Gov. vetoes Senate Bill 232, boosting state reserves by $50 million
SANTA FE – Gov. Michelle Lujan Grisham on Monday vetoed Senate Bill 232, a piece of legislation that would have appropriated roughly $50 million to a variety of local projects. The money will instead be part of the state’s general fund reserves. The governor’s formal veto statement can be accessed here. She issued the following statement expanding on her rationale, which is primarily the enhancement of the state’s reserve capacity:
“Revenue projections and the state’s ability to weather potential downturns are always primary concerns of mine. That’s why I have called for a 25 percent reserve target in both of my executive budget recommendations – and this year succeeded and secured what will be the highest percentage of reserves in our state’s history. It’s why I pushed for a revenue-generating mechanism for the Early Childhood Trust Fund, which shields general fund monies from future ‘busts.’ And it’s why – given the economic news of the past few days – I have given enhanced consideration to how we can be even more fiscally prudent and ensure our investments in New Mexico workers and families are protected. With this veto, I have added these monies back into our reserves, which helps counteract the potential impact of fluctuations in the oil market. And in the coming hours we will continue evaluating how best to ensure the balanced and well-intentioned investments of House Bill 2 are executed and delivered to New Mexicans all across the state.”
The governor, who is committed to funding long overdue roadway infrastructure projects, approved some $450 million in new roadway funding in communities all across the state in 2019.
The deadline for the governor to act on legislation is noon Wednesday, March 11. All legislative action taken by the governor can be found on her website.