Governor Outlines Budget Increase Proposal For New Mexico Environment Department For FY23


Gov. Michelle Lujan Grisham released her budget proposal for FY23 today,  prioritizing the New Mexico Environment Department’s (NMED) efforts to combat climate  change by establishing a first-of-its-kind Climate Change Bureau, addressing ozone pollution  from neighboring states, and protecting the public against dangerous chemicals including PFAS.  If passed by the New Mexico Legislature, this budget amounts to a 48.7% increase in state  funding for NMED. 

“My administration believes that clean air, clean water, and clean lands are the right of every  New Mexican, and I am committed to providing the resources to state agencies to make sure  that is the case,” said Gov. Lujan Grisham. “This administration also believes that we don’t  have to choose between the environment and the economy. We are going to keep doing it all – leading the nation in cleaning up industry, taking meaningful climate change action and  protecting public health – all while strengthening and diversifying our economy and bringing  more jobs to our state.” 

“This budget proposal is a huge step forward in our efforts to transition to a carbon net neutral  economy, support the safe launch of the recreational cannabis program, protect our limited  water supplies against severe drought and ensure that the Land of Enchantment is a safe place  to live, work, and thrive,” said NMED Cabinet Secretary James Kenney. “I look forward to  working with our legislators to secure their vote in support of this budget increase. Without the  support of State legislators, the Environment Department cannot deliver for their constituents.” 

NMED’s budget is a combination of state general fund, federal funding, and revenues collected  for various permits and licenses. Starting July 1, 2022, the proposed general fund portion of  NMED’s budget will increase from $16.0 million to $23.8 million – an increase of $7.8 million.  The remainder of NMED’s budget is $87 million (federal funding and revenues collected for  permits/licenses). 

Highlights from the proposed FY23 budget include: 


• $2.5 million for the creation of a first-of-its-kind Climate Change Bureau with 15 staff,  which will transformative market based mechanisms for our economy and climate,  including the Clean Fuel Standard Act, the Hydrogen Hub Act, the Climate Commitment  Act and develop additional policies to get New Mexico to net zero emissions by 2050 

• $2.4 million to assure drinking water safety from contaminants like PFAS, restore  watersheds and wetlands essential to our outdoor economy and mitigating drought issues • $2.3 million for 19 new positions within the Hemp and Cannabis Bureau to help ensure  safe food products are enjoyed across New Mexico this year 

In stark contrast to the Governor’s recommended budget proposal for an agency that protects  public health and the environment, the Legislative Finance Committee proposed a 6.4% increase.