State budget proposal boosts child care, water, K-12 in McKinley

Gov. Michelle Lujan Grisham released her fiscal year 2027 executive budget recommendation on Dec. 22, deploying $11.33 billion in recurring spending and projecting a 30 percent reserve level equal to $3.4 billion. The recommendation, a 4.6 percent increase over current-year recurring spending, aims to shield New Mexico from expected federal cuts while expanding state investments in child care, education, water and public safety—areas that carry direct consequences for McKinley County’s towns and tribal communities.

The centerpiece for families is a $606.4 million commitment to universal child care, intended to provide no-cost child care for every family regardless of income, along with additional early childhood education funding. K-12 priorities include $42.2 million for universal school meals, $38.5 million for career technical education, $30 million for reading intervention, and $14 million for early literacy and reading support. Higher education would see $168 million for the Opportunity Scholarship program, bringing total higher education funding to $1.48 billion.

Health and federal funding response items address gaps that could reverberate locally. The budget earmarked $92.9 million to continue health coverage for Medicaid enrollees who might lose federal eligibility, $81.1 million to keep insurance affordable through BeWellNM, and $37 million to offset reduced SNAP reimbursements. For a county with high rates of poverty and food insecurity, those pieces aim to blunt immediate household-level impacts.

Infrastructure and water investments include $232 million in nonrecurring proposals for water security and a 50-Year Water Action Plan, $65 million for the Strategic Water Supply Fund, $35 million for Indian water rights settlements, and $100 million for roads. Those line items are particularly salient in McKinley County, where tribal nations and rural communities face chronic water access challenges and aging road infrastructure. Funding for Indian water rights settlements could accelerate long-standing negotiation and construction efforts that shape local water deliveries.

Public safety and housing allocations target workforce and stability. The proposal includes $13.5 million for law enforcement and fire pay raises, $3 million for felony warrant enforcement, support for Organized Crime Commission operations, $65 million for affordable housing initiatives, and $45 million for homelessness programs. These investments aim to address recruitment and retention in emergency services and offer new resources for housing and outreach in Gallup and surrounding communities.

Implementation will depend on the legislative session and subsequent appropriations. Local governments, tribal councils and service providers will need to engage with state officials to ensure McKinley County priorities are included in final allocations. The takeaway? Track upcoming session hearings, raise specific local funding needs with county commissioners and tribal leaders, and be ready to apply for new child care, housing and water programs as they move from proposal to reality. Our two cents? Stay engaged now so county residents see these dollars translated into concrete services and projects where they live.