Moody’s: New Mexico education investments a credit positive
SANTA FE – Moody’s Investors Service recently underscored the socioeconomic importance of state education investments made under Gov. Michelle Lujan Grisham, highlighting the constitutional amendment recently approved by New Mexico voters that would boost the annual distribution from the state’s Land Grant Permanent Fund to allocate additional funding for early childhood education and public schools as a credit positive for the state.
In a November report on United States Public Finance, Moody’s Investors Service reported that New Mexico’s continued efforts to improve education are a “credit positive because research shows that investments in education can reduce poverty and raise earnings.” In addition to detailing the hundreds of millions of dollars in additional funding that would flow to the state’s education following the finalization of the amendment, the report underscores the overall increase in education funding made by the Lujan Grisham administration and its importance for improving the state’s socioeconomic markers.
“The record investments that we’ve made in education are laying the groundwork to build brighter futures for New Mexico children and families,” said Gov. Lujan Grisham. “Change doesn’t happen overnight – but it’s clear that by expanding education investments and diversifying our state’s economy, we are creating opportunities for New Mexicans to establish successful, meaningful livelihoods.”
The Moody’s report highlights the “substantial efforts to boost education funding” made by the Lujan Grisham administration, including “increased funding markedly for at-risk students, teacher salaries, instructional materials, and other education functions.” The report also highlights the state’s creation of the Early Childhood Education and Care Department in 2019, which Moody’s notes is “working to ensure all young children have equitable access to high-quality early childhood opportunities,” as well as Gov. Lujan Grisham’s successful push to create an Early Childhood Trust Fund. The report notes that “as New Mexico seeks to diversify its economy and reduce its reliance on the oil and gas industry, improving education outcomes will help the state create opportunities for future growth.”
The full report from Moody’s can be found here.