTAA percent of all fees. funds and credit and structured finance. As fees tend to be driven by strategic Real Assets Real Estate asset allocation and risk profile, SIC exhibits a broadly diversified investment Risk Parity Absolute Return Private Equity program for which performance becomes a larger cost. SIC spent both the Liquid Alpha/GTAA SIC paid a large portion of its fees in fiscal year 2015 for investments in hedge Fixed Income largest proportion on fees and the highest dollar amount, although the Real Estate funds and credit and structured finance. As fees tend to be driven by strategic Int'l Equity significantly larger funds it manages explains much of the higher cost. Absolute Return asset allocation and risk profile, SIC exhibits a broadly diversified investment Domestic Equity Private Equity program for which performance becomes a larger cost. SIC spent both the Source: LFC Files Fixed Income largest proportion on fees and the highest dollar amount, although the Int'l Equity significantly larger funds it manages explains much of the higher cost. Domestic Equity Source: LFC Files
79 This page intentionally left blank. PERFORMANCE REPORTS This page intentionally left blank. Policy Analysis: Accountability in Government Accountability in GovernmentPage 1 Policy Analysis: Accountability in Government In recent years, tight budgets posed significant challenges for agencies; some Page 1 used performance data to prioritize efforts and allocate limited resources. The 2017 budget year provides an opportunity to strategically address some long- In recent years, tight budgets posed significant challenges for agencies; some standing challenges for the state; however, to make the most of the used performance data to prioritize efforts and allocate limited resources. The opportunity, agencies need to more effectively use performance indicators 2017 budget year provides an opportunity to strategically address some long- and tools, such as cost-benefit analysis, to ensure limited resources are used to standing challenges for the state; however, to make the most of the Performance Measure cut ineffective programs and bolster effective ones. opportunity, agencies need to more effectively use performance indicators Hierarchy and tools, such as cost-benefit analysis, to ensure limited resources are used to The Accountability in Government Act (AGA) traded budget flexibility for cut ineffective programs and bolster effective ones. information about how state agencies economically, efficiently, and Performance Measure State of the State/ Report Cards Hierarchy effectively carry out their responsibilities and provide services. Prior to the The Accountability in Government Act (AGA) traded budget flexibility for AGA, agency appropriations were tightly controlled by the Legislature with information about how state agencies economically, efficiently, and GAA Measures attention paid to individual budget line items and incremental spending of State of the State/ Report Cards effectively carry out their responsibilities and provide services. Prior to the salaries, office supplies, travel, etc. After the AGA, the focus switched to AGA, agency appropriations were tightly controlled by the Legislature with Table 2 Measures results as measured by performance (inputs, outputs, outcomes, etc). GAA Measures attention paid to individual budget line items and incremental spending of salaries, office supplies, travel, etc. After the AGA, the focus switched to Report Cards. To facilitate reviews of agency performance, LFC developed Internal Agency Measures Table 2 Measures results as measured by performance (inputs, outputs, outcomes, etc). a dashboard report, a report card, to add emphasis and clarity to the reporting process and focus budget discussion on evidence-based initiatives and Report Cards. To facilitate reviews of agency performance, LFC developed programming. Criteria for rating performance were established with Internal Agency Measures a dashboard report, a report card, to add emphasis and clarity to the reporting consideration for improvement or decline in performance and deference to process and focus budget discussion on evidence-based initiatives and economic conditions, austerity measures, etc. In general, green ratings programming. Criteria for rating performance were established with indicate performance achievement; red ratings are not necessarily a sign of consideration for improvement or decline in performance and deference to failure but do indicate a problem in the agency’s performance or the validity economic conditions, austerity measures, etc. In general, green ratings of the measure. Yellow ratings highlight a narrowly missed target, indicate performance achievement; red ratings are not necessarily a sign of Report Card Program significantly improved or a slightly lower level of performance. Performance failure but do indicate a problem in the agency’s performance or the validity Rating Performance criteria and elements of good performance measures are reviewed on the of the measure. Yellow ratings highlight a narrowly missed target, Summary following pages. While the report cards are generally good tools, there is Report Card Program significantly improved or a slightly lower level of performance. Performance FY11-FY15 room for improvement – in reporting results, measuring the right things, 60% Rating Performance criteria and elements of good performance measures are reviewed on the benchmarking to national and state data, developing corrective action plans, Summary following pages. While the report cards are generally good tools, there is and making a stronger connection to agency budgets. FY11-FY15 room for improvement – in reporting results, measuring the right things, 50% 60% benchmarking to national and state data, developing corrective action plans, FY15 Performance and Future Outlook. Fiscal year 2015 report cards 40% and making a stronger connection to agency budgets. showed a decrease in yellow ratings, a slight increase in green ratings and red 50% ratings as agencies continue to struggle implementing evidence-based FY15 Performance and Future Outlook. Fiscal year 2015 report cards 30% investments and strategies.Some outcome measures indicate a need to 40% showed a decrease in yellow ratings, a slight increase in green ratings and red address items such as poor year-over-year job growth, reading proficiency in ratings as agencies continue to struggle implementing evidence-based 20% schools, Medicaid measures to assess quality of care and efficiency, 30% investments and strategies. Some outcome measures indicate a need to behavioral health services, child maltreatment cases, and recidivism rate of address items such as poor year-over-year job growth, reading proficiency in 10% inmates. Performance results continue to miss targets due to high staff 20% schools, Medicaid measures to assess quality of care and efficiency, vacancy rates that continue to negatively impact agencies, including problems behavioral health services, child maltreatment cases, and recidivism rate of 0% with recruitment and retention. For FY17, agencies requested substantial 10% FY11FY12FY13FY14FY15 inmates. Performance results continue to miss targets due to high staff funding increases; however, relatively few requests were based on results or vacancy rates that continue to negatively impact agencies, including problems Green Yellow Red tied to higher performance levels. 0% with recruitment and retention. For FY17, agencies requested substantial FY11FY12FY13FY14FY15 Source: LFC Files funding increases; however, relatively few requests were based on results or In accordance with the provisions of the AGA, the ability of LFC and its staff Green Yellow Red tied to higher performance levels. to improve measures is limited, as fundamental authority over performance reporting resides in the executive. The Department of Finance and Source: LFC Files In accordance with the provisions of the AGA, the ability of LFC and its staff Administration (DFA) approves new measures and deletes others, and LFC’s to improve measures is limited, as fundamental authority over performance role is that of consultation. reporting resides in the executive. The Department of Finance and Administration (DFA) approves new measures and deletes others, and LFC’s role is that of consultation.
83 84
PERFORMANCE REPORT CARD CRITERIA LEGISLATIVE FINANCE COMMITTEE
Process Process Process • Data is reliable . • Data is questionable. • Data is unreliable . • Data collection method is transparent . • Data collection method is unclear . • Data collection method is not provided. • Measure gauges the core function of th e • Measure does not gauge the core functi on • Measure does not gauge the core functi on program or relates to significant budget of the program or does not relate to of the program or does not relate to expenditures. significant budget expenditures . significant budget expenditures. • Performance measure is tied to agency • Performance measure is not closely tied to • Performance measure is not related to strategic and mission objectives . stra tegic and mission objectives . strategic and mission objectives . • Performance measure is an indicator of • Performance measure is a questionabl e • Performance measure is a poor indicator of progress in meeting annual performan ce indicator of progress in meeting annual progress in meeting annual performanc e target , if applicable. performance target , if applicable . target, if applicable. • Agency failed to report on performance Progress Progress measure and data should be available. • Agency met , or is on track to meet, annual • Agency is behind target or is behind i n target . meeting annual target . Progress • Action plan is in place to improve • A clear and achievable action plan is in • Agency failed, or is likely to fail, to mee t performance. place to reach goal . annual target. • No action plan is in place fo r Management Man agement improvement. • Agency management staff us e • Agency management staff does not use performance data for internal evaluations . performance data for internal evaluations . Management • Agency management staff does not use performance data for internal evaluations . Ideal be • • • elevant: enchmarked: • omparable: ccessible: conomical: eliable: • alid: esponsive: lear: esults- • • • • • • Elements of Good Performance Performance Good of Elements data in a in cost- data standards public) policymakers, and generalthe stakeholders (employees, simpleand manner to all outcomes performance levels R agency and policymakers meaningful information to the Useful: budget expenditures theof program significant or E over timeinformation accurate and consistent B time in points different comparison performanceof at R informationand R A R C C all stakeholders information to V performance measures should Capture the intended data Communicate in plaina rvd valuable and Provide Oriented: Provide reasonably Assess Measures Provide regu Provide Reflect changesin Collect and maintain effective manner Allow directAllow s etpractice Use best h core function the Focus on lar results ACCOUNTABILITY IN GOVERNMENT ACCOUNTABILITY Performance Measure Guidelines items in should quarterlyEach report • • • • • clu gnymission statement Agency initiatives key strategic plan Summary of n ugtb oreo funds budgetand by source of Program purpose description, and key performance measures agency initiatives, objectiv key to links program the How due datesdue responsibilities and associated Action plan describing Agency Quarterly ReportsAgency Quarterly de the following standard standard following the de es, Key M Key asure reporting should include • • • • • • • • • Elements e measure results key Data source to measure measure statement Key performance data (ifdata yearsFour historical of quantitative) (both qualitative and Current quarter data as appropriate Graphic display ofdata target 10 percent ormore below measures Explanation for meet target performance failing to plan for action Proposed corrective Action plan status completed planaction items not Corrective action plan for e Reports available) fKyAgency of Key ACCOUNTABILITY IN GOVERNMENT Performance Measure Guidelines
Elements of Good Performance Elements of Key Agency Agency Quarterly Reports Measures Reports
Ideal performance measures should Each quarterly report should Key Measure reporting be include the following standard should include items • Useful: Provide valuable and • Key performance meaningful information to the • Agency mission statement measure statement agency and policymakers • Data source to measure • Results-Oriented: Focus on • Summary of key strategic plan key measure results outcomes initiatives • Clear: Communicate in a plain • Four years of historical and simple manner to all data (if available) stakeholders (employees, • Program description, purpose policymakers, and the general and budget by source of funds • Current quarter data public) (both qualitative and quantitative) • Responsive: Reflect changes in • How the program links to key performance levels agency initiatives, objectives, • Graphic display of data • Valid: Capture the intended data and key performance measures as appropriate and information • Explanation for measures • Reliable: Provide reasonably • Action plan describing 10 percent or more below accurate and consistent responsibilities and associated target information over time due dates • Economical: Collect and maintain • Proposed corrective data in a cost-effective manner action plan for performance failing to • Accessible: Provide regular results meet target information to all stakeholders • • Comparable: Allow direct Action plan status comparison of performance at • different points in time Corrective action plan for action plan items not • Benchmarked: Use best practice completed standards • Relevant: Assess the core function of the program or significant budget expenditures
85 This page intentionally left blank. Children, Youth & Families
PERFORMANCE: Children, Youth and Families Department PERFORMANCE: Children, Youth and Families Department
Performance in FY15 for key intervention programs like Protective Performance in FY15 for key intervention programs like Protective KEY ISSUES Services and Juvenile Justice Services fell short of targets and, for KEY ISSUES Services and Juvenile Justice Services fell short of targets and, for some measures was worse than in FY14 because the mission of some measures was worse than in FY14 because the mission of The Children, Youth and Families these programs is to intervene when a family is in or on the verge of The Children, Youth and Families these programs is to intervene when a family is in or on the verge of Department fell short of its targets crisis, weak performance can cascade into long-term social and Department fell short of its targets including those for the use of force in crisis, weak performance can cascade into long-term social and economic cots for the state. However, early prevention services including those for the use of force in juvenile justice facilities and children juvenile justice facilities and children economic cots for the state. However, early prevention services subjected to repeat maltreatment. provided by the Early Childhood Services program met most subjected to repeat maltreatment. provided by the Early Childhood Services program met most Performance in the Juvenile Justice performance targets for childcare assistance and prekindergarten Performance in the Juvenile Justice performance targets for childcare assistance and prekindergarten Services (JJS) Program continues to (pre-k). Services (JJS) Program continues to (pre-k). slide and caseworker turnover rates slide and caseworker turnover rates are still high. JJS is implementing Juvenile Justice. LFC staff identified performance concerns early are still high. JJS is implementing performance-based-standards and is Juvenile Justice. LFC staff identified performance concerns early in FY15. The program continued on a downward performance trend. performance-based-standards and is collecting and analyzing data to collecting and analyzing data to in FY15. The program continued on a downward performance trend. develop reforms. Additionally, Juveniles in secure facilities experienced increased incidents of both develop reforms. Additionally, Juveniles in secure facilities experienced increased incidents of both employee retention opportunities are use of force by staff and youth-on-youth violence. Additionally employee retention opportunities are use of force by staff and youth-on-youth violence. Additionally under evaluation. while 7 percent of youth transitioned into an adult correctional under evaluation. while 7 percent of youth transitioned into an adult correctional facility in FY14; this rate rose to almost 12 percent in FY15. These facility in FY14; this rate rose to almost 12 percent in FY15. These AGENCY IMPROVEMENT PLANS performance measures are considered key indicators of the secure AGENCY IMPROVEMENT PLANS performance measures are considered key indicators of the secure Submitted by agency? Yes juvenile service system. Despite implementing an action plan of Submitted by agency? Yes juvenile service system. Despite implementing an action plan of Timeline assigned by agency? No best-practice policies to de-escalate incidents and avoid injuries in Timeline assigned by agency? No best-practice policies to de-escalate incidents and avoid injuries in Responsibility assigned by agency? Yes FY14, high turnover rates for youth care specialists may be Responsibility assigned by agency? Yes FY14, high turnover rates for youth care specialists may be contributing to the performance decline. In FY15, turnover contributing to the performance decline. In FY15, turnover increased to 22 percent, an increase of 8 percent. The agency increased to 22 percent, an increase of 8 percent. The agency reported it is currently evaluating several recruitment and retention reported it is currently evaluating several recruitment and retention strategies to stabilize the workforce. strategies to stabilize the workforce.
Percent of Incidents FY13 FY14 FY15 FY15 Percent of Incidents FY13 FY14 FY15 FY15 Measure Rating Measure Rating in Juvenile Justice Actual Actual Target Actual in Juvenile Justice Actual Actual Target Actual Facilities Requiring Percent of clients Facilities Requiring Percent of clients Use of Force recommitted to a children, Use of Force recommitted to a children, Resulting in Injury youth and families Resulting in Injury youth and families department facility within 9.0% 9.7% 9.0% 7.6% department facility within 9.0% 9.7% 9.0% 7.6% 2.5% 2.5% two years of discharge from two years of discharge from facilities facilities Percent of incidents in 2.0% Percent of incidents in juvenile justice facilities 2.0% 1.8% 2.2% 1.5% 1.6% juvenile justice facilities 1.8 % 2.2% 1.5% 1.6% requiring use of force requiring use of force resulting in injury resulting in injury 1.5% 1.5% Percent of juvenile justice Percent of juvenile justice facility clients age eighteen facility clients age eighteen and older who enter adult and older who enter adult 1.0% correction within two years n/a 7.1% 6.0 % 11.9% 1.0% correction within two years n/a 7.1% 6.0% 11.9% after discharge from a after discharge from a juvenile justice facility juvenile justice facility 0.5% Percent of clients re- 0.5% Percent of clients re- adjudicated within two years 5.8% 6.0% 5.8% 6.4% adjudicated within two years 5.8% 6.0% 5.8% 6.4% of previous adjudication of previous adjudication 0.0% Number of client-on-client 0.0% Number of client-on-client Q1 Q2 Q3 Q4 physical assaults in juvenile Q1 Q2 Q3 Q4 n/a 270 <260 286 physical assaults in juvenile n/a 270 <260 286 justice facilities justice facilities Quarter Target Quarter Target Percent of clients who Percent of clients who Source:CYFD successfully complete 92.1% 81.8% 70% 83.2% Source:CYFD successfully complete 92.1% 81.8% 70% 83.2% formal probation formal probation
87 Children, Youth & Families
Turnover rate for youth care 15.2% 14.4% 15.0% 22.4% specialists Turnover rate for youth care Turnover Rate for 15.2% 14.4% 15.0% Program 22.4% Rating specialists Juvenile Justice Services Youth Care Protective Services. One of the most worrisome performance Turnover Rate for Program Rating Specialists and results is the percent of children subjected to substantiated repeat Juvenile Justice Protective Service maltreatment. Continued encounters of adverse childhood Services Youth Care Protective Services. One of the most worrisome performance Workers experiences affect a child’s emotional, physiological, behavioral Specialists35% and results is the percent of children subjected to substantiated repeat health, and socioeconomic disparities. To improve the outcomes for Protective Service maltreatment. Continued encounters of adverse childhood children and families who come into contact with Protective Workers30% experiences affect a child’s emotional, physiological, behavioral 35% Services, the Legislature increased funding by $2.2 million for the health, and caresocioeconomic support of children disparities in custody,. To improve $2.2 million the outcomes to pilot preventionfor 25% children and families who come into contact with Protective 30% and intervention services at family support and child advocacy Services, thecenters Legislature statewide,increased $700 thousand funding forby supportive $2.2 million housing for tothe stabilize 20% care supportfamilies, of children and in$2.2 custody, million $2.2 and millionan additional to pilot 45 prevention FTE to reduce 25% caseloads. In New Mexico, average caseloads were significantly 15% and intervention services at family support and child advocacy centers statewide,higher than$700 the thousand national foraverage supportive, resulting housing in high to s taffstabilize burnout and 20% 10% families, andturnover. $2.2 million The national and an caseloadadditional average 45 FTE for tochild reduce protective caseloads. Inservice News investigatorsMexico, average is 69 annually; caseloads however were , significantlyCYFD investigators 15% 5% higher than averagethe national 89 investigationsaverage, resulting per inworker high sannually.taff burnout It andwill take turnover. significantThe national effort caseloadto fill new average and currently for child vacan protectivet FTE to reduce 10% caseloads, and the agency recently reported over 30 individuals have 0% services investigators is 69 annually; however, CYFD investigators FY12 FY13 FY14 FY15 been hired as a result of the Rapid Hire program. 5% average 89 investigations per worker annually. It will take FY13 FY14 FY15 FY15 JJS significantPS effortMeasureto fill new and currently vacant FTE to reduceRating Actual Actual Target Actual 0% Source:CYFDcaseloads, and the agency recently reported over 30 individuals have Percent of children who are FY12 FY13 FY14 FY15 been hired as a result of the Rapid Hire program. not the subject of substantiated maltreatment FY13 FY14 FY15 FY15 JJS PS Measure within six months of a prior 91.3% 88.8% 93.0% 89Rating.1% determination of Actual Actual Target Actual High cSource:CYFDhild welfare frontline worker Percent of childrensubstantiated who are maltreatment turnover has significant financial not the subject of costs and negative outcomes for Percent of children who are children. Additionally, substantiatedresearch maltreatmentnot the subject of 91.3% 88.99.8%7% 9399.9.0%% 99.7%89.1% 99.8% indicates high turnover rateswithin may sixbe monthssubstantiated of a prior maltreatment determination of High child welfarelinked frontline to organizational worker factors, such while in foster care as climate, culture, andsubstantiated direct maltreatment turnover has significant financial supervisor satisfaction. Percent of children reunified costs and negative outcomes for Percent of childrenwith their who natural are families in 62.4% 59.4% 65.0% 64.1% children. Additionally, research not the subjectless of than twelve months of 99.7% 99.9% 99.7% 99.8% indicates high turnover rates may be substantiated maltreatmententry into care linked to organizational factors, such while in foster care as climate, culture, and direct Percent of children in foster Percent of childrencare for reunified twelve months with supervisor satisfaction. 76.6% 76.8% 80.0% 73.8% with their naturalno more families than intwo placements 62.4% 59.4% 65.0% 64.1% less than twelve months of entry into carePercent of children adopted within twenty-four months 31.3% 31.8% 32.0% 32.1% Percent of childrenfrom entryin foster into foster care care for twelve months with no more than twoPercent of adult victims76.6 %or 76.8% 80.0% 73.8% survivors receiving domestic placements 92.3% 92.0% 93.0% 95.0% violence services who have Percent of childrenan individualized adopted safety plan
within twenty-Percentfour months of adult victims31.3 %or 31.8% 32.0% 32.1% from entry intosurvivors foster care receiving domestic Percent of adultviolence victims services or who are made aware of other 87.7% 87.0% 90.0% 90.8% survivors receiving domestic available community92. 3% 92.0% 93.0% 95.0% violence servicesservices who have an individualized safety plan 88 Percent of adult victims or survivors receiving domestic violence services who are made aware of other 87.7% 87.0% 90.0% 90.8% available community services Children, Youth & Families
Turnover rate for protective Children not the Turnover rate for protective Children not the 19.2% 26.4% 25.5% 29.0% 19.2% 26.4% 25.5% 29.0% service workers service workers Subject of Subject of Substantiated Substantiated Program Rating Program Rating Maltreatment within Maltreatment within Six Months of a Prior Six Months of a Prior Early Childhood Services. The goal of increasing childcare Early Childhood Services. The goal of increasing childcare Determination of Determination of quality is to improve the health and well-being of children, quality is to improve the health and well-being of children, Substantiated Substantiated including school success. Research indicates evidence-based quality including school success. Research indicates evidence-based quality Maltreatment Maltreatment early care and development improves outcomes for children and 96% early care and development improves outcomes for children and 96% reinforces the need for continued investment. To achieve this, 95% reinforces the need for continued investment. To achieve this, 95% 94% CYFD is transitioning from a workforce support system to a care- 94% CYFD is transitioning from a workforce support system to a care- 93% oriented system focused on early development and education. The 93% oriented system focused on early development and education. The 92% 92% Early Childhood Services program exceeded targets for performance Early Childhood Services program exceeded targets for performance 91% 91% measures focused on quality early learning programs. In particular measures focused on quality early learning programs. In particular 90% 90% the percent of children showing measurable progress on the 89% the percent of children showing measurable progress on the 89% 88% readiness for kindergarten tool is very promising. Additional 88% readiness for kindergarten tool is very promising. Additional 87% performance measures regarding the third-generation tiered quality 87% performance measures regarding the third-generation tiered quality 86% 86% rating and improvement system, Focus, will begin FY16. The rating and improvement system, Focus, will begin FY16. The 85% 85% agency has agreed to additional measures in FY17 and will continue agency has agreed to additional measures in FY17 and will continue focusing on incrementally adding outcome-based performance focusing on incrementally adding outcome-based performance FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 measures to ensure continued quality improvement and New Mexico measures to ensure continued quality improvement and New Mexico transparency. National Average transparency. National Average
*National Average 94.6% *National Average 94.6% FY13 FY14 FY15 FY15 FY13 FY14 FY15 FY15 Source: CYFD/NCANDS Measure Rating Source: CYFD/NCANDS Measure Rating Actual Actual Target Actual Actual Actual Target Actual Percent of children Percent of children receiving state subsidy in receiving state subsidy in Stars/Aim High programs 39.5% 41.4% 35.0% 48.1% Childcare Assistance Stars/Aim High programs 39.5% 41.4% 35.0% 48.1% Childcare Assistance level three through five or Enrollment by level three through five or Enrollment by with national accreditation Fiscal Year with national accreditation Fiscal Year (as of August 2015) (as of August 2015) Percent of licensed child Percent of licensed child care providers participating 22,000 care providers participating 22,000 in Stars/Aim High programs in Stars/Aim High programs 32.3% 31.6% 30.0% 33.3% 32.3% 31.6% 30.0% 33.3% levels three through five or levels three through five or 21,000 21,000 with national accreditation with national accreditation
Percent of children in state- 20,000 Percent of children in state- 20,000 funded prekindergarten funded prekindergarten showing measurable 19,000 showing measurable 19,000 progress on the preschool n/a 90.2% 92.0% 94.2% progress on the preschool n/a 90.2% 92.0% 94.2% readiness for kindergarten readiness for kindergarten 18,000 18,000 tool tool
Percent of mothers Percent of mothers 17,000 17,000 participating in home participating in home visiting identified as having visiting identified as having 16,000 36.7% 30.2% 35.0% 31.0% 16,000 36.7% 30.2% 35.0% 31.0% symptoms of postpartum symptoms of postpartum depression and referred to depression and referred to 15,000 services and receiving 15,000 services and receiving services services Program Rating Program Rating
FY13 FY14 FY13 FY14 FY15 FY16 FY15 FY16 Source: CYFD Source: CYFD
89 Public Education
PERFORMANCE: Public Education PERFORMANCE: Public Education
Although a delay in the reporting on student testing results meant Although a delay in the reporting on student testing results meant KEY ISSUES many performance measures were still up in the air at the end of the many performance measures were still up in the air at the end of the KEY ISSUES fiscal year, assessment results were finally reported in October 2015. fiscal year, assessment results were finally reported in October 2015. Although late, the news about the As expected, results declined from FY14 levels; however, FY15 is not results ofAlthough new late,standards the news-based about the As expected, results declined from FY14 levels; however, FY15 is not results of new standards-basedeasily compared with previous years because the new test is aligned assessments during the 2014-2015 easily compared with previous years because the new test is aligned assessments during the 2014with-2015 new content standards. Graduation rates are down, particularly school year were unsurprising: with new content standards. Graduation rates are down, particularly Student proficiencyschool year scores were slip ped,unsurprising : Student proficiency scores slipforped, African -American, Native American, low-income, and disabled a reflection of increased rigor in the for African-American, Native American, low-income, and disabled a reflection of increased rigor studentsin the and the number of New Mexico high school graduates new tests, and fell short of students and the number of New Mexico high school graduates new tests, and fell short of performance targets. While the needing remedial education in college remains high. Some programs performance targets. While the needing remedial education in college remains high. Some programs Public Education Department targeting students at risk of failing due to their level of income, Public Education Department targeting students at risk of failing due to their level of income, (PED) met many FY15 targets, (PED) met many FY15 targets,English Englishskill, orskill, other or factorother factorappear appearto be tohelping be helping close closethe the performance in many areas lags performance in many areasachievement lags gap, though the department does not report performance FY14 and data quality continues to achievement gap, though the department does not report performance FY14 and data quality continuesrelated to to many of these initiatives. be a concern. Incremental related to many of these initiatives. be a concern. Incremental progress progressis being ismade; being however, made; however, neither the department, school StudentStudent Performance Performance. As expected. As expected, FY15, studentFY15 student proficiency proficiency rates rates neither the department, schooldecline d from FY14, the result, according to PED, of the districts, ndistrictsor charter, nor schools charter appearschools appear declined from FY14, the result, according to PED, of the to have toa haveplan ato plansignificantly to significantly implementation implementation of new ofstandards new standards-based -assessmentsbased assessments developed developed by the by the improve student outcomes. improve student outcomes. PartnershipPartnership for As sessmentfor Assessment of Readiness of Readiness for College for College and Careers and Careers (PARCC) that reflect the national common core content standards. AGENCY IMPROVEMENTAGENCY IMPROVEMENT PLANS PLANS (PARCC) that reflect the national common core content standards. Submitted by agency? No New MexicoNew Mexico student studentperformance performance is benchmarked is benchmarked against against students students Submitted by agency? from No 10 other states – Arkansas, Colorado, Illinois, Louisiana, Timeline assignedTimeline byassigned agency? by agency? No No from 10 other states – Arkansas, Colorado, Illinois, Louisiana, Maryland, Massachusetts, Mississippi, New Jersey, Ohio, and Rhode ResponsibilityRes ponsibilityassigned byassigned agency? by Noagency? No Maryland, Massachusetts, Mississippi, New Jersey, Ohio, and Rhode Island –Island and the– and District the District of Col uofmbia. Col uAsmbia. of NovemberAs of November 2015, New2015, New Mexico’s performance could not be compared with these states. The Mexico’s performance could not be compared with these states. The percentagepercentage of third, of fourth, third, fourth,and eight andh gradeeighth students grade students reading reading on grade on grade
level arelev 24.9el are percent, 24.9 percent, 23.7 percent, 23.7 percent, and 22.8 and percent 22.8 percent respectively, respectively, while thewhile percentage the percentage of third, of fourth, third, fourth,and eighth and eighthgrade studentsgrade students doing doing math onmath grade on level grade are level 25.2 are perce 25.2nt, perce 18.5nt, percent, 18.5 percent, and 9.1 and percent. 9.1 percent. These resultsThese areresults significantly are significantly below FY14below results. FY14 results. Math Math ProficientProficient or Above or Above High SchoolHigh SchoolGraduates Graduates. The statewide. The statewide four-year four cohort-year cohortgraduation graduation FY07 - FY15FY07 - FY15 50% 50% rate declinedrate declined 1 percentage 1 percentage point in point FY14 in toFY14 69.3 to percent, 69.3 percent, short of short the of the 45% 45% 75 percent75 percenttarget. target.The FY14 The graduationFY14 graduation rate for rate African for African-Americans,-Americans, 40% 40% Native AmeriNativecans, Ameri economicallycans, economically disadvantaged disadvantaged students, students, and students and students 35% 35% with disabilitieswith disabilities decreased decreased more than more the than statewide the statewide average; average; however, however, 30% 30% the graduationthe graduation rate for rate Hispanic for Hispanic students students declined declined 0.3 percentage 0.3 percentage 25% 25% points, points,less than less a thanthird aof third the ofstatewide the statewide decrease. decrease. The number The number of of 20% 20% studentsstudents needing needing remedial remedial courses courses at New at MexicoNew Mexico institutions institutions of of 15% 15% higher educationhigher education continues continues to be higher to be higherthan desired, than desired, indicating indicating high high 10% 10% schools schoolsare graduating are graduating students students ill-equipped ill-equipped for college for college. School. School 5% 5% districtsdistricts and charter and charterschools schools should shouldcontinue continue to wo rkto towo rkidentify to identify 0% 0% studentsstudents at risk of at droppingrisk of dropping out earlier out andearlier create and highcreate school high schoolprograms programs that keepthat students keep students engaged engaged and effectively and effectively prepare prepared for colleged for college or the or the FY07 FY09 FY11 FY13 FY07 FY09 FY11 FY13 FY15* workforce. FY15* workforce.
4th Grade Math 4th Grade Math School SchoolPerformance Performance. School. Schoolgrades gradesare based are basedlargely largely on stude on ntstude nt 8th Grade Math 8th Grade Math performanceperformance on the PARCC on the PARCC assessment assessment. As of. Novem As of November 2015,ber it2015, was it was unclear how school grades would be affected by the declines in *The PARCC*The assessment PARCC assessment was was unclear how school grades would be affected by the declines in administeredadministered in FY15 for inthe FY15 first time.for the first time. performance on the PARCC assessment and if the department would Source: PEDperformance on the PARCC assessment and if the department would Source: PED be issuing be issuingFY15 school FY15 gradesschool. grades.
TeacherTeacher Evaluations. Evaluations. Fiscal yearFiscal 2015 year marks2015 marksthe second the second year ofyear of implementation of the state’s new teacher and school leader evaluation 90 implementation of the state’s new teacher and school leader evaluation
Public Education
system. The use of student test scores to evaluate teacher performance continues to be controversial and concern exists about the accuracy of system. The use of student test scores to evaluate teacher performance Reading data used to calculate teacher effectiveness. Results from FY15 show continues to be controversial and concern exists about the accuracy of Proficient or Above 73.8 percent of teachers were rated effective, highly effective, or Reading data used to calculate teacher effectiveness. Results from FY15 show FY07 - FY15 Proficient or Above 73.8 percent of teachers were rated effective, highly effective, or 70% exemplary, a decrease of 4.4 percentage points from FY14. Changes FY07 - FY15 to the evaluation system in FY15 included reducing the use of student 70% exemplary, a decrease of 4.4 percentage points from FY14. Changes 60% achievement data for teachers with less than three years of student to the evaluation system in FY15 included reducing the use of student 60% 50% achievement data. For the second year in a row, the student achievement data for teachers with less than three years of student achievement measure identified more teachers at both the highest and 50% achievement data. For the second year in a row, the student 40% lowest performance levels, while the observation measure identified achievement measure identified more teachers at both the highest and 40% 30% more teachers in the middle performance levels. Despite concerns, the lowest performance levels, while the observation measure identified evaluation system provides meaningful data that will allow 30% more teachers in the middle performance levels. Despite concerns, the 20% policymakers to address and improve school personnel policies evaluation system provides meaningful data that will allow 20% 10% concerning professional development, promotion, compensation, and policymakers to address and improve school personnel policies 10% concerning professional development, promotion, compensation, and 0% tenure.
0% tenure. Performance measures for public school support provide a snapshot of FY07 FY09 FY11 FY13 FY15* student performance when data is available, generally after the end of Performance measures for public school support provide a snapshot of FY07 FY09 FY11 FY13 4th Grade Reading the school year. Little or no consistent student performance data is FY15* student performance when data is available, generally after the end of 8th Grade Reading available for policymakers through the year, despite widespread use of 4th Grade Reading the school year. Little or no consistent student performance data is *The PARCC assessment was short-cycle assessments. Ideally, statewide short-cycle assessment 8th Grade Reading available for policymakers through the year, despite widespread use of administered in FY15 for the first time. data should be collected and reported at least three times a year. Source: PED *The PARCC assessment was short-cycle assessments. Ideally, statewide short-cycle assessment Additional benefits of intermediate reporting of student academic administered in FY15 for the first time. data should be collected and reported at least three times a year. Source: PED performance include providing teachers the data necessary to inform Additional benefits of intermediate reporting of student academic instructional practices throughout the year and assisting PED in performance include providing teachers the data necessary to inform determining how to better support schools. instructional practices throughout the year and assisting PED in determining how to better support schools. As noted above, student proficiency results reported below are Four-Year Cohort significantly below FY15 results because of the administration of a As noted above, student proficiency results reported below are Graduation Rate new test in FY15. Over time, results are expected to improve. Four-Year Cohort significantly below FY15 results because of the administration of a History 90% Graduation Rate FY13 FY14 FY15 FY15 new test in FY15. Over time, results are expected to improve. Measure Rating History Actual Actual Target Actual 90% FY13 FY14 FY15 FY15 80% Percent of fourth-grade Measure Rating students who achieve Actual Actual Target Actual 80% Percent of fourth-grade proficiency or above on 45.7% 43.8% 52.0% 23.7% 70% standards-based assessments students who achieve proficiency or above on 45.7% 43.8% 52.0% 23.7% in reading 70% standards-based assessments 60% Percent of eighth-grade in reading students who achieve 60.2% 58.7% 63.0% 22.8% 60% Percent of eighth-grade 50% proficiency or above on students who achieve standards-based assessments 60.2% 58.7% 63.0% 22.8% in reading 50% proficiency or above on 40% standards-based assessments Percent of fourth-grade in reading 40%
FY08 FY09 FY10 FY11 FY12 FY13 FY14 students who achieve proficiency or above on 45.4% 42.7% 50.0% 18.5% Percent of fourth-grade Caucasian standards-based assessments FY08 FY09 FY10 FY11 FY12 FY13 FY14 students who achieve African American proficiency or above on 45.4% 42.7% 50.0% 18.5% Hispanic in mathematics Caucasian Asian African American standards-based assessments American Indian Percent of eighth-grade Hispanic in mathematics students who achieve Asian Source: PED proficiency or above on American Indian Percent of eighth-grade 42.2% 40.0% 50.0% 9.1% standards-based assessments students who achieve in mathematics Source: PED proficiency or above on 42.2% 40.0% 50.0% 9.1% standards-based assessments in mathematics
91
Public Education
Percent of recent New Mexico Percent of recent New Mexico high school graduates who high school graduates who NM High School take remedial courses in 51.5% 48.4% <40.0% N/A N/A NM High School take remedialhigher courses education in at two-year51.5% 48.4% <40.0% N/A N/A Graduates Taking higher education at two-year Graduates Taking and four-year schools Remedial Classes in and four- year schools Remedial Classes in College Current four-year cohort 60%College Current fourgraduation-year cohort rate using shared 60% graduation rate using shared 70.3% 69.3% 75.0% N/A N/A accountability 70.3% 69.3% 75.0% N/A N/A accountability Program Rating 50% Program Rating 50% Department Operations. PED provides program and fiscal oversight Department Operations. PED provides program and fiscal oversight 40% of public schools to ensure accountability for almost half of the state 40% of public schools to ensure accountability for almost half of the state budget. PED reports many FY15 performance targets were met, budget. PED reports many FY15 performance targets were met, 30% though performance in some areas lagged FY14 levels and the quality 30% though performance in some areas lagged FY14 levels and the quality of the data continues to be a concern. For example, the average of the data continues to be a concern. For example, the average 20% processing time for direct grant and federal budget adjustment requests 20% processing time for direct grant and federal budget adjustment requests increased in FY15 but is below the targeted number of days. increased in FY15 but is below the targeted number of days. 10% 10% Unit Value. PED set the initial FY15 unit value within 0.5 percent of Unit Value. PED set the initial FY15 unit value within 0.5 percent of the final unit value, well within the 2 percent target. However, the the final unit value, well within the 2 percent target. However, the 0% department reverted more than $15 million in state equalization 0% department reverted more than $15 million in state equalization guarantee distribution funding. For the past few years, PED has set the FY05 FY07 FY09 FY11 FY13 guarantee distribution funding. For the past few years, PED has set the FY05 FY07 FY09 FY11 FY13 final unit value with conservative estimates of federal impact aid, final unit value with conservative estimates of federal impact aid, payments made to districts to compensate for the loss of property tax Source: OEA, PED, HEDpayments made to districts to compensate for the loss of property tax Source: OEA, PED, HED revenue and other issues associated with federal activity within the revenue and other issues associated with federal activity within the district. This conservative approach led to large year-end reversions. district. This conservative approach led to large year-end reversions.
Department Initiatives. PED continues to advance initiatives aimed Department Initiatives. PED continues to advance initiatives aimed at improving student outcomes, including a school grading system, at improving student outcomes, including a school grading system, School Grade History common core state standards, the new PARCC assessment, a teacher School Grade History common core state standards, the new PARCC assessment, a teacher (number of schools) and school leader evaluation system, targeted interventions for low- (number of schools) and school leader evaluation system, targeted interventions for low- 300 performing schools, a new graduation initiative, an early warning 300 performing schools, a new graduation initiative, an early warning system, an alternative compensation pilot, and an early literacy system, an alternative compensation pilot, and an early literacy 250 intervention program. Rapid implementation of high-profile initiatives 250 intervention program. Rapid implementation of high-profile initiatives continues to prove challenging and few performance measures exist 200 continues to prove challenging and few performance measures exist 200 for department initiatives. for department initiatives. 150 FY13 FY14 FY15 FY15 150 Measure FY13 FY14 FY15 FY15 Rating Measure Actual Actual Target ActualRating Actual Actual Target Actual 100 Percent of teachers 100 Percent ofpassing teachers all strands of passing all strands of 84.0% 79.5% 80.0% 76.0% professional dossiers 84.0on % 79.5% 80.0% 76.0% 50 professional dossiers on 50 the first submittal the first submittal
- Number of data validation - Number auditsof data of validation funding formula 20 0 35 13 audits of funding formula 20 0 35 13 components annually components annually Number of elementary Number of elementary A B C D F schools participating in A B C D F schools participating in the state-funded 159 181 Explanatory 226 the state-elementaryfunded school 159 181 Explanatory 226 Source: PED elementary school Source: PED breakfast after the bell breakfast after the bell program program Number of eligible Number of eligible children served in state- 5,068 6,808 Explanatory 8,604 5,068 6,808 Explanatory 8,604 children fundedserved inprekindergarten state- 92 funded prekindergarten Program Rating Program Rating
Higher Education
PERFORMANCE: Higher Education PERFORMANCE: Higher Education
Over the last four years, the Higher Education Department (HED) and Over the last four years, the Higher Education Department (HED) and the state’s colleges and universities focused intensely on improving the KEY ISSUES the state’s colleges and universities focused intensely on improving the higher education instruction and general (I&G) funding formula. In KEY ISSUES The Higher Education Department higher education instruction and general (I&G) funding formula. In turn, institutions concentrated on ways to improve student performance The Higher Education Department and the state’s 25 colleges and turn, institutions concentrated on ways to improve student performance and did so during challenging times when enrollments grew and the state’s 25 colleges and universities reported mixed results on and did so during challenging times when enrollments grew student retention and program significantly during the recession and more students lacked sufficient universities reported mixed results on student retention and program significantly during the recession and more students lacked sufficient completion. Institutions serving preparation for completing college-level work. Efforts to improve traditional-age students maintained or completion. Institutions serving preparation for completing college-level work. Efforts to improve certificate and degree production have paid off in terms of overall traditional-age students maintained or slightly improved their performance. certificate and degree production have paid off in terms of overall Many institutions serving adult, degrees awarded; however, the wide variation among institutions in slightly improved their performance. Many institutions serving adult, degrees awarded; however, the wide variation among institutions in generally part-time students achieved retention and completion rates indicates the need for more specific and less success at retaining and generally part-time students achieved retention and completion rates indicates the need for more specific and more frequently reported data that better defines performance gaps. less success at retaining and graduating students. While more frequently reported data that better defines performance gaps. This will allow institutions to deploy strategies to improve graduating students. While institutions have strategic plans and This will allow institutions to deploy strategies to improve policies to improve student performance more quickly and provide stakeholders with a more institutions have strategic plans and performance, the department does policies to improve student performance more quickly and provide stakeholders with a more not yet have a statewide plan to accurate representation of the higher education landscape. performance, the department does not yet have a statewide plan to accurate representation of the higher education landscape. increase the number of New Student Retention. Generally, student retention has improved or increase the number of New Mexicans with postsecondary Student Retention. Generally, student retention has improved or credentials and degrees or close the remained level among most institutions. An important measure for Mexicans with postsecondary credentials and degrees or close the remained level among most institutions. An important measure for achievement gaps for particular institutions, student retention is a strong indicator of student students. achievement gaps for particular institutions, student retention is a strong indicator of student completion rates and predictor of student loan default rates. New students. completion rates and predictor of student loan default rates. New AGENCY IMPROVEMENT PLANS Mexico has one of the lowest levels of student debt in the nation but AGENCY IMPROVEMENT PLANS Mexico has one of the lowest levels of student debt in the nation but Submitted by agency? No also the highest default rate. New Mexico institutions, with their Submitted by agency? No also the highest default rate. New Mexico institutions, with their Timeline assigned by agency? No various missions and student populations, face differing challenges and Timeline assigned by agency? No various missions and student populations, face differing challenges and Responsibility assigned by agency? No levels of success in student retention efforts. Statistically significant Responsibility assigned by agency? No levels of success in student retention efforts. Statistically significant declines in overall enrollment are frequently reflected in lower declines in overall enrollment are frequently reflected in lower retention rates for first-year students. retention rates for first-year students.
Research Universities. Nearly half of four-year institutions exceeded Awards Granted by Research Universities. Nearly half of four-year institutions exceeded prior-year levels for fall-to-fall retention of students in the 2014 cohort. Awards Granted by New Mexico Colleges prior-year levels for fall-to-fall retention of students in the 2014 cohort. Research institutions report mixed results in fall-to-fall retention rates. New Mexico Colleges and Universities Research institutions report mixed results in fall-to-fall retention rates. Of the three research institutions, one experienced a decline in and Universities 30,000 Of the three research institutions, one experienced a decline in retention, one remained flat, and one experienced a slight 30,000 retention, one remained flat, and one experienced a slight 25,000 improvement. 25,000 improvement.
20,000 Measure: First- Fall 2012 Fall 2013 Fall 2014 Fall 2014 20,000 Time, Full-Time to Fall to Fall to Fall to Fall Measure: First- Fall 2012 Fall 2013 Fall 2014 Fall 2014 Rating Time, Full-Time to Fall to Fall to Fall to Fall 15,000 (FT/FT) Student 2013 2014 2015 2015 Rating Fall-to-Fall Actual Actual Target Actual 15,000 (FT/FT) Student 2013 2014 2015 2015 Fall-to-Fall Actual Actual Target Actual 10,000 Retention New Mexico Institute 10,000 Retention of Mining and New Mexico Institute 76.6% 78.8% 77.0% 75.1% of Mining and 5,000 Technology (NM 76.6% 78.8% 77.0% 75.1% 5,000 Tech) Technology (NM - Tech) New Mexico State - 74.0% 74.0% 74.0% 74.0% New Mexico State University (NMSU) 74.0% 74.0% 74.0% 74.0% University (NMSU) Associate Degrees or Credentials University of New 77.7% 79.1% 79.2% 79.5% Associate Degrees or Credentials University of New Mexico (UNM) 77.7% 79.1% 79.2% 79.5% Baccalaureate Degrees Mexico (UNM) Program Rating Baccalaureate Degrees Program Rating Source: HED PBB Report Comprehensive Institutions. Comprehensive colleges and universities Source: HED PBB Report Comprehensive Institutions. Comprehensive colleges and universities continue to struggle with retention. These institutions have broader continue to struggle with retention. These institutions have broader admissions policies and frequently serve an older student population admissions policies and frequently serve an older student population that requires more remediation and pre-college academic preparation. that requires more remediation and pre-college academic preparation. Similar to research universities, comprehensive institutions employ 93 Similar to research universities, comprehensive institutions employ various techniques and programs to improve student engagement on various techniques and programs to improve student engagement on Higher Education
Retention and Student Loan campus and in the classroom, structure clear academic pathways, and Retention and Student Loan Default Rates campus andprovide in the classroom necessary, st ructureinstructional clear academic aids pathways,to complement and classroom Default Rates provide necessary instructional aids to complement classroom instruction. Retaining and graduating insstudentstruction. Retaining resultsand graduating in lower studentstudents loan default results in lower student loan default rates. Default rates among students First-Time, Full- Fall 2012 Fall 2013 Fall 2014 Fall 2014 rates. Default rates among students First-Time, Full- Fall 2012 Fall 2013 Fall 2014 Fall 2014 who dropped out or failed toTime earn (FT/FT) a Time (FT/FT)to Fall to Fallto Fall to Fallto Fall to Fallto Fall to Fall who dropped out or failed to earn a Rating Rating credential credentialor degree areor degreesignificantly are significantlyStudent Fall -toStudent- Fall2013-to - 20142013 20152014 2015 2015 2015 higher thanhigher institutional than institutionalaverage Fallaverage Retention Fall RetentionActual ActualActual TargetActual ActualTarget Actual default rates.default rates. Eastern New Eastern New
58.1% 59.3% 64.0% 58.1% 58.1% 59.3% 64.0% 58.1% New Mexico’sNew studentMexico’s loan student default loanMexico default University Mexico University rates for therates FY12 for threethe -FY12year cohortthree -year(ENMU) cohort (ENMU) are the highestare the in highestthe nation in atthe 20 n ation at 20 New Mexico New Mexico percent, wellpercent, above wellthe averageabove the of average of 47.2% 48.4% 53.0% 52.4% 47.2% 48.4% 53.0% 52.4% Highlands 11.4 percent11.4 across percent all statesacross andall states and Highlands University (NMHU) territories. territories. University (NMHU)
Northern New Northern New Mexico College 55.0% 39.0% 66.5% 54.0% 55.0% 39.0% 66.5% 54.0% Institutional Student Loan Mexico College Institutional Student Loan(NNMC) Three-Year Default Rate by (NNMC) Three-Year Default Rate by Institutional Type Western New
52.3% 56.8% 53.0% 51.5% (FY12)Institutional Type Mexico University Western New
52.3% 56.8% 53.0% 51.5% (FY12) (WNMU) Mexico University 0 - 11 - 21 - (WNMU) Program Rating 10% 20% 30+%0 - 11 - 21 - Program Rating 10% 20% 30+% Research 1 2 0 Community Colleges. Two-year institutions also continue to struggle Research 1 2 0 Comprehensive 0 3 1 to retain studentsCommunity, attributable Colleges to. strongerTwo-year regional institutions economies also continue and to struggle Tw o-Year Comprehensive0 2 06 3 students’1 lackto retainof college students readiness., attributable Colleges to strongerhave implemented regional economies and Source: U.S.Tw Department o-Year of Education0 2 programs6 tostudents’ improve lack initial of coursecollege placement, readiness. require Colleges academic have implemented Branch figures included in main campus Source: U.S. Department of Education Data not available for Mesalands CC counseling, programsand jump- startto collegeimprove preparedness initial course – from placement, academic boot require academic Branch figures included in main campus camps to subject-specific labs and tutorials to teach writing, studying, Data not available for Mesalands CC counseling, and jump-start college preparedness – from academic boot
and time-managementcamps to subjectskills. -specific labs and tutorials to teach writing, studying, Institutional Strategies to
Improve Student Performance First-Time, Fulland- timeFall-management 2012 Fall 2013skills. Fall 2014 Fall 2014 Institutional StrategiesTim to e (FT/FT) to Spring to Spring to Spring to Spring Improve Student Performance Rating The majority of institutions are Student Fall-toFirst- -Time,2013 Full - 2014Fall 2012 2015Fall 2013 2015Fall 2014 Fall 2014 Time (FT/FT) to Spring to Spring to Spring to Spring • Making tutoring available on Spring Retention Actual Actual Target Actual Rating request The majority of institutions are Student Fall74.2%-to- 74.2%2013 76.2%2014 74.2%2015 2015 ENMU–RoswellSpring Retention Actual Actual Target Actual • Referring• Makingstudents fortutoring additional available on
writing or mathrequest help and ENMU–Ruidoso 74.0% 65.8%74.2% 68.0%74.2% 55.8%76.2% 74.2% • ENMU–Roswell Using data• Referring systems studentsto “trigger” for additional NMSU– 75.2% 70.6% 79.8% 72.0% faculty and advisor intervention writing or math help and ENMU–Ruidoso 74.0% 65.8% 68.0% 55.8% based on student performance. Alamogordo • Using data systems to “trigger”
NMSU– 66.2% 68.2%75.2% 70.0%70.6% 71.2%79.8% 72.0% faculty and advisor interventionNMSU–Carlsbad Many institutions are Alamogordo based on student performance. 77.8% 79.3% 81.0% 79.2%
• Using student learning and living NMSU – Dona Ana 66.2% 68.2% 70.0% 71.2% cohorts based on academic year or NMSU–Carlsbad76.9% 63.5% 78.0% 67.2% Many institutions are NMSU–Grants academic program; 77.8% 79.3% 81.0% 79.2% NMSU – Dona83.5% Ana 80.4% 84.0% 81.8% • • Providing summerUsing student academic learning “boot andUNM living–Gallup cohorts based on academic year or 76.9% 63.5% 78.0% 67.2% camps” to better prepare first-year NMSU–Grants 79.6% 74.0% 79.5% 80.0% students andacademic eliminate program remedial; UNM–Los Alamos 83.5% 80.4% 84.0% 81.8% work; • Providing summer academic “boot UNM–Gallup79.6% % 71.3% 80.0% 74.4%
UNM–Taos • Contacting camps”students to betterfor prepareearly first -year
79.6% 74.0% 79.5% 80.0% registrationstudents for theand followingeliminate remedialUNM–Valencia UNM –Los81.4% Alamos 78.0% 80.0% 77.6%
semester; work; 79.6%% 71.3% 80.0% 74.4% • Reviewing program credit Central New UNM–Taos • Contacting students for early 81.7% 80.4% 83.0% 82.2% requirements to ensure students Mexico
registration for the following 81.4% 78.0% 80.0% 77.6% can graduate on time; UNM–Valencia Clovis CC 70.8% 71.6% 74.0% 83.1% semester; • Publishing• clear academic Reviewing program credit Central New61.8% 67.5% 70.0% 58.3% pathways or degree maps for Luna CC 81.7% 80.4% 83.0% 82.2%
students, faculty,requirements and advisors to ;ensure and students Mexico can graduate on time; 51.4% 52.7% 70.0% 73.9% • Contacting students near Mesalands CCClovis CC 70.8% 71.6% 74.0% 83.1%
graduation• Publishingto identify and eliminateclear academic
61.8% 67.5% 70.0% 58.3% pathways or degree maps for Luna CC 80.0% 83.2% barriers to completion. NM Junior College 87.1% 79.7% students, faculty, and advisors; and
51.4% 52.7% 70.0% 73.9% • Contacting students near Mesalands CC
94 graduation to identify and eliminate 80.0% 83.2% barriers to completion. NM Junior College 87.1% 79.7%
Higher Education
Small Business Development
Small Business Development 82.5% 74.6% 83.0% 82.7% San Juan College 82.5% 74.6% 83.0% 82.7% Center San Juan College Center
Santa Fe CC 78.8% 78.3% 79.0% 77.9% Santa Fe CC 78.8% 78.3% 79.0% 77.9% Santa Fe Community College hosts Program Rating Santa Fe Community College hosts Program Rating the Small Business Development the Small Business Development Center (SBDC), which receives $4.4 Center (SBDC), which receives $4.4 Program Completion and Graduation. Many colleges and Program Completion and Graduation. Many colleges and million in general fund support each million in general fund support each year to provide confidential universities are experiencing higher program completion than in prior year to provide confidential universities are experiencing higher program completion than in prior consultation for current and future consultation for current and future years due to peak enrollments in recent years and institutional efforts. years due to peak enrollments in recent years and institutional efforts. business owners in the areas of With the state’s increased allocation of general fund appropriations business owners in the areas of With the state’s increased allocation of general fund appropriations business expansion, financing, business expansion, financing, marketing, and procurement, among based on student outcomes, most institutions report increasing marketing, and procurement, among based on student outcomes, most institutions report increasing other services. In addition to a certificate and degree totals. Notably, this improvement is not reflected other services. In addition to a certificate and degree totals. Notably, this improvement is not reflected procurement assistance program and in the Accountability in Government Act (AGA) measure, which procurement assistance program and in the Accountability in Government Act (AGA) measure, which an international business accelerator, an international business accelerator, SBDC oversees 20 service locations reports completion rates (versus numbers) for a small portion of the SBDC oversees 20 service locations reports completion rates (versus numbers) for a small portion of the housed in higher education students attending institutions – first-time, full-time students (FT/FT), housed in higher education students attending institutions – first-time, full-time students (FT/FT), institutions throughout the state. excluding transfer students and students who stopped-out of college institutions throughout the state. excluding transfer students and students who stopped-out of college and returned. SBDC leverages about $1.1 million in and returned. grants from the U.S. Small Business SBDC leverages about $1.1 million in Six-Year Administration and the U.S. Defense Fall 2007 Fall 2008 Fall 2009 Fall 2009 grants from the U.S. Small Business Completion Six-Year Logistics Agency each year. As a to to to to Administration and the U.S. Defense Fall 2007 Fall 2008 Fall 2009 Fall 2009 Rates for First- Completion condition of these federal grants, Summer Summer Summer Summer Rating Logistics Agency each year. As a to to to to Time, Full-Time Rates for First- SBDC must track certified data 2013 2014 2015 2015 condition of these federal grants, Summer Summer Summer Summer Rating Degree-Seeking Time, Full-Time indicating the number of jobs created Actual Actual Target Actual SBDC must track certified data 2013 2014 2015 2015 Students Degree-Seeking or saved in addition to associated indicating the number of jobs created Actual Actual Target Actual costs.
NM Tech 44.2% 45.1% 48.0% 49.0% or saved in addition to associated Students costs.
NM Tech 44.2% 45.1% 48.0% 49.0%
NMSU 43.0% 46.0% 47.0% 42.0% FY15 SBDC Cost Per Job Created/Saved NMSU 43.0% 46.0% 47.0% 42.0%
UNM 48.2% 47.6% 48.0% 49.0% FY15 SBDC Cost Per (in thousands) Job Created/Saved
UNM 48.2% 47.6% 48.0% 49.0% ENMU 28.4% 27.1% 30.0% 31.8% (in thousands) CCC $2.6
ENMU 28.4% 27.1% 30.0% 31.8% CNM NMHU 18.4% 17.2% 20.0% 17.9% $5.5 CCC $2.6 ENMU-RO $1.8
CNM NMHU 18.4% 17.2% 20.0% 17.9% NNMC 50.0% 52.0% 25.0% 16.0% $5.5 LCC $4.4 ENMU-RO $1.8
WNMU 22.7% 20.9% 23.0% 25.0%
NNMC 50.0% 52.0% 25.0% 16.0% MCC $9.1 LCC $4.4 NMJC $5.1 Program Rating
MCC $9.1 WNMU 22.7% 20.9% 23.0% 25.0% NMSU-A $3.5 NMJC $5.1 Program Rating NMSU-C $2.4 Community Colleges. Two-year institutions have implemented several
NMSU-A $3.5 NMSU-DA $1.8 programs to help students complete certificate and degree programs in NMSU-C $2.4 Community Colleges. Two-year institutions have implemented several NMSU-G $16.0 recent years, partially in response to the performance-based I&G NMSU-DA $1.8 programs to help students complete certificate and degree programs in NNMC $3.5 funding formula. Although some of these efforts include improved advising and academic supports, other efforts are more administrative NMSU-G $16.0 recent years, partially in response to the performance-based I&G SFCC $2.0 funding formula. Although some of these efforts include improved in nature, such as removing requirements for students to submit an NNMC $3.5 SFCC-… $1.2 advising and academic supports, other efforts are more administrative application for their degree. SFCC $2.0 SJC $3.9 in nature, such as removing requirements for students to submit an Three-Year Fall Fall Fall Fall SFCC-… $1.2 UNM-G $19.5 application for their degree. Completion Rates 2009 to 2010 to 2011 to 2011 to SJC $3.9 UNM-LA $2.5 for First-Time, Full- Spring Spring Spring Spring Rating UNM-G $19.5 Three-Year Fall Fall Fall Fall UNM-T $11.6 Time Degree- 2012 2013 2014 2014 Completion Rates 2009 to 2010 to 2011 to 2011 to Seeking Students Actual Actual Target Actual UNM-V $15.9 UNM-LA $2.5 for First-Time, Full- Spring Spring Spring Spring Rating ENMU–Roswell 21.2% 23.3% 17.0% 23.6% UNM-T $11.6 Time Degree- 2012 2013 2014 2014 UNM-West $1.1
Seeking Students Actual Actual Target Actual WNMU $8.5 13.5% 18.9% 20.0% 16.3% UNM-V $15.9 ENMU–Ruidoso
21.2% 23.3% 17.0% 23.6% WNMU-IBA $1.7 UNM-West $1.1 ENMU–Roswell 9.9% 8.2% 14.0% 11.0% Overall… $2.9 NMSU–Alamogordo WNMU $8.5 ENMU–Ruidoso 13.5% 18.9% 20.0% 16.3% $0.0 $50.0 WNMU-IBA $1.7 NMSU–Carlsbad 9.4% 3.5% 10.0% 3.9% 9.9% 8.2% 14.0% 11.0% NMSU–Alamogordo Overall… $2.9 Source: New Mexico Small Business NMSU–Dona Ana 13.6% 12.7% 15.0% 11.2% Development Center
$0.0 $50.0 16.1% 18.3% 22.0% 9.3% NMSU–Carlsbad 9.4% 3.5% 10.0% 3.9% NMSU–Grants
Source: New Mexico Small Business NMSU–Dona Ana 13.6% 12.7% 15.0% 11.2% Development Center 95
16.1% 18.3% 22.0% 9.3% NMSU–Grants Higher Education
5.5% 6.1% 10.0% 8.6% Adult Basic Education, UNM–Gallup 5.5% 6.1% 10.0% 8.6% Adult BasicStudent Education, ParticipationUNM –Gallup
44.9% 57.6% 60.0% 47.4% UNM–Los Alamos Student Participationand Completion UNM–Los Alamos 44.9% 57.6% 60.0% 47.4%
(in thousands) 23.6% 4.2% 20.0% 10.9% and Completion UNM–Taos
(in thousands) UNM–Taos 23.6% 4.2% 20.0% 10.9%
10.4% 7.6% 10.0% 9.7% 25 UNM–Valencia
UNM–Valencia 10.4% 7.6% 10.0% 9.7% 25 10.4% 9.7% 11.0% 13.1% 20 Central New Mexico
20 Central New Mexico 10.4% 10.2%9.7% 7.5%11.0% 14.0%13.1% 12.0% 15 Clovis CC 10.2% 7.5% 14.0% 12.0% 15 10 Clovis CC Luna CC 16.9% 19.9% 20.0% 16.9%
10 5 16.9% 53.5%19.9% 25.6%20.0% 45.0%16.9% 39.6% Luna CC Mesalands CC - 5 53.5% 25.6% 45.0% 39.6% 12.8% 13.4% 33.0% 16.6% Mesalands NMCC Junior College - 12.8% 13.4% 33.0% 16.6% 15.2% 12.6% 15.0% 13.8% NM Junior SanCollege Juan College Total enrolled 15.2% 12.6% 15.0% 13.8% 10.1% 8.6% 11.0% 10.1% San Juan CollegeSanta Fe CC Total enrolled Program Rating 10.1% 8.6% 11.0% 10.1% Complete high schoolSanta Fe CC
equivalency Program Rating Complete high school Higher Education Department (HED). The department reports on
equivalency Enter employment or statewide student performance, including those in adult education postsecondary Higher Educationprograms. DepartmentFor the second (HED) year in. Thea row, department the department reports reported on a education Enter employment or statewidedecrease student inperformance, the number of includingenrolled adults those in inelementary adult education and secondary postsecondarySource: HED AGA Reportsprograms. For the second year in a row, the department reported a education education programs. The adult education program also experienced a
Source: HED AGA Reports decrease substantialin the number decline of enrolled in the number adults inof elementarystudents who and earn secondary a high school education programs. The adult education program also experienced a equivalency credential, which may be partially attributable to a High School Equivalency substantial Test nationwide decline in overhaul the number of high of school students equivalency who earn tests. a high school Changes equivalency credential, which may be partially attributable to a High School Equivalency Test FY13 FY14 FY15 FY15 New Mexico’s high nationwideschool overhaul of high school equivalency tests. Rating Changes Measure Actual Actual Target Actual equivalency test changed in 2014.
The initial vendor of the test, GED Number of adult educationFY13 FY14 FY15 FY15 New Mexico’s high school Rating Testing Service, overhauledMeasure the students obtaining Actual Actual Target Actual equivalency test changed in 2014. 1,065 2,021 1,500 1,530 exam, resulting in employment The initial vendor of the test, GED Number of adult education Testing Service, overhauled the • Generally higher test-takerstudents fees obtainingNumber of adult education1,065 2,021 1,500 1,530 exam, resulting• inRequirements to take the testemployment on students who enter into
871 1,299 1,200 947 a computer and postsecondary education or • Generally• higherA reportedly test-taker more fees difficult Numbertest. of trainingadult education • Requirements to take the test on students who enter into
871 1,299 1,200 947 a computerThe andoverhaul also meantpostsecondary that Number education of students or who earn • A reportedlystudents more who difficult had test. previously training taken the high school equivalency 1,854 1,733 2,000 594 one or more units but had not credential The overhaulcompleted also themeant entire batterythat ofNumber GED of students who earn Program Rating
students whotests had would previously have totaken start overthe andhigh school equivalency 1,854 1,733 2,000 594 one or moreret akeunits all units.but hadNew notMexico credentialadded another vendor at the beginning of The department revised its performance measures for FY17 to report completed the entire battery of GED Program Rating 2015, Education Testing Service, to the percent, rather than number, of eligible adult education students tests would have to start over and retake all units.the listNew of acceptedMexico added tests to obtain a who earn the high school equivalency credential. HED suggests this another vendorhigh atschool the beginningequivalency of credential.The department revised its performance measures for FY17 to report These changes may have resulted in change will be more meaningful in showing how adult education 2015, Education Testing Service, to the percent, rather than number, of eligible adult education students lower high school equivalency programs are preparing students, particularly because students enter the list of accepted tests to obtain a credential attainment. who earn the high school equivalency credential. HED suggests this high school equivalency credential. adult education programs with a widely varying degree of readiness.
These changes may have resulted in change will be more meaningful in showing how adult education
lower high school equivalency programs are preparing students, particularly because students enter credential attainment . adult education programs with a widely varying degree of readiness.
96 Economic Development Department
PERFORMANCE: Economic Development Department PERFORMANCE: Economic Development Department
New Mexico continues to lag behind neighboring states and the New Mexico continues to lag behind neighboring states and the KEY ISSUES national average for job growth, but the gap narrowed significantly KEY ISSUES national average for job growth, but the gap narrowed significantly during FY15 compared with prior years. The Economic Development during FY15 compared with prior years. The Economic Development The Economic Development Department (EDD) reported fewer jobs created through department Department fell short of achieving The Economic Development Department (EDD) reported fewer jobs created through department efforts for FY15 than in FY14 despite New Mexico experiencing much Department fell short of achieving several performance targets, efforts for FY15 than in FY14 despite New Mexico experiencing much including number of jobs created by greater overall job growth in FY15 and the department spending about several performance targets, the NM Economic Development twice as much in Local Economic Development Act (LEDA) funds, including number of jobs created by greater overall job growth in FY15 and the department spending about Partnership and average wages for which increased from $3.3 million in FY14 to nearly $7 million in the NM Economic Development twice as much in Local Economic Development Act (LEDA) funds, jobs funded through the Job Partnership and average wages for which increased from $3.3 million in FY14 to nearly $7 million in Training Incentive Program. The FY15. The FY15 job creation results are only a slight increase from jobs funded through the Job agency does not have a plan to FY13, a year in which EDD received no LEDA funds, and Training Incentive Program. The FY15. The FY15 job creation results are only a slight increase from close the gap. approximately half the new jobs were back office and technical agency does not have a plan to FY13, a year in which EDD received no LEDA funds, and support jobs. close the gap. approximately half the new jobs were back office and technical AGENCY IMPROVEMENT PLANS support jobs. Submitted by agency? No While job creation numbers are lower than would be expected with the AGENCY IMPROVEMENT PLANS Timeline assigned by agency? No economic turnaround and increased LEDA funds, EDD significantly Submitted by agency? No While job creation numbers are lower than would be expected with the Responsibility assigned by agency? No improved data quality in FY15, eliminating the prior issue of Timeline assigned by agency? No economic turnaround and increased LEDA funds, EDD significantly
inadvertently double-counting select jobs. The agency also voluntarily Responsibility assigned by agency? No improved data quality in FY15, eliminating the prior issue of disqualified projects that appear less likely to create jobs in the inadvertently double-counting select jobs. The agency also voluntarily immediate future than when announced earlier in the year. disqualified projects that appear less likely to create jobs in the
Economic Development Program. The NM Economic Development immediate future than when announced earlier in the year. Partnership reported the lowest number of jobs created in a decade, unexpected given the organization’s strong performance in FY14. Economic Development Program. The NM Economic Development Many of the business recruitment projects the NM Partnership handles Partnership reported the lowest number of jobs created in a decade, unexpected given the organization’s strong performance in FY14. take many months or more than a year from inception to announcement, but the results are again at odds with the level of Many of the business recruitment projects the NM Partnership handles FY15 Over-the-Year LEDA funding the Legislature provided in FY15 given that LEDA is take many months or more than a year from inception to Job Growth by State often cited as a key business recruitment tool. However, the NM announcement, but the results are again at odds with the level of FY15 Over-the-Year 5.0% Partnership remains a moderately cost-effective job creation program LEDA funding the Legislature provided in FY15 given that LEDA is on a cost-per-job basis. The Legislature appropriated an additional Job Growth by State often cited as a key business recruitment tool. However, the NM 4.5% $250 thousand for the NM Partnership for FY16 to market the state, 5.0% Partnership remains a moderately cost-effective job creation program 4.0% and LFC encourages the organization to work with the Tourism on a cost-per-job basis. The Legislature appropriated an additional 4.5% 3.5% Department to improve its advertising campaign. $250 thousand for the NM Partnership for FY16 to market the state,
4.0% and LFC encourages the organization to work with the Tourism 3.0% The Job Training Incentive Program (JTIP) trained more workers than in any year since FY08; however, the average wage for trainees fell 12 3.5% Department to improve its advertising campaign. 2.5% percent below the annual target. Additionally, statute requires at least 3.0% The Job Training Incentive Program (JTIP) trained more workers than 2.0% one-third of JTIP appropriations be spent in rural areas, but data 1.6% in any year since FY08; however, the average wage for trainees fell 12 1.5% supplied by EDD indicates less than one-third of awards was spent in 2.5% rural communities in each of the last three years, resulting in a yellow percent below the annual target. Additionally, statute requires at least 1.0% 2.0% rating for JTIP. However, JTIP exceeded its annual target of assisting 1.6% one-third of JTIP appropriations be spent in rural areas, but data 0.5% eight rural companies, providing training for new employees at 13 1.5% supplied by EDD indicates less than one-third of awards was spent in rural communities in each of the last three years, resulting in a yellow 0.0% rural companies in FY15. 1.0% UT TX CO US AZ NM OK rating for JTIP. However, JTIP exceeded its annual target of assisting The Economic Development Program as a whole struggled with rural 0.5% Source: Workforce Solutions eight rural companies, providing training for new employees at 13 Department job creation, reaching just 52 percent of the annual target and less than rural companies in FY15. 0.0% half the number of jobs created in FY13 and FY14. UT TX CO US AZ NM OK The Economic Development Program as a whole struggled with rural FY13 FY14 FY15 FY15 Source: Workforce Solutions Measure Rating Actual Actual Target Actual Department job creation, reaching just 52 percent of the annual target and less than Total number of jobs created half the number of jobs created in FY13 and FY14. due to economic development 3,093 3,686 3,000 3,294 department efforts FY13 FY14 FY15 FY15 Measure Rating Actual Actual Target Actual Total number of jobs created due to economic development 3,093 3,686 3,000 3,294 department efforts 97
Economic DevelopmentTotal number of rural jobs Department created 1,440 1,562 1,400 726
Number of jobs created through business Totalrelocations number and of rural jobs competitive expansions Jobs Created Due to created 244 1,4401,624 1,5621,500 1,400222 726 facilitated by the economic Department Efforts developmentNumber partnership of jobs created through business relocations and 5,000 Number ofcompetitive workers trained expansions by Jobs Created Due to 244 1,624 1,500 222 the job traininfacilitatedg incentive by the economic 844 1,355 1,000 2,086 Department Efforts program 4,000 development partnership
5,000 Average Numberhourly wage of workers of jobs trained by funded throughthe job thetrainin job gtr incentiveaining $18.46 $17.32 $20.00 $17.67 3,000 incentive program 844 1,355 1,000 2,086 program 4,000 Percent ofAverage employees hourly whose wage of jobs 2,000 wages were subsidized by the funded through the job training $18.46 $17.32 $20.00 $17.67 3,000 job trainingincentive incentive program program new 85% 80% 89% still employed in New Mexico 1,000 after one Percentyear of employees whose 2,000 wages were subsidized by the Dollars of private sector 0 job training incentive program investment in mainstreet new 85% 80% 89% still employed in New Mexiconew new $15 $8 1,000 districts (in millions) FY13 FY14 FY15 FY11 FY12 after one year
Number ofDollars building of private sector 0 Target Actual rehabilitationsinvestment completed in mainstreet in new newnew new150 $15196 $8 mainstreetdistricts districts (in millions) FY13 FY14 FY15 FY11 Source:FY12 EDD Number ofNumber business of buildingadvocacy 58 67 50 72 Target Actual cases solvedrehabilitations completed in new new 150 196 Number ofmainstreet businesses districts provided Source: EDD technical assistance resulting in Number of business advocacynew 5 5 2 a funding package and job cases solved 58 67 50 72 creation
JTIP Trained Workers Number of businesses p rovided Program Rating technical assistance resulting in new 5 5 2 2.5 8 a funding package and job Film Programcreation . The film industry picked up significant momentum 7 during FY15, and all measures hit record or near-record highs. The JTIP Trained Workers Program Rating 2.0 Film Office reports New Mexico is now viewed by the industry as one 2.5 6 8 of the mostFilm competitiveProgram. statesThe film for recruitingindustry picked television up significantseries after momentum the Legislature added an additional 5 percent rebate in 2013. In addition 1.5 5 7 during FY15, and all measures hit record or near-record highs. The 2.0 to numerousFilm Office smaller reports projects, New crews Mexico filmed is now five viewed television by the series industry and as one 4 6the principalof the photography most competitive for 25 states major for films recruiting during thetelevision year. series after the 1.0 1,355
2,086 3 Legislature added an additional 5 percent rebate in 2013. In addition 1.5 5 FY13 FY14 FY15 FY15 1,369 Measureto numerous smaller projects, crews filmed five televisionRating series and 1,015 Actual Actual Target Actual 2 4 0.5 Numberthe of principal film and photography for 25 major films during the year. workers trained in thousands
1,355 media worker days 216,461 189,782 200,000 298,398 1.01,174 553 1 2,086 3
844 FY13 FY14 FY15 FY15 1,369 JTIP appropriations in millions of dollars Direct spendMeasureing by film Rating 1,015 Actual Actual Target Actual 0.0 0 2 0.5 and mediaNumber industry of film and new $162 $225 $286
workers trained in thousands productionsmedia, in workermillions days 216,461 189,782 200,000 298,398 1,174 FY09 FY10 FY11 FY12 FY13 FY14 FY15 553 1
844
NumberJTIP appropriations in millions of dollars ofDirect film spendand ing by film Jobs0.0 Funding 0 media projects made in 53 61 60 79 and media industry new $162 $225 $286 New Mexicoproductions , in millions
FY09 FY10 Source:FY11 FY12 FY13EDDFY14 FY15
Program Rating Number of film and
Jobs Funding media projects made in 53 61 60 79 New Mexico Source: EDD Program Rating
98
Tourism Department PERFORMANCE: Tourism Department PERFORMANCE: Tourism Department The number of leisure and hospitality jobs increased 3.1 percent in FY15, nearly twice the statewide job growth rate of 1.6 percent, but The number of leisure and hospitality jobs increased 3.1 percent in KEY ISSUES the sector is no longer the lead industry in New Mexico for job FY15, nearly twice the statewide job growth rate of 1.6 percent, but The tourism industry remains a strong KEY ISSUES creation. Visitation revenues also continued to increase substantially the sector is no longer the lead industry in New Mexico for job performer, and the Tourism Department The tourism industry remains a strong met or exceeded nearly all performance compared with the prior year. performer, and the Tourism Department creation. Visitation revenues also continued to increase substantially measures. The agency missed two met or exceeded nearly all performance compared with the prior year. targets for the New Mexico Magazine Marketing and Promotion Program. The agency’s new return on measures. The agency missed two Program but hired a new publisher and reported plans to improve performance. investment (ROI) study shows a return of 7-to-1 based on advertising targets for the New Mexico Magazine Marketing and Promotion Program. The agency’s new return on Program but hired a new publisher and expenditures in five key markets and local and state taxes generated by reported plans to improve performance. investment (ROI) study shows a return of 7-to-1 based on advertising AGENCY IMPROVEMENT PLANS visits impacted by the ads. This represents a significant increase from expenditures in five key markets and local and state taxes generated by Submitted by agency? Yes the 2012 ROI study that showed a return of 3-to-1. This is partly due AGENCY IMPROVEMENT PLANS visits impacted by the ads. This represents a significant increase from Timeline assigned by agency? Yes to New Mexico’s improved national ranking for overnight visitation Submitted by agency? Yes the 2012 ROI study that showed a return of 3-to-1. This is partly due Responsibility assigned by agency? Yes from 36th in 2012 to 33rd in 2013 and 32nd in 2014, which resulted in Timeline assigned by agency? Yes to New Mexico’s improved national ranking for overnight visitation higher visitor expenditures. The ROI study also showed the ad Responsibility assigned by agency? Yes from 36th in 2012 to 33rd in 2013 and 32nd in 2014, which resulted in Tourism Department FY16 campaign had a significant positive impact on the state’s economic higher visitor expenditures. The ROI study also showed the ad Funding by Division development image. Tourism Department FY16 campaign had a significant positive impact on the state’s economic FY16 Budget Funding by Division (in thousands) FTE FY13 FY14 FY15 FY15 development image. Measure Rating Marketing Actual Actual Target Actual FY16 Budget and (in thousands) FTE FY13 FY14 FY15 FY15 Percent increase in gross Measure Rating Promotion $11,027.7 34.5 Marketing Actual Actual Target Actual receipts tax revenue for 0.9% 6.4% 2.5% 5.6% Tourism and accommodations receipts Percent increase in gross Development $2,060.5 6 Promotion $11,027.7 34.5 receipts tax revenue for New Mexico Number of new jobs created in 0.9% 6.4% 2.5% 5.6% Tourism accommodations receipts Magazine $3,363.2 14 the leisure and hospitality 3,700 1,500 800 2,900 Development $2,060.5 6 Program industry year-over-year
New Mexico Number of new jobs created in Support $1,548.9 14 Magazine $3,363.2 14 the leisure and hospitality Dollars spent per overnight 3,700 1,500 800 2,900 Total $18,000.3 68.5 primary visitor per day $74.91 $76.82 $75.00 $78.15 Program industry year-over-year Source: Tourism Operating Budget Support $1,548.9 14 Dollars spent per overnight New Mexico’s domestic 1.0% 1.1% 1.1% 1.1% Total $18,000.3 68.5 primary visitor per day $74.91 $76.82 $75.00 $78.15 The proportion of the Tourism overnight visitor market share
Department general fund budget Source: Tourism Operating Budget New Mexico’s domestic spent on advertising and promotion Percent of visitors who choose The proportion of the Tourism overnight visitor market share 1.0% 1.1% 1.1% 1.1% increased from an average of 28 New Mexico as their primary 71% 70% 71% 70% Department general fund budget percent between FY07 and FY11 to destination spent on advertising and promotion Percent of visitors who choose 69 percent in FY16. Program Rating increased from an average of 28 New Mexico as their primary 71% 70% 71% 70% percent between FY07 and FY11 to destination Tourism Advertising New Mexico Magazine Program. New Mexico Magazine suffered and Promotion 69 percent in FY16. Program Rating from poor advertising revenues early in FY15, but the agency hired Spending new regional advertising sales representatives and a new publisher, and Tourism Advertising (in millions) New Mexico Magazine Program. New Mexico Magazine suffered $10 the year ended with better results in most categories than during the and Promotion from poor advertising revenues early in FY15, but the agency hired Spending prior two years. The new publisher is gathering more data and (in millions) new regional advertising sales representatives and a new publisher, and $8 proposed new performance measures for FY17 to better gauge the $10 the year ended with better results in most categories than during the program’s success.
prior two years. The new publisher is gathering more data and $6 FY13 FY14 FY15 FY15 Measure Rating $8 proposed new performance measures for FY17 to better gauge the Actual Actual Target Actual program’s success. $4 Circulation rate 91,197 89,556 95,000 92,148
$6 FY13 FY14 FY15 FY15 Advertising revenue per issue, Measure Rating Actual Actual Target Actual $2 in thousands $68 $57 $72 $65
$4 Circulation rate 91,197 89,556 95,000 92,148 Number of visits to
Advertising revenue per issue, $0 nmmagazine.com and 715 1,040 565 1,189 newmexico.org, in thousands $2 in thousands $68 $57 $72 $65 Program Rating Number of visits to Source: Tourism Department
$0 nmmagazine.com and 715 1,040 565 1,189 newmexico.org, in thousands Program Rating Source: Tourism Department 99
Workforce Solutions Department
PERFORMANCE:PERFORMANCE: Workforce Workforce Solution Solution Department Department
The WorkforceThe Workforce Solutions SolutionsDepartment Department (WSD) continued (WSD) to continuedimprove to improve KEY ISSUESKEY ISSUES performanceperformance but struggle butd tostruggle meet thed to target meet for the re achtargeting foran agentreach ining an agent in the call-thecenter. call -center.Safety -net Safetyservices-net providedservices byprovided WSD helpby WSD help The TheWorkforce Workforce Solutions Solutions unemployed unemployed or underemployed or underemployed citizens more citizens successfully more successfullyengage in engage in DepartmentDepartment made mademarked marked improvementsimprovements on key on indicator key indicatorthe labor the market. labor Themarket. agency The reported agency continued reported gainscontinued in key gains in key performanceperformance measures measures but indicators,but indicators, including includingparticipation participation in advance din education advance dor educationtraining or training continuedcontinued to fall toshort fall onshort the onand the employment and employment gains. gains. average transaction wait time for average transaction wait time for the callthe center call centerand percentand percentof Workforce of Transition Services. Call-center transaction times human rights cases that receive Workforce Transition Services. Call-center transaction times human rights cases that receivedecreased 20 percent to 35 minutes from FY14 levels. Additionally, probable cause determinations, and decreased 20 percent to 35 minutes from FY14 levels. Additionally, probable cause determinationsthe, and agency reported call center times consisted of hold time of 15 resolved within one year. the agency reported call center times consisted of hold time of 15 resolved within one year. minutes and almost 18 minutes speaking to an agent. In FY16, WSD AGENCY IMPROVEMENT PLANS will beginminutes reporting and tran almostsaction 18 times minutes for filing speaking a new tounemployment an agent. In FY16, WSD AGENCY IMPROVEMENT PLANS Submitted by agency? Yes insurancewill (UI) begin claim reporting and weekly tran certification.saction times These for filing measurements a new unemployment TimelineSubmitted assigned byby agency? agency? No will Yes provide insurance performance (UI) claim reporting and weekly for the certification. two most commonThese measurements ResponsibilityTimeline assigned assigned by agency? by agency? Yes transactio No willns at providethe call center. performance reporting for the two most common Responsibility assigned by agency? Yes transactions at the call center. As of the fourth quarter, the unemployment insurance trust fund, had a balanceAs of of $159 the millionfourth ,quarter, quarterly the revenues unemployment of $138 millioninsurance, and trust fund, had benefits paya bal oanceuts of of $43.5 $159. On million average, quarterly, the fourt revenuesh quarter ofof $138each million, and fiscal yearbenefits had few pay benefit out payoutss of $43.5 than. theOn firstaverage quarter, the. fourth quarter of each
fiscal year had fewFY1 benefit3 FY1 payouts4 FY1 than5 theFY1 first5 quarter. Measure Rating Actual Actual Target Actual FY13 FY14 FY15 FY15 Percent of youthMeasure participants Rating FY15 UI Trust Fund who entered employment or Actual Actual Target Actual Performance by are enrolled Percent in post secondaryof youth participants FY15 UI Trust Fund Quarter education or who advanced entered employment57% or 56% 57% 61% $160 Performance by training after are receiving enrolled in postsecondary Quarter Workforce educationInvestment or Act advanced 57% 56% 57% 61% $140 $160 services. training after receiving
Workforce Investment Act $120 Percent of eligible $140 unemployment services. insurance
$100 claims issued a determination 66% 79% 75% 95% $120 within twentyPercent-one days of eligible from unemployment insurance $80 the date of claim $100 claims issued a determination 66% 79% 75% 95% Percent of individuals who $60 within twenty-one days from $80 received Wagnerthe date-Peyser of claim employment services new 75% 70% 80% $40 retaining employmentPercent of afterindividuals who $60 six months $20 received Wagner-Peyser employment services new 75% 70% 80% $40 Average time to complete $- transaction retainingwith the employment after 36 44 15 35 Q1 Q2 Q3 Q4 unemploymentsix months insurance call $20 Total Contribution center, in minutes. Average time to complete Revenue Received for $- Number of transactionadults and with the Quarter 36 44 15 35 Q1 Q2 Q3 Q4dislocated workersunemployment receiving insurance call 2,600 Total Benefit Payout For 2,603 2,193 3,023 Quarter Total Contribution Workforce center,Investment in minutes. Act (Rolling)
Revenue Received for services Number of adults and QuarterSource: WSD dislocated workers receiving Program Rating Total Benefit Payout For 2,603 2,193 2,600 3,023 Quarter Workforce Investment Act (Rolling) services
Source: WSD Program Rating
100
FY15 UI Trust Fund Balance Performance by Quarter Workforce Solutions Department (in thousands) Q1 Q2 Q3 Q4
Beginning of Quarter $ 66,310.3 $ 78,115.6 $ 74,172.5 $ 64,310.8 FY15 UI Trust Fund Balance Performance by Quarter End of Quarter $ 78,115.6 $ 74,172.5 $ 64,310.8 $ 159,651.6 (in thousands) Total Contribution
Q1 Q2 Q3 Q4 Revenue Received for $ 62,453.70 $ 40,605.60 $ 34,789.70 $ 138,850.10 Average Call Center Beginning of Quarter $ 66,310.3 $ 78,115.6 $ 74,172.5 $ 64,310.8 Quarter Transaction Time Total Benefit Payout End of Quarter $ 78,115.6 $ 74,172.5 $ 64,310.8 $ 159,651.6 (in minutes) $ 50,648.30 $ 44,548.70 $ 44,648.40 $ 43,509.40 For Quarter Total Contribution 50 Source: WSD Revenue Received for $ 62,453.70 $ 40,605.60 $ 34,789.70 $ 138,850.10 Average Call Center Quarter Transaction Time 45 Business Services. The department continued to meet or exceed the Total Benefit Payout (in minutes) $ 50,648.30 $ 44,548.70 $ 44,648.40 $ 43,509.40 target for customer satisfaction and contacts made by field office 40 For Quarter personnel with New Mexico businesses. A key focus for WSD is to 50 Source: WSD 35 develop the state workforce to meet the needs of businesses and 45 Business Services. The department continued to meet or exceed the provide business services and continued outreach efforts. 30 target for customer satisfaction and contacts made by field office 40 FY13 FY14 FY15 FY15A 25 Measure Rating personnel with New Mexico businesses. A key focus for WSD is to Actual Actual Target Actual 35 develop the state workforce to meet the needs of businesses and 20 Percent of employers provide business services and continued outreach efforts. sampled reporting customer 30 98% 99% 99% 99% 15 satisfaction FY13 FY14 FY15 FY15A 25 Measure Rating Actual Actual Target Actual 10 Number of personal contacts Percent of employers 20 made by field office sampled reporting customer 5 98% 99% 99% 99% personnel with New Mexico 15 satisfaction 110,069 126,296 75,000 118,102 0 businesses to inform them of
FY11 FY12 FY13 FY14 FY15 10 available services or provide Number of personal contacts actual services made by field office 5 Target Actual personnel with New Mexico 110,069 126,296 75,000 118,102 Program Rating 0 businesses to inform them of Source: WSD FY11 FY12 FY13 FY14 FY15 available services or provide
actual services Labor Relations. The Labor Relations Division enforces the New
Target Actual Mexico Human Rights Act. While the bureau exceeded the target for Program Rating wage claims resolved within 90 days, the program continued to Source: WSD struggle to meet the number of probable cause determinations 2014 NM UI Benefit Highlights Labor Relations. The Labor Relations Division enforces the New resolved during the year but saw a marked improvement from the National Mexico Human Rights Act. While the bureau exceeded the target for FY14 level. wage claims resolved within 90 days, the program continued to 2014 Ranking 11th FY13 FY14 FY15 FY15 struggle to meet the number of probable cause determinations Exhaustion Measure Rating 43.3% Highest in Actual Actual Target Actual 2014 NM UI Benefit Highlights Rate resolved during the year but saw a marked improvement from the the Nation Percent of wage claims National FY14 level. investigated and resolved 91% 91% 91% 93% 2014 Ranking Average 5th Highest 19.1 w eeks within ninety days 11th FY13 FY14 FY15 FY15 Duration in the Nation Exhaustion Measure Rating 43.3% Highest in Actual Actual Target Actual Percent of human rights Rate Average cases that receive probable the Nation Percent of wage claims 25th new 69% 90% 89% Weekly cause determinations that are investigated and resolved 91% 91% 91% 93% $306.52 Among Average 5th Highest Benefit resolved within one year 19.1 w eeks within ninety days States Duration in the Nation Amount Percent of targeted public Percent of human rights Source: WSD Average cases that receive probable works inspections completed new 100% 90% 100% 25th new 69% 90% 89% Weekly cause determinations that are $306.52 Among Benefit resolved within one year Program Rating States Amount Percent of targeted public Source: WSD works inspections completed new 100% 90% 100%
Program Rating
101
Human Services Department
PERFORMANCE:PERFORMANCE: Human Human Services Services Department Department
The end of fiscal year 2015 marks the first 18 months since The end of fiscal year 2015 marks the first 18 months since implementation of Centennial Care and Medicaid expansion. To date, KEY ISSUES implementation of Centennial Care and Medicaid expansion. To date, KEY ISSUES about 220 thousand newly eligible adults are covered by Medicaid, about 220 thousand newly eligible adults are covered by Medicaid, The Human Services Department with a total of over 800 thousand, or nearly 40 percent of New The Humanreports S performanceervices Department measures with are a total of over 800 thousand, or nearly 40 percent of New reports performance measures are Mexicans, participating in the program. Yet, the increased coverage difficult to track on a quarterly basisMexicans, participating in the program. Yet, the increased coverage difficult to track on a quarterly basis comes at a cost of over a billion dollars in state funds each year, an because information is basedcomes on at a cost of over a billion dollars in state funds each year, an becauseencounter information data isand based providers on have amount that is expected to grow as federal support decreases beginning encounter data and providers have amount that is expected to grow as federal support decreases beginning up to 120 days to submit data to the in calendar year 2017. Consequently, advocates and legislators alike up to 120department. days to submit In many data toinstances the in, calendara year 2017. Consequently, advocates and legislators alike department. In many instances, a are eager for answers regarding cost and performance. While reporting reconciliation of FY16 data willa rebe eager for answers regarding cost and performance. While reporting reconciliation of FY16 data will be lag times and other issues prohibited complete analysis, a Legislative available in the first quarter of 2017lag ,times and other issues prohibited complete analysis, a Legislative availableoften in the allowing first quarter for of 2017an ,upward Finance Committee (LFC) evaluation found, among other issues, that often allowing for an upward Finance Committee (LFC) evaluation found, among other issues, that revision of the performance result. the state is paying more per person than prior to Centennial Care revision of the performance result. the state is paying more per person than prior to Centennial Care partially due to the delayed implementation of planned cost-saving AGENCY IMPROVEMENT PLANSpartially due to the delayed implementation of planned cost-saving AGENCY IMPROVEMENT PLANS measures. Expanded services, improved care coordination, and pay- Submitted by agency? measures. No Expanded services, improved care coordination, and pay- Submitted by agency? No Timeline assigned by agency? No for-performance initiatives should, in time, result in better health Timeline assigned by agency? No for-performance initiatives should, in time, result in better health Responsibility assigned by agency? No outcomes. Responsibility assigned by agency? No outcomes.
Currently, lag times and other claim data issues result in some Currently, lag times and other claim data issues result in some performance measure outcomes being up to an entire quarter behind. performance measure outcomes being up to an entire quarter behind. To address this, the department indicated it intends to revisit all of To address this, the department indicated it intends to revisit all of FY15 performance data by gathering information directly from the FY15 performance data by gathering information directly from the managed-care organizations (MCOs) instead of from its Medicaid managed-care organizations (MCOs) instead of from its Medicaid management information system (MMIS). (For example, MCOs have management information system (MMIS). (For example, MCOs have up to 120 days to report claims, and multiple services “bundled” under up to 120 days to report claims, and multiple services “bundled” under New Outcome-Oriented FY17 a single payment can result in skewed data within the MMIS.) New Outcome-Oriented FY17 a single payment can result in skewed data within the MMIS.) Performance Measures Consequently, an updated FY15 report card is likely to be issued later Performance Measures Consequently, an updated FY15 report card is likely to be issued later for Medicaid in FY16. for Medicaid in FY16.
A measure to assess With 40 percent of New Mexicans relying on Medicaid for heath care A measureimplementation to of Senateassess Bill 42,With a 40 percent of New Mexicans relying on Medicaid for heath care implementation of Senate Bill 42, a and the state spending nearly $1 billion of its general fund budget on bill from 2015 legislative sessionand the state spending nearly $1 billion of its general fund budget on bill from 2015 legislative session the program, more information regarding quality of care and cost- intended to ensure Medicaidthe program, more information regarding quality of care and cost- intendedenrollment to ensure for eligible Medicaid jail-involved effectiveness is needed. In FY13, the department began adding enrollment for eligible jail-involved effectiveness is needed. In FY13, the department began adding persons: “Number of incarcerated performance measures targeting quality outcomes and focusing less on persons:individuals “Number whoof incarcerated are enrolled performance in measures targeting quality outcomes and focusing less on individualsMedicaid who andare inenrolled an incarcerated in enrollment; for FY17 the agency agreed to more such measures. Medicaid and in an incarcerated enrollment; for FY17 the agency agreed to more such measures. facility contracted with Human facility contracted with Human Consistent with previous years, the department had mixed performance Services Department” Consistent with previous years, the department had mixed performance Services Department” results at the end of fiscal year 2015. The Child Support Enforcement results at the end of fiscal year 2015. The Child Support Enforcement Program reports exceeding most targets, with total collections of a Program reports exceeding most targets, with total collections of a A measure to assess the extent to record $140 million for the year. Hospital readmissions and emergency A measurewhich to Centennialassess the extentCare andto recordcare $140 million for the year. Hospital readmissions and emergency which Centennial Care and care department visits have also improved (decreased) from FY14; coordination are helping to redudepartmentce visits have also improved (decreased) from FY14; coordination are helping to reduce however, at 41, the rate of emergency room visits per 1,000 Medicaid incidence of chronic disease showever,uch at 41, the rate of emergency room visits per 1,000 Medicaid incidenceas ofdiabetes: chronic “Ratedisease of s uchshort -term member months has already exceeded the calendar year (CY) 2015 as diabetes: “Rate of short-term member months has already exceeded the calendar year (CY) 2015 complication admissions for target of 40 for the year. End-of-year measures for well-child visits are complication admissions for target of 40 for the year. End-of-year measures for well-child visits are Medicaid managed-care members well below CY15 targets, although HSD expects to see these measures Medicaidwith managed diabetes”-care members well below CY15 targets, although HSD expects to see these measures with diabetes” improve when it reevaluates performance with data directly from improve when it reevaluates performance with data directly from MCOs. Work participation rates for Temporary Assistance for Needy MCOs. Work participation rates for Temporary Assistance for Needy Families (TANF) clients are also below targets even as caseloads near Families (TANF) clients are also below targets even as caseloads near historic lows. historic lows.
Medical Assistance Program. Year-end measures for well-child visits Medical Assistance Program. Year-end measures for well-child visits and dental visits are well below targets and previous years’ levels. and dental visits are well below targets and previous years’ levels. More encouraging, hospital readmissions and emergency room visits More encouraging, hospital readmissions and emergency room visits decreased from CY14 levels and continue to meet targets. The 102 decreased from CY14 levels and continue to meet targets. The percentage of adults with diabetes who had an HbA1c test (a measure percentage of adults with diabetes who had an HbA1c test (a measure
Human Services Department of average blood sugar) was also very low, as was the percent of newborns whose mothers received prenatal care. On the consumer side, as part of the Centennial Rewards program, patients earn points of average blood sugar) was also very low, as was the percent of for healthy activities, such as signing up for prenatal care and renewing newborns whose mothers received prenatal care. On the consumer prescriptions to control diabetes. side, as part of the Centennial Rewards program, patients earn points CY13 CY14 CY15 CY15 Measure Rating for healthy activities, such as signing up for prenatal care and renewing Actual Actual Target YTD
prescriptions to control diabetes. Percent of infants in Medicaid CY13 CY14 CY15 CY15 managed care who had six or Measure Rating Total Medicaid more well-child visits with a Actual Actual Target YTD 63% 52% 70% 44% Enrollees primary care physician during Percent of infants in Medicaid the first fifteen months 1,000,000 managed care who had six or Percent of children and youth Total Medicaid more well-child visits with a 63% 52% 70% 44% 900,000 Enrollees primary care physician during in Medicaid managed care the first fifteen months 800,000 who had one or more well- 1,000,000 92% 75% 92% 56% child visits with a primary Percent of children and youth 700,000 900,000 care physician during the year in Medicaid managed care 600,000 800,000 who had one or more well- Percent of children ages two 92% 75% 92% 56% child visits with a primary 500,000 to twenty-one enrolled in 700,000 Medicaid managed care who care physician during the year 65% 65% 70% 39% 400,000 had at least one dental visit 600,000 Percent of children ages two during the year 300,000 500,000 to twenty-one enrolled in Medicaid managed care who Percent of children in 65% 65% 70% 39% 200,000 400,000 had at least one dental visit Medicaid managed care with persistent asthmas during the year 100,000 92% 65% 94% 52% 300,000 appropriately prescribed Percent of children in 0 medication 200,000 Medicaid managed care with Percent of hospital 100,000 persistent asthmas 92% 65% 94% 52% appropriately prescribed readmissions for children ages 8% 7% 10% 6% 0 medication *2015 & 2016 projected two to seventeen within thirty Source: HSD days of discharge Percent of hospital readmissions for children ages Percent of hospital *2015 & 2016 projected two to seventeen within thirty 8% 7% 10% 6% readmissions for adults Source: HSD days of discharge HSD now reports Medicaid eighteen years and over, 13% 11% 10% 8% performance measures by calendar within thirty days of discharge Percent of hospital year because this is how readmissions for adults Healthcare Effectiveness Data and Rate of emergency room visits 13% 11% 10% 8% per one thousand Medicaid HSD now reports Medicaid eighteen years and over, Information Set (HEDIS) measures 39 42 40 41 performance measures by calendar within thirty days of discharge member months are reported to the National year because this is how Committee for Quality Assurance. Rate of emergency room visits Percent of individuals in Healthcare Effectiveness Data and Medicaid managed care ages per one thousand Medicaid 39 42 40 41 Information Set (HEDIS) measures eighteen through seventy-five are reported to the National member months with diabetes (type 1 or type 84% 63% 86% 51% Committee for Quality Assurance. Percent of individuals in 2) who had a HbA1c test Medicaid managed care ages during the measurement year eighteen through seventy-five with diabetes (type 1 or type 84% 63% 86% 51% Percent of newborns whose 2) who had a HbA1c test mothers received a prenatal during the measurement year care visit in the first trimester or within forty-two days of 86% 13% 85% 20% Percent of newborns whose enrollment in a managed care mothers received a prenatal organization care visit in the first trimester or within forty-two days of 86% 13% 85% 20% Number of individuals who transition from nursing enrollment in a managed care 168 187 150 n/a organization facilities placement to community-based services
Number of individuals who Program Rating transition from nursing 168 187 150 n/a facilities placement to community-based services 103 Program Rating
Human Services Department
Income Support Program. Clients who obtained and retained employmentIncome after Supportreceiving Program.services fromClients workforce who obtainedcontractor and SL retained Medicaid Children Start, as employmentwell as the number after receivingof clients meetingservices federallyfrom workforce required contractorwork SL ReceivingMedicaid Annual Children Start, as well as the number of clients meeting federally required work DentalReceiving Visit Annual participation rates in the Temporary Assistance for Needy Families (TANF) participationprogram, de clinedrates inover the the Temporary year. In itsAssistance June 2015 for Monthly Needy Families 80% Dental Visit Statistical(TANF) Report program(MSR) ,HSD declined reported over thethe TANFyear. Inaverage its June monthly 2015 Monthly 80% 70% caseload Statisticalwas 12,754 Report in June (MSR) 2015, aHSD decreas reportede of 7.7 the percent TANF from average June monthly 70% 2014 - andcaseload an all -wastime 12,754 low since in June 2007 2015, based a decreason LFCe staffof 7.7 analysis percent of from June 60% data. The2014 program - and anreached all-time a highlow ofsince about 2007 21,500 based cases on LFC in Octoberstaff analysis of 60% 50% 2011. data. The program reached a high of about 21,500 cases in October
50% 2011. 40% HSD reports data on TANF recipient compliance with federally 40% mandatedHSD work reports requirements data on on TANF a federal recipient fiscal complianceyear (FFY) withbasis , federally 30% which beginsmandated in October. work requirementsFederal base standon a ardsfederal of 50 fiscal percent year for (FFY) all basis, 30% 20% families whichand 90 begins percent in forOctober. two-parent Federal families base standare adjustedards of 50for percent each for all 20% state by familiescaseload. and For 90 New percent Mexico for twoin FFY-parent 2012, families the standardare adjusted was for each 10% 33.9 percentstate forby allcaseload. families, For which New the Mexico state met;in FFY however, 2012, thethe 2012standard was 10% standard 33.9of 73.9 percent percent for for all twofamilies,-parent which families the was state not met; met however, (20 of 27 the 2012 0% applicablestandard states ofdid 73.9 not percent meet for the two standard).-parent families TANF was workforce not met (20 of 27 0% FY11 FY12 CY13 CY14 participationapplicable rates arestates typically did not low meet nationally; the standard). for example, TANF allworkforce FY11 FY12 CY13 CY14 families participationand two-parent rates national are typically rates were low 34.4 nationally; percent andfor 33.9example, all CY15 YTD Source: HSD Quarterly Report percent, respectfamiliesively and for two FFY-parent 2012, national the most rates recent were data 34.4available. percent and 33.9
CY15 YTD Source: HSD Quarterly Report percent, respectively for FFY 2012, the most recent data available. The departmen t notes typical reasons for noncompliance include the client didThe notdepartmen completet notes or typicalupdate reasonsrequired for wnonorkcompliance participation include the agreementsclient and did individual not complete responsibility or update plans orrequired did not w completeork participation TANF Clients Newly assigned agreementswork hours. and Finally, individual department responsibility performance plans orin didenrolling not complete EmployedTANF during Clients the Newly Year children assignedin the Supplemental work hours. NutritionFinally, dAssistanceepartment Progperformanceram (SNAP) in enrolling Employed during theexceeded the target of 88 percent. The SNAP caseload in June 2015 Year children in the Supplemental Nutrition Assistance Program (SNAP) 60% was 232,130,exceeded a 16.4 the percent target increase of 88 percent from a. yearThe ago.SNAP caseload in June 2015 60% was 232,130, a 16.4 percent increase from a year ago. FFY13 FFY14 FFY15 FFY15 50% Measure Rating Actual ActualFFY13 TargetFFY14 FYTDFY1 5 FFY15 50% Measure Rating Percent of temporary Actual Actual Target YTD 40% assistance for needy families Percent of temporary 55% 56% 50% 48% 40% clients whoassistance obtain a jobfor needy families during the federal fiscal year 55% 56% 50% 48% 30% clients who obtain a job Percent of duringtemporary the federal fiscal year 30% 20% assistance Percentfor needy of f temporaryamilies two-parent recipients meeting 72% 30% 60% 27% 20% assistance for needy families federally requiredtwo-parent work recipients meeting 72% 30% 60% 27% 10% requirements federally required work 10% Percent of requirementstemporary 0% assistance Percentfor needy of f temporaryamilies 48% 32% 50% 34% 0% recipients (allassistance families) for needy families meeting federallyrecipients required (all families) 48% 32% 50% 34% work requirements meeting federally required Source: HSD Quarterly Report Percent of workchildren requirements eligible for supplemental nutritional Source: HSD Quarterly Report Percent of children eligible assistance program HSD now reports Income Support for supplemental nutritional85% 84% 88% 90% Program measures by federal fiscal participating in the program at HSD now reports Income Support assistance program 85% 84% 88% 90% year because this is how the one hundred thirty percent of Program measures by federal fiscal participating in the program at information is reported to the state’s poverty level year because this is how the one hundred thirty percent of federal partners. Program Rating information is reported to the state’s poverty level
federal partners. Program Rating
104
Human Services Department
Child Support Enforcement Program. Child support enforcement Percent Cases with collections, acknowledged paternity, and cases with support orders all Child Support Enforcement Program. Child support enforcement Percent Cases with Child Support Orders exceeded targeted levels. The percent of child support collected, while collections, acknowledged paternity, and cases with support orders all Child Support Orders exceeded targeted levels. The percent of child support collected, while 90% below the target, improved slightly from the FY14 level to 56.8 percent. The program is continuing the bench warrant amnesty and 90% below the target, improved slightly from the FY14 level to 56.8 85% percent. The program is continuing the bench warrant amnesty and sweep project, outreach to new obligors, and efforts to obtain modified 85% 80% support orders. sweep project, outreach to new obligors, and efforts to obtain modified 84% 80% support orders. 84%
75% 80%
79% FY13 FY14 FY15 FY15 78%
Measure Rating 75% 80%
Actual Actual Target Actual 79% FY13 FY14 FY15 FY15 70% 78% Measure Rating Percent of children with Actual Actual Target Actual 73% 70% 65% Percent of children with paternity acknowledged or 102.7% 101.2% 90% 102% 73% 68% adjudicated 65% paternity acknowledged or 102.7% 101.2% 90% 102% 60% 68% adjudicated Total child support 60% 55% enforcement collections, in $132 $137 $135 $140 Total child support 55% $132 $137 $135 $140 50% millions enforcement collections, in
50% millions 45% Percent of child support 55.8% 56.3% 60.0% 56.8% owed that is collected 45% Percent of child support 55.8% 56.3% 60.0% 56.8% 40% owed that is collected Percent of cases with support 83.5% 79% 80% 82.5% 40% FY10 FY11 FY12 FY13 FY14 FY15 orders Percent of cases with support 83.5% 79% 80% 82.5% FY10 FY11 FY12 FY13 FY14 FY15 orders Program Rating Source: HSD Quarterly Reports Program Rating Source: HSD Quarterly Reports
105
Behavioral Health Collaborative
PERFORMANCE: Behavioral Health Collaborative PERFORMANCE: Behavioral Health Collaborative As fiscal year 2015 came to a close, New Mexicans began to see some KEY ISSUES tentativeAs improvementsfiscal year 2015 in came the landscape to a close, of New behavioral Mexicans health began, such to see as some KEY ISSUES increasingtentative numbers improvements of individuals in the landscapereceiving ofcar behaviorale, stabilization health , ofsuch as The Behavioral Health providerincreasing transitions, numbers and ofnew individuals strategic receivingplanning careffortse, stabilization for the of CollaborativeThe continuesBehavioral to lack a Health provider transitions, and new strategic planning efforts for the strategicCollaborative plan and a continuestrue sense to of lack Behavioral a Health Collaborative. Additionally, the Department of purposestrategic and direction; plan and it a hastrue notsense Health of Behavioral (DOH) received Health a Collaborative.$2 million innovation Additionally, grant award the Departmentfrom the of consistentlypurpose metand direction;quarterly it ashas Centersnot Health for Medicare (DOH) receivedand Medicaid a $2 millionServices innovation to better integrategrant award public, from the requiredconsistently by statute andmet has quarterly lacked primary,as Centers and behavioral for Medicare health and care Medicaid in New Services Mexico. to Working better integrate with the public, a quorumrequired when by statuteit did and meet, has lacked primary, and behavioral health care in New Mexico. Working with the preventinga quorum it from takingwhen actionit did on meet,Human Services Department (HSD), DOH conducted two summits on agendapreventing items. Over it fromthe nexttaking fiscal action improving on Human health Servicescare integrationDepartment, improv(HSD)ing, DOH outcomes conducted, and two reducing summits on year workgroupsagenda items. are Overexpected the next to fiscalcosts. improving healthcare integration, improving outcomes, and reducing developyear action workgroups plans, areincluding expected to costs. timelinedevelops and expectedaction plans,outcom es,including Nevertheless, New Mexico continues to lead the nation in alcohol- for identifiedtimeline goals.s and expected outcomrelatedes, Nevertheless, deaths rates Newand is Mexico among continuesthe worst tostates lead for the drug nation overdose in alcohol - for identified goals. AGENCY IMPROVEMENT PLANS deathsrelated, suicide, death ands ratesserious and mental is among illness the. Itworst is estimated states for more drug than overdose SubmittedAGENCY by agency? IMPROVEMENT PLANS No 100 thousanddeaths, suicide, New Mexicanand serious adults mental need, illness but. Itare is estimatednot receiving, more than TimelineSubmitted assigned byby agency?agency? No treatment No 100 forthousand behavioral New health Mexican issues. adultsConsequently, need, but despite are investingnot receiving, ResponsibilityTimeline assigned assigned by by agency? agency? No more No thantreatment $500 formillion behavioral for behavioral health issues. health Consequently,services in FY15, despite serious investing Responsibility assigned by agency? No more than $500 million for behavioral health services in FY15, serious challenges remain. Yet the lack of sufficient performance and
expenditurechallenges data remainand little. Yet in thethe lackway ofof sufficientcollaborative performance strategic and planningexpenditure make itdata difficult and littlefor lawmakersin the way toof knowcollaborative if current strategic People Receiving planning make it difficult for lawmakers to know if current BehavioralPeople Health Receiving expenditures on behavioral health are targeted in the most cost ServicesBehavioral Health effective expenditures manner at theon bestbehavioral possible healthoutcomes are. targeted in the most cost Services effective manner at the best possible outcomes. 140,000 Performance measures indicating the percent of individuals receiving 140,000 Performance measures indicating the percent of individuals receiving 120,000 follow-up services after discharge from inpatient facilities show 120,000 criticalfollow after-upcare services services afterneed todischarge be improved. from Further,inpatient whilefacilities the show 100,000 critical after-care services need to be improved. Further, while the 100,000 Substance Abuse and Mental Health Services Administration 80,000 (SAMHSA)Substance reports Abuse many Newand MexicoMental performHealthance Services results areAdministration similar 80,000 60,000 to national(SAMHSA) averages reports (such many as past New-year Mexico serious perform mentalance illness results among are similar 60,000 40,000 adults),to thenational state averagesranks higher (such for as past past-month-year seriousillicit drugmental use illness among among 40,000 adolescentsadults), (12.4the state percent ranks inhigher New for Mexico past-month versus illicit 9.2 drug percent use among 20,000 adolescents (12.4 percent in New Mexico versus 9.2 percent 20,000 nationally). 0 nationally). 0 Behavioral Health Collaborative. The 17-member Behavioral Health PurchasingBehavioral Collaborative Health Cisollaborative charged with. The coordinating 17-member Behaviorala statewide Health behavioralPurchasing health Collaborative system. Although is charged the withresponsibilities coordinating ofa statewidethe Note: Includes Centennial Care, collaborativebehavioral are definedhealth insystem. New Mexico Although law, thethe recentresponsibilities history of theof the Medicaid fee-for-service, and Non- Note: Includes Centennial Care, entity collaborativeappears to demonstrate are defined waning in New interestMexico onlaw, behalf the recent of statutorily history of the Medicaid.Medicaid Beginning fee January-for-service, 2015, and Non- HSD beganMedicaid. reporting Beginning data on Januarya 2015, identifiedentity members appears ;to thedemonstrate collaborative waning has interest not consistentlyon behalf of statutorilymet calendar HSDyear beganbasis. reporting data on a quarterlyidentified as required members by statute; the andcollaborative has lacked ahas quorum not whenconsistently it did met calendar year basis. Source: HSD meet, qupreventingarterly as it requiredfrom taking by statuteaction onand agenda has lacked items. a quorum when it did Source: HSD meet, preventing it from taking action on agenda items.
Nevertheless, in FY15 the collaborative kicked off strategic planning effortsNevertheless, centered on finance,in FY15 workforce the collaborative, and regulatory kicked offenvironment strategic planningas a focusefforts over thecent nextered two on finance,years. Workgroups workforce, identifiedand regulatory key areas environment, such as as incentivizinga focus over provider the next payments two years. for Workgroups health outcomes, identified “untangling” key areas , such In FY15 HSD began reporting on as incentivizing provider payments for health outcomes, “untangling” the percentIn FY15 of HSDmembers began reporting reporting the on regulatory environment to promote access and flexibility, and satisfactionthe p ercentwith behavioral of members health reporting finding the ways regulatory to expand environment and retain behavioralto promote health access providers and flexibility, (the last and services.satisfaction HSD reports with 84behavioral percent healthcited asfinding likely ways the mostto expand serious and obstacle retain behavioral to getting health behavioral providers health (the last for FY15.services. HSD reports 84 percentservices cited to theas likelyvulnera theble most populations serious whoobstacle need to it). getting In the behavioral next fiscal health
for FY15. services to the vulnerable populations who need it). In the next fiscal year, workgroups will develop action plans, including timelines and
year, workgroups will develop action plans, including timelines and expected outcomes, for the identified goals. Leadership has noted
106 expected outcomes, for the identified goals. Leadership has noted
Behavioral Health Collaborative now is not the time for a major restructuring; rather, the state needs to
build critical infrastructure to fill current and critical care gaps.
now is not the time for a major restructuring; rather, the state needs to Behavioral Health Provider Audits. Finally, HSD has been working In FY15 HSD was awarded an $8 build critical infrastructure to fill current and critical care gaps. million, five-year Substance Abuse with community leaders to rebuild capacity in affected areas following and Mental Health Services the closure and replacement of 12 New Mexico behavioral health In FY15 HSD was awarded an $8 Behavioral Health Provider Audits. Finally, HSD has been working Administration grant to address providers in 2013. According to the Attorney General’s Office underage drinking and youth million, five-year Substance Abuse with community leaders to rebuild capacity in affected areas following (NMAG), three of the 15 New Mexico behavioral health provider and Mental Health Services prescription drug abuse; a $5.4 the closure and replacement of 12 New Mexico behavioral health million, three-year housing grant to investigations resulting from the 2013 audits have been completed. In Administration grant to address providers in 2013. According to the Attorney General’s Office underage drinking and youth increase capacity and provide the last legislative session, the NMAG received a $1.8 million special prescription drug abuse; a $5.4 (NMAG), three of the 15 New Mexico behavioral health provider evidence-based treatment services, appropriation for the investigations and a contractor has been hired to peer support, and permanent million, three-year housing grant to investigations resulting from the 2013 audits have been completed. In complete the remaining audits by the end of calendar year 2015. increase capacity and provide the last legislative session, the NMAG received a $1.8 million special supportive housing. It is also implementing a $1.5 million, three- evidence-based treatment services, FY13 FY14 FY15 FY15 appropriation for the investigations and a contractor has been hired to year suicide prevention grant. Measure Rating peer support, and permanent Actual Actual Target Actual complete the remaining audits by the end of calendar year 2015. supportive housing. It is also Percent of adults diagnosed implementing a $1.5 million, three- FY13 FY14 FY15 FY15 with major depression who year suicide prevention grant. Measure Rating The New Mexico Department of Actual Actual Target Actual received continuous treatment new new 34% 26% Health reports: with an antidepressant Percent of adults diagnosed with major depression who medication The New Mexico Department of • New Mexico’s total alcohol- received continuous treatment new new 34% 26% related death rate has ranked Percent of individuals Health reports: with an antidepressant 1st, 2nd, or 3rd in the U.S. discharged from inpatient 40% 26% 45% 29.8% medication since 1981 and was 1st 1997 facilities who receive follow- • New Mexico’s total alcohol- related death rate has ranked Percent of individuals through 2010, the most recent up services at seven days year for which data is available. 1st, 2nd, or 3rd in the U.S. discharged from inpatient 40% 26% 45% 29.8% Percent of individuals since 1981 and was 1st 1997 facilities who receive follow- • In 2011, New Mexico had the discharged from inpatient 59% 52.3% 65% 45.6% through 2010, the most recent up services at seven days facilities who receive follow-up year for which data is available. second highest total drug Percent of individuals services at thirty days overdose death rate in the • In 2011, New Mexico had the discharged from inpatient 59% 52.3% 65% 45.6% nation according to the most Percent of readmissions to second highest total drug facilities who receive follow-up recent data available. Rio same level of care or higher for overdose death rate in the services at thirty days Arriba and Mora counties had children or youth discharged 7% 4% 8% 7% nation according to the most by far the highest drug from residential treatment Percent of readmissions to overdose death rate at 67.7 recent data available. Rio same level of care or higher for centers and inpatient care Arriba and Mora counties had and 61 deaths per 100 children or youth discharged 7% 4% 8% 7% thousand, respectively. by far the highest drug from residential treatment Program Rating overdose death rate at 67.7 centers and inpatient care • Suicide is a serious and and 61 deaths per 100 thousand, respectively. persistent public health Program Rating problem in New Mexico. From • Suicide is a serious and 1981 to 2010, New Mexico's persistent public health suicide rate was consistently problem in New Mexico. From been among the highest in the 1981 to 2010, New Mexico's nation, at 1.5 to 1.9 times the suicide rate was consistently U.S. rate. New Mexico has been among the highest in the ranked among the top five nation, at 1.5 to 1.9 times the states for all but two of those U.S. rate. New Mexico has years. ranked among the top five states for all but two of those years.
107 Department of Health
PERFORMANCE:PERFORMANCE: Department Department of Health of Health
With aW changingith a changing healthcare healthcare landscape landscape – the –Affordable the Affordable Care Act,Care Act, KEY ISSUES Centennial Care – it is crucial to measure health performance and KEY ISSUES Centennial Care – it is crucial to measure health performance and spending across the state, ensuring federal Medicaid dollars are fully Fiscal Year 2015 key measuresspending for across the state, ensuring federal Medicaid dollars are fully Fiscal Year 2015 key measures for utilized, and state resources are invested in a strategic way. The the Department of Health wereutilized , and state resources are invested in a strategic way. The the Department of Health were inadequate and the number of key Department of Health’s (DOH) quarterly performance measures inadequate and the number of key Department of Health’s (DOH) quarterly performance measures measures will more than double in lacked meaningful data to track the department’s and the state’s measures will more than double in lacked meaningful data to track the department’s and the state’s FY16. While the majority of changes FY16. While the majority of changes performance on lessening the effects of diabetes, obesity, substance to the department’s FY16 performancekey on lessening the effects of diabetes, obesity, substance to the department’s FY16 key misuse, and other health maladies. Addressing this, the department, measures are welcome, misuse,the and other health maladies. Addressing this, the department, measures are welcome, the Facilities Management Program in cooperation with LFC staff, will expand performance reporting in Facilities Management Program in cooperation with LFC staff, will expand performance reporting in proposed to reduce the number of FY16 and more than double the number of key measures reported. proposed to reduce the number of FY16 and more than double the number of key measures reported. quarterly performance measures to quarterly performance measures to Public Health Program. The Public Health Program is responsible just one. Public Health Program. The Public Health Program is responsible just one. for developing policies to protect the health and welfare of the people for developing policies to protect the health and welfare of the people AGENCY IMPROVEMENT PLANS of New Mexico and does this through early-intervention programs AGENCY IMPROVEMENT PLANS of New Mexico and does this through early-intervention programs Submitted by agency? Yes and increasing access to healthcare services. In FY13, New Mexico Submitted by agency? Yes and increasing access to healthcare services. In FY13, New Mexico Timeline assigned by agency? No ranked 14th in the nation for per capita public health spending and Timeline assigned by agency? No ranked 14th in the nation for per capita public health spending and Responsibility assigned by agency? No implemented public health interventions, such as reducing rates of Responsibility assigned by agency? No implemented public health interventions, such as reducing rates of tobacco usage through the Quit Now initiative and no-cost tobacco usage through the Quit Now initiative and no-cost medications, reducing obesity by encouraging healthy eating, and medications, reducing obesity by encouraging healthy eating, and preventing and tracking infectious disease outbreaks. Few of these preventing and tracking infectious disease outbreaks. Few of these activities are tracked quarterly and proposed measures for the FY16 activities are tracked quarterly and proposed measures for the FY16 quarterly reports will improve this.
quarterly reports will improve this. New Mexico continues to rank near the bottom of states for child Child Health New Mexico continues to rank near the bottom of states for child ChildIndicators, Health 2013 health, according to the Annie E. Casey Foundation. Key department Indicators, 2013 health, according to the Annie E. Casey Foundation. Key department child and teen public health interventions include reducing teen births 10% child and teen public health interventions include reducing teen births 10% through low-or no-cost birth control and education, reducing 9% through low-or no-cost birth control and education, reducing 9% adolescent health issues by providing comprehensive well-child adolescent health issues by providing comprehensive well-child 8% exams at school-based health centers, and increasing the percentage 8% exams at school-based health centers, and increasing the percentage 7% of children immunized through partnerships with local school 7% of children immunized through partnerships with local school districts. For FY16 the department proposed expanding child health 6% districts. For FY16 the department proposed expanding child health 6% reporting and added two teen pregnancy related measures, one obesity reporting and added two teen pregnancy related measures, one obesity 5% measure, and one breast feeding measure, and will again report the 5% measure, and one breast feeding measure, and will again report the 4% percentage of preschoolers fully immunized. 4% percentage of preschoolers fully immunized.
3% FY13 FY14 FY15 FY15 3% Measure FY13 FY14 FY15 FY15 Rating 2% Measure Actual Actual Target ActualRating 2% Percent of students using Actual Actual Target Actual 1% Percent ofschool students-based using health centers 1% school-based health centers 34.5% 34.2% 35.0% 34.2% 0% who receive a comprehensive who receive a comprehensive 34.5% 34.2% 35.0% 34.2% 0% New Mexico Nationally well exam New Mexico Nationally well exam Percent of quit now enrollees Low-Birthweight Babies Percent of quit now enrollees Low-Birthweight Babies who successfully quit using who successfullytobacco at quit seven using month 33% 32% 33% 31% Children Without Health tobacco at seven month 33% 32% 33% 31% Children Without Health follow-up Insurance follow-up Insurance Teen Alcohol or Drug Abuse Program Rating Teen Alcohol or Drug Abuse Program Rating
Source: Annie E. Casey Foundation Epidemiology and Response Program. In March 2015, the Source: Annie E. Casey Foundation Epidemiology Epidemiology and andResponse Response Program Program. launchedIn March an upgraded2015, the version Epidemiology and Response Program launched an upgraded version of its indicator-based information system increasing the program’s of its abilityindicator to- basedprovide information health information system increasing in an easily the program’saccessible way ability to provide health information in an easily accessible way statewide. Improved measures for this program, such as reporting the statewide.number Improved of emergency measures responsefor this pr exercisesogram, such and as trainings reporting conducted the 108 numberquarterly, of emergency would helpresponse policymakers exercises understand and trainings whether conducted New Mexico quarterly, would help policymakers understand whether New Mexico
Department of Health
is adequately prepared to respond to public health emergencies. For is adequately prepared to respond to public health emergencies. For Years of Potential FY16, the program proposed adding five key measures to improve Years of Potential FY16, the program proposed adding five key measures to improve Life Lost per 100,000 reporting on stroke, heart attack occurrence, emergency preparedness, Life Lost per 100,000 reporting on stroke, heart attack occurrence, emergency preparedness, in 2013 and Nalaxone (opiate overdose reversal drug) distribution. in 2013 and Nalaxone (opiate overdose reversal drug) distribution. 2,000 FY13 FY14 FY15 FY15 Measure Rating 2,000 FY13 FY14 FY15 FY15 Actual Actual Target Actual Measure Rating 1,800 Actual Actual Target Actual Rate of infant pertussis cases 1,800 1,600 Rate of infant pertussis cases to total pertussis cases of all 1:13 1:16 1:15 1:18 1,600 to total pertussis cases of all 1,400 ages 1:13 1:16 1:15 1:18 1,400 ages 1,200 Percent of vital records front counter customers who are 1,200 Percent of vital records front 1,000 counter customers who are satisfied with the service they new new 85% 98% 1,000 satisfied with the service they new new 85% 98% 800 received
800 received 600 Program Rating 600 400 Program Rating 400 200 Laboratory Services Program. The program changed the number of 200 Laboratory Services Program. The program changed the number of 0 days to complete sampling work from 10 to 15 days for DWI cases 0 days to complete sampling work from 10 to 15 days for DWI cases reported to law enforcement, and the target now appears too low. The reported to law enforcement, and the target now appears too low. The Legislature fully funded this program’s personal costs as its staff Legislature fully funded this program’s personal costs as its staff requires time off for training or testifying at court proceedings, requires time off for training or testifying at court proceedings, impacting laboratory testing time. impacting laboratory testing time. FY13 FY14 FY15 FY15 Measure Rating FY13 FY14 FY15 FY15 New Mexico United States Actual Actual Target Actual New Mexico United States Measure Rating Actual Actual Target Actual Source: CDC Percent of blood alcohol tests from driving-while- Source: CDC Percent of blood alcohol tests intoxicated cases that are from driving-while- intoxicated cases that are completed and reported to law new new 90% 92% new new 90% 92% enforcement within fifteen completed and reported to law New Mexico enforcement within fifteen business days New Mexico Behavioral Health business days Behavioral Health Institute Percent of office of medical investigator cause of death Institute Percent of office of medical 350 $1,200 investigator cause of death toxicology cases that are 350 $1,200 toxicology cases that are completed and reported to the new 67% 90% 99% 300 completed and reported to the new 67% 90% 99% $1,000 office of medical investigator 300 $1,000 office of medical investigator within sixty business days within sixty business days 250 $800 250 Program Rating $800 Program Rating 200 200 $600 Facilities Management Program. For performance in any hospital $600 Facilities Management Program. For performance in any hospital 150 system, it is important to monitor not only patient outcomes – reduced system, it is important to monitor not only patient outcomes – reduced beds substance misuse, lower risk of injury – but also important to monitor
150 thousands beds $400 substance misuse, lower risk of injury – but also important to monitor 100 how well the system manages resources to provide the highest quality $400 thousands 100 how well the system manages resources to provide the highest quality of care. While workloads at the New Mexico Behavioral Health of care. While workloads at the New Mexico Behavioral Health 50 $200 Institute are steadily in decline and FTE counts are stable, the 50 $200 Institute are steadily in decline and FTE counts are stable, the institute’s reliance on contract labor skyrocketed between FY12 and institute’s reliance on contract labor skyrocketed between FY12 and 0 $- FY15. Additionally, the department may not be adapting to funding 0 $- FY15. Additionally, the department may not be adapting to funding changes as a result of the Affordable Care Act and continues to changes as a result of the Affordable Care Act and continues to experience a high level of uncompensated care in the facilities. experience a high level of uncompensated care in the facilities. Average Monthly Average Monthly Census While the majority of changes to the department’s key measures are Census While the majority of changes to the department’s key measures are Contract Labor positive, the Facilities Management Program proposed to reduce the Contract Labor positive, the Facilities Management Program proposed to reduce the number of quarterly performance measures to just one. Given the number of quarterly performance measures to just one. Given the Source: DOH and LFC Files program’s $138.3 million budget, more than a quarter of the
Source: DOH and LFC Files program’s $138.3 million budget, more than a quarter of the department’s budget, one performance measure is inadequate. The
department’s budget, one performance measure is inadequate. The program reported measures indicating that the facilities are doing
program reported measures indicating that the facilities are doing 109
Aging & Long-Term Services Department
Department of Health
well; however, CMS rated New Mexico’s three state-run nursing well; however, CMS rated New Mexico’s three state-run nursing State-Run Nursing Home homes poorly for health inspection and quality measures. State-Run Nursing Home homes poorly for health inspection and quality measures. Ratings* Ratings* Furthermore, the department reports an average of 0.2 percent of long-termFurthermore, care patients the experiencingdepartment reports one or anmore average falls withof 0.2 injury percent; of long-term care patients experiencing one or more falls with injury; however, CMS reports an injury fall rate at the New Mexico Behavioralhowever, Health CMS Institute report ofs 7.1an percent,injury fall at Fortrate Bayardat the MedicalNew Mexico Behavioral Health Institute of 7.1 percent, at Fort Bayard Medical Center 1.5 percent, and at New Mexico State Veteran’s Home 5.8 percentCenter. The state1.5 averagepercent, isand 3.8 at percent New ,Mexico while the State national Veteran’s average Home is 5.8 3.2 percent.percent . The state average is 3.8 percent, while the national average is 3.2 percent. FY13 FY14 FY15 FY15
Behavioral Institute Health Fort Bayard Center Medical Veteran'sState Home Measure Rating Actual FY13Actual FY14Target FY15Actual FY15
Behavioral Institute Health Fort Bayard Center Medical Veteran'sState Home Measure Rating Overall Rating 3 4 3 Percent of staffed beds filled at Actual Actual Target Actual Overall Rating 3 4 3 all agencyPercent facilities of staffed beds filled86% at 81% 90% 93% Health Inspection 2 3 2 86% 81% 90% 93% Health Inspection 2 3 2 all agency facilities Staffing 5 5 4 Percent of uncompensated care Staffing 5 5 at4 all agencyPercent facilities of uncompensated carenew new 25% 37% Quality 2 2 2 at all agency facilities new new 25% 37% Quality 2 2 2 * Rating out of five stars Percent of long-term care * Rating out of five stars Percent of long-term care Source: CMS Nursing Home Compare patients experiencing one or new new 3.3% 0.2% Source: CMS Nursing Home Compare patients experiencing one or more falls with injury new new 3.3% 0.2% more falls with injury
Program Rating Program Rating
Developmental Disabilities Support Program. The program Percent of Long-Stay Developmental Disabilities Support Program. The program ResidentsPercent of Long-Stay recently reached a settlement in the lawsuit where the department was Residents accusedrecently of unjustifiably reached a denyingsettlement services in the lawsuitto patients where in thethe Medicaiddepartment was Experiencing One or accused of unjustifiably denying services to patients in the Medicaid Experiencing One or waiver program for the developmentally disabled (DD waiver) by More Falls with Major waiver program for the developmentally disabled (DD waiver) by MoreInjury Falls with Major inappropriately using a new evaluation method known as the supports Injury inappropriately using a new evaluation method known as the supports 8% intensity scale. The settlement will add a second level of review to the 8% evaluationintensity process scale. already The settlement in place and will require add a seconda clinical level review of review with to the 7% evaluation process already in place and require a clinical review with 7% more interventions on planning teams. 6% more interventions on planning teams. 6% Despite a nearly 70 percent increase in general fund appropriations, 5% Despite a nearly 70 percent increase in general fund appropriations, the DD waiver waiting list has grown nearly 18 percent since FY11, 5% the DD waiver waiting list has grown nearly 18 percent since FY11, 4% resulting in a yellow rating. 4% resulting in a yellow rating. 3% 3% FY13 FY14 FY15 FY15 Measure FY13 FY14 FY15 FY15Rating 2% Measure Actual Actual Target Actual Rating 2% Percent of developmental Actual Actual Target Actual 1% disabilitiesPercent waiver of developmentalapplicants 1% disabilities waiver applicants 0% who have a service plan in 0% place withinwho haveninety a daysservice of plan in 83% 75% 95% 91% 83% 75% 95% 91% income andplace clinical within eligibility ninety days of determinationincome and clinical eligibility determination Percent of adults receiving developmentalPercent disabilities of adults receiving day servicesdevelopmental who are engaged disabilities in day services who are engaged in30% 27% 35% 28% community-integrated 30% 27% 35% 28% employmentcommunity -integrated employment Number of individuals on the developmentalNumber disabilities of individuals on the developmental disabilities 3,829 4,403 4,500 4,610 Source: CMS Nursing Home Compare waiver receiving services 3,829 4,403 4,500 4,610 Source: CMS Nursing Home Compare waiver receiving services Number of individuals on the developmentalNumber disabilities of individuals on the developmental disabilities 6,248 6,133 6,100 6,365 waiver waiting list 6,248 6,133 6,100 6,365 waiver waiting list
110 Program Rating
Program Rating
Aging & Long-Term Services Department
PERFORMANCE: Aging and Long-Term Services Department PERFORMANCE: Aging and Long-Term Services Department
Two recent LFC program evaluations recommended the department Two recent LFC program evaluations recommended the department KEY ISSUES improve performance measures to reflect the prevalence of adult abuse KEY ISSUES improve performance measures to reflect the prevalence of adult abuse and capacity to meet the needs of an aging population. One of the and capacity to meet the needs of an aging population. One of the While the Aging and Long-Term evaluations stated that performance outcomes are not tracked and data While the Aging and Long-Term Services Department met most evaluations stated that performance outcomes are not tracked and data is not used for strategic planning purposes. Without data-driven Services Department met most performance targets, the performance targets, the is not used for strategic planning purposes. Without data-driven department could improve strategic planning, the ability to design a system capable of meeting department could improve strategic planning, the ability to design a system capable of meeting performance monitoring to align the needs of baby boomers and the rapidly increasing number of performance monitoring to align the needs of baby boomers and the rapidly increasing number of with strategic planning and to better seniors over 80 who are frail and mobility-impaired, is lost. The other with strategic planning and to better seniors over 80 who are frail and mobility-impaired, is lost. The other monitor outcomes for New Mexico’s monitor outcomes for New Mexico’s aging population. evaluation suggested that, while incidents of elder abuse and neglect evaluation suggested that, while incidents of elder abuse and neglect are increasing, it is difficult to assess the effectiveness of New aging population. are increasing, it is difficult to assess the effectiveness of New AGENCY IMPROVEMENT PLANS Mexico’s Adult Protective Services in preventing future abuse and AGENCY IMPROVEMENT PLANS Mexico’s Adult Protective Services in preventing future abuse and Submitted by agency? Yes neglect due to a lack of data and performance monitoring. Submitted by agency? Yes neglect due to a lack of data and performance monitoring.
Timeline assigned by agency? Yes Timeline assigned by agency? Yes Responsibility assigned by agency? Yes To get a better understanding of how well nursing homes are doing in To get a better understanding of how well nursing homes are doing in New Mexico, LFC identified relevant nursing home performance data Responsibility assigned by agency? Yes New Mexico, LFC identified relevant nursing home performance data collected by the state and the federal Centers for Medicare and collected by the state and the federal Centers for Medicare and Medicaid Services (CMS). New Mexico ranks 32nd nationally in the Medicaid Services (CMS). New Mexico ranks 32nd nationally in the average fine paid per federally certified bed. Fines are imposed on average fine paid per federally certified bed. Fines are imposed on nursing homes when a serious deficiency is cited or if nursing homes nursing homes when a serious deficiency is cited or if nursing homes fail to correct deficiencies for a long period of time. Additionally, the fail to correct deficiencies for a long period of time. Additionally, the state ranked 45th nationally for the average total nursing home health state ranked 45th nationally for the average total nursing home health deficiencies score based on federally mandated inspections. deficiencies score based on federally mandated inspections.
Consumer and Elder Rights Program. Ninety-eight percent of Consumer and Elder Rights Program. Ninety-eight percent of Average Nursing ombudsmen complaints were resolved within 60 days. Volunteer ombudsmen complaints were resolved within 60 days. Volunteer ombudsmen contributed 2,313 hours of service in the fourth quarter. Average Nursing Home Health Home Health ombudsmen contributed 2,313 hours of service in the fourth quarter. Deficiencies in There was a 13.3 percent increase in calls to the Aging and Disability Deficiencies in There was a 13.3 percent increase in calls to the Aging and Disability Federally Mandated Resource Center, compared with the same quarter in FY14, which Federally Mandated Resource Center, compared with the same quarter in FY14, which Inspections contributed to fewer calls answered by a live operator. Of the 10 90 Inspections contributed to fewer calls answered by a live operator. Of the 10 thousand calls received, 3,150 callers left a voice message and their 90 thousand calls received, 3,150 callers left a voice message and their 80 calls were returned within the same day. 80 calls were returned within the same day.
70 FY13 FY14 FY15 FY15 70 FY13 FY14 FY15 FY15 Measure Rating Measure Rating Actual Actual Target Actual Actual Actual Target Actual 60 Percent of ombudsman 60 Percent of ombudsman complaints resolved within 50 98% 99% 90% 98% complaints resolved within 98% 99% 90% 98% sixty days 50 sixty days
40 Percent of people accessing 40 Percent of people accessing the aging and disability 30 the aging and disability resource center who indicated 30 resource center who indicated new new 40% 45% their health improved, social their health improved, social new new 40% 45% 20 20 services improved their quality services improved their quality 10 of life, or both. of life, or both. 10
Percent of calls to the aging Percent of calls to the aging 0 0 and disability resource center and disability resource center AZ CO NM TX 78% 87% 85% 70% AZ CO NM TX *Score based on number of health that are answered by a live 78% 87% 85% 70% *Score based on number of health that are answered by a live deficiencies discovered operator deficiencies discovered operator
Source: CMS Nursing Home Compare Program Rating Source: CMS Nursing Home Compare Program Rating
Aging Network Program. Current performance measures reported Aging Network Program. Current performance measures reported by the program reflect the volume of services provided, but strategic by the program reflect the volume of services provided, but strategic planning and capacity are not clearly tied to these measures. Tracking planning and capacity are not clearly tied to these measures. Tracking service outcomes and reporting them as performance measures would service outcomes and reporting them as performance measures would give a better idea of the Aging Network’s capacity and its adequacy in give a better idea of the Aging Network’s capacity and its adequacy in meeting the needs of New Mexico’s senior population. 111 meeting the needs of New Mexico’s senior population. Aging & Long Term Services Department
New Mexico ranks 34th worst in the nation for seniors with food New Mexico ranks 34th worst in the nation for seniors with food Number of insecurity, with 13.1 percent, or an estimated 63,780 seniors, unable to IndividualsNumber Served of consistentlyinsecurity access, with food 13.1 adequate percent, food or an. This estimated represents 63,780 a significantseniors, unable to Food ThroughIndividuals the Served improvementconsistently from aaccess 2010 studyfood adequateranking New food Mexico. This representssecond worst a significant in AgingFood Network Through the the nation,improvement with 21.1 frompercent a 2010 of seniors study rankage ing60 andNew over Mexico experiencing second worst in Aging Network food insecurity,the nation, but with there 21.1 remains percent muchof seniors to be age done. 60 and In overthe fourthexperiencing 53,000 quarter,food 28 insecurity,thousand peoplebut there were remains served much950 thousandto be done. meals In theby fourth 53,000 52,500 agenciesquarter, that include 28 thousandd the Indian people Area were Agency served on95 0Aging thousand and themeals by 52,500 Navajoagencies Area Agency that oninclude Aging.d the The Indian Legislature Area increasedAgency onfunding Aging for and the 52,000 Navajo Area Agency on Aging. The Legislature increased funding for 52,000 Aging Network services by $1.6 million in FY13, $1.3 million in 51,500 FY14, andAging $1.6 Network million forservices FY15. by $1.6 million in FY13, $1.3 million in 51,500 51,000 FY14, and $1.6 million for FY15. FY13 FY14 FY15 FY15 51,000 Measure Rating Actual FY13Actual FY14Target FY15Actual FY15 50,500 Measure Rating 50,500 Percent of older New Actual Actual Target Actual 50,000 MexicansPercent whose offood older New 50,000 insecurityMexicans is alleviated whose by food 60% 61% 62% 80% 49,500 meals receivedinsecurity through is alleviated the by 60% 61% 62% 80% 49,500 aging networkmeals received through the 49,000 aging network 49,000 Number of hours of respite 379,838 379,097 375,000 392,872 48,500 care providedNumber of hours of respite 379,838 379,097 375,000 392,872 48,500 48,000 care provided Program Rating 48,000 Program Rating Adult Protective Services Program. As noted in an LFC evaluation Source: ALTSD of the Adult Protective ServicesServices (APS)Program, the. Asprogram’s noted in performancean LFC evaluation Source: ALTSD measuresof thedo notAdult necessarily Protective reflect Services the (APS)actual, theprevalenc program’se of performanceadult
maltreatment.measures The do performance not necessarily measure reflect on investigation the actual prevalencvolume doese of adult not illustratemaltreatment. need and The does performance not measur emeasure the incidence on investigation of substantiated volume does Average Fine per not illustrate need and does not measure the incidence of substantiated FederallyAverage Certified Fine per maltreatment cases. Additionally, APS does not report on repeat Bed inFederally NM and Certified maltreatment,maltreatment hampering cases. the Additionally, ability to determine APS does the effectivenessnot report onof repeat SurroundingBed Statesin NM and interventions.maltreatment, The APS hampering data system the ability allows to fordetermine limited the analysis effectiveness of of Surrounding States repeat interventions.maltreatment, Thebut APS current data systemreports allowsdo not for providelimited analysisthis of $90 informationrepeat on maltreatment,an aggregate basis but. current reports do not provide this $90 $80 information on an aggregate basis. The number of APS investigations is on track to meet the year-end $80 $70 target, withThe highernumber numbers of APS of investigations investigations is related on track to publicto meet outreach the year -end $70 and greatertarget, public with higherawareness numbers of the of need investigations to report suspectedrelated to publiccases of outreach $60 adult andand elder greater abuse. public ALTSD awareness reports of there the needare no to national report suspectedbenchmark cases of $60 measuresadult comparable and elder withabuse. the ALTSD last measure reports. there are no national benchmark $50 measures comparable with the last measure. $50 FY13 FY14 FY15 FY15 $40 Measure Rating Actual FY13Actual FY14Target FY15Actual FY15 Measure Rating $40 Number of adult protective Actual Actual Target Actual $30 services investigationsNumber of adult of protective 6,092 6,665 6,000 5,931 $30 abuse, neglectservices or investigationsexploitation of $20 6,092 6,665 6,000 5,931 abuse, neglect or exploitation $20 Percent of emergency or $10 priority onePercent investigations of emergency in or which a caseworker makes $10 priority one investigations97.5% in 98.3% 98.0% 98.5% $- initial facewhich-to-face a caseworker contact with makes 97.5% 98.3% 98.0% 98.5% AZ$- CO NM TX the allegedinitial victim face within-to-face contact with AZ CO NM TX prescribedthe time alleged frames victim within Source: CMS Nursing Home Compare prescribed time frames Program Rating
Source: CMS Nursing Home Compare Program Rating
112
New Mexico Corrections Department
PERFORMANCE: New Mexico Corrections Department PERFORMANCE: New Mexico Corrections Department New Mexico has a low incarceration rate compared with surrounding New Mexico has a low incarceration rate compared with surrounding KEY ISSUES states but high rates of violent crime and and recidivism and a growing KEY ISSUES states but high rates of violent crime and and recidivism and a growing prison population, growth that led to a $7 million special appropriation prison population, growth that led to a $7 million special appropriation The New Mexico Corrections for FY15 and 3.8 percent general fund increase for FY16. While the The New Mexico Corrections for FY15 and 3.8 percent general fund increase for FY16. While the Department fell short on some Department fell short on some performance targets; including department missed the FY15 targets for recidivism among sex performance targets; including department missed the FY15 targets for recidivism among sex overall recidivism, timely releases, offenders and all offenders, department performance on those overall recidivism, timely releases, offenders and all offenders, department performance on those sex offender recidivism, and parole measures did improve over FY14 and the department reached its sex offender recidivism, and parole measures did improve over FY14 and the department reached its officer caseloads. However, the targets for recidivism that resulted from technical parole violations. officer caseloads. However, the targets for recidivism that resulted from technical parole violations. department does have a plan to department does have a plan to close these gaps, such as providing The department fared better on measures of prison violence, hitting the close these gaps, such as providing The department fared better on measures of prison violence, hitting the evidence-based recidivism targets for both inmate-on-inmate assault and inmate-on-staff assaults. evidence-based recidivism targets for both inmate-on-inmate assault and inmate-on-staff assaults. reduction programming. The reduction programming. The department achieved measures for Inmate Management and Control. A recent study by the New department achieved measures for Inmate Management and Control. A recent study by the New inmate and staff safety, as well as Mexico Sentencing Commission suggests female prison population inmate and staff safety, as well as Mexico Sentencing Commission suggests female prison population absconder apprehension target growth is driven by the length of stay more than new admissions. absconder apprehension target growth is driven by the length of stay more than new admissions. levels. levels. Female rates of violent crime have grown over time, likely leading to Female rates of violent crime have grown over time, likely leading to AGENCY IMPROVEMENT PLANS longer sentences. Adding to the growing population, a study by the AGENCY IMPROVEMENT PLANS longer sentences. Adding to the growing population, a study by the Submitted by agency? Yes New Mexico Statistical Analysis Center calculates that 67 percent of Submitted by agency? Yes New Mexico Statistical Analysis Center calculates that 67 percent of Timeline assigned by agency? No females recidivated within four years of release. The department Timeline assigned by agency? No females recidivated within four years of release. The department Responsibility assigned by agency? Yes should enhance educational programming to reduce recidivism and Responsibility assigned by agency? Yes should enhance educational programming to reduce recidivism and continue efforts to expand transitional living facilities statewide. continue efforts to expand transitional living facilities statewide.
2013 Incarceration Rate per 100,000 Residents 2013 Incarceration Rate per 100,000 Residents Oklahoma (pop. 3.9 million) Oklahoma (pop. 3.9 million) Surrounding States Texas (pop. 26.5 million) Surrounding States Texas (pop. 26.5 million) Recidivism Rates Recidivism Rates Arizona (pop. 6.6 million) Arizona (pop. 6.6 million) 0.5 0.5 Nevada (pop. 2.8 million) Nevada (pop. 2.8 million) 0.45 0.45 Wyoming (pop. 580 thousand) Wyoming (pop. 580 thousand) 0.4 0.4 Colorado (pop. 5.3 million) Colorado (pop. 5.3 million) 0.35 0.35 New Mexico (pop. 2 million) New Mexico (pop. 2 million) 0.3 0.3 Utah (pop. 2.9 million) Utah (pop. 2.9 million) 0.25 0.25 0 200 400 600 800 0 200 400 600 800 0.2 Source: Corrections Statistical Analysis Tool (CSAT) 0.2 Source: Corrections Statistical Analysis Tool (CSAT) 0.15 The leading causes of inmates serving time in prison rather than on 0.15 The leading causes of inmates serving time in prison rather than on 0.1 parole are a lack of community resources for parolees, administrative 0.1 parole are a lack of community resources for parolees, administrative issues causing parole hearings to be canceled, and inmates not issues causing parole hearings to be canceled, and inmates not 0.05 0.05 participating in the parole process. NMCD is working to reduce inmate participating in the parole process. NMCD is working to reduce inmate 0 refusal to participate in the parole process by implementing 0 refusal to participate in the parole process by implementing disciplinary measures, including a loss of accrued good time In disciplinary measures, including a loss of accrued good time In addition to the high cost of release-eligible inmates, an additional addition to the high cost of release-eligible inmates, an additional negative consequence is the release of inmates without the community Utah (2014)
negative consequence is the release of inmates without the community Texas (2011) supervision required of parolees, a public safety risk. The Legislature Utah (2014) Arizona (2015) Nevada (2011) Texas (2011) Colorado (2013) supervision required of parolees, a public safety risk. The Legislature Wyoming (2012) Oklahoma (2014) Arizona (2015) Nevada (2011) in 2015 added $500 thousand for a transitional living pilot program Colorado (2013) Wyoming (2012) New Mexico (2015) Oklahoma (2014) in 2015 added $500 thousand for a transitional living pilot program and $400 thousand to expand transitional living services for women. New Mexico (2015) and $400 thousand to expand transitional living services for women. Source: LFC files Source: LFC files The funding should reduce the number of inmates and improve The funding should reduce the number of inmates and improve recidivism rates in future years. recidivism rates in future years.
113
New Mexico Corrections Department
FY13 FY14 FY15 FY15 Measure Rating Actual ActualFY13 TargetFY14 ActualFY15 FY15 Measure Rating FY08-FY14 Female Thirty-six month recidivism Actual Actual Target Actual Admissions by Type FY08-FY14 Female rate Thirty-six month recidivism47% 47% 44% 47% 700 Admissions by Type rate 47% 47% 44% 47% Number of inmate-on-inmate 700 assaults withNumber serious ofinjury inmate -on-inmate21 9 15 12 600 assaults with serious injury 21 9 15 12 600 Number of inmate -on-staff 500 assaults withNumber serious ofinjur inmatey -on-staff5 5 4 2 5 5 4 2 500 Percent of inmatesassaults testing with serious injury 400 positive for Percentdrug use of or inmates testing 2.2% 2.0% ≤2.0% 2.6% 400 refusing to bepositive tested forin drug use or 300 random monthlyrefusing drug to tests be tested in 2.2% 2.0% ≤2.0% 2.6% 300 Percent of femalerandom offenders monthly drug tests 200 successfullyPercent released of in female offenders 200 accordance with their 77% 78% 90% 87% 100 successfully released in scheduled releaseaccordance dates with their 77% 78% 90% 87% 100 - Percent of malescheduled offenders release dates successfully released in - Percent of male offenders accordance with their 81% 78% 90% 90% successfully released in scheduled release dates 81% 78% 90% 90% Violent, property, drugs, and accordance with their public order crimes Percent of sexscheduled offenders release re- dates Violent, property, drugs, and Parole incarcerated within thirty-six 28% 41% 25% 35% public order crimes months Percent of sex offenders re- Parole incarcerated within thirty-six Other 28% 41% 25% 35% Recidivism monthsrate of offenders Other due to new charges or Source: New Mexico Sentencing Recidivism rate of offenders24% 26% 20% 23% Commission pending charges due to new charges or Source: New Mexico Sentencing 24% 26% 20% 23% CommissionRecidivism pendingrate of offenders charges due to technical parole new 22% 20% 17% Top Causes of FY15 violations Recidivism rate of offenders due to technical parole new 22% 20% 17% Parole Hearing Program Rating Top Causes of FY15 violations Cancellations 250 Parole Hearing Program Rating Community Offender Management. While probation and parole Cancellations 250 officer caseloads are down, they still exceeded the target. However, the 200 Community Offender Management. While probation and parole department maintained turnover rates well below targeted levels for officer caseloads are down, they still exceeded the target. However, the 200 probation and parole officers as well as correctional officers in public 150 facilities. departmentA 6 percent maintainedsalary increase turnover, as well rates as awell focus below on the targeted timely levels for probation and parole officers as well as correctional officers in public 150 promotion of officers, contributed to the decrease. The percent of 100 inmates testingfacilities. positive A 6 percentfor drug salary use, increaseor refusing, as thewell tests as ,a increasedfocus on the timely over the promotionyear. The ofdepartment officers, noticedcontributed an increaseto the decrease.in the use The of percent of 50 100 suboxone,inmates a drug testingprohibited positive in the for prisondrug usesystem., or refusing The department the tests, increased increased overuse theof intelligencyear. Thee departmentinformation noticedand is studyingan increase visiting in the use of 0 50 policies tosuboxone, prevent illicit a drug substances prohibited from inentering the prison the facilities. system. The department increased use of intelligence information and is studying visiting 0 FY13 FY14 FY15 FY15 Measure policies to prevent illicit substances from entering theRating facilities. Actual Actual Target Actual Transferred
Already heard Average standard caseload per FY13 FY14 FY15 FY15 Measure Rating probation and parole officer 108 105Actual 90Actual 99Target Actual Transferred
Already heard Average standard caseload per Percent of absconders Progress report packet probation and parole officer13% 12%108 26%105 28%90 99 apprehended Percent of absconders Program Rating Progress report packet 13% 12% 26% 28%
Approved or denied parole plan apprehended
Police and/or presentencing report Program Rating Source: Adult Parole Board Approved or denied parole plan
Police and/or presentencing report Source: Adult Parole Board
114
Department of Public Safety
PERFORMANCE: Department of Public Safety PERFORMANCE: Department of Public Safety
The Department of Public Safety (DPS) merged its law enforcement The Department of Public Safety (DPS) merged its law enforcement KEY ISSUES programs into one for FY16 to equalize compensation among state KEY ISSUES programs into one for FY16 to equalize compensation among state police, motor transportation, and special investigations officers and police, motor transportation, and special investigations officers and The Department of Public Safety The Department of Public Safety improve efficiency. This should help improve performance on motor struggled to meet targets for laboratory improve efficiency. This should help improve performance on motor struggled to meet targets for laboratory case backlogs and the number of transportation measures, which, with a focus on commercial trucking, case backlogs and the number of transportation measures, which, with a focus on commercial trucking, commercial motor vehicle inspections have arguably taken a back seat to measures addressing drunken driving, commercial motor vehicle inspections have arguably taken a back seat to measures addressing drunken driving, and citations issued. However, New and citations issued. However, New Mexico leads the nation as the first state violent crime, traffic safety, and other issues with strong public interest. Mexico leads the nation as the first state violent crime, traffic safety, and other issues with strong public interest. to deploy the Smart Roadside However, while the law enforcement programs mostly met performance to deploy the Smart Roadside However, while the law enforcement programs mostly met performance Inspection System which should Inspection System which should targets for FY15, the department fell short on most forensic science increase commercial vehicle safety and targets for FY15, the department fell short on most forensic science increase commercial vehicle safety and generate more in revenues for the state. measures, despite a $170 thousand budget increase specifically to clear generate more in revenues for the state. measures, despite a $170 thousand budget increase specifically to clear the labs backlogs. the labs backlogs. AGENCY IMPROVEMENT PLANS AGENCY IMPROVEMENT PLANS Submitted by agency? Yes Law Enforcement Program. DPS struggles to recruit and retain Submitted by agency? Yes Law Enforcement Program. DPS struggles to recruit and retain Timeline assigned by agency? Yes officers, with vacancy rates reaching 17 percent in recent years. Timeline assigned by agency? Yes officers, with vacancy rates reaching 17 percent in recent years. Responsibility assigned by agency? Yes Manpower should increase over the next two years as a result of Responsibility assigned by agency? Yes Manpower should increase over the next two years as a result of consolidation and a new pay plan. The Legislature appropriated $3 consolidation and a new pay plan. The Legislature appropriated $3 million in FY15 and $3.2 million in FY16 to implement the first two million in FY15 and $3.2 million in FY16 to implement the first two phases of the officer salary plan. Increased manpower should improve phases of the officer salary plan. Increased manpower should improve New Mexico Crime measures in the program, especially the number of DWI arrests. For the New Mexico Crime measures in the program, especially the number of DWI arrests. For the Rates first six months of FY15, 70 fatalities in the state involved alcohol, the Rates first six months of FY15, 70 fatalities in the state involved alcohol, the 80,000 80,000 same number as the first half of 2014 when alcohol involved fatalities same number as the first half of 2014 when alcohol involved fatalities totaled 165 for the year. 70,000 totaled 165 for the year. 70,000
FY13 FY14 FY15 FY15 FY13 FY14 FY15 FY15 60,000 Measure Rating 60,000 Measure Rating Actual Actual Target Actual Actual Actual Target Actual 50,000 Number of DWI arrests 50,000 Number of DWI arrests per patrol officer 8 8 12 9 per patrol officer 8 8 12 9
40,000 40,000 Number of DWI Number of DWI checkpoints and 30,000 checkpoints and 30,000 saturation patrols 1,117 915 1,175 1,051 saturation patrols 1,117 915 1,175 1,051 conducted conducted 20,000 20,000 Number of traffic- Number of traffic- related enforcement 10,000 related enforcement 10,000 1,209 1,692 1,250 2,542 1,209 1,692 1,250 2,542 projects held projects held
- - Number of criminal Number of criminal 2009 2010 2011 2012 2009 2010 2011 2012 cases investigated per cases investigated per full-time-equivalent full-time-equivalent 55 58 60 57 55 58 60 57 position assigned to Property Crime Total position assigned to Property Crime Total patrol and investigations patrol and investigations Violent Crime Total Violent Crime Total Number of drug-related Number of drug-related Source: Federal Bureau of investigations Source: Federal Bureau of investigations Investigations Investigations conducted by conducted by
commissioned commissioned personnel per full-time- 4.6 6.3 8.0 25.7 personnel per full-time- 4.6 6.3 8.0 25.7 equivalent position equivalent position Among neighboring states in 2013, assigned to Among neighboring states in 2013, assigned to the most recent year of crime investigations the most recent year of crime investigations statistics available, New Mexico statistics available, New Mexico Number of data-driven had the highest rate of violent Number of data-driven had the highest rate of violent crime and traffic crime and traffic New 1,868 500 1,499 crime, 162 percent of the national New 1,868 500 1,499 crime, 162 percent of the national initiatives conducted initiatives conducted average, and led the nation in rates average, and led the nation in rates of aggravated assault. of aggravated assault.
115
Department of Public Safety
Number ofNumber licensed of licensed alcohol premisesalcohol premises inspectionsinspections conducted conducted LaboratoryLaboratory Cases Cases 95 95 360 360 150 150 270 270 ReceivedReceived per Fiscal per Fiscal per agentper assigned agent assignedto to alcohol enforcementalcohol enforcement Year Year duties duties 4,500 4,500 Program Program Rating Rating 4,000 4,000
3,500 3,500 MotorMotor Transportation Transportation Program Program. DPS. DPSmerged merged the Motorthe Motor 3,000 3,000 TransportationTransportation Division, Division, Special Special Investigations Investigations Division, Division, and the and New the New 2,500 2,500 MexicoMexico State PoliceState PoliceDivision Division into one into program one program effective effective July 1, July 2015. 1, 2015. 2,000 2,000 The consolidationThe consolidation was intended was intended to eliminate to eliminate fragmented fragmented operations, operations, 1,500 1,500 difficultiesdifficulties in communicati in communications, redundancy,ons, redundancy, limited limited career careeropportunities, opportunities, and lackand of lack equitable of equitable pay. Thepay. consolidation The consolidation and the and recruitment the recruitment of of cases received 1,000 cases received 1,000 qualifiedqualified transportation transportation inspectors inspectors should should help increase help increase the number the number of of 500 500 commercialcommercial carrier carrierinspections inspections and citations and citations issued .issued . - - 13 14 13 14 FY13 FY13FY14 FY14FY15 FY15FY15 FY15 FY11 FY10 FY12 FY FY FY15 FY11 FY10 FY12 FY FY FY15 MeasureMeasure Rating Rating Actual ActualActual ActualTarget TargetActual Actual ChemistryChemistry Number ofNumber commercial of commercial motor motor vehicle inspectionsvehicle inspections 86,013 86,01373,988 73,98890,000 90,00063,769 63,769 DNA DNA Number ofNumber commercial of commercial motor motor vehicle citationsvehicle issuedcitations issued 27,617 27,61725,188 25,18830,000 30,00025,366 25,366 Latent PrintLatent Print
Number ofNumber noncommercial of noncommercial motor motor Firearms and 14,294 14,29413,159 13,15914,000 14,00015,316 15,316 Firearms and vehicle citationsvehicle issuedcitations issued ToolmarksToolmarks ProgramProgram Rating Rating Source: DepartmentSource: Departmentof Public Safetyof Public Safety
StatewideStatewide Law Enforcement Law Enforcement Support. Support. The department The department faces a faces critical a critical backlogbacklog in forensic in forensic cases. cases.For FY16, For FY16,the department the department received received a $170 a $170 LaboratoryLaboratory Backlog Backlog per Disciplineper Discipline per per thousandthousand increase increase in the inbase the operating base operating budget budget to clear to theclear backlog the backlog of of Fiscal FiscalYear Year cases. Thecases laboratories. The laboratories currently currently have 11 have vacancies 11 vacancies, an increase, an in creasefrom six from six 2,000 2,000 at the endat the of endFY14, of FY14,according according the the the department’s the department’s performance performance reports. reports. 1,800 1,800 FY13 FY13FY14 FY14FY15 FY15FY15 FY15 1,600 1,600 MeasureMeasure Rating Rating Actual ActualActual ActualTarget TargetActual Actual 1,400 1,400 Percent ofPercent all forensic of all casesforensic cases 1,200 1,200 completedcompleted per filled perfull fil-timeled -full-time- 1,000 1,000 equivalentequivalent position withinposition thirty within thirty 61% 61%39% 39%56% 56%15% 15% working daysworking days 800 800 600 600 Percent ofPercent DNA casesof DNA completed cases completed per per filled fullfilled-time -fullequivalent-time-equivalent position position 38% 38%35% 35%40% 40%21% 21% cases pending 400 cases pending 400 within thirtywithin working thirty daysworking days 200 200 Percent ofPercent forensic of latentforensic fingerprint latent fingerprint - - cases completedcases completed per filled perfull filled-time -full-time- 13 13 equivalentequivalent position withinposition thirty within thirty 74% 74%13% 13%60% 60%9% 9% FY10 FY11 FY12 FY FY14 FY15 FY10 FY11 FY12 FY FY14 FY15 working daysworking days
ChemistryChemistry Percent ofPercent forensic of firearmforensic and firearm tool- and tool- mark casesmark completed cases completed per filled perfull filled- full- DNA DNA time-equivalenttime-equivalent position withinposition within 42% 42%46% 46%40% 40%49% 49% thirty workingthirty daysworking days Latent PrintLatent Print Percent ofPercent forensic of chemistryforensic chemistry cases cases FirearmsFirearms and and completedcompleted per filled perfull filled-time -full-time- 67% 67%49% 49%85% 85%10% 10% ToolmarksToolmarks equivalentequivalent position withinposition thirty within thirty Source: DepartmentSource: Department of Public Safetyof Public Safetyworking daysworking days
ProgramProgram Rating Rating
116 Administrative Office of the Courts
PERFORMANCE: Administrative Office of the Courts PERFORMANCE: Administrative Office of the Courts
Despite continuing issues with juror costs, the Administrative office of the Despite continuing issues with juror costs, the Administrative office of the KEY ISSUES Courts (AOC) exceeded most targets. The office completed implementation of KEY ISSUES Courts (AOC) exceeded most targets. The office completed implementation of the electronic case management system in all courts except the Court of the electronic case management system in all courts except the Court of The Administrative Office of the Courts The Administrative Office of the Courts continues to struggle to contain costs Appeals, and the number of children assigned to the Court Appointed Special continues to struggle to contain costs Appeals, and the number of children assigned to the Court Appointed Special in the jury and witness fund, with the Advocates program (CASA) volunteers increased from 1,795 in FY14 to in the jury and witness fund, with the Advocates program (CASA) volunteers increased from 1,795 in FY14 to average cost per juror continuing to 1,855 in FY15. However, the Magistrate Court bench warrant revenue was average cost per juror continuing to 1,855 in FY15. However, the Magistrate Court bench warrant revenue was increase. Drug court programs increase. Drug court programs continue to perform well, with slightly below that in FY14 and FY13, and the AOC used $51.2 thousand of continue to perform well, with slightly below that in FY14 and FY13, and the AOC used $51.2 thousand of participants experiencing a 21 percent FY16 funds to pay for FY15 interpreters, witnesses, and jurors. participants experiencing a 21 percent FY16 funds to pay for FY15 interpreters, witnesses, and jurors. recidivism rate, well below the 47 recidivism rate, well below the 47 percent rate reported by corrections. Administrative Support. The average cost per juror increased for the fourth percent rate reported by corrections. Administrative Support. The average cost per juror increased for the fourth
AGENCY IMPROVEMENT PLANS consecutive year to $59.85, exceeding the target level of $50. AGENCY IMPROVEMENT PLANS consecutive year to $59.85, exceeding the target level of $50. Submitted by agency? No Submitted by agency? No FY13 FY14 FY15 FY15 FY13 FY14 FY15 FY15 Timeline assigned by agency? No Measure Rating Timeline assigned by agency? No Measure Rating Actual Actual Target Actual Actual Actual Target Actual Responsibility assigned by agency? No Responsibility assigned by agency? No
Average cost per juror $51.93 $55.40 $50.00 $59.85 Average cost per juror $51.93 $55.40 $50.00 $59.85
Program Rating Average Cost per Program Rating Average Cost per Juror Juror Magistrate Court Program. Magistrate courts disposed of 105.3 percent of Magistrate Court Program. Magistrate courts disposed of 105.3 percent of cases filed in the fourth quarter, for a total clearance rate of 101.9 percent in cases filed in the fourth quarter, for a total clearance rate of 101.9 percent in $60 $60 FY15. This marks the fourth consecutive year magistrate courts cleared more FY15. This marks the fourth consecutive year magistrate courts cleared more than 100 percent of cases. than 100 percent of cases. $50 $50 FY13 FY14 FY15 FY15 Rating FY13 FY14 FY15 FY15 Rating Measure Measure $40 Actual Actual Target Actual $40 Actual Actual Target Actual Bench warrant revenue collected Bench warrant revenue collected annually, in millions $3.3 $3.3 $3.1 $3.27 annually, in millions $3.3 $3.3 $3.1 $3.27 $30 $30
Percent of cases disposed as a percent of Percent of cases disposed as a percent of $20 cases filed 100% 100% 95% 100% $20 cases filed 100% 100% 95% 100%
Program Rating Program Rating $10 $10
Special Court Services. In FY15, the CASA program increased the number Special Court Services. In FY15, the CASA program increased the number $0 $0 of supervised child visitations and exchanges and the number of children of supervised child visitations and exchanges and the number of children assigned to CASA volunteers. The drug court intent-to-treat recidivism rate, assigned to CASA volunteers. The drug court intent-to-treat recidivism rate, which tracks all program participants over the last three years, remained which tracks all program participants over the last three years, remained Source: LFC Files Source: LFC Files roughly the same, dropping by only 0.09 percent from FY14. roughly the same, dropping by only 0.09 percent from FY14.
FY13 FY14 FY15 FY15 FY13 FY14 FY15 FY15 Rating Rating The number of paid jurors Measure Actual Actual Target Actual The number of paid jurors Measure Actual Actual Target Actual decreased from 65,726 in FY14 to Number of cases to which court- decreased from 65,726 in FY14 to Number of cases to which court- 59,876 in FY15. appointed special advocates 59,876 in FY15. appointed special advocates 862 1,024 1,000 1,010 862 1,024 1,000 1,010 volunteers are assigned volunteers are assigned In FY15, the Special Court In FY15, the Special Court Services Program provided an Recidivism rate for drug court Services Program provided an Recidivism rate for drug court average 1,396 supervised child participants statewide new 21.5% N/A 21.4% N/A average 1,396 supervised child participants statewide new 21.5% N/A 21.4% N/A visitations and exchanges per visitations and exchanges per month, exceeding its target of Program Rating month, exceeding its target of Program Rating
1,000 and its FY14 monthly 1,000 and its FY14 monthly average of 1,016. average of 1,016.
117 Department of Transportation
PERFORMANCE:PERFORMANCE: Department Department of Transportation of Transportation
PerformancePerformance results for results the New for the Mexico New DepartmentMexico Department of Transportation of Transportation KEY ISSUES (NMDOT) are mixed. The total number of traffic fatalities – including KEY ISSUES (NMDOT) are mixed. The total number of traffic fatalities – including alcohol-related – decreased slightly. With the exception of the number The Department of Transportation alcohol-related – decreased slightly. With the exception of the number The Department of Transportationof state wide miles preserved, measures for road and highway continues to struggle to maintain New of statewide miles preserved, measures for road and highway Mexico’scontinues transportation to struggle infrastructure to maintain condition New s are not available for FY15. The department placed an Mexico’s transportation infrastructure conditions are not available for FY15. The department placed an within the current budget. The emphasis on the final cost-over-bid amounts on contracts and made departmentwithin continues the tocurrent meet targetsbudget. The emphasis on the final cost-over-bid amounts on contracts and made department continues to meet targetssignificant progress in this area, and though there was an increase from for pavement preservation but without significant progress in this area, and though there was an increase from additionalfor fundingpavement it preservationwill likely fallbut withoutFY14 to FY15, NMDOT remained under the target level. The number additional funding it will likely fall behind. of ridersFY14 on Parkto FY15, and NMDOTRide and remainedRail Runner under declined the target as levelthe .Rail The number behind. of riders on Park and Ride and Rail Runner declined as the Rail Runner continues to underperform. NMDOT made considerable progressR unnerin lowering continue vacancys to ratesunder andperform has the. NMDOT lowest vacancy made rateconsiderable Number of Alcohol- progress in lowering vacancy rates and has the lowest vacancy rate RelatedNumber Traffic of Alcohol- since FY08. FatalitiesRelated Traffic since FY08. 180 Fatalities Programs and Infrastructure. The number of traffic and alcohol- 180 Programs and Infrastructure. The number of traffic and alcohol- 160 related fatalities decreased slightly from FY14 and remains
160 169 significantlyrelated below fatalities the FY12 decreased peak as aslig resulthtly offrom high -visibiFY14lity andlaw remains
140 169 enforcementsignificantly operations below. The the percent FY12 ofpeak bridges as a inresult fair ofcondition high-visibi or lity law 140147 enforcement operations. The percent of bridges in fair condition or 120 137 better is far above the FY15 target and NMDOT anticipates conditions 147 133
120 137 to continuebetter to isimprove far above given the theFY15 current target level and of NMDOT funding . anticipatesThe percent conditions 120 100 133 of projectsto continue let, or made to improve available given for thebid, current as scheduled level of exp fundingerienced. The a percent 100 120 80 102 significantof projectsdecrease let. The, or percentmade available of airport for runways bid, as in scheduled satisfactory exp orerienced a 80 102 60 better csignificantondition remains decrease below. The FY13percent levels of airport, but modest runways year in- oversatisfactory- or 60 year progressbetter cisondition reported remains. The annual below number FY13 oflevels Rail, butRunn modester riders year -over- 40 continuesyear to progressdecline andis reportedis at its. lowestThe annual level numbersince NMDOT of Rail began Runn er riders 20 40 trackingcontinues ridership into FY10decline. and is at its lowest level since NMDOT began
20 0 tracking ridershipFY1 in3 FY10 FY14. FY15 FY15 Measure Rating 0 Actual FY1Actual3 FY14Target FY15Actual FY15 FY10 FY11 FY12 FY13 FY14 FY15 Measure Rating Number of traffic Actual Actual Target Actual fatalities 304 343 ≤345 331 FY10 Source:FY11 NMDOTFY12 FY13 FY14 FY15 Number of traffic
304 343 ≤345 331 Source: NMDOTNumber offatalities alcohol -
related fatalities 120 137 ≤130 133 Number of alcohol- Number ofrelated non- fatalities 120 137 ≤130 133 Rail Runner Express alcohol-related 184 206 ≤215 198 Ridership fatalities Number of non- 1,400 Rail Runner4,500 Express alcohol-related Ridership 184 206 ≤215 198 4,000 Percent offatalities bridges in 1,200 1,400 4,500 fair condition or better, 93% 94% ≥75% 95% 3,500 based on Percentdeck area of bridges in 1,000 1,200 4,000 3,000 fair condition or better, 3,500 93% 94% ≥75% 95% 800 1,000 2,500 Percent ofbased airport on deck area 3,000 runways in satisfactory 66% 50% ≥60% 53% 600 2,000 800 2,500 or better conditionPercent of airport 1,500 runways in satisfactory 66% 50% ≥60% 53% 400 600 2,000 Number of pedestrian 1,000 or better condition 54 58 ≤45 60 200 1,500 fatalities 400 500 Number of pedestrian passengers in thousands 1,000 0 0 Ride qualityfatalities index for 54 58 ≤45 60 200 average weekday ridership 11 12 13 14 15 500 new construction 4.2 4.2 ≥4.0 4.2 passengers in thousands fiscal0 year 0 Ride quality index for Percentaverage weekday ridership of final cost- 11 12 13 14 15 new construction 4.2 4.2 ≥4.0 4.2 Total Passenger Trips over-bid amount on fiscal year highway constructionPercent of final cost3.5- % 1.0% ≤3.0% 2.0% Average Weekday Total Passenger Trips projects over-bid amount on Ridership highway construction 3.5% 1.0% ≤3.0% 2.0% Average Weekday Percent of projects in Source: NMDOT projects Ridership production let as 63% 70% ≥70% 50%
scheduledPercent of projects in Source: NMDOT production let as 63% 70% ≥70% 50%
118 scheduled
Department of Transportation
Annual number of Annual number of riders on park and ride 312,320 315,738 ≥300,000 291,892 riders on park and ride 312,320 315,738 ≥300,000 291,892 Number of Pavement Annual number of Number of Pavement Annual number of Miles Preserved riders on the rail Miles Preserved riders on the rail 1.2 1.1 ≥1.2 1.0 1.2 1.1 ≥1.2 1.0 Statewide runner, in millions Statewide runner, in millions
3,500 3,500 Program Rating Program Rating
3,000 3,000 Transportation and Highway Operations. Performance results are Transportation and Highway Operations. Performance results are difficult to ascertain because data on critical measures related to road difficult to ascertain because data on critical measures related to road 2,500 2,500 and highway conditions are assessed on an annual basis and FY15 data and highway conditions are assessed on an annual basis and FY15 data 2,000 will not be available until June, 2016. FY14 condition assessments 2,000 will not be available until June, 2016. FY14 condition assessments show deterioration in the condition of non-interstate roads statewide. show deterioration in the condition of non-interstate roads statewide. 1,500 1,500 Without a significant increase in funding, it is likely that roads will Without a significant increase in funding, it is likely that roads will 1,000 continue to deteriorate. 1,000 continue to deteriorate.
FY13 FY14 FY15 FY15 FY13 FY14 FY15 FY15 500 Measure Rating 500 Measure Rating Actual Actual Target Actual Actual Actual Target Actual Percent of non- Percent of non- - - interstate lane miles interstate lane miles 70% 68% ≥85% n/a 70% 68% ≥85% n/a rated good rated good Percent of interstate Percent of interstate Source: NMDOT lane miles rated good 94% 93% ≥95% n/a Source: NMDOT 94% 93% ≥95% n/a lane miles rated good Number of combined Number of combined systemwide miles in systemwide miles in 8,128 6,652 ≤3,500 n/a 8,128 6,652 ≤3,500 n/a deficient condition deficient condition Number of statewide Number of statewide pavement miles pavement miles 3,139 2,889 ≥2,750 2,611 3,139 2,889 ≥2,750 2,611 preserved preserved NMDOT Vacancy NMDOT Vacancy Amount of litter Amount of litter Rate Rate collected from collected from 25% 25% department roads, in 6,825 6,201 ≥11,000 6,484 department roads, in 6,825 6,201 ≥11,000 6,484 tons tons 19% 19% 20% Customer satisfaction at 20% Customer satisfaction at 99% 99% ≥98% 99% 99% 99% ≥98% 99% 17% rest areas 17% rest areas 16% 16% 16% 16% 14% 14% Program Rating 14% Program Rating 15% 15% 14%
12% Business Support. Although NMDOT did not meet the target vacancy 12% Business Support. Although NMDOT did not meet the target vacancy rate, the agency has the lowest vacancy rate since the beginning of the rate, the agency has the lowest vacancy rate since the beginning of the 10% 10% recession in FY08. recession in FY08.
FY13 FY14 FY15 FY15 FY13 FY14 FY15 FY15 5% Measure Rating 5% Measure Rating Actual Actual Target Actual Actual Actual Target Actual Vacancy rate in all Vacancy rate in all programs 16% 14% ≤11% 12% 16% 14% ≤11% 12% programs 0% 0% Number of employee Number of employee injuries occurring in
injuries occurring in FY09 FY10 FY11 FY12 FY13 FY14 FY15 19 28 ≤50 27 FY09 FY10 FY11 FY12 FY13 FY14 FY15 19 28 ≤50 27 work zones work zones Source: NMDOT Source: NMDOT Number of employee Number of employee 81 106 ≤90 95 81 106 ≤90 95 injuries injuries Program Rating Program Rating
119
Department of Information Technology
PERFORMANCE: Department of Information Technology PERFORMANCE: Department of Information Technology The Department of Information Technology (DoIT) made substantial KEY ISSUES The Departmentprogress withof Information respect to Technology answering (DoIT)help desk made calls substantial by priority. KEY ISSUES progressHowever, with respect the department to answering fared poorlyhelp deskregarding calls a bnewy priority. measure that The department would benefit However,from tracks the the department percent of fared staff poorly (for the regarding Enterprise a newServices measure Program that only) a better understanding of the quality The department would benefit from tracks thewho percent receive ofat staffleast (for24 hours the Enterprise of training Services in their respectiveProgram only)technology a better andunderstanding cost-effectiveness of the quality of the and costservices-effectiveness it provides. ofFor example,the who a receivefield. atLFC least staff 24 hoursrecommends of training the in measure their respective also apply technology to employees servicesbroad it provides. satisfaction For example, survey submitted a field. LFCwithin staff the Compliancerecommends and the Project measure Management also apply Program; to employees these 7 FTE broad satisfactionto its client survey agencies submitted would allowwithin arethe responsibleCompliance for and the Project oversight Management of the hundre Program;ds of thesemillions 7 FTE in annual to its clientthe department agencies wouldto learn allow the degreeare responsible state IT investments. for the oversight of the hundreds of millions in annual to which the department is meeting the department to learn the degree state IT investments. to whichstate the departmentagency needs. is meeting Slow progress continues on the department’s efforts to upgrade the state agency needs. AGENCY IMPROVEMENT PLANSSlow pstate’srogress SHAREcontinues accounting on the d epartmentsystem as’s effortswell asto workupgradeing thewith the AGENCYSubmitted IMPROVEMENT by agency? PLANS state’s No DepartmentSHARE accounting of Finance system and asAdministration well as work toing improve with theSHARE SubmittedTimeline by agency? assigned by agency? No Department No business of practicesFinance. Whiand leAdministration DoIT has not providedto improve a timelineSHARE for the Timeline Resassignedponsibility by agency? assigned by agency? No business No upgrade, practices the. departmentWhile DoIT anticipates has not providedat least another a timeline 15 months for the will be Responsibility assigned by agency? No upgrade,required. the department anticipates at least another 15 months will be required. Finally, the chair of the state’s Information Technology Commission Finally,resigned the chair at ofthe the end state’s of theInformation year and Technology a replacement Commission has yet to be resignedannounced. at the end In theof chair’sthe year resignation and a replacement letter, he noted has ayet number to be of high announced.priority In theissues chair’s the resignation ITC has letter,yet to he address,noted a numberincluding of highthat ITC prioritylegislation issues the is ITCoutdated has andyet tothat address, the body including has yet thatto adequatelyITC legislationdetermine is outdated how it canand best that “add the value body.” has yet to adequately determine how it can best “add value.” Compliance and Project Management. At the end of FY15, there DoIT FY14 Funding by Compliancewere 74 an departmentd Project -Managementcertified IT projects. At the at anend estimated of FY15, cost there of $242 DoIT FY14 FundingDivision by were 74million. department While-certified the program IT p rojectshas no atmeasures an estimated to capture cost ofthe $ 242quality or Division(in thousands) million.cost While-effectiveness the program of thehas servicesno measures it provides, to capture it continues the quality to releaseor a Program(in thousands)Budget FTE cost-effectivenessquarterly “green of the-yellow services-red” it provides,performance it continues report for to state release IT projectsa ProgramEnterpriseBudget FTE quarterlywith “green the largest-yellow budgets.-red” performance report for state IT projects Svc $51,940.70 168 Enterprise with the largest budgets. FY13 FY14 FY15 FY15 Svc Compliance$51,940.70 168 Measure Rating Actual Actual Target Actual and Proj Mgt $860.00 7 FY13 FY14 FY15 FY15 Compliance MeasureNumber and appropriated Rating Actual Actual Target Actual and Proj MgtProg Sup $860.00$3,293.60 7 35 budget of executive agency Number and appropriated 64 84 74 certified projects reviewed n/a informative Prog SupEquip $3,293.60 35 budget of executive agency $340M $407M $242M monthly for compliance and64 84 74 Replace $5,824.90 n/a certified projects reviewed n/a informative Equip oversight requirements $340M $407M $242M monthly for compliance and Replace Total $5,824.90$61,919.20 n/a 210 Program Rating n/a oversight requirements Source: FY14 DoIT Operating Budget Total $61,919.20 210 Program Rating n/a Note: The Compliance and Project Enterprise Services. The program met performance targets for Source: FY14 DoIT Operating Budget Management Program is the only program mainframe availability and the SHARE financials system. The Note: The Compliancefunded with andgeneral Project fund revenues.Enterprise Services. The program met performance targets for Management Program is the only program mainframe program availability made substantial and the progressSHARE overfinancials the past system. two yearsThe with funded with general fund revenues. programrespect made to substantialanswering helpprogress desk callsover bythe priority, past two meeting years or withexceeding respectall to priorityanswering targets. help desk calls by priority, meeting or exceeding
all priority targets. FY13 FY14 FY15 FY15 Measure Rating Actual Actual Target Actual FY13 FY14 FY15 FY15 MeasureService Desk Calls by Priority: Rating Actual Actual Target Actual Service DeskPriority Calls 1 (8 by hours) Priority: 64% 71% 90% 100%
Priority 1Priority (8 hours) 2 (24 hours) 64% 37%71% 54%90% 90%100% 90%
Priority 2Priority (24 hours) 3 (40 hours) 37% 51%54% 92%90% 90%90% 93%
Priority 3Priority (40 hours) 4 (80 hours) 51% 83%92% 100%90% 90%93% 100%
Priority 4Priority (80 hours) 5 (160 hours) 120 83% 100%100% 100%90% 90%100% 100%
Priority 5 (160 hours) 100% 100% 90% 100%
Department of Information Technology Department of Information Technology Queue-time to reach a customer service representative at the DoIT help 12 9 <19 9 Queue-time to reach a desk, in seconds customer service Percent of mainframe uptime representative at the DoIT help 12 9 <19 9 affecting user access or batch desk, in seconds In the 2015 legislative session DoIT 100% 99.8% 99.9% 99.9% received $400 thousand for scheduling
Percent of mainframe uptime implementation of the state’s one- affecting user access or batch Percent of scheduled uptime In the 2015 legislative session DoIT 100% 99.8% 99.9% 99.9% stop business portal, designed to the statewide human resources received $400 thousand for scheduling provide a free, user-friendly, management reporting searchable and public website to implementation of the state’s one- Percent of scheduled uptime (SHARE financials) is 99.6% 99.3% 99.9% 99.9% allow businesses to simplify their stop business portal, designed to the statewide human resources available during business online transactions with state provide a free, user-friendly, management reporting hours agencies. searchable and public website to (SHARE financials) is 99.6% 99.3% 99.9% 99.9% allow businesses to simplify their available during business Percent of staff who receive a online transactions with state hours minimum of 24 hours of new new 60% 13% agencies. training in their specific Percent of staff who receive a technology field (annual) minimum of 24 hours of new new 60% 13% Program Rating training in their specific
technology field (annual) Program Support. Collection of accounts receivables is cyclical, with Program Rating collections typically increasing in the third and fourth quarters of the year. For the second year, collections within 60 days of the invoice Program Support. Collection of accounts receivables is cyclical, with due date exceeded the FY15 target of 75 percent and dollar amount of collections typically increasing in the third and fourth quarters of the receivables over sixty days remained low. year. For the second year, collections within 60 days of the invoice due date exceeded the FY15 target of 75 percent and dollar amount of FY13 FY14 FY15 FY15 Measure Rating receivables over sixty days remained low. Actual Actual Target Actual Percent of accounts FY13 FY14 FY15 FY15 Measure Rating receivable dollars collected Actual Actual Target Actual within sixty days of the 45% 83% 75% 81% Percent of accounts invoice due date receivable dollars collected within sixty days of the 45% 83% 75% 81% Dollar amount of account invoice due date receivables over sixty says, $7.1 $5 $7.5 $4.2 in millions Dollar amount of account Program Rating receivables over sixty says, $7.1 $5 $7.5 $4.2 in millions Program Rating
121 Department of Environment
PERFORMANCE: Department of Environment PERFORMANCE: Department of Environment The Department of Environment is meeting inspection and permitting KEY ISSUES targets;The however, Department most of of Environment the measures is meeting for FY15 inspection were andprocess permitting- KEY ISSUES orientedtargets; rather thanhowever, indicators most ofof environmental the measures protection for FY15 and were health process. - In 2013, the most recent year for which oriented rather than indicators of environmental protection and health. data is available,In 2013, theNew most Mexico recent againyear for Executivewhich and legislative staff worked to improve the measures ranked worsedata is available,than average New Mexicofor beginningagain Executive in FY17 and by legislativeremoving staffmany workedof the outputto improve measures the andmeasures workplace rankedfatalities worse with 6.7than per average100 revising for beginning others to focusin FY17 on theby effectivenessremoving many of theof agency’sthe output inspection measures and thousand workersworkplace – doublefatalities the with national 6.7 per 100 revising others to focus on the effectiveness of the agency’s inspection rate of 3.3.thousand Although workers fatality – doublerates are the nationaland compliance efforts. The agency may begin reporting on some of affected byrate a ofstate’s 3.3. Althoughmajor industries, fatality rates the are revised and measurescompliance in effortsFY16.. The agency may begin reporting on some of New Mexico’saffect occupationaled by a state’s fatality major rate industries, the revised measures in FY16. New Mexico’s occupational fatality rate for mining and oil and gas extraction Environmental Health. Inspection results and the number of public was more forthan mining three andtimes oil higher and gasthan extraction Environmental Health. Inspection results and the number of public the rate inwas Texas more and than nearly three five times times higher water than systems not in compliance with standards would be more water systems not in compliance with standards would be more the rate inthe Oklahoma. rate in Texas Nearly and two nearly-thirds, five valuabletimes measures than the percent of systems surveyed or inspected. or 64 percent,the rate inof Oklahoma. 2013 workplace Nearly two -thirds, valuable measures than the percent of systems surveyed or inspected. or 64 percent, of 2013 workplaceThe percent of New Mexicans served by water systems meeting such fatalities in New Mexico were attributed The percent of New Mexicans served by water systems meeting such to transportationfatalities inincidents, New Mexico compared were attributed standards increased during FY15 but fell slightly short of the to transportation incidents, compared standards increased during FY15 but fell slightly short of the with 59 percent for Oklahoma and 43 performance target. While the agency continued to meet the target for percent forwith Texas. 59 percentNMED does for Oklahoma not have and 43 performance target. While the agency continued to meet the target for percent for Texas. NMED does not have jurisdiction over road or traffic correctingcorrecting food-related food- relatedviolations violations in 2014, in 2014,New Mexico’sNew Mexico’s foodborne foodborne conditionsj urisdictionbut can call overon employers road toor traffic conditions but can call on employersillness to rate increased, albeit slightly, for the first time in the past five take steps to improve safety. While the illness rate increased, albeit slightly, for the first time in the past five take steps to improve safety. While the agency does not have a written years. agency does not have a written years. corrective action plan, the Occupational corrective action plan, the Occupational Health and Safety Bureau annually FY13 FY14 FY15 FY15 Health and Safety Bureau annuallyMeasure FY13 FY14 FY15 FY15Rating reviews the industries and activities with Measure Actual Actual Target Actual Rating reviews the industries and activities with Actual Actual Target Actual the highestthe rates highest of injury rates andof injury death and to deathPercent to ofPercent public of water public water inform policyinform and policy operations and operations. . systems surveyedsystems surveyed to ensure to ensure 95% 95%93% 93%96% 96%97% 97% compliancecompliance with drinking with drinking AGENCY AGENCYIMPROVEMENT IMPROVEMENT PLANS PLANS water regulationswater regulations
SubmittedSubmitted by agency? by agency? No No Percent populationPercent population served by served by Timeline assignedTimeline byassigned agency? by agency? Yes Yes communitycommunity water systems water systemsthat thatn/a 95% 100% 99% Responsibility assigned by agency? Yes n/a 95% 100% 99% Responsibility assigned by agency?meet Yes all applicablemeet all applicable health- health- based standardsbased standards
Percent ofPercent high-risk of high food-risk- food- Surface Water related violationsrelated violations corrected corrected 92% 92%99% 99%100% 100%100% 100% Surface Water ImpairmentImpairment within thewithin timeframes the timeframes noted noted (percent of(percent assessed of assessed on the inspectionon the inspection report report waters) waters) ProgramProgram Rating Rating
0.95 0.95 ResourceResource Protection Protection. Although. Although measures measures track trackwhether whether permitted permitted 0.9 0.9 facilitiesfacilities are complying are complying with groundwaterwith groundwater standards, standards, the program’s the program’s 0.85 0.85 performanceperformance results resultsdo little do to little indicate to indicate whether whether pollution pollution is prevented is prevented 0.8 0.8 or wateror quwaterality quisality improving. is improving. Additional Additional results results-oriented-oriented measures, measures, 0.75 0.75 like thelike percentage the percentage of surface of surface waters waterimpaireds impaired, should, should be adopted. be adopted.
0.7 FY13 FY14 FY15 FY15 0.7 Measure FY13 FY14 FY15 FY15 Rating Measure Actual Actual Target ActualRating 0.65 0.65 Actual Actual Target Actual Percent ofPercent permitted of permitted facilities facilities 0.6 0.6 where monitoringwhere monitoring results results demonstrate compliance with71% 71%70% 70%72% 72%66% 66% 0.55 0.55 demonstrate compliance with groundwaterground standardswater standards
0.5 0.5 2008 201020082012201020142012 2014Percent ofPercent underground of underground storage storage tank facilitiestank facilitiesin significant in significant Rivers and Streams Rivers and Streams operationaloperational compliance compliance with with release prevention and release 60% 83% 70% 77% release prevention and release 60% 83% 70% 77% Lakes, Reservoirs, and detection requirements of the Lakes, Reservoirs, and detection requirements of the Ponds petroleum storage tanks Ponds petroleum storage tanks Source: EPA regulations Source: EPA regulations Program Rating Program Rating
122 Environmental Protection. New Mexico continues to have higher Environmental Protection. New Mexico continues to have higher PERFORMANCE: Department of Environment
The Department of Environment is meeting inspection and permitting KEY ISSUES targets; however, most of the measures for FY15 were process- oriented rather than indicators of environmental protection and health. In 2013, the most recent year for which data is available, New Mexico again Executive and legislative staff worked to improve the measures ranked worse than average for beginning in FY17 by removing many of the output measures and workplace fatalities with 6.7 per 100 revising others to focus on the effectiveness of the agency’s inspection thousand workers – double the national rate of 3.3. Although fatality rates are and compliance efforts. The agency may begin reporting on some of affected by a state’s major industries, the revised measures in FY16. New Mexico’s occupational fatality rate for mining and oil and gas extraction was more than three times higher than Environmental Health. Inspection results and the number of public the rate in Texas and nearly five times water systems not in compliance with standards would be more the rate in Oklahoma. Nearly two-thirds, valuable measures than the percent of systems surveyed or inspected. or 64 percent, of 2013 workplace fatalities in New Mexico were attributed The percent of New Mexicans served by water systems meeting such to transportation incidents, compared standards increased during FY15 but fell slightly short of the with 59 percent for Oklahoma and 43 performance target. While the agency continued to meet the target for percent for Texas. NMED does not have jurisdiction over road or traffic correcting food-related violations in 2014, New Mexico’s foodborne conditions but can call on employers to illness rate increased, albeit slightly, for the first time in the past five take steps to improve safety. While the agency does not have a written years. corrective action plan, the Occupational FY13 FY14 FY15 FY15 Health and Safety Bureau annually Measure Rating reviews the industries and activities with Actual Actual Target Actual the highest rates of injury and death to Percent of public water inform policy and operations. systems surveyed to ensure 95% 93% 96% 97% compliance with drinking AGENCY IMPROVEMENT PLANS water regulations Submitted by agency? No Percent population served by Timeline assigned by agency? Yes community water systems that n/a 95% 100% 99% Responsibility assigned by agency? Yes meet all applicable health- based standards
Percent of high-risk food- related violations corrected 92% 99% 100% 100% Surface Water Impairment within the timeframes noted (percent of assessed on the inspection report waters) Program Rating
0.95 Resource Protection. Although measures track whether permitted 0.9 facilities are complying with groundwater standards, the program’s 0.85 performance results do little to indicate whether pollution is prevented 0.8 or water quality is improving. Additional results-oriented measures, 0.75 like the percentage of surface waters impaired, should be adopted.
0.7 FY13 FY14 FY15 FY15 Measure Rating 0.65 Actual Actual Target Actual Percent of permitted facilities 0.6 where monitoring results 71% 70% 72% 66% 0.55 demonstrate compliance with groundwater standards 0.5 2008 2010 2012 2014 Percent of underground storage tank facilities in significant Rivers and Streams operational compliance with release prevention and release 60% 83% 70% 77%
Lakes, Reservoirs, and detection requirements of the Ponds petroleum storage tanks Department of Environment Source: EPA regulations
Program Rating
Environmental Protection. New Mexico continues to have higher than average workplace fatality and injury rates. In four out of the past than average workplace fatality and injury rates. In four out of the past Incidence of six years for which data is available, New Mexico had higher rates of Foodborne Illness Incidence of six years for which data is available, New Mexico had higher rates of Foodborne Illness (per 100,000 population) private sector occupational injuries and illnesses than the national (per 100,000 population) private sector occupational injuries and illnesses than the national average. The program’s measures are among the more meaningful in average. The program’s measures are among the more meaningful in the department because they provide information concerning improved the department because they provide information concerning improved 50 worker safety and compliance with environmental regulations. 50 worker safety and compliance with environmental regulations. FY13 FY14 FY15 FY15 40 Measure Rating FY13 FY14 FY15 FY15 Actual Actual Target Actual 40 Measure Rating Actual Actual Target Actual Percent of permitted active Percent of permitted active 30 solid waste facilities and infectious waste generators 30 solid waste facilities and 82% 87% 85% 100% infectious waste generators inspected that were found to 82% 87% 85% 100% 20 inspected that were found to be in compliance with the 20 be in compliance with the New Mexico solid waste rules New Mexico solid waste rules 10 Percent of radiation- 10 Percent of radiation- producing machine
producing machine 0 inspections completed within 99% 98% 100% 95% 2010 2011 2012 2013 2014 0 inspections completed within 99% 98% 100% 95% the timeframes identified in 2010 2011 2012 2013 2014 the timeframes identified in the radiation control bureau the radiation control bureau NM CDC Avg. policies policies NM CDC Avg. Percent of landfills compliant 100% 96% 100% 95% Percent of landfills compliant Source: Centers for Disease with groundwater sampling Control (CDC) Source: Centers for Disease with groundwater sampling 100% 96% 100% 95% and reporting requirements Control (CDC) and reporting requirements Percent of serious worker
Percent of serious worker health and safety violations health and safety violations corrected within the 93% 96% 95% 98% corrected within the timeframes designated on timeframes designated on 93% 96% 95% 98% issued citations from the consultation and compliance issued citations from the Work Related Death consultation and compliance sections Work Related Death Rates sections Rates (per 100,000 workers) Percent of referrals alleging (per 100,000 workers) Percent of referrals alleging 8 serious hazards responded to 94% 96% 95% 98% via an on-site inspection or 8 serious hazards responded to 94% 96% 95% 98% via an on-site inspection or 7 investigation
7 investigation Percent of facilities taking 6 Percent of facilities taking corrective action to mitigate 97% 100% 100% 100% 6 corrective action to mitigate air quality violations 5 air quality violations 97% 100% 100% 100% discovered as a result of 5 discovered as a result of inspections 4 inspections 4 Program Rating
Program Rating 3 3 2 2 1 1 0 AZ TX UT
0 OK CO NM AZ TX UT OK CO NM 2011 2012 2013 2011 2012 2013 Source: U.S. Department of Labor Source: U.S. Department of Labor
123
Energy, Minerals & Natural Resources Department PERFORMANCE:PERFORMANCE: Energy, Energy, Minerals Minerals and Naturaland Natural Resources Resources Department Department
The Energy, Minerals and Natural Resources Department (EMNRD) The Energy, Minerals and Natural Resources Department (EMNRD) KEY ISSUES missed many key performance targets in FY15. Other data sources, KEY ISSUES missed many key performance targets in FY15. Other data sources, like the growing number and volume of oil and gas spills, indicate As shown in the charts below, the like the growing number and volume of oil and gas spills, indicate number Asand shown volume in theof chartsoil spills below, reduced the success in the agency’s regulatory efforts. number and volume of oil spills reduced success in the agency’s regulatory efforts. increased dramatically in FY15. While oil productionincreased also dramaticallyrose, the increases in FY15. WhileHealthy Forests. Although the program’s forest thinning and oil production also rose, the increases Healthy Forests. Although the program’s forest thinning and were disproportionate. Production grew watershed restoration efforts improved in FY15, the number of acres by 21 werepercent disproportionate. but the number Production and grew watershed restoration efforts improved in FY15, the number of acres by 21 percent but the number treatedand fell well short of the performance target. Although EMNRD’s volume of spills increased by 43 percent treated fell well short of the performance target. Although EMNRD’s and 61 percent,volume ofrespectively. spills increased by 43 percentdirect federal revenue increased from FY10 to FY15, the agency cites and 61 percent, respectively. direct federal revenue increased from FY10 to FY15, the agency cites a 29 percent decrease in federal funding for state fire assistance during AGENCY IMPROVEMENT PLANS a 29 percent decrease in federal funding for state fire assistance during AGENCY IMPROVEMENT PLANS that period and expiration of American Recovery and Reinvestment Submitted by agency? Yes that period and expiration of American Recovery and Reinvestment Submitted by agency? Act Yes funding as causes of the decline in acres treated and requested Timeline assigned by agency? Yes Act funding as causes of the decline in acres treated and requested Timeline assigned by agency? f utureYes performance targets consider this reduction in resources. The Responsibility assigned by agency? Yes future performance targets consider this reduction in resources. The Responsibility assigned by agency?Legislature Yes appropriated $9.1 million for wildfire mitigation and Legislature appropriated $9.1 million for wildfire mitigation and watershed restoration in FY14 and FY15, and the program has worked Acres of Forest and watershed restoration in FY14 and FY15, and the program has worked Acres of Forest and Watershed Restored to quickly put this funding to use. Watershed Restored to quickly put this funding to use. and Forestry Budget FY13 FY14 FY15 FY15 (inand millions) Forestry Budget Measure FY13 FY14 FY15 FY15Rating (in millions) Measure Actual Actual Target Actual Rating 20,000 $14 Number of nonfederal wild Actual Actual Target Actual 20,000 $14 Number of nonfederal wild $12 land firefighters provided $12 land firefighters provided 15,000 technical fire training 1,687 2,074 1,700 1,625 $10 technical fire training 1,687 2,074 1,700 1,625 15,000 $10appropriate to their incident appropriate to their incident $8 command system 10,000 $8 command system 10,000 $6 Number of at-risk communities $6 Number of at-risk communities $4 or local fire departments 5,000 $4 or local fire departments 5,000 provided funding for wildland 89 133 90 112 $2 provided funding for wildland 89 133 90 112 $2firefighting equipment or firefighting equipment or 0 $0 training. 0 $0 training. Number of acres restored in Number of acres restored in New Mexico’s forests and 18,669 12,277 20,000 15,142 Acres Restored New Mexico’s forests and 18,669 12,277 20,000 15,142 Total BudgetAcres Restored watersheds Total Budget watersheds Federal Revenue Program Rating Federal Revenue Program Rating Source: EMNRD and LFC Files Source: EMNRD and LFC Files State Parks. Revenue per visitor fell by 9 percent, but overall revenue State Parks. Revenue per visitor fell by 9 percent, but overall revenue from visitors increased by $860 thousand due to the highest level of from visitors increased by $860 thousand due to the highest level of State Park Visitation visitation in the past decade. The agency points to the increased State Park Visitation visitation in the past decade. The agency points to the increased and Program Budget popularity of annual day use and camping passes as a possible cause of (inand millions) Program Budget popularity of annual day use and camping passes as a possible cause of 5 (in millions)$35 both the increased overall visitation and the reduced revenue per 5 $35 both the increased overall visitation and the reduced revenue per 4.5 visitor. 4.5 $30 visitor. 4 $30 4 FY13 FY14 FY15 FY15 3.5 $25 Measure FY13 FY14 FY15 FY15Rating 3.5 $25 Measure Actual Actual Target Actual Rating 3 Actual Actual Target Actual 3 $20 Number of visitors to state $20 Number of visitors to state 3.8 4.0 3.8 4.7 2.5 parks, in millions 3.8 4.0 3.8 4.7 2.5 $15 parks, in millions 2 $15 2 Self-generated revenue per 1.5 $10 Self-generated revenue per $0.97 $0.96 $0.97 $0.87 1.5 $10visitor $0.97 $0.96 $0.97 $0.87 1 visitor 1 $5 Number of interpretive 0.5 $5 Number of interpretive 0.5 programs available to park 2,566 2,358 2,500 1,780 0 $0 programs available to park 2,566 2,358 2,500 1,780 0 $0visitors visitors Number of people who Number of people who complete a certified New Visitors Budget complete a certified New 772 712 775 753 Visitors Budget Mexico boating safety 772 712 775 753 Mexico boating safety Source: EMNRD and LFC Files education course Source: EMNRD and LFC Files education course Program Rating Program Rating Mine Reclamation. The program continued to meet inspection 124 Mine Reclamation. The program continued to meet inspection PERFORMANCE: Energy, Minerals and Natural Resources Department
The Energy, Minerals and Natural Resources Department (EMNRD) KEY ISSUES missed many key performance targets in FY15. Other data sources, like the growing number and volume of oil and gas spills, indicate As shown in the charts below, the number and volume of oil spills reduced success in the agency’s regulatory efforts. increased dramatically in FY15. While oil production also rose, the increases Healthy Forests. Although the program’s forest thinning and were disproportionate. Production grew watershed restoration efforts improved in FY15, the number of acres by 21 percent but the number and volume of spills increased by 43 percent treated fell well short of the performance target. Although EMNRD’s and 61 percent, respectively. direct federal revenue increased from FY10 to FY15, the agency cites a 29 percent decrease in federal funding for state fire assistance during AGENCY IMPROVEMENT PLANS that period and expiration of American Recovery and Reinvestment Submitted by agency? Yes Timeline assigned by agency? Yes Act funding as causes of the decline in acres treated and requested Responsibility assigned by agency? Yes future performance targets consider this reduction in resources. The Legislature appropriated $9.1 million for wildfire mitigation and watershed restoration in FY14 and FY15, and the program has worked Acres of Forest and to quickly put this funding to use. Watershed Restored and Forestry Budget FY13 FY14 FY15 FY15 Measure Rating (in millions) Actual Actual Target Actual 20,000 $14 Number of nonfederal wild $12 land firefighters provided 15,000 $10 technical fire training 1,687 2,074 1,700 1,625 appropriate to their incident $8 command system 10,000 $6 Number of at-risk communities 5,000 $4 or local fire departments provided funding for wildland 89 133 90 112 $2 firefighting equipment or 0 $0 training.
Number of acres restored in 18,669 12,277 20,000 15,142 Acres Restored New Mexico’s forests and Total Budget watersheds Federal Revenue Program Rating Source: EMNRD and LFC Files State Parks. Revenue per visitor fell by 9 percent, but overall revenue from visitors increased by $860 thousand due to the highest level of State Park Visitation visitation in the past decade. The agency points to the increased and Program Budget popularity of annual day use and camping passes as a possible cause of (in millions) 5 $35 both the increased overall visitation and the reduced revenue per 4.5 visitor. $30 4 FY13 FY14 FY15 FY15 $25 Measure Rating 3.5 Actual Actual Target Actual 3 $20 Number of visitors to state 3.8 4.0 3.8 4.7 2.5 parks, in millions 2 $15 Self-generated revenue per 1.5 $10 $0.97 $0.96 $0.97 $0.87 visitor 1 $5 0.5 Number of interpretive 0 $0 programs available to park 2,566 2,358 2,500 1,780 visitors
Number of people who Visitors BudgetEnergy,complete a certified Minerals New 772 & Natural712 775 753 Resources Department Mexico boating safety
Source: EMNRD and LFC Files education course Program Rating requirements and only one of 90 permitted mines did not have Mine Reclamation. The program continued to meet inspection Barrels of Oil Spilled adequate financial assurance. EMNRD reports the mine without requirements and only one of 90 permitted mines did not have and Produced Barrels of Oil Spilled financial assurance is under application with a new owner and adequate financial assurance. EMNRD reports the mine without 25 160 and Produced awaiting the conclusion of bankruptcy proceedings. financial assurance is under application with a new owner and 25 160 140 FY13 FY14 FY15 FY15 awaiting the conclusion of bankruptcy proceedings. 20 Measure Rating 120 Actual Actual Target Actual 140 FY13 FY14 FY15 FY15 Percent of permitted mines with Measure Rating 20 Actual Actual Target Actual approved reclamation plans and 120 15 100 Percent of permitted mines with adequate financial assurance 100% 99% 100% 99% approved reclamation plans and 80 posted to cover the cost of 15 100 adequate financial assurance 10 reclamation 100% 99% 100% 99% 60 80 posted to cover the cost of Percent of required inspections reclamation spilled (thousands) produced (millions) 10 40 conducted per year to ensure 60 5 Percent of required inspections mining is being conducted in 100% 100% 100% 100% spilled (thousands) produced (millions) 20 40 conducted per year to ensure compliance with approved 5 mining is being conducted in 100% 100% 100% 100% 0 0 permits and regulations. 20 compliance with approved Program Rating 0 0 permits and regulations. Program Rating Oil and Gas Conservation. Oil, natural gas, and produced water spills Spilled Produced continued an upward trend in FY15, even with a large increase in the
Oil and Gas Conservation. Oil, natural gas, and produced water spills Source: OCD Data number of inspections performed. This may indicate an ineffectiveness Spilled Produced continued an upward trend in FY15, even with a large increase in the of the inspection efforts or, as the agency suggests, the increase in EMNRD identified two possible causes Source: OCD Data number of inspections performed. This may indicate an ineffectiveness inspections causing more spills to be reported. The agency failed to of the increase in oil spills. First, new of the inspection efforts or, as the agency suggests, the increase in drilling and production technology meet the target for plugging abandoned oil and gas wells. Although EMNRD identified two possible causes inspections causing more spills to be reported. The agency failed to causes a higher volume of oil and there was a shortage of wells with plugging orders for most of FY15, it of the increase in oil spills. First, new associated waste to be present at the is the agency’s responsibility to obtain such orders for abandoned drilling and production technology meet the target for plugging abandoned oil and gas wells. Although surface than in previous years, leading causes a higher volume of oil and there was a shortage of wells with plugging orders for most of FY15, it to a higher number of accidental wells. Over 200 plugging orders were issued in May 2015. associated waste to be present at the discharges. Second, much of the aging is the agency’s responsibility to obtain such orders for abandoned FY13 FY14 FY15 FY15 surface than in previous years, leading infrastructure in New Mexico’s oil fields, Measure Rating to a higher number of accidental wells. Over 200 plugging orders were issued in May 2015. such as pipelines, storage tanks, and Actual Actual Target Actual discharges. Second, much of the aging production facilities, is more susceptible Number of inspections of oil FY13 FY14 FY15 FY15 to leaks and spills. and gas wells and associated infrastructure in New Mexico’s oil fields, Measure Rating 37,707 38,920 37,500 47,593 such as pipelines, storage tanks, and Actual Actual Target Actual facilities production facilities, is more susceptible Number of inspections of oil Number of Spills Number of abandoned oil and to leaks and spills. and gas wells and associated 37,707 38,920 37,500 47,593 facilities 900 gas wells properly plugged 57 32 50 31 using reclamation fund monies 800 Number of Spills Number of abandoned oil and Program Rating 900 gas wells properly plugged 57 32 50 31 700 using reclamation fund monies 800 600 Renewable Energy and Energy Efficiency. The program fell short Program Rating 500 of important targets in FY15, including application review timeliness 700 400 and energy use reduction, which the agency attributes to reduced 600 Renewable Energy and Energy Efficiency. The program fell short funding for efficiency improvements. To improve application reviews, 500 of important targets in FY15, including application review timeliness 300 the program made changes to the review process and hired temporary 400 and energy use reduction, which the agency attributes to reduced 200 staff to help meet future goals. funding for efficiency improvements. To improve application reviews, 100 300 FY13 FY14 FY15 FY15 the program made changes to the review process and hired temporary 0 Measure Rating 200 Actual Actual Target Actual staff to help meet future goals. Percent of applications for clean 100 FY13 FY14 FY15 FY15 energy tax credits reviewed 99% 99% 90% 75% 0 Measure Rating within thirty days of receipt Actual Actual Target Actual Crude Oil Percent of applications for clean Natural Gas Percent reduction in energy use 16% 11% 16% 14% energy tax credits reviewed 99% 99% 90% 75% in public facilities upgraded by within thirty days of receipt Produced Water clean energy projects Crude Oil Source: OCD Data Program Rating Natural Gas Percent reduction in energy use 16% 11% 16% 14% in public facilities upgraded by Produced Water clean energy projects
Source: OCD Data Program Rating
125
Office of the State Engineer
PERFORMANCE:PERFORMANCE: Office Office of the ofState the EngineerState Engineer
Above averageAbove averageprecipitation precipitation resulted resulted in 21.5 in percent 21.5 percentof the ofstate the state KEY ISSUESKEY ISSUES experiencingexperiencing drought droughtat the end at theof FY15, end of down FY15, from down 96 from percent 96 percent at the at the end of FY14, and increased reservoir levels statewide. The Legislature With manyWith basins many still basins unadjudicated still unadjudicated end of FY14, and increased reservoir levels statewide. The Legislature and the agencyand theworking agency to finalizeworking basin to finalize increased basin increased the Office the ofOffice the State of the Engineer’s State Engineer’s (OSE) operating(OSE) operating budget budget specific rulesspecific to implement rules to implementactive water active by w ater17 percentby 17 forpercent FY15, for includingFY15, including $1.2 million $1.2 millionto address to address the water the water resource mranagementesource m anagement(AWRM), it(AWRM), is it is unclear if OSEunclear is preparedif OSE is, orprepared has the, or rightshas the applicationrights application backlog backlogand $600 and thousand $600 thousand for hydrographic for hydrographic survey survey authority, authorityto , enforceto enforcepriority staffpriority to staffease bottlenecksto ease bottlenecks in adjudications. in adjudications. During DFY15,uring FY15,the agency the agency administrationadministration in times of in shortage, times of asshortage, made as progress made progress on the goal on theof cuttgoaling of thecutt applicationing the application backlog backlog in half inby half by required requiredby the byNew the MexicoNew Mexico Constitution.Constitution. The agency The is working agency withis working the with end theof 2015.end of However, 2015. However, adjudication adjudication progress progress remains remains slow and slow and the courts andthe legislatorscourts and tolegislators identify andto identify existing and existingmeasures measures only consider only consider active adjudications active adjudications and do andnot dofully not fully evaluate newevaluate approaches new approaches to accelerate to accelerate the pace ofthe this pace process of this through process the through capture the thecapture status the of status all water of all rights water claims rights inclaims the state. in the state. interim Waterinterim and WaterNatural and Resources Natural Resources Committee’sCommittee’s adjudication adjudication working Waterworking ResourceWater Resource Allocation. Alloc Continuingation. Continuing a trend a fromtrend FY14,from FY14,the the group. group. program programincreased increased the number the numberof water of rights water applications rights applications processed processed monthly which contributed to a reduction in the application backlog AGENCY IMPROVEMENTAGENCY IMPROVEMENT PLANS PLANSmonthly which contributed to a reduction in the application backlog for the first time since FY10. The program again met the annual target Submitted bySubmitt agency?ed by agency? Yes for Yes the first time since FY10. The program again met the annual target for dam inspections, but three out of five New Mexico dams have poor Timeline assignedTimeline by assigned agency? by agency? Yes for Yes dam inspections, but three out of five New Mexico dams have poor or unsatisfactory safety ratings. ResponsibilityRes assignedponsibility by assigned agency? by Yes agency? or unsatisfactoryYes safety ratings.
FY13 FY13FY14 FY14FY15 FY15FY15 FY15 Measure Measure Rating Rating Actual ActualActual ActualTarget TargetActual Actual Number ofNumber unprotested of unprotested and and unaggrieved water right 1,332 1,513 650 1,219 Drought DroughtConditions Conditions unaggrieved water right 1,332 1,513 650 1,219 applicationsapplications backlogged backlogged July 1, 2014 July 1, 2014 Average numberAverage of number of unprotested new and pending 32 76 65 108 unprotested new and pending 32 76 65 108 applicationsapplications processed processedper per month month Number of transactions Number of transactions abstracted annually into the abstracted annually into the water administration technical 22,331 18,888 23,000 22,792 water administration technical 22,331 18,888 23,000 22,792 engineering resources system engineering resources system database database
Number of dams inspected per 93 116 100 101 Number ofyear dams inspected per 93 116 100 101 year Program Rating Program Rating June 30, 2015 Interstate Stream Compact Compliance and Water Development. June 30, 2015 InterstateThe Stream program Compact is meeting Compliance its delivery and requirements Water Development under the. Pecos The programRiver compactis meeting and its litigation delivery with requirements Texas on the under Rio Grande the Peco compacts is River compactongoing and. The litigation U.S. withSupreme Texas Court’son the Rio special Grande m compactaster hear is d oral ongoing.arguments The U.S. on SupremeNew Mexico’s Court’s motion special to dismiss master in Augustheard 2015oral and a argumentsruling on Newis expected Mexico’s in the motion coming to monthsdismiss. in August 2015 and a ruling is expected in the coming months. FY13 FY14 FY15 FY15 Measure FY13 FY14 FY15 FY15 Rating Measure Actual Actual Target ActualRating Cumulative state-lineActual Actual Target Actual Cumulativedelivery state-line credit (Pecos 100.1 102.0 ≥0 95.7 delivery creditriver (compactPecos ), 100.1 102.0 ≥0 95.7 river compactthousand), acre-feet Source: U.S. Drought Monitorthousand acre -feet Rio Grande compact Source: U.S. Drought Monitor Rio Grandeaccumulated compact delivery 80.0 62.4 ≥0 0 credit, thousand acre- accumulated delivery 80.0 62.4 ≥0 0 credit, thousandfeet acre- feet Program Rating
Program Rating 126
Office of the State Engineer
Litigation and Adjudication. Although the program obtained judicial Litigation and Adjudication. Although the program obtained judicial determinations for a higher percentage of water rights cases in FY15 determinations for a higher percentageLitigation of water and rights Adjudication cases in FY15. Although the program obtainedNumber judicialof than in any of the past 10 fiscal years, adjudication continues at a Unprotested and Number of than in any of the past 10 fiscal yearsdeterminations, adjudication for acontinues higher percentage at a of water rights cases in FY15 glacial pace and the existing performance measure does not consider Unprotested and Number of than in any of the past 10 fiscal years, adjudicationUnaggrieved continues Water at a glacial paceUnprotested and the existing and performance measure does not consider adjudications not yet begun. Without full adjudication and the lack of Unaggrieved Water glacial pace and the existing performance measureRights does Backloggednot consider Rights Backlogged adjudicatioUnaggrievedns not yet begunWater. Without full adjudication and the lack of basin specific AWRM rules, OSE’s legal basis and ability to quickly basin specificRights AWRMBacklogged rules, OSE’sadjudicatio legal basisns and not ability yet begun to quickly. Without full adjudication and the lack of respond to requests to enforce priority administration during times of basin specific AWRM rules, OSE’s legal basis1,600 and ability to quickly 1,600 respond to requests to enforce priority administration during times of shortage is uncertain. Currently, 12 adjudications are pending in New shortage1,600 is uncertain. Currently, 12 respondadjudications to requests are pe tonding enforce in New priority administration during times of Mexico. Six are in state court and six are in federal court. Most shortage is uncertain. Currently, 12 adjudications1,400 are pending in New 1,400 Mexico. Six are in state court and six are in federal court. Most adjudications started more than 30 years ago and, at the current pace, Mexico. Six are in state court and six are in federal court. Most adjudication1,400 s started more than 30 years ago and, at the current pace, 1,200 OSE may be decades away from adjudicating all water rights. The adjudications started more than 30 years ago and, at the current pace, 1,200 OSE may be decades away from adjudicating all water rights. The state engineer directed staff to analyze and evaluate alternative state1,200 engineer directed staff to analyzeOSE may and be evaluatedecades awayalternative from adjudicating1,000 all water rights. The approaches to the adjudication process in FY16. Despite the budget 1,000 approaches to the adjudication processstate inengineer FY16. Despitedirected the staff budget to analyze and evaluate alternative increase for FY15, high vacancy rates persist and the program notes increase1,000 for FY15, high vacancy ratesapproaches persist andto thethe adjudicationprogram notes process in FY16800. Despite the budget difficulty in recruiting and retaining engineers and attorneys at salaries 800 difficulty in recruiting and retaining increaseengineers for and FY15, attorneys high atvacancy salaries rates persist and the program notes competitive with the private sector. The program relies on contractual 800 competitive with the private sector. difficultyThe program in recruiting relies on andcontractual retaining engineers and600 attorneys at salaries services to augment the work of its staff attorneys, primarily to 600 competitive with the private sector. The program relies on contractual services600 to augment the work of its staff attorneys, primarily to provide specialized expertise in Native American water rights law. provide specialized expertise in Nativeservices American to augment water rights the lawwork. of its staff attorneys,400 primarily to 400 FY13 FY14 FY15 FY15 provide specialized expertise in Native American water rights law. Measure Rating 400 FY13 FY14 FY15 FY15 200 Actual Actual Target Actual Measure Rating 200 Actual Actual Target Actual FY13 FY14 FY15 FY15 Number of offers to Measure Rating 640 540 600 594 Number200 of offers to Actual Actual Target0 Actual defendants in adjudications 640 Number540 of offers600 to 594 0 defendants in adjudications 640 540 600 594 0 defendants in adjudications Percent of all water rights that 53% 55% 54% 61% have judicial determinations Percent of all water rights that 53% Percent55% of all54% water rights61% that have judicial determinations 53% 55% 54% 61% Source: OSE Reports have judicial determinations Program Rating Source: OSE Reports Program Rating Source: OSE Reports Program Rating
Litigation and Adjudication Budget and Percent of All Water Rights with Judicial Determinations Litigation and Adjudication Budget and Percent of All Water Rights with Judicial DeterminationsLitigation and Adjudication Budget and Percent of All Water Rights with Judicial Determinations $9 65%
$9 65% 60% $8 $9 60% 65% 55% $8 60% $8 55% $7 50% $7 50% 55% 45% $7 $6 45% 50% 40% $6 45% $6 40% $5 35% $5 40% 35% $4 30%
millions $5 35% $4 30% 25% millions $4 $3 30%
millions 25% 20% $3 20% 25% 15% $3 $2 20% $2 15% 10% $1 15% $2 10% 5% $1 10% $1 5% $0 0% $0 0% 5%
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 $0 0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Budget Percent of All Water Rights Adjudicated
Budget Percent of All Water Rights Adjudicated Budget Percent of All Water Rights Adjudicated Source: OSE
Source: OSE Source: OSE 127
General Services Department PERFORMANCE: General Services Department PERFORMANCE: General Services Department For the General Services Department (GSD), rising risk insurance rates KEY ISSUES due to claimsFor theexperience General, employeeServices Department healthcare benefit (GSD), costs, rising and risk less insurance rates KEY ISSUES than optimaldue space to claims utilization experience continue, employee to challenge healthcare the agency. benefit costs, and less GSD fell sh ort on several measures for than optimal space utilization continue to challenge the agency. FY15, including cash balances in the GSD fell short on several measures for public liabilityFY15 fund,, including change cash in healthbalances Risk in theManagement . The upward trend in frequency and severity of premium comparedpublic liability with industryfund, changetrend, inmedica healthl malpractice,Risk Management whistleblower,. The upward and civiltrend rights in frequency tort claims and severity of and successpremium implementing compared awith lower industry co ntinuetrend, s medicato diminishl malpractice, cash balances whistleblower, for the Public andLiability civil P rogramrights . tort claims space standard for agencies occupying and success implementing Fora lower the Pcoublicntinue Propertys to diminish Program cash, weather balances contributed for the Ptoublic an overallLiability Program. state-ownedspace and leasedstandard space for .agencies GSD is occupying working onstate closing-owned these and leasedgaps withspace increase. GSD is inFor costs the fromPublic damages Property to Pbuildingsrogram, weatherand vehicles. contributed For the to an overall more accurateworking rates on for closingrisk coverage these, gapsWorkers with ’ increaseCompensation in costs Program from, thedamages number toof buildingsclaims decreased and vehicles., but For the benefit changesmore accurate that include rates formore risk coverage, primary care and behavioral healthcare overall costs increased due to medical and other cost trends. benefit changes that include more Workers’ Compensation Program, the number of claims decreased, but options, and governor support to work primary care and behavioral healthcare overall costs increased due to medical and other cost trends. with agencies to reduce the state’s FY13 FY14 FY15 FY15 options, and governor support toMeasure work Rating footprint to reflect a smaller workforce. Actual Actual Target Actual with agencies to reduce the state’s FY13 FY14 FY15 FY15 Financial positionMeasure of the Rating AGENCY IMPROVEMENTfootprint to reflect PLANS a smaller workforce. Actual Actual Target Actual public property fund 91% 250% 50% 274% Submitted AGENCYby agency? IMPROVEMENT Yes PLANS Financial position of the Timeline assigned by agency? Yes Financial positionpublic of property the fund 91% 250% 50% 274% Submitted by agency? Yes Responsibility assigned? Yes workers’ compensation fund 25% 18% 30% 28% Timeline assigned by agency? Yes Financial position of the
Responsibility assigned? Financial Yes positionworkers’ of the comp ensation fund 25% 18% 30% 28%
public liability fund 38% 22% 50% 22%
Group Health Financial position of the Benefits Cash Payments frompublic the publicliability fund 38% 22% 50% 22%
BalancesGroup Health liability fund, in millions $34.5 $32.8 $31.2 $34.8 Benefits Cash Payments from the public $40 liability fund, in millions $34.5 $32.8 $31.2 $34.8 Balances Program Rating $35 $40 $30 Employee Group Health Benefits. Despite lower Ptrendsrogram in Rating per $25 $35 member health costs, premiums increased above industry trend in two $20 $30 out of threeEmployee years and Group employee Health out- ofBenefits.-pocket costs Despite also increasedlower trends. in per $25 $15 This is challengingmember health considering costs, premiumslimited compensation increased above increases. industry The trend in two $10 $20 out of three years and employee out-of-pocket costs also increased. millions of dollars of millions program is expanding primary and behavioral healthcare options for $15 $5 employeesThis and isdependents challenging with considering an Employee limited Assistance compensation Program increases., The $0 $10
millions of dollars of millions Worksite progWellnessram isProgram expanding, and pria healthmary careand clinicbehavioral to reduce health costlycare options for $5 visits to specialists,employees emergen and dependentscy rooms, and with urgent an careEmployee centers. A ssistance Program, $0 Worksite Wellness Program, and a healthcare clinic to reduce costly FY13 FY14 FY15 FY15 Measure visits to specialists, emergency rooms, and urgent care centers. Actual Actual Target Actual Rating Source: GSD, LFC files Monthly per-member FY13 FY14 FY15 FY15 Measure $328 $292Actual Actual$350 $297Target Actual Rating claims costs Source: GSD, LFC files Monthly per-member Public Liability Percent change in 0% 15%$328 ≤ $292 7% 10%$350 $297 premium claims costs Cash Balances $60 Public Liability Claims costsPercent for the change in 0% 15% ≤ 7% 10% Cash Balances top three diagnosespremium, $68.8 $54.8 $53.2 $57.6 $50 in millions
$40 $60 Claims costs for the Number of member top three diagnosesnew , 21,218$68.8 22,279$54.8 23,715$53.2 $57.6 $30 $50 primary carein visits millions
$20 $40 Program Rating Number of member new 21,218 22,279 23,715 $30 primary care visits millions of dollars of millions $10 Facilities Management. Despite a smaller workforce, the size of the $20 Program Rating $0 state’s footprint increased and average space per employee is still
millions of dollars of millions $10 above the primary office space standard of 215 square feet per FTE. Facilities Management. Despite a smaller workforce, the size of the $0 After early successes in FY13, savings from renegotiating expiring leases in exchangestate’s footprint for longer increased terms slowed and .average However, space the numberper employee of is still active leasesabove grew the to primary 424 from office 400, space as have standard lease costs,of 215 which square now fee t per FTE. Source: GSD, LFC files After early successes in FY13, savings from renegotiating expiring average $17.06 per square feet as compared with $16.70 in FY14. leases in exchange for longer terms slowed. However, the number of active leases grew to 424 from 400, as have lease costs, which now 128 Source: GSD, LFC files average $17.06 per square feet as compared with $16.70 in FY14.
General Services Department
Change in Budgeted Measure FY13 FY14 FY15 FY15 Rating Change in Budgeted Measure FY13 FY14 FY15 FY15 Rating Actual Actual Target Actual Filled Positions and Actual Actual Target Actual Filled Positions and State Footprint State office space
State Footprint State office space (2010 to 2015) available new 102,052 96,949 71,471 8% (2010 to 2015) available new 102,052 96,949 71,471 8% 6% Leased square feet, in 2.6 2.8 2.7 2.9 6% Leased square feet, in 4% millions 2.6 2.8 2.7 2.9 2% 4% millions 2% 0% Lease costs, in millions $44.3 $47.1 $44.7 $49.4 0% -2% Lease costs, in millions $44.3 $47.1 $44.7 $49.4 -4% -2% Capital projects on -4% -6% schedule within budget 93% 88% 92% 90% -6% Capital projects on -8%
-8% schedule within budget 93% 88% 92% 90% -10% -10% -12% Program Rating -14% -12% Program Rating -14% Budgeted State FTE Filled Footprint Transportation Services. Short-term motor pool use reflects higher Budgeted State FTE Filled Footprint Transportation Services. Short-term motor pool use reflects higher Source: CBPC, GSD and usage compared with the prior two fiscal years because of efforts to LFC files Source: CBPC, GSD and usage compared with the prior two fiscal years because of efforts to remove underutilized long-term leased vehicles from agencies, more LFC files remove underutilized long-term leased vehicles from agencies, more relaxed in-state travel policies, and less employee personal vehicle use.
relaxed in-state travel policies, and less employee personal vehicle use. Short Term FY13 FY14 FY15 FY15 Measure Rating Vehicle Use Actual Actual Target Actual Short Term FY13 FY14 FY15 FY15 Measure Rating 100% Vehicle Use Actual Actual Target Actual Short-term vehicle use 64% 92% 75% 94% 100% 80% Short-term vehicle use 64% 92% 75% 94% Vehicles accumulating one
80% thousand miles per month 41% 30% 75% 32% Vehicles accumulating one 60% thousand miles per month 41% 30% 75% 32% State vehicles beyond five 60% 40% years in service 52% 54% 20% 47% State vehicles beyond five 40% years in service 52% 54% 20% 47% 20% Revenue from surplus
property, in thousands $532.0 $1,032.0 $1,083.6 $682.0 Revenue from surplus 20% 0% property, in thousands $532.0 $1,032.0 $1,083.6 $682.0 Program Rating
0% Program Rating Procurement Services. Procurement violations appear to be decreasing with new training and certification requirements for chief Procurement Services. Procurement violations appear to be Source: GSD, LFC files procurement officers. The measure for sole-source procurements decreasing with new training and certification requirements for chief reflects an online portal that allows data from local public bodies and Source: GSD, LFC files procurement officers. The measure for sole-source procurements Number of state agencies to be reported. As a result, the numbers have increased. reflects an online portal that allows data from local public bodies and Procurement Code FY13 FY14 FY15 FY15 Number of state agencies to be reported. As a result, the numbers have increased. Violations Measure Rating Actual Actual Target Actual Procurement Code (by executive agencies) FY13 FY14 FY15 FY15 Employees trained on Measure Rating Violations Actual Actual Target Actual 60 Procurement Code (by executive agencies) Employees trained on compliance and methods 754 689 723 1,005 50 60 Procurement Code Procurement Code violations 21 31 29 21 compliance and methods 754 689 723 1,005 40 50 30 Sole-source procurements 132 236 229 231 Procurement Code violations 21 31 29 21 40
20 30 Sole-source procurements 132 236 229 231 Awards to businesses with New Mexico preference new 11 12 14 10
20 Awards to businesses with 0 Program Rating 10 New Mexico preference new 11 12 14 FY12 FY13 FY14 FY15
0 Program Rating Source: GSD, LFC files FY12 FY13 FY14 FY15
Source: GSD, LFC files
129
State Personnel Board
PERFORMANCE: State Personnel Board
PERFORMANCE:A revised salary and classific Stateation Personnel structure Boardbased on occupational KEY ISSUES groups has been developed to remedy long-standing problems related to recruitment,A revised reward salary, and and retention. classific Theation new structure occupationally based onbased occupational The State Personnel Board did not meet the targetsKEY for average ISSUES number of days to structuregroups will allow has beenthe State developed Personnel to remedy Office (longSPO)-standing to better problems align related fill vacant positions and percent of new state salariesto recruitment, to market rates reward for ,specific and retention. occupations. The newSPO occupationallyhas not yet based employeesThe successfully State Personnel completing Board their did notprovided meet structure an estimated will allowcost for the matching State Personnel state employee Office (salariesSPO) to to better align probationthe period. targets The for department average number did not of days to submit anfill improvement vacant positions plan. and percent ofmarket new srates.tate salaries SPO isto marketworking rates with for agencies specific occupations.and applicants SPO to has not yet employees successfully completingimprove their provided hiring rates an byestimated providing cost one for-on -matchingone application state employeeassistance , salaries to AGENCYprobation IMPROVEMENT period. ThePLANS department didas notwell marketas parti cipatingrates. SPO in jobis fairsworking to recruit with hardagencies-to-fill andjobs applicantsin to Submittedsubmit by agency? an improvement plan. No specific improvestate agencies. hiring ratesSPO bycon providingtinues to onepursue-on -“sharedone application service” assistance, Timeline assigned by agency? No AGENCY IMPROVEMENT PLANSagreements as wellwith asstate parti agenciescipating having in job fewer fairs thanto recruit100 employees, hard-to-fill jobs in Responsibility assigned by agency? No Submitted by agency? designed No specific to establish state more agencies. effective SPO human con tinuesresource to capabilitiespursue “shared and service”
Timeline assigned by agency? fun Noctions. agreements with state agencies having fewer than 100 employees, Responsibility assigned by agency? No Average Number of Human designedResource to Management. establish more The effective average humannumber resource of days tocapabilities fill and
Days To Fill a Vacant a vacantfun positionctions. increased slightly, but it is important to note the Position majority of the delay, 43 days, comes between the referral of the 80 Average Number of Human Resource Management. The average number of days to fill Days To73 Fill a Vacant candidate list from SPO to the agency and the agency issuing a job 69 69 a vacant position increased slightly, but it is important to note the 70 offer. The percent of new employees who successfully complete their Position64 majority of the delay, 43 days, comes between the referral of the 80 probationary period seems to have stabilized at nearly 70 percent. 60 53 73 candidate list from SPO to the agency and the agency issuing a job 49 69 69Compa-ratios (actual salary divided by the midpoint of the salary 70 50 64 range) thatoffer exceed. The percent the targeted of new level employees, particularly who successfully for new hires, complete their probationary period seems to have stabilized at nearly 70 percent. 40 60 53 suggest current pay plan salaries lag market rates and are insufficient 49 to recruit,C ompareward-ratios, and retain(actual state salary employees. divided The by dramaticthe midpoint reduction of the salary 30 50 in percentrange) of completed that exceed employee the targeted performance level , appraisalsparticularly suggests for new hires, 20 40 managerssuggest do n otcurrent complete pay plan the salariesreviews lag unless market connected rates and toare ainsufficient compensationto recruit, increase reward. This, and calls retain into state question employees. the usefulness The dramatic of the reduction 10 30 reviews inas apercent management of completed tool. employee performance appraisals suggests 0 20 managers do not complete the reviews unless connected to a FY13 FY14 FY15 FY15 10 11 12 13 14 15 Measurecompensation increase. This calls into question theRating usefulness of the 10 fiscal year Actual Actual Target Actual Statewidereviews classified as service a management tool. Source: SPO 0 vacancy rate 15% 15% 10% 13% FY13 FY14 FY15 FY15 10 11 12 13 14 15 Measure Rating fiscal year Average number of days to Actual Actual Target Actual fill a vacantStatewide position classified service73 64 45 69 Percent of New Source: SPO Employees who vacancy rate 15% 15% 10% 13% Percent of new employees Successfully Complete who successfully complete Average number of days58% to 68% 75% 67% Their Probationary their probationary period 73 64 45 69 fill a vacant position PeriodPercent of New Percent of eligible employees 80 Employees who Percent of new employees 71 with a completed Successfully68 Complete67 who successfully complete 70 performance appraisal on 58% 68% 75% 67% 61 their probationary period93 % 99% 95% 56% 58Their58 Probationary record at the close of the 60 Period fiscal yearPercent of eligible employees 80 50 71 with a completed 68 67Average new hire compa- 70 performance appraisal on 40 61 ratio 94.4% 96.193%% 9199%% 96.895%% 56% 58 58 record at the close of the 30 60 Percent offiscal turnover year of
20 50 employees leaving state 8% 6.1% 18% 9.6% service Average new hire compa- 40 94.4% 96.1% 91% 96.8% 10 ratio Overall Program Rating
0 30 Percent of turnover of 10 11 12 13 14 15 20 employees leaving state 8% 6.1% 18% 9.6% fiscal year service 10 Source: SPO Overall Program Rating
0 10 11 12 13 14 15 fiscal year 130 Source: SPO
Taxation & Revenue Department
PERFORMANCE: Taxation and Revenue Department PERFORMANCE: Taxation and Revenue Department
As the state faces lower than expected revenues resulting from As the state faces lower than expected revenues resulting from KEY ISSUES dramatically decreased oil prices, collecting revenue effectively and KEY ISSUES dramatically decreased oil prices, collecting revenue effectively and efficiently to decrease the tax gap (the difference between what is efficiently to decrease the tax gap (the difference between what is The Taxation and Revenue Department The Taxation and Revenue Department continues to meet most performance owed to the state and what is collected) is increasingly important. continues to meet most performance owed to the state and what is collected) is increasingly important. targets and outperform targets for MVD Despite heavy turnover, the Taxation and Revenue Department (TRD) targets and outperform targets for MVD Despite heavy turnover, the Taxation and Revenue Department (TRD) wait times. The agency missed the met or exceeded most performance targets. However, the wait times. The agency missed the met or exceeded most performance targets. However, the percentage targets for audit assessment percentage targets for audit assessment collections in FY15. However, TRD has department’s audit assessment collections in FY15 were below target collections in FY15. However, TRD has department’s audit assessment collections in FY15 were below target increased total assessments and and lower than in previous years. increased total assessments and and lower than in previous years. collected increased dollar amounts. collected increased dollar amounts. AGENCY IMPROVEMENT PLANS Tax Administration Program. Of the FY15 unpaid tax audit assessments of $56.1 million, $13.7 million is less than 90 days old, $9 AGENCY IMPROVEMENT PLANS Tax Administration Program. Of the FY15 unpaid tax audit Submitted by agency? Yes million is in protest, and $6.7 million has been abated or is in Submitted by agency? Yes assessments of $56.1 million, $13.7 million is less than 90 days old, $9 Timeline assigned by agency? No bankruptcy, leaving a collectible balance of $26.5 million, of which Timeline assigned by agency? No million is in protest, and $6.7 million has been abated or is in Responsibility assigned by agency? No $15.5 million, or 59 percent, was collected. Collections of outstanding Responsibility assigned by agency? No bankruptcy, leaving a collectible balance of $26.5 million, of which balances from FY14 were $106.7 million, or 15.5 percent of $15.5 million, or 59 percent, was collected. Collections of outstanding balances from FY14 were $106.7 million, or 15.5 percent of TRD FY15 Funding by collectable outstanding balances. The percent of electronically filed tax returns continued its upward trend and is now over 90 percent. The TRD FY15 Funding by collectable outstanding balances. The percent of electronically filed Division (in millions) option for e-filing exists for both personal income tax and the Division tax returns continued its upward trend and is now over 90 percent. The combined reporting tax system. (in millions) Program Budget FTE option for e-filing exists for both personal income tax and the Tax Program Budget FTE combined reporting tax system. Beginning in FY16, TRD agreed to provide quarterly audit data to Administration $31.5 504 Tax LFC detailing the number and type of audits conducted, the cost of Beginning in FY16, TRD agreed to provide quarterly audit data to Motor Vehicle Administration $31.5 504 those audits, and the return on investment on average for each sector of LFC detailing the number and type of audits conducted, the cost of Division $27.8 348 Motor Vehicle audits (i.e. corporate and personal). Property Tax $3.4 39 Division $27.8 348 those audits, and the return on investment on average for each sector of audits (i.e. corporate and personal). Compliance FY13 FY14 FY15 FY15 Property Tax $3.4 39 Enforcement $2.3 28 Measure Actual Actual Target Actual Rating Compliance FY13 FY14 FY15 FY15 Program Collections as a percent of Measure Actual Actual Target Actual Rating Enforcement $2.3 28 Support $22.4 190 collectable outstanding 17.6% 18.0% 18.0% 15.5% Program Collections as a percent of Total $87.4 1109 balances from the end of the Support $22.4 190 collectable outstanding 17.6% 18.0% 18.0% 15.5% prior fiscal year Source: TRD FY15 Operating Budget Total $87.4 1109 balances from the end of the Collections as a percent of prior fiscal year collectable audit assessments 66% 61% 65% 59% Source: TRD FY15 Operating Budget Collections as a percent of generated in the current fiscal Electronically Filed year collectable audit assessments 66% 61% 65% 59% Tax Returns generated in the current fiscal Percent of electronically filed Electronically Filed year 100% 2,500 personal income tax and 85% 90% 90% 92% Tax Returns 90% combined reporting system Percent of electronically filed 100% 2,500 80% 2,000 returns personal income tax and 85% 90% 90% 92% Program Rating 90% combined reporting system 70%
80% 2,000 returns 60% 1,500 Program Rating Compliance Enforcement Program. A total of nine tax compliance 70% 50% cases were assigned to program agents in FY15. Of these, seven 60% 1,500 40% 1,000 investigations were referred for criminal prosecution during the year.
Compliance Enforcement Program. A total of nine tax compliance thousands 50% cases were assigned to program agents in FY15. Of these, seven 30% This is a marked improvement from FY14, when the program referred 40% 1,000 investigations were referred for criminal prosecution during the year. 20% 500 four out of 13 investigations for criminal prosecution.
thousands 30% This is a marked improvement from FY14, when the program referred 10% FY13 FY14 FY15 FY15 20% 500 four out of 13 investigations for criminal prosecution. 0% 0 Measure Actual Actual Target Actual Rating
10% Number of tax investigations
FY13 FY14 FY15 FY15 FY11 FY12 FY13 FY14 FY15 referred to prosecutors as a 67% 33% 50% 78% 0% 0 Measure Actual Actual Target Actual Rating Percent Number percent of total investigations Number of tax investigations Program Rating
FY11 FY12 FY13 FY14 FY15 referred to prosecutors as a Source: TRD and LFC Files 67% 33% 50% 78% Percent Number percent of total investigations Program Rating Source: TRD and LFC Files 131
Taxation and Revenue Department
Motor VehicleMotor Program.Vehicle Program. In late FY15, In late the FY15,Motor theVehicle Motor Division Vehicle Division AverageAverage Customer Customer successfully launched the driver component of the division’s new IT Wait Times at MVD successfully launched the driver component of the division’s new IT Wait Times at MVD system, Tapestry (the motor vehicle component will be launched in Field OfficesField Offices system, Tapestry (the motor vehicle component will be launched in (in minutes) September 2016). Field office and call center wait times increased in (in minutes) September 2016). Field office and call center wait times increased in the wake of implementation, as expected. However, field office and 30 the wake of implementation, as expected. However, field office and 30 call center wait times remained significantly below target and below call center wait times remained significantly below target and below historical waits. The percent of insured vehicles held steady at 91 historical waits. The percent of insured vehicles held steady at 91 25 percent, which, although it misses the target, exceeds national 25 averages.percent, which, although it misses the target, exceeds national averages. 20 FY13 FY14 FY15 FY15 20 Measure Actual ActualFY13 TargetFY14 ActualFY15 RatingFY15 Measure Actual Actual Target Actual Rating Percent of registered vehicles 91.0% 91.0% 92.0% 91.0% 15 with liabilityPercent insurance of registered vehicles 91.0% 91.0% 92.0% 91.0% 15 with liability insurance Average wait time in q-matic- 24:42 17:48 20:00 16:00 10 equipped offices,Average in minuteswait time in q-matic- 24:42 17:48 20:00 16:00 10 Average callequipped center wait offices, time in minutes 6:52 5:06 6:00 5:09 to reach anAverage agent, in callminutes center wait time
5 to reach an agent, in minutes 6:52 5:06 6:00 5:09 Program Rating 5 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Program Rating FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 PropertyFY15 Tax Program. Delinquent property tax collections declined Wait Time Target in FY15 Propertyrelative to TaxFY13 Program. and FY14 Delinquent but remain property above thetax newcollections $10 declined million target (previously $7 million). Lower collections resulted from Source:Wait TRD Timeand LFC Files Target in FY15 relative to FY13 and FY14 but remain above the new $10 the Propertymillion Tax target Division’ (previouslys focus $7 onmillion). the collection Lower collections of 10-year resulted from Source: TRD and LFC Files delinquenciesthe Propertyto prevent Tax unrecoverable Division’s focuslosses onin therevenue. collection This of 10-year strategy is at odds with maximizing returns and resolving the highest delinquencies to prevent unrecoverable losses in revenue. This amount of accounts in the immediate term but should increase MVD Call Center Wait strategy is at odds with maximizing returns and resolving the highest Times collections overall over time. (inMVD minutes) Call Center Wait amount of accounts in the immediate term but should increase Times collections overall FY13over time.FY14 FY15 FY15 10:48 (in minutes) Measure Actual Actual Target Actual Rating FY13 FY14 FY15 FY15 9:36 Amount of delinquent 10:48 Measure Actual Actual Target Actual Rating property tax collected and $12.4 $13.5 $10.0 $10.4 8:24 9:36 distributed Amountto counties, of delinquentin millions property tax collected and 7:12 8:24 distributed to counties, in $12.4 Program$13.5 Rating$10 .0 $10.4 millions 6:00 7:12 Program Support. In FY15, only seven of 4,300 DWI cases were Program Rating 4:48 rescinded due to errors by the Motor Vehicle Division and Hearings 6:00 Bureau Programand hearings Support. officers. In FY15, Performance only seven in ofthis 4,300 area DWI has cases were 3:36 consistently improved over the past several years. With the creation of 4:48 rescinded due to errors by the Motor Vehicle Division and Hearings the Administrative Hearings Office, administratively attached to the 2:24 Bureau and hearings officers. Performance in this area has 3:36 Departmentconsistently of Finance improved and Administration, over the past several this function years. Withwill theno creation of 1:12 longer bethe within Administrative TRD. Hearings Office, administratively attached to the
2:24 Department of Finance and Administration, this function will no 0:00 FY13 FY14 FY15 FY15 1:12 Measure longer be within TRD.Actual Actual Target Actual Rating
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Percent of DWI drivers FY13 FY14 FY15 FY15 0:00 license revocations rescinded Measure Actual Actual Target Actual Rating Wait Time Target due to failure to hold hearings 0.5% 0.3% <0.5% 0.2% FY08 FY09 FY10 FY11 FY12 FY13 FY14 withinFY15 ninetyPercent days of DWI drivers Source: TRD and LFC Files license revocations rescinded Program Rating Wait Time Target due to failure to hold hearings 0.5 % 0.3 % <0.5% 0.2% within ninety days Source: TRD and LFC Files Program Rating 132
TABLE 1 TABLE 1 TABLE 1
U.S. AND NEW MEXICO ECONOMIC INDICATORS December 2015 Consensus Forecast
FY2015 FY2016 FY2017 FY2018
NATIONAL ECONOMIC INDICATORS
US Real GDP Growth (annual avg, % yoy)1 IHS Global Insight 2.7 2.6 2.9 2.6 Moody's Analytics2 2.7 2.5 3.1 2.9
US Inflation Rate (CPI-U, annual avg, % yoy)3 IHS Global Insight 0.7 0.5 2.3 2.6 Moody's Analytics2 0.7 1.1 2.4 2.9
Federal Funds Rate (%) IHS Global Insight 0.11 0.39 1.41 2.41 Moody's Analytics2 0.11 0.33 1.25 3.10
NEW MEXICO LABOR MARKET AND INCOME DATA
NM Non-Agricultural Employment Growth 1.3 0.9 1.4 1.5
NM Nominal Personal Income Growth (%)4 5.1 4.1 4.8 5.4
NM Private Wages & Salaries Growth (%) 4.0 3.3 5.2 5.2
CRUDE OIL AND NATURAL GAS OUTLOOK
NM Oil Price ($/barrel) $60.67 $44.00 $49.00 $56.00
NM Taxable Oil Volumes (million barrels) 141.4 150.0 155.0 158.0
NM Gas Price ($ per thousand cubic feet)5 $3.78 $2.90 $3.20 $3.40
NM Taxable Gas Volumes (billion cubic feet) 1,185 1,200 1,170 1,140
1 Real GDP is BEA chained 2009 dollars, billions, annual rate 2 For National Indicators, DFA used Moody's Analytics forecasting service in the revenue estimating process. 3 CPI is all urban BLS, 1982-84=1.00 base. 4 Personal Income growth rates are for the calendar year in which each fiscal year begins. 5 The gas prices are estimated using a formula of NYMEX and Global Insight Future prices as well as a liquid premium based on oil prices. Sources: October 2015 IHS Global Insight, BBER: FOR-UNM, October 2015 TABLE 2
U.S. AND NEW MEXICO ECONOMIC INDICATORS December 2015 Consensus Forecast
FY2015 FY2016 FY2017 FY2018
NATIONAL ECONOMIC INDICATORS
US Real GDP Growth (annual avg, % yoy)1 IHS Global Insight 2.7 2.6 2.9 2.6 Moody's Analytics2 2.7 2.5 3.1 2.9
US Inflation Rate (CPI-U, annual avg, % yoy)3 IHS Global Insight 0.7 0.5 2.3 2.6 Moody's Analytics2 0.7 1.1 2.4 2.9
Federal Funds Rate (%) IHS Global Insight 0.11 0.39 1.41 2.41 Moody's Analytics2 0.11 0.33 1.25 3.10
NEW MEXICO LABOR MARKET AND INCOME DATA
NM Non-Agricultural Employment Growth 1.3 0.9 1.4 1.5
NM Nominal Personal Income Growth (%)4 5.1 4.1 4.8 5.4
NM Private Wages & Salaries Growth (%) 4.0 3.3 5.2 5.2
CRUDE OIL AND NATURAL GAS OUTLOOK
NM Oil Price ($/barrel) $60.67 $44.00 $49.00 $56.00
NM Taxable Oil Volumes (million barrels) 141.4 150.0 155.0 158.0
NM Gas Price ($ per thousand cubic feet)5 $3.78 $2.90 $3.20 $3.40
NM Taxable Gas Volumes (billion cubic feet) 1,185 1,200 1,170 1,140
1 Real GDP is BEA chained 2009 dollars, billions, annual rate 2 For National Indicators, DFA used Moody's Analytics forecasting service in the revenue estimating process. 3 CPI is all urban BLS, 1982-84=1.00 base. 4 Personal Income growth rates are for the calendar year in which each fiscal year begins. 5 The gas prices are estimated using a formula of NYMEX and Global Insight Future prices as well as a liquid premium based on oil prices. Sources: October 2015 IHS Global Insight, BBER: FOR-UNM, October 2015 TABLE 3
GENERAL FUND CONSENSUS REVENUE ESTIMATE GENERAL FUND FINANCIAL SUMMARY December 2015 December 2015 Consensus Revenue Estimate (Millions of Dollars) (Dollars in Millions) FY15 FY16 FY17 FY18 Preliminary Estimated Estimated % % % % FY2015 FY2016 FY2017 Unaudited Change Change Change Change Forecast Forecast Forecast APPROPRIATION ACCOUNT Actual from from from from REVENUE FY14 FY15 FY16 FY17 Recurring Revenue Gross Receipts Tax 2,095.2 5.2% 2,178.0 4.0% 2,336.7 7.3% 2,421.3 3.6% August 2015 Consensus Forecast $ 6,226.8 $ 6,247.7 $ 6,528.0 Compensating Tax 71.8 -8.3% 65.5 -8.8% 65.4 -0.2% 66.4 1.5% December 2015 Consensus Revenue Update $ (32.1) $ (82.7) $ (61.7) TOTAL GENERAL SALES 2,167.0 4.7% 2,243.5 3.5% 2,402.1 7.1% 2,487.7 3.6% Total Recurring Revenue $ 6,194.7 $ 6,165.0 $ 6,466.3
Tobacco Taxes 82.3 4.9% 82.4 0.1% 81.4 -1.2% 80.4 -1.2% Nonrecurring Revenue Liquor Excise 26.3 -0.4% 6.7 -74.5% 6.9 3.0% 26.1 278.3% August 2015 Consensus Forecast $ 24.6 $ 5.5 $ - Insurance Taxes 149.9 30.2% 188.0 25.5% 219.1 16.5% 231.8 5.8% December 2015 Consensus Revenue Update $ 16.6 $ - $ - Fire Protection Fund Reversion 15.2 -5.8% 13.7 -9.6% 12.4 -9.5% 11.2 -9.7% Total Non-Recurring Revenue $ 41.2 $ 5.5 $ - Motor Vehicle Excise 138.7 4.1% 147.0 6.0% 152.0 3.4% 157.0 3.3% Gaming Excise 70.4 6.0% 70.1 -0.4% 70.1 0.0% 70.3 0.3% TOTAL REVENUE $ 6,235.9 $ 6,170.5 $ 6,466.3 Leased Vehicle Surcharge 5.2 0.6% 5.2 -0.7% 5.2 0.0% 5.2 0.0% Other 0.5 -83.5% 3.2 544.2% 2.1 -34.8% 2.1 0.0% APPROPRIATIONS TOTAL SELECTIVE SALES 488.5 10.0% 516.3 5.7% 549.2 6.4% 584.1 6.4% Recurring Appropriations General Appropriation $ 6,151.2 $ 6,235.4 $ 6,388.5 Personal Income Tax 1,339.7 6.8% 1,401.0 4.6% 1,455.0 3.9% 1,522.0 4.6% 2015 Audit* $ 0.4 Corporate Income Tax 254.5 29.3% 218.0 -14.3% 217.0 -0.5% 205.0 -5.5% 2015 Legislative Session Costs - Feed Bill ** $ 10.1 $ - TOTAL INCOME TAXES 1,594.2 9.8% 1,619.0 1.6% 1,672.0 3.3% 1,727.0 3.3% 2016 Legislative Session Costs Feed Bill ** $ - $ 5.9 Compensation - Contingency Legislation *** $ 77.6 Oil and Gas School Tax 375.4 -25.0% 283.7 -24.4% 315.3 11.1% 362.2 14.9% Total Recurring Appropriations $ 6,161.7 $ 6,241.3 $ 6,466.1 Oil Conservation Tax 20.1 -26.3% 15.1 -24.8% 16.7 10.6% 19.2 15.0% Nonrecurring Appropriations Resources Excise Tax 13.3 2.5% 13.0 -2.6% 13.0 0.0% 13.0 0.0% Prior Year Appropriations $ 13.4 Natural Gas Processors Tax 18.6 14.8% 19.7 5.9% 15.0 -23.9% 14.8 -1.3% 2014 Audit Adjustment $ 3.0 TOTAL SEVERANCE TAXES 427.5 -23.3% 331.5 -22.4% 360.0 8.6% 409.2 13.7% 2015 Audit Adjustment $ (0.8) 2015 Supplementals, Specials & IT Appropriations $ 95.2 $ 1.0 LICENSE FEES 55.9 8.1% 54.5 -2.5% 55.5 1.8% 56.6 2.0% 2015 Special Session - Supplementals & Capital Outlay $ 4.3 $ 30.0 2016 Supplementals, Specials & IT Appropriations $ 107.5 LGPF Interest 502.8 11.9% 553.2 10.0% 548.1 -0.9% 601.9 9.8% Total Nonrecurring Appropriations $ 115.1 $ 138.5 $ - STO Interest 17.0 -10.4% 23.4 37.5% 52.6 124.8% 60.3 14.6% TOTAL APPROPRIATIONS $ 6,276.8 $ 6,379.8 $ 6,466.1 STPF Interest 182.7 7.2% 193.5 5.9% 203.4 5.1% 216.5 6.4% Transfer to (from) Reserves $ (40.9) $ (209.3) $ 0.2 TOTAL INTEREST 702.5 10.0% 770.1 9.6% 804.1 4.4% 878.7 9.3% GENERAL FUND RESERVES Federal Mineral Leasing 542.2 -4.9% 421.7 -22.2% 407.1 -3.5% 430.0 5.6% Beginning Balances $ 637.9 $ 611.7 $ 391.5 State Land Office 42.2 -11.0% 37.6 -11.0% 41.2 9.6% 43.7 6.1% Transfers from (to) Appropriations Account (40.9) (209.3) 0.2 Revenue and Reversions 64.9 73.2 54.2 TOTAL RENTS & ROYALTIES 584.4 -5.3% 459.3 -21.4% 448.3 -2.4% 473.7 5.7% Appropriations, expenditures and transfers out (50.3) (84.1) (40.5) Ending Balances $ 611.7 $ 391.5 $ 405.4 TRIBAL REVENUE SHARING 67.2 -0.6% 64.3 -4.3% 65.8 2.3% 67.8 3.0% Reserves as a Percent of Recurring Appropriations 9.9% 6.3% 6.3% MISCELLANEOUS RECEIPTS 56.2 24.7% 56.5 0.6% 59.4 5.1% 60.3 1.7% *The FY14 general fund audit showed a total contingent liability of $101.7 million. LFC analysis indicates that most REVERSIONS 51.5 -46.7% 50.0 -2.8% 50.0 0.0% 50.0 0.0% of this liability will be reversed in the FY15 audit. **Legislative session expenses treated as recurring appropriation. TOTAL RECURRING 6,194.7 2.6% 6,165.0 -0.5% 6,466.4 4.9% 6,795.1 5.1% ***Compensation appropriation to DFA for disbursement to agencies and is contingent on consensus revenues achieving the targets and adequate general fund reserve level. TOTAL NON-RECURRING 41.2 na 5.5 -86.7% - na - na
GRAND TOTAL 6,235.9 3.2% 6,170.5 -1.0% 6,466.4 4.8% 6,795.1 5.1% TABLE 4
GENERAL FUND CONSENSUS REVENUE ESTIMATE GENERAL FUND FINANCIAL SUMMARY December 2015 December 2015 Consensus Revenue Estimate (Millions of Dollars) (Dollars in Millions) FY15 FY16 FY17 FY18 Preliminary Estimated Estimated % % % % FY2015 FY2016 FY2017 Unaudited Change Change Change Change Forecast Forecast Forecast APPROPRIATION ACCOUNT Actual from from from from REVENUE FY14 FY15 FY16 FY17 Recurring Revenue Gross Receipts Tax 2,095.2 5.2% 2,178.0 4.0% 2,336.7 7.3% 2,421.3 3.6% August 2015 Consensus Forecast $ 6,226.8 $ 6,247.7 $ 6,528.0 Compensating Tax 71.8 -8.3% 65.5 -8.8% 65.4 -0.2% 66.4 1.5% December 2015 Consensus Revenue Update $ (32.1) $ (82.7) $ (61.7) TOTAL GENERAL SALES 2,167.0 4.7% 2,243.5 3.5% 2,402.1 7.1% 2,487.7 3.6% Total Recurring Revenue $ 6,194.7 $ 6,165.0 $ 6,466.3
Tobacco Taxes 82.3 4.9% 82.4 0.1% 81.4 -1.2% 80.4 -1.2% Nonrecurring Revenue Liquor Excise 26.3 -0.4% 6.7 -74.5% 6.9 3.0% 26.1 278.3% August 2015 Consensus Forecast $ 24.6 $ 5.5 $ - Insurance Taxes 149.9 30.2% 188.0 25.5% 219.1 16.5% 231.8 5.8% December 2015 Consensus Revenue Update $ 16.6 $ - $ - Fire Protection Fund Reversion 15.2 -5.8% 13.7 -9.6% 12.4 -9.5% 11.2 -9.7% Total Non-Recurring Revenue $ 41.2 $ 5.5 $ - Motor Vehicle Excise 138.7 4.1% 147.0 6.0% 152.0 3.4% 157.0 3.3% Gaming Excise 70.4 6.0% 70.1 -0.4% 70.1 0.0% 70.3 0.3% TOTAL REVENUE $ 6,235.9 $ 6,170.5 $ 6,466.3 Leased Vehicle Surcharge 5.2 0.6% 5.2 -0.7% 5.2 0.0% 5.2 0.0% Other 0.5 -83.5% 3.2 544.2% 2.1 -34.8% 2.1 0.0% APPROPRIATIONS TOTAL SELECTIVE SALES 488.5 10.0% 516.3 5.7% 549.2 6.4% 584.1 6.4% Recurring Appropriations General Appropriation $ 6,151.2 $ 6,235.4 $ 6,388.5 Personal Income Tax 1,339.7 6.8% 1,401.0 4.6% 1,455.0 3.9% 1,522.0 4.6% 2015 Audit* $ 0.4 Corporate Income Tax 254.5 29.3% 218.0 -14.3% 217.0 -0.5% 205.0 -5.5% 2015 Legislative Session Costs - Feed Bill ** $ 10.1 $ - TOTAL INCOME TAXES 1,594.2 9.8% 1,619.0 1.6% 1,672.0 3.3% 1,727.0 3.3% 2016 Legislative Session Costs Feed Bill ** $ - $ 5.9 Compensation - Contingency Legislation *** $ 77.6 Oil and Gas School Tax 375.4 -25.0% 283.7 -24.4% 315.3 11.1% 362.2 14.9% Total Recurring Appropriations $ 6,161.7 $ 6,241.3 $ 6,466.1 Oil Conservation Tax 20.1 -26.3% 15.1 -24.8% 16.7 10.6% 19.2 15.0% Nonrecurring Appropriations Resources Excise Tax 13.3 2.5% 13.0 -2.6% 13.0 0.0% 13.0 0.0% Prior Year Appropriations $ 13.4 Natural Gas Processors Tax 18.6 14.8% 19.7 5.9% 15.0 -23.9% 14.8 -1.3% 2014 Audit Adjustment $ 3.0 TOTAL SEVERANCE TAXES 427.5 -23.3% 331.5 -22.4% 360.0 8.6% 409.2 13.7% 2015 Audit Adjustment $ (0.8) 2015 Supplementals, Specials & IT Appropriations $ 95.2 $ 1.0 LICENSE FEES 55.9 8.1% 54.5 -2.5% 55.5 1.8% 56.6 2.0% 2015 Special Session - Supplementals & Capital Outlay $ 4.3 $ 30.0 2016 Supplementals, Specials & IT Appropriations $ 107.5 LGPF Interest 502.8 11.9% 553.2 10.0% 548.1 -0.9% 601.9 9.8% Total Nonrecurring Appropriations $ 115.1 $ 138.5 $ - STO Interest 17.0 -10.4% 23.4 37.5% 52.6 124.8% 60.3 14.6% TOTAL APPROPRIATIONS $ 6,276.8 $ 6,379.8 $ 6,466.1 STPF Interest 182.7 7.2% 193.5 5.9% 203.4 5.1% 216.5 6.4% Transfer to (from) Reserves $ (40.9) $ (209.3) $ 0.2 TOTAL INTEREST 702.5 10.0% 770.1 9.6% 804.1 4.4% 878.7 9.3% GENERAL FUND RESERVES Federal Mineral Leasing 542.2 -4.9% 421.7 -22.2% 407.1 -3.5% 430.0 5.6% Beginning Balances $ 637.9 $ 611.7 $ 391.5 State Land Office 42.2 -11.0% 37.6 -11.0% 41.2 9.6% 43.7 6.1% Transfers from (to) Appropriations Account (40.9) (209.3) 0.2 Revenue and Reversions 64.9 73.2 54.2 TOTAL RENTS & ROYALTIES 584.4 -5.3% 459.3 -21.4% 448.3 -2.4% 473.7 5.7% Appropriations, expenditures and transfers out (50.3) (84.1) (40.5) Ending Balances $ 611.7 $ 391.5 $ 405.4 TRIBAL REVENUE SHARING 67.2 -0.6% 64.3 -4.3% 65.8 2.3% 67.8 3.0% Reserves as a Percent of Recurring Appropriations 9.9% 6.3% 6.3% MISCELLANEOUS RECEIPTS 56.2 24.7% 56.5 0.6% 59.4 5.1% 60.3 1.7% *The FY14 general fund audit showed a total contingent liability of $101.7 million. LFC analysis indicates that most REVERSIONS 51.5 -46.7% 50.0 -2.8% 50.0 0.0% 50.0 0.0% of this liability will be reversed in the FY15 audit. **Legislative session expenses treated as recurring appropriation. TOTAL RECURRING 6,194.7 2.6% 6,165.0 -0.5% 6,466.4 4.9% 6,795.1 5.1% ***Compensation appropriation to DFA for disbursement to agencies and is contingent on consensus revenues achieving the targets and adequate general fund reserve level. TOTAL NON-RECURRING 41.2 na 5.5 -86.7% - na - na
GRAND TOTAL 6,235.9 3.2% 6,170.5 -1.0% 6,466.4 4.8% 6,795.1 5.1% TABLE 4 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
GENERAL FUND FINANCIAL SUMMARY (Continued) $900.0 $110.0 RESERVE DETAIL Total (Dollars in Millions) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Preliminary Estimated Estimated Other Funds Funds/ Federal
FY2015 FY2016 FY2017 Recommend Recommend OPERATING RESERVE $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 LFC Recommendation
Beginning balance $ 274.5 $ 218.1 $ (13.2) $900.0 $110.0 Fund
BOF Emergency Fund and reversions (0.5) (2.0) General Transfer to ACF* (15.0) (20.0) Transfers from (to) appropriation account (40.9) (209.3) 0.2 $38.0 $75.0 $20.0 $750.0 $452.0 $150.0 $360.0 Ending balance $ 218.1 $ (13.2) $ (13.0) $326.0 $257.7 $220.0 $100.0 $1,419.4 $1,249.0 Total
APPROPRIATION CONTINGENCY FUND $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Beginning balance $ 18.4 $ 28.5 $ 26.5 $0.0 $0.0 $326.0 $257.7 $220.0 $100.0 Other Funds
Disaster allotments (12.5) (22.0) (22.0) Funds/ Federal Transfer from Oper Reserve to ACF (2015 & 2016 GAA) 15.0 20.0 - Agency Request Agency Revenue and reversions 7.7 - - Language Request Language Request $38.0 $75.0 $20.0
Ending Balance $ 28.5 $ 26.5 $ 4.5 $750.0 $452.0 $150.0 $360.0 $1,419.4 $1,249.0 Fund
Education Lock Box General Beginning balance $ 3.0 $ 0.0 $ - Appropriations (2014 GAA, Section 5) (3.0) - - Transfers in (out) - - - Ending balance $ 0.0 $ 0.0 $ - Total of Appropriation Contingency Fund $ 28.5 $ 26.5 $ 26.5
STATE SUPPORT FUND Beginning balance $ 1.0 $ 1.0 $ 1.0 Revenues $ - $ - $ - Appropriations $ - $ - $ - Ending balance $ 1.0 $ 1.0 $ 1.0 TOBACCO PERMANENT FUND (in thousands of dollars) Beginning balance $ 193.5 $ 216.5 $ 229.6 Transfers in 35.0 37.0 37.0 Appropriation to tobacco settlement program fund (19.3) (20.8) (18.5)
Gains/Losses 7.2 16.2 17.2 Language Additional transfers to Program Fund - (19.3) Ending balance $ 216.5 $ 229.6 $ 265.3
TAX STABILIZATION RESERVE Beginning balance $ 147.5 $ 147.5 $ 147.5 Transfers in - - Transfers out - - - Ending balance $ 147.5 $ 147.5 $ 147.5 Appropriations Deficiency and Supplemental, Special, Session 2016 Legislative GENERAL FUND ENDING BALANCES $ 611.7 $ 391.5 $ 405.4 Percent of Recurring Appropriations 9.9% 6.3% 6.3% For IT equipment. IT For To replace furniture and equipment in district courts. To replace furniture and equipment for magistrate courts. equipment IT For statewide. vehicles.For judgesFor pro-tempore. upgrades. Odyssey For To video upgrade arraignment from systems analogue to digital in 15 courts and 5 detention centers. To replace current reconciliation, cash receipt, and suspense management system. management reconfigurationFor of jury system. an engineeringFor grounds study. To fund eight and eight additional additional attorneys paralegal staff. balances unexpended remainingAny 2016 from at the end of fiscal revenues received year in fiscal Native from American a district any attorney by tribe, pueblo political or 2016 and prior years year subdivision pursuant to a contract, memorandum of understanding, joint agreement powers grant or shall not revert and shall remain the recipient with district office. Prior attorney's to November 1, 2016, the Administrative Office of the District shall Attorneys provide the Department of Finance and Administration and the Legislative Finance Committee a detailed report documenting the amount of all funds received from Native American tribes, pueblos and political subdivisions pursuant to a contract, memorandum of understanding, joint agreement powers grant or that do not revert at the end of fiscal 2016 for each of the and the district Administrative attorneys year Office of the District Attorneys. balances unexpended remainingAny 2016 from at the end of fiscal revenues received year in fiscal the or Administrative a district attorney by Office 2016 and prior years of the District year Attorneys from the United States Department of Justice pursuant to the prosecution southwest border initiative shall not revert and shall remain the recipient with district office. Prior attorney's to November 1, 2016, the Administrative Office of the District shall Attorneys provide to the Department of Finance and Administration and the Legislative Finance Committee a detailed report documenting the amount of all prosecutionsouthwest border initiative funds that do not revert2016 for each at the end of fiscal year of the and the district Administrative attorneys Office of the District Attorneys. equipment IT For in offices district statewide. attorney Agency Administrative Office of the District Attorneys Court of Appeals Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Supreme Court Building Commission Second Judicial District Attorney Administrative Office of the District Attorneys Administrative Office of the District Attorneys 218 218 218 218 264 218 218 218 215 218 218 219 252 264 264 Code Agency Agency SPECIAL APPROPRIATIONS: SPECIAL 2 4 5 6 8 9 7 1 3 13 10 11 12 14 15 TABLE 5 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
GENERAL FUND FINANCIAL SUMMARY (Continued) $900.0 $110.0 RESERVE DETAIL Total (Dollars in Millions) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Preliminary Estimated Estimated Other Funds Funds/ Federal
FY2015 FY2016 FY2017 Recommend Recommend OPERATING RESERVE $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 LFC Recommendation
Beginning balance $ 274.5 $ 218.1 $ (13.2) $900.0 $110.0 Fund
BOF Emergency Fund and reversions (0.5) (2.0) General Transfer to ACF* (15.0) (20.0) Transfers from (to) appropriation account (40.9) (209.3) 0.2 $38.0 $75.0 $20.0 $257.7 $220.0 $750.0 $452.0 $150.0 $360.0 Ending balance $ 218.1 $ (13.2) $ (13.0) $326.0 $100.0 $1,249.0 $1,419.4 Total
APPROPRIATION CONTINGENCY FUND $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Beginning balance $ 18.4 $ 28.5 $ 26.5 $0.0 $0.0 $257.7 $220.0 $326.0 $100.0 Other Funds
Disaster allotments (12.5) (22.0) (22.0) Funds/ Federal Transfer from Oper Reserve to ACF (2015 & 2016 GAA) 15.0 20.0 - Agency Request Agency Revenue and reversions 7.7 - - Language Request Language Request $38.0 $75.0 $20.0
Ending Balance $ 28.5 $ 26.5 $ 4.5 $750.0 $452.0 $150.0 $360.0 $1,249.0 $1,419.4 Fund
Education Lock Box General Beginning balance $ 3.0 $ 0.0 $ - Appropriations (2014 GAA, Section 5) (3.0) - - Transfers in (out) - - - Ending balance $ 0.0 $ 0.0 $ - Total of Appropriation Contingency Fund $ 28.5 $ 26.5 $ 26.5
STATE SUPPORT FUND Beginning balance $ 1.0 $ 1.0 $ 1.0 Revenues $ - $ - $ - Appropriations $ - $ - $ - Ending balance $ 1.0 $ 1.0 $ 1.0 TOBACCO PERMANENT FUND (in thousands of dollars) Beginning balance $ 193.5 $ 216.5 $ 229.6 Transfers in 35.0 37.0 37.0 Appropriation to tobacco settlement program fund (19.3) (20.8) (18.5)
Gains/Losses 7.2 16.2 17.2 Language Additional transfers to Program Fund - (19.3) Ending balance $ 216.5 $ 229.6 $ 265.3
TAX STABILIZATION RESERVE Beginning balance $ 147.5 $ 147.5 $ 147.5 Transfers in - - Transfers out - - - Ending balance $ 147.5 $ 147.5 $ 147.5 Appropriations Deficiency and Supplemental, Special, Session 2016 Legislative GENERAL FUND ENDING BALANCES $ 611.7 $ 391.5 $ 405.4 Percent of Recurring Appropriations 9.9% 6.3% 6.3% For IT equipment. IT For To replace furniture and equipment in district courts. To replace furniture and equipment for magistrate courts. equipment IT For statewide. vehicles.For judgesFor pro-tempore. upgrades. Odyssey For To video upgrade arraignment from systems analogue to digital in 15 courts and 5 detention centers. To replace current reconciliation, cash receipt, and suspense management system. management reconfigurationFor of jury system. an engineeringFor grounds study. To fund eight and eight additional additional attorneys paralegal staff. balances unexpended remainingAny 2016 from at the end of fiscal revenues received year in fiscal Native from American a district any attorney by tribe, pueblo political or 2016 and prior years year subdivision pursuant to a contract, memorandum of understanding, joint agreement powers grant or shall not revert and shall remain the recipient with district office. Prior attorney's to November 1, 2016, the Administrative Office of the District shall Attorneys provide the Department of Finance and Administration and the Legislative Finance Committee a detailed report documenting the amount of all funds received from Native American tribes, pueblos and political subdivisions pursuant to a contract, memorandum of understanding, joint agreement powers grant or that do not revert at the end of fiscal 2016 for each of the and the district Administrative attorneys year Office of the District Attorneys. balances unexpended remainingAny 2016 from at the end of fiscal revenues received year in fiscal the or Administrative a district attorney by Office 2016 and prior years of the District year Attorneys from the United States Department of Justice pursuant to the prosecution southwest border initiative shall not revert and shall remain the recipient with district office. Prior attorney's to November 1, 2016, the Administrative Office of the District shall Attorneys provide to the Department of Finance and Administration and the Legislative Finance Committee a detailed report documenting the amount of all prosecutionsouthwest border initiative funds that do not revert2016 for each at the end of fiscal year of the and the district Administrative attorneys Office of the District Attorneys. equipment IT For in offices district statewide. attorney Agency Administrative Office of the District Attorneys Court of Appeals Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Administrative Office of the Courts Supreme Court Building Commission Second Judicial District Attorney Administrative Office of the District Attorneys Administrative Office of the District Attorneys 218 264 218 218 218 218 218 218 215 218 218 219 252 264 264 Code Agency Agency SPECIAL APPROPRIATIONS: SPECIAL 2 9 4 5 6 8 7 1 3 13 10 11 12 14 15 2016 Legislative Session Special, Supplemental, and Deficiency Appropriations TABLE 5 (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total
16 305 Attorney General To defend the Rio Grande compact. The appropriation is from the consumer settlement fund. $3,000.0 $3,000.0 $500.0 $500.0
17 305 Attorney General For relocation of the Albuquerque office to a different facility. $660.0 $660.0 $0.0 $0.0
To provide pre-foreclosure services to homeowners. The appropriation is from the mortgage 18 305 Attorney General settlement fund awarded to the attorney general's office to provide housing counseling, litigation and $600.0 $600.0 $600.0 $600.0 foreclosure mediation for homeowners facing foreclosure.
19 305 Attorney General To purchase a mobile digital forensic laboratory vehicle for the internet crimes against children unit. $209.0 $209.0 $0.0 $0.0
Taxation and Revenue 20 333 For operating costs associated with an anti-fraud and identity theft software program. $300.0 $0.0 $300.0 $0.0 $0.0 $0.0 Department Administrative Hearing 21 340 For moving expenses and for secure video conferencing equipment purchase. $15.0 $0.0 $15.0 $15.0 $0.0 $15.0 Office Department of Finance 22 341 For payment card industry and data security standards compliance program. $1,000.0 $0.0 $1,000.0 $1,000.0 $0.0 $1,000.0 and Administration Department of Finance 23 341 For post go-live Hyperion support and configuration needs through June 30, 2017. $500.0 $0.0 $500.0 $200.0 $0.0 $200.0 and Administration Department of Finance For oversight of the Affordable Housing Act and regional housing authorities by the New Mexico 24 341 $0.0 $0.0 $150.0 $0.0 $150.0 and Administration Mortgage Finance Authority.
The period of time for expending the one million four hundred thousand dollars ($1,400,000) appropriated from the public buildings repair fund to the property control division of the General Services Department in Subsection 23 of Section 5 of Chapter 227 of Laws 2013 and extended General Services pursuant to Subsection 27 of Section 5 of Chapter 63 of Laws 2014 and extended pursuant to 25 350 Language Request Do Not Recommend Department subsection 17 of Section 5 of Chapter 101 of Laws of 2015 to conduct facility condition assessments of all state facilities under the jurisdiction of the property control division of the General Services Department is reappropriated to the Facilities Management Program of the General Services Department for the same purpose and is extended through fiscal year 2017.
The period of time for expending the one million two hundred thousand dollars ($1,200,000) appropriated from the public buildings repair fund to the Facilities Management Program of the General Services Department in Subsection 18 of Section 5 of chapter 101 of Laws of 2015 to develop General Services and administer master planning guidelines and provide pre-implementation and training to executive 26 350 Language Request Recommend Department agencies, to provide assessment of space and tenant assignments in buildings owned by the Facilities Management Program and to provide assessment and valuation of land managed by the Facilities Management Program is reappropriated to the Facilities Management Program of the General Services Department for the same purpose and is extended through fiscal year 2017.
General Services 27 350 To purchase one backhoe for the Facilities Management Division. $85.0 $0.0 $85.0 $0.0 $0.0 $0.0 Department
28 370 Secretary of State For expenses related to the 2016 general election. $1,164.9 $0.0 $1,164.9 $750.0 $0.0 $750.0
29 370 Secretary of State To implement military and overseas voters electronic application and ballot tracking system. $90.0 $0.0 $90.0 $90.0 $0.0 $90.0
For funding associated with newly assigned statutory duties under Laws 2015, Chapter 152 related to 30 394 State Treasurer's Office $2,500.0 $0.0 $2,500.0 $500.0 $0.0 $500.0 changes in the Forfeiture Act.
31 417 Border Authority For the second phase of the railroad study conducted at Santa Teresa. $2,000.0 $0.0 $2,000.0 $0.0 $0.0 $0.0
2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total For the extension of northbound hours of operation for commercial traffic for an additional four hours 32 417 Border Authority $350.0 $0.0 $350.0 $200.0 $0.0 $200.0 Monday through Friday at the Santa Teresa port of entry in New Mexico for one year. Economic Development 33 419 To the development training fund for the Job Training Incentive Program. $7,000.0 $0.0 $7,000.0 $5,000.0 $0.0 $5,000.0 Department Economic Development For expenses associated with performing third party due diligence on Local Economic Development 34 419 $50.0 $0.0 $50.0 $50.0 $0.0 $50.0 Department Act projects and post award auditing.
To contract for the research and development of a statewide accountability and metrics system to Economic Development 35 419 identify data collection and reporting requirements for legislation in the 2017 legislative session to $0.0 $0.0 $0.0 $150.0 $0.0 $150.0 Department determine the effectiveness and efficiency of economic development programs.
Economic Development For the New Mexico economic development corporation to advertise the state to businesses using the 36 419 $0.0 $0.0 $0.0 $250.0 $0.0 $250.0 Department Tourism Department's advertising brand. For training for Financial Institutions Division examination staff on new financial regulatory Regulation and 37 420 requirements stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act. The $65.0 $65.0 $14.0 $14.0 Licensing Department appropriation is from the state financial regulation fund. For enhancements to the current insurance division electronic application licensing system and work Office of Superintendent 38 440 associated with transitioning from the current system to the National Association of Insurance $150.0 $150.0 $0.0 $0.0 of Insurance Commissioners state based system.
The period of time for expending the two hundred thousand dollars ($200,000) appropriated from the general fund in Subsection 14 of Section 5 of Chapter 19 of Laws 2012 and extended pursuant to 39 465 Gaming Control Board Subsection 32 of Section 5 of Chapter 227 of Laws 2013 and Subsection 40 of Section 5 of Chapter Language Request Recommend 63 of Laws 2014 and Subsection 28 of Section 5 of Chapter 101 of Laws 2015 for arbitration and litigation expenses related to tribal gaming is extended through fiscal year 2017.
40 465 Gaming Control Board For arbitration and litigation expenses related to tribal gaming. $200.0 $0.0 $200.0 $128.4 $0.0 $128.4
The period of time for expending the three hundred thousand dollars ($300,000) appropriated from the Cultural Affairs general fund in Subsection 31 of Section 5 of Chapter 101 of Laws 2015 for renovation and upgrades 41 505 Language Request Recommend Department of exhibits at the Museum of Indian Arts and Culture contingent on a private match of at least three hundred thousand dollars ($300,000) is extended through fiscal year 2017.
The period of time for expending the one hundred fifty thousand dollars ($150,000) appropriated from the general fund in Subsection 30 of Section 5 of Chapter 101 of Laws 2015 for educational programs Cultural Affairs and maintenance at the Los Luceros property is extended through fiscal year 2017. Any remaining 42 505 Language Request Recommend Department balance of the appropriation shall transfer to the New Mexico State University Board of Regents agricultural experiment station pursuant to an agreement with the Cultural Affairs Department for the operations of the Los Luceros property. Cultural Affairs For expenditure in fiscal year 2017 for additional staff to provide education, marketing, and outreach 43 505 $665.0 $0.0 $665.0 $0.0 $0.0 $0.0 Department services in the Museums and Historic Sites and Archaeology programs. Cultural Affairs 44 505 For marketing museums and historic sites. $150.0 $0.0 $150.0 $0.0 $0.0 $0.0 Department Cultural Affairs 45 505 For expenditure in fiscal year 2017 for an economic development arts initiative. $150.0 $0.0 $150.0 $0.0 $0.0 $0.0 Department 2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total
16 305 Attorney General To defend the Rio Grande compact. The appropriation is from the consumer settlement fund. $3,000.0 $3,000.0 $500.0 $500.0
17 305 Attorney General For relocation of the Albuquerque office to a different facility. $660.0 $660.0 $0.0 $0.0
To provide pre-foreclosure services to homeowners. The appropriation is from the mortgage 18 305 Attorney General settlement fund awarded to the attorney general's office to provide housing counseling, litigation and $600.0 $600.0 $600.0 $600.0 foreclosure mediation for homeowners facing foreclosure.
19 305 Attorney General To purchase a mobile digital forensic laboratory vehicle for the internet crimes against children unit. $209.0 $209.0 $0.0 $0.0
Taxation and Revenue 20 333 For operating costs associated with an anti-fraud and identity theft software program. $300.0 $0.0 $300.0 $0.0 $0.0 $0.0 Department Administrative Hearing 21 340 For moving expenses and for secure video conferencing equipment purchase. $15.0 $0.0 $15.0 $15.0 $0.0 $15.0 Office Department of Finance 22 341 For payment card industry and data security standards compliance program. $1,000.0 $0.0 $1,000.0 $1,000.0 $0.0 $1,000.0 and Administration Department of Finance 23 341 For post go-live Hyperion support and configuration needs through June 30, 2017. $500.0 $0.0 $500.0 $200.0 $0.0 $200.0 and Administration Department of Finance For oversight of the Affordable Housing Act and regional housing authorities by the New Mexico 24 341 $0.0 $0.0 $150.0 $0.0 $150.0 and Administration Mortgage Finance Authority.
The period of time for expending the one million four hundred thousand dollars ($1,400,000) appropriated from the public buildings repair fund to the property control division of the General Services Department in Subsection 23 of Section 5 of Chapter 227 of Laws 2013 and extended General Services pursuant to Subsection 27 of Section 5 of Chapter 63 of Laws 2014 and extended pursuant to 25 350 Language Request Do Not Recommend Department subsection 17 of Section 5 of Chapter 101 of Laws of 2015 to conduct facility condition assessments of all state facilities under the jurisdiction of the property control division of the General Services Department is reappropriated to the Facilities Management Program of the General Services Department for the same purpose and is extended through fiscal year 2017.
The period of time for expending the one million two hundred thousand dollars ($1,200,000) appropriated from the public buildings repair fund to the Facilities Management Program of the General Services Department in Subsection 18 of Section 5 of chapter 101 of Laws of 2015 to develop General Services and administer master planning guidelines and provide pre-implementation and training to executive 26 350 Language Request Recommend Department agencies, to provide assessment of space and tenant assignments in buildings owned by the Facilities Management Program and to provide assessment and valuation of land managed by the Facilities Management Program is reappropriated to the Facilities Management Program of the General Services Department for the same purpose and is extended through fiscal year 2017.
General Services 27 350 To purchase one backhoe for the Facilities Management Division. $85.0 $0.0 $85.0 $0.0 $0.0 $0.0 Department
28 370 Secretary of State For expenses related to the 2016 general election. $1,164.9 $0.0 $1,164.9 $750.0 $0.0 $750.0
29 370 Secretary of State To implement military and overseas voters electronic application and ballot tracking system. $90.0 $0.0 $90.0 $90.0 $0.0 $90.0
For funding associated with newly assigned statutory duties under Laws 2015, Chapter 152 related to 30 394 State Treasurer's Office $2,500.0 $0.0 $2,500.0 $500.0 $0.0 $500.0 changes in the Forfeiture Act.
31 417 Border Authority For the second phase of the railroad study conducted at Santa Teresa. $2,000.0 $0.0 $2,000.0 $0.0 $0.0 $0.0
2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total For the extension of northbound hours of operation for commercial traffic for an additional four hours 32 417 Border Authority $350.0 $0.0 $350.0 $200.0 $0.0 $200.0 Monday through Friday at the Santa Teresa port of entry in New Mexico for one year. Economic Development 33 419 To the development training fund for the Job Training Incentive Program. $7,000.0 $0.0 $7,000.0 $5,000.0 $0.0 $5,000.0 Department Economic Development For expenses associated with performing third party due diligence on Local Economic Development 34 419 $50.0 $0.0 $50.0 $50.0 $0.0 $50.0 Department Act projects and post award auditing.
To contract for the research and development of a statewide accountability and metrics system to Economic Development 35 419 identify data collection and reporting requirements for legislation in the 2017 legislative session to $0.0 $0.0 $0.0 $150.0 $0.0 $150.0 Department determine the effectiveness and efficiency of economic development programs.
Economic Development For the New Mexico economic development corporation to advertise the state to businesses using the 36 419 $0.0 $0.0 $0.0 $250.0 $0.0 $250.0 Department Tourism Department's advertising brand. For training for Financial Institutions Division examination staff on new financial regulatory Regulation and 37 420 requirements stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act. The $65.0 $65.0 $14.0 $14.0 Licensing Department appropriation is from the state financial regulation fund. For enhancements to the current insurance division electronic application licensing system and work Office of Superintendent 38 440 associated with transitioning from the current system to the National Association of Insurance $150.0 $150.0 $0.0 $0.0 of Insurance Commissioners state based system.
The period of time for expending the two hundred thousand dollars ($200,000) appropriated from the general fund in Subsection 14 of Section 5 of Chapter 19 of Laws 2012 and extended pursuant to 39 465 Gaming Control Board Subsection 32 of Section 5 of Chapter 227 of Laws 2013 and Subsection 40 of Section 5 of Chapter Language Request Recommend 63 of Laws 2014 and Subsection 28 of Section 5 of Chapter 101 of Laws 2015 for arbitration and litigation expenses related to tribal gaming is extended through fiscal year 2017.
40 465 Gaming Control Board For arbitration and litigation expenses related to tribal gaming. $200.0 $0.0 $200.0 $128.4 $0.0 $128.4
The period of time for expending the three hundred thousand dollars ($300,000) appropriated from the Cultural Affairs general fund in Subsection 31 of Section 5 of Chapter 101 of Laws 2015 for renovation and upgrades 41 505 Language Request Recommend Department of exhibits at the Museum of Indian Arts and Culture contingent on a private match of at least three hundred thousand dollars ($300,000) is extended through fiscal year 2017.
The period of time for expending the one hundred fifty thousand dollars ($150,000) appropriated from the general fund in Subsection 30 of Section 5 of Chapter 101 of Laws 2015 for educational programs Cultural Affairs and maintenance at the Los Luceros property is extended through fiscal year 2017. Any remaining 42 505 Language Request Recommend Department balance of the appropriation shall transfer to the New Mexico State University Board of Regents agricultural experiment station pursuant to an agreement with the Cultural Affairs Department for the operations of the Los Luceros property. Cultural Affairs For expenditure in fiscal year 2017 for additional staff to provide education, marketing, and outreach
43 505 $665.0 $0.0 $665.0 $0.0 $0.0 $0.0 TABLE 5 Department services in the Museums and Historic Sites and Archaeology programs. Cultural Affairs 44 505 For marketing museums and historic sites. $150.0 $0.0 $150.0 $0.0 $0.0 $0.0 Department Cultural Affairs 45 505 For expenditure in fiscal year 2017 for an economic development arts initiative. $150.0 $0.0 $150.0 $0.0 $0.0 $0.0 Department TABLE 5 2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total Energy, Minerals and To establish a competitive grant program with state colleges and universities to pursue innovative 46 521 Natural Resources $500.0 $0.0 $500.0 $0.0 $0.0 $0.0 uses of produced, brackish, and alternative water resources. Department Commissioner of Public For natural resource restoration and remediation of state trust lands. The appropriation is from the 47 539 $2,000.0 $2,000.0 $500.0 $500.0 Lands state lands maintenance fund. Commissioner of Public To complete historical back file conversion. The appropriation is from the state lands maintenance 48 539 $1,100.0 $1,100.0 $1,100.0 $1,100.0 Lands fund. Office of the State 49 550 To continue water litigation under interstate compacts. $3,000.0 $0.0 $3,000.0 $0.0 $500.0 $500.0 Engineer Office of the State 50 550 For statewide groundwater sustainability studies. $2,000.0 $0.0 $2,000.0 $0.0 $0.0 $0.0 Engineer Indian Affairs 51 609 To support the annual state tribal summit. $25.0 $0.0 $25.0 $0.0 $0.0 $0.0 Department
Any unexpended balances in the income support program of the Human Services Department Human Services remaining at the end of fiscal year 2016 from reimbursements received from the Social Security 52 630 Language Request Recommend Department Administration to support the General Assistance Program shall not revert and may be expended by the Human Services Department in fiscal year 2017 for payments in the General Assistance Program.
Human Services To hire and train 10 additional FTE within the Behavioral Health Services Division to take over the 53 630 $408.6 $0.0 $408.6 $408.6 $0.0 $408.6 Department administrative services function currently provided by Optum Health. Workers' Compensation To update an analysis of the state workers' compensation system. The other state funds appropriation 54 632 $250.0 $250.0 $250.0 $250.0 Administration is from the workers' compensation administration fund. Developmental 55 647 Disabilities Planning To replace the agency's 2007 bus used to assist its clients with transportation needs. $65.0 $0.0 $65.0 $65.0 $0.0 $65.0 Council Any unexpended balances in the Health Certification, Licensing and Oversight Division of the Department of Health remaining at the end of fiscal year 2016 from appropriations made from other 56 665 Department of Health state funds for the state-imposed civil monetary penalties in accordance with senate bill 445 shall not Language Request Do Not Recommend revert and shall remain available in future fiscal years to fund temporary management of failing facilities and health facility receivership. Any unexpended balances in the Medical Cannabis Program of the Department of Health remaining at 57 665 Department of Health the end of fiscal year 2016 from appropriations made from other state funds shall not revert and shall Language Request Do Not Recommend be expended in fiscal year 2017 for the Medical Cannabis Program. Any unexpended balances in the Public Health Program of the Department of Health in the contractual services category from appropriations made from the county-supported Medicaid fund for the support 58 665 Department of Health of primary health care services related to the rural primary health care act remaining at the end of Language Request Do Not Recommend fiscal year 2016 shall not revert and shall be expended in fiscal year 2017 to support the primary health care services in the Public Health Program.
Any unexpended balances in the Public Health Program of the Department of Health remaining at the end of fiscal year 2016 from appropriations made from other state funds for the children’s medical services for the support of children with special health care needs and complex medical conditions 59 665 Department of Health Language Request Do Not Recommend shall not revert and shall be expended in fiscal year 2017 for maintenance of the infrastructure to provide comprehensive services to children with special health care needs per HRSA federal requirements Social Security Act, Title V 45 CFR 75-307.
2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total
Any unexpended balances in the Developmental Disabilities Support Program of the Department of Health in the other financing uses category remaining at the end of the fiscal year 2016 from 60 665 Department of Health appropriations made from the general fund shall not revert to the general fund and shall be expended Language Request Do Not Recommend in fiscal year 2017 to support the Developmental Disabilities Medicaid Waiver Program in the Developmental Disabilities Support Program of the Department of Health.
Any unexpended balances in the Public Health Program of the Department of Health remaining at the end of fiscal year 2016 from appropriations made from other state funds for the Title X Family Planning Program for the support of family planning and related preventive health services for teens, women, 61 665 Department of Health Language Request Do Not Recommend and men shall not revert and shall be expended in fiscal year 2017 for program services per the Department of Health and Human Services Grants Policy Statement, Section II, Page 60. Program income must be used as provided in the notice of award.
To comply with all terms and timelines of the Waldrop Settlement Agreement approved and filed in 62 665 Department of Health $3,955.7 $1,550.0 $5,505.7 $3,955.7 $1,550.0 $5,505.7 federal court in May 2015 for the Developmental Disabilities Waiver Program in fiscal year 2017.
To expand sexual violence prevention and therapeutic services in the Injury and Behavioral Health 63 665 Department of Health $1,000.0 $0.0 $1,000.0 $0.0 $0.0 $0.0 Epidemiology program in fiscal year 2016 and fiscal year 2017.
To comply with all terms of the Developmental Disabilities Waiver Program Jackson Disengagement 64 665 Department of Health $790.0 $950.0 $1,740.0 $0.0 $0.0 $0.0 Order from the federal court in May 2015 for the state defendants in fiscal year 2017.
Any unexpended balances in the Protective Services Program, Early Childhood Services Program, Children, Youth and 65 690 and the Juvenile Justice Services Program of the Children, Youth and Families Department remaining Language Request Recommend Families Department at the end of fiscal year 2016 from appropriations made from the general fund shall not revert.
Children, Youth and 66 690 To partially fund relocating costs to the Child Wellness Center in Bernalillo County. $5,000.0 $0.0 $5,000.0 $0.0 $0.0 $0.0 Families Department Children, Youth and 67 690 To replace IT equipment. $1,000.0 $0.0 $1,000.0 $500.0 $0.0 $500.0 Families Department Children, Youth and For IT licenses, system maintenance, and software so statewide public safety entities can access the 68 690 $500.0 $0.0 $500.0 $250.0 $0.0 $250.0 Families Department Children, Youth and Families Department IT systems. New Mexico Corrections To address deferred maintenance at corrections facilities statewide. The appropriation is from the 69 770 $500.0 $500.0 $500.0 $500.0 Department land grant permanent fund. Department of Public 70 790 For vehicle replacement in the Law Enforcement Program. $4,023.9 $0.0 $4,023.9 $2,152.5 $0.0 $2,152.5 Safety Department of Public 71 790 For funding to recruit and train experienced law enforcement officers in the Law Enforcement Program. $576.0 $0.0 $576.0 $0.0 $0.0 $0.0 Safety
Department of Public Funding to implement an automated paperless document management and training records system in 72 790 $432.8 $0.0 $432.8 $0.0 $0.0 $0.0 Safety support of all law enforcement officers in the state for the law enforcement academy.
Department of Public 73 790 For latent print contractors to clear backlogged cases. $315.0 $0.0 $315.0 $315.0 $0.0 $315.0 Safety Department of Public 74 790 To replace aging law enforcement breath testing instruments deployed statewide. $301.9 $0.0 $301.9 $301.9 $0.0 $301.9 Safety 2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total Energy, Minerals and To establish a competitive grant program with state colleges and universities to pursue innovative 46 521 Natural Resources $500.0 $0.0 $500.0 $0.0 $0.0 $0.0 uses of produced, brackish, and alternative water resources. Department Commissioner of Public For natural resource restoration and remediation of state trust lands. The appropriation is from the 47 539 $2,000.0 $2,000.0 $500.0 $500.0 Lands state lands maintenance fund. Commissioner of Public To complete historical back file conversion. The appropriation is from the state lands maintenance 48 539 $1,100.0 $1,100.0 $1,100.0 $1,100.0 Lands fund. Office of the State 49 550 To continue water litigation under interstate compacts. $3,000.0 $0.0 $3,000.0 $0.0 $500.0 $500.0 Engineer Office of the State 50 550 For statewide groundwater sustainability studies. $2,000.0 $0.0 $2,000.0 $0.0 $0.0 $0.0 Engineer Indian Affairs 51 609 To support the annual state tribal summit. $25.0 $0.0 $25.0 $0.0 $0.0 $0.0 Department
Any unexpended balances in the income support program of the Human Services Department Human Services remaining at the end of fiscal year 2016 from reimbursements received from the Social Security 52 630 Language Request Recommend Department Administration to support the General Assistance Program shall not revert and may be expended by the Human Services Department in fiscal year 2017 for payments in the General Assistance Program.
Human Services To hire and train 10 additional FTE within the Behavioral Health Services Division to take over the 53 630 $408.6 $0.0 $408.6 $408.6 $0.0 $408.6 Department administrative services function currently provided by Optum Health. Workers' Compensation To update an analysis of the state workers' compensation system. The other state funds appropriation 54 632 $250.0 $250.0 $250.0 $250.0 Administration is from the workers' compensation administration fund. Developmental 55 647 Disabilities Planning To replace the agency's 2007 bus used to assist its clients with transportation needs. $65.0 $0.0 $65.0 $65.0 $0.0 $65.0 Council Any unexpended balances in the Health Certification, Licensing and Oversight Division of the Department of Health remaining at the end of fiscal year 2016 from appropriations made from other 56 665 Department of Health state funds for the state-imposed civil monetary penalties in accordance with senate bill 445 shall not Language Request Do Not Recommend revert and shall remain available in future fiscal years to fund temporary management of failing facilities and health facility receivership. Any unexpended balances in the Medical Cannabis Program of the Department of Health remaining at 57 665 Department of Health the end of fiscal year 2016 from appropriations made from other state funds shall not revert and shall Language Request Do Not Recommend be expended in fiscal year 2017 for the Medical Cannabis Program. Any unexpended balances in the Public Health Program of the Department of Health in the contractual services category from appropriations made from the county-supported Medicaid fund for the support 58 665 Department of Health of primary health care services related to the rural primary health care act remaining at the end of Language Request Do Not Recommend fiscal year 2016 shall not revert and shall be expended in fiscal year 2017 to support the primary health care services in the Public Health Program.
Any unexpended balances in the Public Health Program of the Department of Health remaining at the end of fiscal year 2016 from appropriations made from other state funds for the children’s medical services for the support of children with special health care needs and complex medical conditions 59 665 Department of Health Language Request Do Not Recommend shall not revert and shall be expended in fiscal year 2017 for maintenance of the infrastructure to provide comprehensive services to children with special health care needs per HRSA federal requirements Social Security Act, Title V 45 CFR 75-307.
2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total
Any unexpended balances in the Developmental Disabilities Support Program of the Department of Health in the other financing uses category remaining at the end of the fiscal year 2016 from 60 665 Department of Health appropriations made from the general fund shall not revert to the general fund and shall be expended Language Request Do Not Recommend in fiscal year 2017 to support the Developmental Disabilities Medicaid Waiver Program in the Developmental Disabilities Support Program of the Department of Health.
Any unexpended balances in the Public Health Program of the Department of Health remaining at the end of fiscal year 2016 from appropriations made from other state funds for the Title X Family Planning Program for the support of family planning and related preventive health services for teens, women, 61 665 Department of Health Language Request Do Not Recommend and men shall not revert and shall be expended in fiscal year 2017 for program services per the Department of Health and Human Services Grants Policy Statement, Section II, Page 60. Program income must be used as provided in the notice of award.
To comply with all terms and timelines of the Waldrop Settlement Agreement approved and filed in 62 665 Department of Health $3,955.7 $1,550.0 $5,505.7 $3,955.7 $1,550.0 $5,505.7 federal court in May 2015 for the Developmental Disabilities Waiver Program in fiscal year 2017.
To expand sexual violence prevention and therapeutic services in the Injury and Behavioral Health 63 665 Department of Health $1,000.0 $0.0 $1,000.0 $0.0 $0.0 $0.0 Epidemiology program in fiscal year 2016 and fiscal year 2017.
To comply with all terms of the Developmental Disabilities Waiver Program Jackson Disengagement 64 665 Department of Health $790.0 $950.0 $1,740.0 $0.0 $0.0 $0.0 Order from the federal court in May 2015 for the state defendants in fiscal year 2017.
Any unexpended balances in the Protective Services Program, Early Childhood Services Program, Children, Youth and 65 690 and the Juvenile Justice Services Program of the Children, Youth and Families Department remaining Language Request Recommend Families Department at the end of fiscal year 2016 from appropriations made from the general fund shall not revert.
Children, Youth and 66 690 To partially fund relocating costs to the Child Wellness Center in Bernalillo County. $5,000.0 $0.0 $5,000.0 $0.0 $0.0 $0.0 Families Department Children, Youth and 67 690 To replace IT equipment. $1,000.0 $0.0 $1,000.0 $500.0 $0.0 $500.0 Families Department Children, Youth and For IT licenses, system maintenance, and software so statewide public safety entities can access the 68 690 $500.0 $0.0 $500.0 $250.0 $0.0 $250.0 Families Department Children, Youth and Families Department IT systems. New Mexico Corrections To address deferred maintenance at corrections facilities statewide. The appropriation is from the 69 770 $500.0 $500.0 $500.0 $500.0 Department land grant permanent fund. Department of Public 70 790 For vehicle replacement in the Law Enforcement Program. $4,023.9 $0.0 $4,023.9 $2,152.5 $0.0 $2,152.5 Safety Department of Public 71 790 For funding to recruit and train experienced law enforcement officers in the Law Enforcement Program. $576.0 $0.0 $576.0 $0.0 $0.0 $0.0 Safety
Department of Public Funding to implement an automated paperless document management and training records system in 72 790 $432.8 $0.0 $432.8 $0.0 $0.0 $0.0 Safety support of all law enforcement officers in the state for the law enforcement academy. TABLE 5
Department of Public 73 790 For latent print contractors to clear backlogged cases. $315.0 $0.0 $315.0 $315.0 $0.0 $315.0 Safety Department of Public 74 790 To replace aging law enforcement breath testing instruments deployed statewide. $301.9 $0.0 $301.9 $301.9 $0.0 $301.9 Safety TABLE 5 2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total Department of Public 75 790 For the processing of backlogged rape kits at the department. $0.0 $0.0 $0.0 $600.0 $0.0 $600.0 Safety Department of Public 76 790 For a criminal justice clearinghouse. $0.0 $0.0 $0.0 $500.0 $0.0 $500.0 Safety
The period of time for expending up to four hundred million dollars ($400,000,000) of other state funds Department of 77 805 and federal funds appropriated to the Project Design and Construction Program of the Department of Language Request Recommend Transportation Transportation pertaining to prior fiscal years is extended through fiscal year 2017.
The period of time for expending up to eighty million dollars ($80,000,000) of other state funds and Department of 78 805 federal funds appropriated to the Transportation and Highway Operations Program of the Department Language Request Recommend Transportation of Transportation pertaining to prior fiscal years is extended through fiscal year 2017.
The period of time for expending up to eighty million dollars ($80,000,000) of other state funds and Department of 79 805 federal funds appropriations to the Modal Program of the Department of Transportation pertaining to Language Request Recommend Transportation prior fiscal years is extended through fiscal year 2017. Public Education For emergency support to school districts experiencing shortfalls. All requirements for distribution shall 80 924 $4,000.0 $0.0 $4,000.0 $2,000.0 $0.0 $2,000.0 Department be in accordance with Section 22-8-30 NMSA 1978. Public Education 81 924 For expenditures associated with legal fees related to funding formula lawsuits. $2,000.0 $0.0 $2,000.0 $1,200.0 $0.0 $1,200.0 Department Higher Education 82 950 To replenish the college affordability endowment fund. $6,000.0 $0.0 $6,000.0 $0.0 $0.0 $0.0 Department Higher Education To the lottery tuition fund to allow the Higher Education Department to pay a higher uniform 83 950 $0.0 $0.0 $0.0 $1,500.0 $0.0 $1,500.0 Department percentage of tuition through the Legislative Lottery Tuition Scholarship program. Western New Mexico 84 958 For a post-traumatic stress disorder treatment program for veterans. $0.0 $0.0 $0.0 $200.0 $0.0 $200.0 University
Computer Systems For transfer to the computer systems enhancement fund for system replacements or enhancements. 85 0 $45,044.9 $0.0 $45,044.9 $24,053.1 $0.0 $24,053.1 Enhancement Fund [Department of Information Technology recommendation in place of agency request]
SPECIAL APPROPRIATIONS TOTAL $101,672.1 $11,937.7 $113,609.8 $47,495.2 $5,514.0 $53,009.2
SUPPLEMENTAL AND DEFICIENCY APPROPRIATIONS:
Administrative Office of 86 218 For juror and interpreter costs in fiscal year 2016. $571.8 $0.0 $571.8 $571.8 $0.0 $571.8 the Courts Administrative Office of 87 218 For the magistrate court to offset diminishing warrant enforcement fund balance. $500.0 $0.0 $500.0 $500.0 $0.0 $500.0 the Courts Administrative Office of 88 218 For a projected shortfall in court appointed attorney fund in fiscal year 2016. $394.5 $0.0 $394.5 $394.5 $0.0 $394.5 the Courts Taxation and Revenue To purchase an anti-fraud and identity theft software program and for the operating costs associated 89 333 $700.0 $0.0 $700.0 $0.0 $0.0 $0.0 Department with the software program. Administrative Hearing For a projected shortfall in the personal services and employee benefits category in fiscal year 2016 90 340 $80.0 $0.0 $80.0 $67.0 $0.0 $67.0 Office and for a contract hearing officer to conduct tax hearings.
2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total For operating expenses related to maintenance and emergency repairs of state-owned facilities in General Services 91 350 Santa Fe under the jurisdiction of the Facilities Management Division of the General Services $1,086.9 $0.0 $1,086.9 $500.0 $500.0 $1,000.0 Department Department. Department of To cover a projected shortfall in the enterprise services program fund for critical voice, data, and public 92 361 $6,642.0 $0.0 $6,642.0 $2,000.0 $0.0 $2,000.0 Information Technology safety infrastructure services incurred in fiscal year 2016. To supplement public election fund balance to disburse to candidates pursuant to Section 1-19A-10 93 370 Secretary of State $1,250.0 $0.0 $1,250.0 $0.0 $0.0 $0.0 NMSA 1978.
94 370 Secretary of State For expenses related to the 2016 primary election. $574.0 $0.0 $574.0 $200.0 $0.0 $200.0
To fund planning and design of a system that would allow the agency to determine and track each 95 394 State Treasurer's Office $300.0 $0.0 $300.0 $0.0 $0.0 $0.0 agency's interest in the state general fund investment pool. Regulation and For a projected shortfall in the personal services and employee benefits category for the Construction 96 420 $150.0 $0.0 $150.0 $150.0 $0.0 $150.0 Licensing Department Industries and Manufactured Housing Program in fiscal year 2016. Cultural Affairs For a projected shortfall in the personal services and employee benefits category in the Museums and 97 505 $1,000.0 $0.0 $1,000.0 $200.0 $800.0 $1,000.0 Department Historic Sites and Program Support programs in fiscal year 2016. Energy, Minerals and 98 521 Natural Resources For a projected shortfall in state matching funds in the Healthy Forests Program in fiscal year 2016. $250.0 $0.0 $250.0 $0.0 $0.0 $0.0 Department Office of African 99 603 For moving expenses $15.0 $0.0 $15.0 $15.0 $0.0 $15.0 American Affairs Martin Luther King Jr. 100 605 For a projected shortfall in fiscal year 2016 due to accounting errors. $99.3 $0.0 $99.3 $50.0 $0.0 $50.0 Commission Martin Luther King Jr. 101 605 For additional programming implemented by the commission. $50.0 $0.0 $50.0 $0.0 $0.0 $0.0 Commission Human Services To cover Medicaid expenses from fiscal years 2014 and 2015 and a projected shortfall in fiscal year 102 630 $47,218.0 $112,141.0 $159,359.0 $33,000.0 $81,305.5 $114,305.5 Department 2016.
To comply with all terms and timelines of the Waldrop settlement agreement approved and filed in 103 665 Department of Health $6,379.9 $1,033.6 $7,413.5 $6,379.9 $1,033.6 $7,413.5 federal court in May 2015 for the Developmental Disabilities Waiver Program in fiscal year 2016.
For a projected shortfall in the personal services and employee benefits category in the Facilities 104 665 Department of Health $3,650.0 $0.0 $3,650.0 $3,650.0 $0.0 $3,650.0 Management Program in fiscal year 2016.
105 665 Department of Health For a projected shortfall in the Vaccination Purchasing Act immunization initiative in fiscal year 2016. $3,000.0 $0.0 $3,000.0 $0.0 $0.0 $0.0
To comply with all terms of the Developmental Disabilities Waiver Program Jackson Disengagement 106 665 Department of Health $1,439.3 $1,115.2 $2,554.5 $0.0 $0.0 $0.0 Order from the federal court in May 2015 for the state defendants in fiscal year 2016.
107 665 Department of Health For trauma system funding. $1,000.0 $0.0 $1,000.0 $0.0 $0.0 $0.0
For a projected shortfall in the personal services and employee benefits category in the Vital Records 108 665 Department of Health $500.0 $0.0 $500.0 $0.0 $0.0 $0.0 and Health Statistics program in fiscal year 2016. For increased General Services Department and Department of Information Technology costs incurred 109 665 Department of Health $455.2 $0.0 $455.2 $0.0 $0.0 $0.0 in fiscal year 2016. Children, Youth and 110 690 For the care and support of children in custody. $892.9 $644.2 $1,537.1 $892.9 $644.2 $1,537.1 Families Department Children, Youth and 111 690 For a projected shortfall in the personal services and employee benefits category in fiscal year 2016. $400.0 $0.0 $400.0 $400.0 $0.0 $400.0 Families Department 2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total Department of Public 75 790 For the processing of backlogged rape kits at the department. $0.0 $0.0 $0.0 $600.0 $0.0 $600.0 Safety Department of Public 76 790 For a criminal justice clearinghouse. $0.0 $0.0 $0.0 $500.0 $0.0 $500.0 Safety
The period of time for expending up to four hundred million dollars ($400,000,000) of other state funds Department of 77 805 and federal funds appropriated to the Project Design and Construction Program of the Department of Language Request Recommend Transportation Transportation pertaining to prior fiscal years is extended through fiscal year 2017.
The period of time for expending up to eighty million dollars ($80,000,000) of other state funds and Department of 78 805 federal funds appropriated to the Transportation and Highway Operations Program of the Department Language Request Recommend Transportation of Transportation pertaining to prior fiscal years is extended through fiscal year 2017.
The period of time for expending up to eighty million dollars ($80,000,000) of other state funds and Department of 79 805 federal funds appropriations to the Modal Program of the Department of Transportation pertaining to Language Request Recommend Transportation prior fiscal years is extended through fiscal year 2017. Public Education For emergency support to school districts experiencing shortfalls. All requirements for distribution shall 80 924 $4,000.0 $0.0 $4,000.0 $2,000.0 $0.0 $2,000.0 Department be in accordance with Section 22-8-30 NMSA 1978. Public Education 81 924 For expenditures associated with legal fees related to funding formula lawsuits. $2,000.0 $0.0 $2,000.0 $1,200.0 $0.0 $1,200.0 Department Higher Education 82 950 To replenish the college affordability endowment fund. $6,000.0 $0.0 $6,000.0 $0.0 $0.0 $0.0 Department Higher Education To the lottery tuition fund to allow the Higher Education Department to pay a higher uniform 83 950 $0.0 $0.0 $0.0 $1,500.0 $0.0 $1,500.0 Department percentage of tuition through the Legislative Lottery Tuition Scholarship program. Western New Mexico 84 958 For a post-traumatic stress disorder treatment program for veterans. $0.0 $0.0 $0.0 $200.0 $0.0 $200.0 University
Computer Systems For transfer to the computer systems enhancement fund for system replacements or enhancements. 85 0 $45,044.9 $0.0 $45,044.9 $24,053.1 $0.0 $24,053.1 Enhancement Fund [Department of Information Technology recommendation in place of agency request]
SPECIAL APPROPRIATIONS TOTAL $101,672.1 $11,937.7 $113,609.8 $47,495.2 $5,514.0 $53,009.2
SUPPLEMENTAL AND DEFICIENCY APPROPRIATIONS:
Administrative Office of 86 218 For juror and interpreter costs in fiscal year 2016. $571.8 $0.0 $571.8 $571.8 $0.0 $571.8 the Courts Administrative Office of 87 218 For the magistrate court to offset diminishing warrant enforcement fund balance. $500.0 $0.0 $500.0 $500.0 $0.0 $500.0 the Courts Administrative Office of 88 218 For a projected shortfall in court appointed attorney fund in fiscal year 2016. $394.5 $0.0 $394.5 $394.5 $0.0 $394.5 the Courts Taxation and Revenue To purchase an anti-fraud and identity theft software program and for the operating costs associated 89 333 $700.0 $0.0 $700.0 $0.0 $0.0 $0.0 Department with the software program. Administrative Hearing For a projected shortfall in the personal services and employee benefits category in fiscal year 2016 90 340 $80.0 $0.0 $80.0 $67.0 $0.0 $67.0 Office and for a contract hearing officer to conduct tax hearings.
2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total For operating expenses related to maintenance and emergency repairs of state-owned facilities in General Services 91 350 Santa Fe under the jurisdiction of the Facilities Management Division of the General Services $1,086.9 $0.0 $1,086.9 $500.0 $500.0 $1,000.0 Department Department. Department of To cover a projected shortfall in the enterprise services program fund for critical voice, data, and public 92 361 $6,642.0 $0.0 $6,642.0 $2,000.0 $0.0 $2,000.0 Information Technology safety infrastructure services incurred in fiscal year 2016. To supplement public election fund balance to disburse to candidates pursuant to Section 1-19A-10 93 370 Secretary of State $1,250.0 $0.0 $1,250.0 $0.0 $0.0 $0.0 NMSA 1978.
94 370 Secretary of State For expenses related to the 2016 primary election. $574.0 $0.0 $574.0 $200.0 $0.0 $200.0
To fund planning and design of a system that would allow the agency to determine and track each 95 394 State Treasurer's Office $300.0 $0.0 $300.0 $0.0 $0.0 $0.0 agency's interest in the state general fund investment pool. Regulation and For a projected shortfall in the personal services and employee benefits category for the Construction 96 420 $150.0 $0.0 $150.0 $150.0 $0.0 $150.0 Licensing Department Industries and Manufactured Housing Program in fiscal year 2016. Cultural Affairs For a projected shortfall in the personal services and employee benefits category in the Museums and 97 505 $1,000.0 $0.0 $1,000.0 $200.0 $800.0 $1,000.0 Department Historic Sites and Program Support programs in fiscal year 2016. Energy, Minerals and 98 521 Natural Resources For a projected shortfall in state matching funds in the Healthy Forests Program in fiscal year 2016. $250.0 $0.0 $250.0 $0.0 $0.0 $0.0 Department Office of African 99 603 For moving expenses $15.0 $0.0 $15.0 $15.0 $0.0 $15.0 American Affairs Martin Luther King Jr. 100 605 For a projected shortfall in fiscal year 2016 due to accounting errors. $99.3 $0.0 $99.3 $50.0 $0.0 $50.0 Commission Martin Luther King Jr. 101 605 For additional programming implemented by the commission. $50.0 $0.0 $50.0 $0.0 $0.0 $0.0 Commission Human Services To cover Medicaid expenses from fiscal years 2014 and 2015 and a projected shortfall in fiscal year 102 630 $47,218.0 $112,141.0 $159,359.0 $33,000.0 $81,305.5 $114,305.5 Department 2016.
To comply with all terms and timelines of the Waldrop settlement agreement approved and filed in 103 665 Department of Health $6,379.9 $1,033.6 $7,413.5 $6,379.9 $1,033.6 $7,413.5 federal court in May 2015 for the Developmental Disabilities Waiver Program in fiscal year 2016.
For a projected shortfall in the personal services and employee benefits category in the Facilities 104 665 Department of Health $3,650.0 $0.0 $3,650.0 $3,650.0 $0.0 $3,650.0 Management Program in fiscal year 2016.
105 665 Department of Health For a projected shortfall in the Vaccination Purchasing Act immunization initiative in fiscal year 2016. $3,000.0 $0.0 $3,000.0 $0.0 $0.0 $0.0
To comply with all terms of the Developmental Disabilities Waiver Program Jackson Disengagement 106 665 Department of Health $1,439.3 $1,115.2 $2,554.5 $0.0 $0.0 $0.0 Order from the federal court in May 2015 for the state defendants in fiscal year 2016.
107 665 Department of Health For trauma system funding. $1,000.0 $0.0 $1,000.0 $0.0 $0.0 $0.0
For a projected shortfall in the personal services and employee benefits category in the Vital Records 108 665 Department of Health $500.0 $0.0 $500.0 $0.0 $0.0 $0.0 and Health Statistics program in fiscal year 2016. TABLE 5 For increased General Services Department and Department of Information Technology costs incurred 109 665 Department of Health $455.2 $0.0 $455.2 $0.0 $0.0 $0.0 in fiscal year 2016. Children, Youth and 110 690 For the care and support of children in custody. $892.9 $644.2 $1,537.1 $892.9 $644.2 $1,537.1 Families Department Children, Youth and 111 690 For a projected shortfall in the personal services and employee benefits category in fiscal year 2016. $400.0 $0.0 $400.0 $400.0 $0.0 $400.0 Families Department TABLE 5
2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total New Mexico Corrections 112 770 For inmate growth and the treatment of hepatitis C. $15,000.0 $0.0 $15,000.0 $10,000.0 $0.0 $10,000.0 Department Department of Public To provide operational support for the state forensic laboratories and for the increasing cost of forensic 113 790 $110.0 $0.0 $110.0 $110.0 $0.0 $110.0 Safety casework in excess of the fiscal year 2016 budget. Department of Public To fund an average eleven percent pay increase for law enforcement dispatchers for the last quarter of 114 790 $100.1 $0.0 $100.1 $0.0 $0.0 $0.0 Safety fiscal year 2016. Department of Public For funding associated with the temporary relocation of the New Mexico State Police district office in 115 790 $95.0 $0.0 $95.0 $95.0 $0.0 $95.0 Safety Espanola. Department of Public To fund an average twelve percent pay increase for forensic scientists for the last quarter of fiscal year 116 790 $87.8 $0.0 $87.8 $0.0 $0.0 $0.0 Safety 2016. Higher Education 117 950 For the High Skills program. $150.0 $0.0 $150.0 $0.0 $0.0 $0.0 Department
118 215 Court of Appeals For a shortfall in the other costs category in fiscal year 2015 resulting in the inability to pay utility bills. $4.4 $0.0 $4.4 $4.4 $0.0 $4.4
Administrative Office of 119 218 For juror and interpreter costs incurred in fiscal year 2015. $574.1 $0.0 $574.1 $574.1 $0.0 $574.1 the Courts Administrative Office of 120 218 For risk management and IT costs incurred in fiscal year 2015. $107.6 $0.0 $107.6 $107.6 $0.0 $107.6 the Courts Thirteenth Judicial 121 243 To offset a prior year fund balance deficit. $50.0 $0.0 $50.0 $50.0 $0.0 $50.0 District Court General Services To eliminate historical losses prior to fiscal year 2013 in the State Printing and Graphics Services 122 350 $278.9 $0.0 $278.9 $140.0 $0.0 $140.0 Department Program. Public Employee Labor 123 379 For a shortfall in the personal services and employee benefits category incurred in fiscal year 2015. $1.4 $0.0 $1.4 $1.4 $0.0 $1.4 Relations Board
SUPPLEMENTAL AND DEFICIENCY APPROPRIATIONS TOTAL $95,158.1 $114,934.0 $210,092.1 $60,053.6 $84,283.3 $144,336.9
SPECIAL, SUPPLEMENTAL, AND DEFICIENCY APPROPRIATIONS TOTAL $196,830.2 $126,871.7 $323,701.9 $107,548.8 $89,797.3 $197,346.1
FY17 IT Funding Requests (in thousands)
Information Technology System Replacement/Enhancements Agency Request LFC Recommendation Item Code Agency Brief System Description GF OSF FF Total GF OSF FF Total 1 218 Administrative Office of the Courts Odyssey Operating System Upgrade $325.8 $325.8 $325.8 $325.8 2 218 Administrative Office of the Courts Video Network Operations Center $257.5 $257.5 $0.0 3 218 Administrative Office of the Courts Reconciliation, Cash Receipt & Suspense (RCS) System replacement $220.0 $220.0 $0.0
4 218 Administrative Office of the Courts Juror System Cash Remediation Project $100.0 $100.0 $100.0 $100.0
5 333 Taxation and Revenue Department ONGARD Replacement Project $8,000.0 $4,000.0 $12,000.0 $8,000.0 $4,000.0 $12,000.0
6 333 Taxation and Revenue Department Motor Vehicle Division System Tapestry $1,973.7 $1,973.7 $1,973.7 $1,973.7
7 333 Taxation and Revenue Department TRD - DFA Cash Remediation Phase II - GenTax Update $300.0 $300.0 $300.0 $300.0
8 333 Taxation and Revenue Department Property Tax Division (PTD) Business Modernization $2,000.0 $2,000.0 $2,000.0 $2,000.0
9 341 Dept. of Finance and Administration Capital Planning and Project Management $3,074.0 $3,074.0 $300.0 $300.0
10 350 General Services Department Capital Assets Management and Planning System (CAMPS) Phase II $1,960.2 $1,960.2 $1,960.0 $1,960.0
11 350 General Services Department GSD/SHARE Asset Management Module $450.0 $450.0 $0.0 $0.0
12 361 Dept. of Information Technology One-Stop Business Portal $2,500.0 $2,500.0 $0.0
13 366 Public Employees Retirement Assoc. Retirement Information Online Functionality Upgrade $4,200.0 $4,200.0 $4,200.0 $4,200.0
14 378 State Personnel Office Personnel Record Digitization and Modernization Project $1,500.0 $1,500.0 $500.0 $500.0
15 505 Department of Cultural Affairs Standardized Ticketing System $400.0 $400.0 $0.0 $0.0
16 505 Department of Cultural Affairs New Mexico Cultural Resource Information System Enhancements $300.0 $300.0 $300.0 $300.0
17 630 Human Services Department Medicaid Management Information System (MMIS) Replacement $3,200.0 $28,800.0 $32,000.0 $2,800.0 $28,000.0 $30,800.0
18 631 Workforce Solutions Department TIWA and SIMMS Storage Upgrade $500.0 $500.0 $0.0 $0.0
19 631 Workforce Solutions Department Internship Portal $137.3 $137.3 $137.3 $137.3
20 665 Department of Health Network Infrastructure Upgrade $1,000.0 $1,000.0 $1,000.0 $1,000.0 Vital Records Birth and Death Records Imaging and Electronic Document 21 665 Department of Health $4,010.0 $4,010.0 $400.0 $400.0 Management 22 665 Department of Health Laboratory Information Management Systems Upgrade $380.0 $380.0 $0.0 $0.0
23 665 Department of Health Facilities Licensing and Reporting Application Replacement $490.0 $490.0 $0.0 $0.0
24 665 Department of Health Billing and Electronic Health Record Replacement $2,419.5 $2,419.5 $0.0 $0.0
25 665 Department of Health Division of Health Improvement (DHI) Secure Public File Sharing System $495.4 $495.4 $0.0 $0.0
26 665 Department of Health DHI Imaging Plan and Document Management System $1,240.0 $1,240.0 $0.0 $0.0 Developmental Disabilities Support Division Client Management System 27 665 Department of Health $40.0 $360.0 $400.0 $40.0 $360.0 $400.0 Implementation 28 690 Children, Youth and Families Dept. Enterprise Provider Information Constituent Services (EPICS) Project $10,117.5 $10,117.5 $4,000.0 $4,000.0
29 770 Corrections Department Offender Management System Replacement Project $12,500.0 $12,500.0 $4,600.0 $4,900.0 $9,500.0
30 790 Department of Public Safety Records Management System (RMS) $2,500.0 $2,500.0 $1,250.0 $1,250.0 31 790 Department of Public Safety Criminal History Clearinghouse $175.4 $175.4 $0.0 $0.0 Law Enforcement Academy Automated Document and Training Management 32 790 Department of Public Safety $432.8 $432.8 $0.0 $0.0 System TOTAL $56,615.2 $14,583.9 $29,160.0 $100,359.1 $24,053.1 $19,033.7 $28,360.0 $71,446.8 2016 Legislative Session Special, Supplemental, and Deficiency Appropriations (in thousands of dollars) Agency Request LFC Recommendation Other Other Funds/ Funds/ Agency General Federal General Federal Code Agency Language Fund Funds Total Fund Funds Total New Mexico Corrections 112 770 For inmate growth and the treatment of hepatitis C. $15,000.0 $0.0 $15,000.0 $10,000.0 $0.0 $10,000.0 Department Department of Public To provide operational support for the state forensic laboratories and for the increasing cost of forensic 113 790 $110.0 $0.0 $110.0 $110.0 $0.0 $110.0 Safety casework in excess of the fiscal year 2016 budget. Department of Public To fund an average eleven percent pay increase for law enforcement dispatchers for the last quarter of 114 790 $100.1 $0.0 $100.1 $0.0 $0.0 $0.0 Safety fiscal year 2016. Department of Public For funding associated with the temporary relocation of the New Mexico State Police district office in 115 790 $95.0 $0.0 $95.0 $95.0 $0.0 $95.0 Safety Espanola. Department of Public To fund an average twelve percent pay increase for forensic scientists for the last quarter of fiscal year 116 790 $87.8 $0.0 $87.8 $0.0 $0.0 $0.0 Safety 2016. Higher Education 117 950 For the High Skills program. $150.0 $0.0 $150.0 $0.0 $0.0 $0.0 Department
118 215 Court of Appeals For a shortfall in the other costs category in fiscal year 2015 resulting in the inability to pay utility bills. $4.4 $0.0 $4.4 $4.4 $0.0 $4.4
Administrative Office of 119 218 For juror and interpreter costs incurred in fiscal year 2015. $574.1 $0.0 $574.1 $574.1 $0.0 $574.1 the Courts Administrative Office of 120 218 For risk management and IT costs incurred in fiscal year 2015. $107.6 $0.0 $107.6 $107.6 $0.0 $107.6 the Courts Thirteenth Judicial 121 243 To offset a prior year fund balance deficit. $50.0 $0.0 $50.0 $50.0 $0.0 $50.0 District Court General Services To eliminate historical losses prior to fiscal year 2013 in the State Printing and Graphics Services 122 350 $278.9 $0.0 $278.9 $140.0 $0.0 $140.0 Department Program. Public Employee Labor 123 379 For a shortfall in the personal services and employee benefits category incurred in fiscal year 2015. $1.4 $0.0 $1.4 $1.4 $0.0 $1.4 Relations Board
SUPPLEMENTAL AND DEFICIENCY APPROPRIATIONS TOTAL $95,158.1 $114,934.0 $210,092.1 $60,053.6 $84,283.3 $144,336.9
SPECIAL, SUPPLEMENTAL, AND DEFICIENCY APPROPRIATIONS TOTAL $196,830.2 $126,871.7 $323,701.9 $107,548.8 $89,797.3 $197,346.1
FY17 IT Funding Requests (in thousands)
Information Technology System Replacement/Enhancements Agency Request LFC Recommendation Item Code Agency Brief System Description GF OSF FF Total GF OSF FF Total 1 218 Administrative Office of the Courts Odyssey Operating System Upgrade $325.8 $325.8 $325.8 $325.8
2 218 Administrative Office of the Courts Video Network Operations Center $257.5 $257.5 $0.0 3 218 Administrative Office of the Courts Reconciliation, Cash Receipt & Suspense (RCS) System replacement $220.0 $220.0 $0.0
4 218 Administrative Office of the Courts Juror System Cash Remediation Project $100.0 $100.0 $100.0 $100.0
5 333 Taxation and Revenue Department ONGARD Replacement Project $8,000.0 $4,000.0 $12,000.0 $8,000.0 $4,000.0 $12,000.0
6 333 Taxation and Revenue Department Motor Vehicle Division System Tapestry $1,973.7 $1,973.7 $1,973.7 $1,973.7
7 333 Taxation and Revenue Department TRD - DFA Cash Remediation Phase II - GenTax Update $300.0 $300.0 $300.0 $300.0
8 333 Taxation and Revenue Department Property Tax Division (PTD) Business Modernization $2,000.0 $2,000.0 $2,000.0 $2,000.0
9 341 Dept. of Finance and Administration Capital Planning and Project Management $3,074.0 $3,074.0 $300.0 $300.0
10 350 General Services Department Capital Assets Management and Planning System (CAMPS) Phase II $1,960.2 $1,960.2 $1,960.0 $1,960.0
11 350 General Services Department GSD/SHARE Asset Management Module $450.0 $450.0 $0.0 $0.0
12 361 Dept. of Information Technology One-Stop Business Portal $2,500.0 $2,500.0 $0.0
13 366 Public Employees Retirement Assoc. Retirement Information Online Functionality Upgrade $4,200.0 $4,200.0 $4,200.0 $4,200.0
14 378 State Personnel Office Personnel Record Digitization and Modernization Project $1,500.0 $1,500.0 $500.0 $500.0
15 505 Department of Cultural Affairs Standardized Ticketing System $400.0 $400.0 $0.0 $0.0
16 505 Department of Cultural Affairs New Mexico Cultural Resource Information System Enhancements $300.0 $300.0 $300.0 $300.0
17 630 Human Services Department Medicaid Management Information System (MMIS) Replacement $3,200.0 $28,800.0 $32,000.0 $2,800.0 $28,000.0 $30,800.0
18 631 Workforce Solutions Department TIWA and SIMMS Storage Upgrade $500.0 $500.0 $0.0 $0.0
19 631 Workforce Solutions Department Internship Portal $137.3 $137.3 $137.3 $137.3
20 665 Department of Health Network Infrastructure Upgrade $1,000.0 $1,000.0 $1,000.0 $1,000.0 Vital Records Birth and Death Records Imaging and Electronic Document 21 665 Department of Health $4,010.0 $4,010.0 $400.0 $400.0 Management 22 665 Department of Health Laboratory Information Management Systems Upgrade $380.0 $380.0 $0.0 $0.0
23 665 Department of Health Facilities Licensing and Reporting Application Replacement $490.0 $490.0 $0.0 $0.0
24 665 Department of Health Billing and Electronic Health Record Replacement $2,419.5 $2,419.5 $0.0 $0.0
25 665 Department of Health Division of Health Improvement (DHI) Secure Public File Sharing System $495.4 $495.4 $0.0 $0.0
26 665 Department of Health DHI Imaging Plan and Document Management System $1,240.0 $1,240.0 $0.0 $0.0 Developmental Disabilities Support Division Client Management System 27 665 Department of Health $40.0 $360.0 $400.0 $40.0 $360.0 $400.0 Implementation 28 690 Children, Youth and Families Dept. Enterprise Provider Information Constituent Services (EPICS) Project $10,117.5 $10,117.5 $4,000.0 $4,000.0
29 770 Corrections Department Offender Management System Replacement Project $12,500.0 $12,500.0 $4,600.0 $4,900.0 $9,500.0
30 790 Department of Public Safety Records Management System (RMS) $2,500.0 $2,500.0 $1,250.0 $1,250.0 31 790 Department of Public Safety Criminal History Clearinghouse $175.4 $175.4 $0.0 $0.0 Law Enforcement Academy Automated Document and Training Management 32 790 Department of Public Safety $432.8 $432.8 $0.0 $0.0 System TABLE 6 TOTAL $56,615.2 $14,583.9 $29,160.0 $100,359.1 $24,053.1 $19,033.7 $28,360.0 $71,446.8 FY17 IT Funding Requests (in thousands) TABLE 6
Agency Requests for Extensions of Previous Appropriations Code Agency Agency Request LFC Recommendation The period of time for expending the twelve million eight hundred ninety-seven thousand one hundred dollars ($12,897,100) from the computer systems enhancement fund contained in Subsection 2 of Section 7 of Chapter 1 of Laws 2014 to implement the motor vehicle 333 Taxation and Revenue Department Recommend division system modernization project is extended through fiscal year 2018. Eight million six thousand eight hundred dollars ($8,006,800) of the other state funds appropriation is from cash balances.
The period of time for expending the one million five hundred thousand dollars ($1,500,000) appropriation from the workers’ compensation 350 General Services Department retention fund, the public property reserve fund and the public liability fund contained in Subsection 7 of Section 7 of Chapter 63 of Laws of Recommend 2014 to implement the risk management information system is extended through fiscal year·2017.
Paperless, Web-based Insurance System. The period of time for expending one million two hundred fifty thousand dollars ($1,250,000) from the computer systems enhancement fund in Subsection 13 of Section 7 of Chapter 227 of Laws 2013 as extended in Subsection 17 of 440 Office of Superintendent of Insurance Recommend Section 7 of Chapter 101 of Laws 2015 to migrate the insurance system and processes to a paperless, web-based environment is extended through fiscal year 2018. The appropriation is from the insurance operations fund. STATE OF NEW MEXICO
Volume 1 - Legislative Finance Committee Report For Fiscal Year 2017 Report of the Legislative Finance Committee to the Fifty-Second Legislature SECOND SESSION
January 2016 For Fiscal Year 2017 Volume i
legislating for results: policy and performance analysis