New Mexico has $4.5 billion in state funding sitting untouched

New Mexico Faces Challenges with Unspent $4.5 Billion in Capital Outlay Funds

In a recent report by state lawmakers, it was revealed that $4.5 billion in capital outlay funds has been allocated for various projects throughout New Mexico but remains unspent. The discovery sheds light on the challenges faced by the state in managing and overseeing these funds effectively.

The report identified hundreds of projects that have been designated as red-rated, indicating minimal progress despite having funds already set aside. For example, in 2022, $10 million was approved for pedestrian improvements in Old Town and the Sawmill District in Albuquerque, yet none of that money has been utilized. Similarly, at the University of New Mexico, $2 million was allocated for health care lab improvements in 2021, with only around half a million dollars being spent so far. Additionally, $1 million was earmarked for renovating Santa Fe’s Midtown Campus in 2021, but no funds have been utilized for this purpose.

According to Kristina Fisher, the associate director of Think New Mexico, the state’s capital outlay process is outdated and lacks coordination. Fisher highlighted the issue of fragmented decision-making, with 112 different individuals making decisions without proper planning or collaboration. This fragmented approach often results in projects being underfunded, leading to money sitting idle.

Fisher proposed a more centralized and efficient approach to allocating capital outlay funds, suggesting that funds should be pooled together and distributed based on priority needs across various sectors such as higher education, roads, and water systems. By prioritizing projects based on need and ensuring full funding, Fisher believes the state can avoid the current issue of funds remaining unspent.

In response to these challenges, the governor signed a bill during the past legislative session to improve tracking and oversight of capital outlay funds. This measure aims to enhance transparency and accountability in the allocation and utilization of funds, ensuring that projects are completed in a timely and efficient manner.

Moving forward, stakeholders in New Mexico are calling for reforms to the capital outlay process to address the issue of unspent funds and promote better coordination and funding allocation. By implementing changes that prioritize needs, improve communication, and streamline decision-making, the state can maximize the impact of its capital outlay investments and ensure that allocated funds are utilized effectively for the benefit of all residents.

Written by staticwire