Santa Fe, N.M. – Today, in a time of unprecedented economic uncertainty, House Democrats passed House Bill 1, the state's General Appropriations Act, a responsible budget that creates a framework for recovery by putting New Mexicans first.

Sponsored by Representative and Chair of the House Appropriations and Finance Committee Patricia Lundstrom (D-Gallup), House Bill 1 sands the state's budget to ensure FY 21 solvency. Like so many other states dealing with the unprecedented COVID-19 public health emergency and subsequent economic downturn, New Mexico is facing a shortfall to the tune of nearly $2 billion. House Bill 1 responsibly establishes clear fiscal direction for New Mexico.

Prioritizing education, healthcare, and economic development along with public safety, House Bill 1 maintains the core functions of government and achieves solvency by sanding an average of 4% from most state agency budgets, while protecting the services, agencies, and businesses that all New Mexicans rely just as businesses, communities, and families are forced to revisit their own budget shortfalls and responses to the health crisis.

"This budget achieves solvency and establishes a framework for recovery that is both responsible, and responsive to the needs of New Mexicans," said Representative Patricia Lundstrom (D-Gallup). "We're navigating through an unprecedented time and we need a budget that continues to put the people of New Mexico first."

"We lost an entire decade not more than two years ago because our response to the downturn of 2008 was to kick the stool out from under the people of New Mexico," said Representative Javier Martinez (D-Albuquerque). "If we don't invest in our people, we lose once more our ability to effectively recover. That is why this budget is so critical at this time."

"Our economic recovery depends on providing a great education for our kids, quality healthcare for New Mexico's families, and public safety in our communities," said Representative Nathan Small (D-Las Cruces). "This budget safeguards smart investment in education, healthcare, and public safety and makes targeted cuts to maintain solvency while setting the state for a stronger New Mexico."

House Bill 1 does the following:

· Sands 4% off-the-top across all state agencies, with the exception of the Public Education Department, the Department of Health, and Medicaid in the Human Services Department

· Gives agencies the authority to implement reductions to bring the state within the same range of FY20 spending in order to maintain its investments in the people of New Mexico

· Makes increased investments in Public Education SEG by 2%, after accounting for federal funding increases

· Continues focusing on transforming education while ensuring educators and school personnel can provide for their families, increasing investments by nearly 4%.

· Utilizes $750 Million from federal CARES Act funds for state COVID-19 expenses

· Makes conscientious sweeps of some capital outlay funds, road, and infrastructure projects.

· Reduces the size of the Opportunity Scholarship to focus on two year community colleges, while continuing to support existing college scholarship programs

· Reduces the amount going towards the Early Childhood Development Education Trust Fund leaving room for expansion moving forward

House Bill 1 passed the House of Representative in a 46-24 vote and advances to the Senate.