The state is projected to have about $1.4 billion to allocate this year during the upcoming legislative session, said Scott Wright, community development bureau chief for the Local Government Division of the New Mexico Department of Finance and Administration.
He gave a presentation about capital outlay Friday to local government representatives attending the Southeast New Mexico Economic Development District/Council of Governments Board of Directors meeting at Eastern New Mexico University-Roswell.
Wright said that $325 million or more is expected to go to an early childhood development department. Another 5% to 8% is expected to be used to fund state government, with a “sizeable amount” of what is left after that to be used for severance bonds for local capital projects.
He also said that a “House Jr. bill” for one-year capital outlay allocations is not expected to reoccur, given how difficult it is for local governments and state agencies to process and expend the monies during one fiscal year.
His presentation also provided an overview of the reporting and tracking systems in use along with deadlines and audits, and also discussed the differences in requirements between severance and general obligations bonds.
Other topics included explaining that anti-donation questions are resolved by the state funding agencies in the case of general fund allocations but by the State Board of Finance in the case of bonds, and reviewed when funds become available from the various types of funding mechanisms.