On March 18, the New Mexico State Legislature voted to send a constitutional amendment to the ballot that would allocate 1.25% of the five-year average of year-end market values of the money in the Land Grant Permanent Fund (LGPF) to early childhood education and the public school permanent fund. Revenue in the LGPF comes from leases and royalties on non-renewable natural resources, such as oil and gas, and returns on invested capital. It is currently valued at over $20 billion.
Of the total increased allocation, 60% would go towards early childhood education, and 40% would go toward the public school permanent fund. The amendment defines early childhood education as “nonsectarian and nondenominational education for children until they are eligible for kindergarten.” The amendment would also provide that the allocation would not occur if the balance of the Land Grant Permanent Fund drops below $17 billion. The measure will likely appear on the ballot in November 2022 unless a special election is called for an earlier date.
In New Mexico, both chambers of the New Mexico State Legislature need to approve a constitutional amendment by a simple majority during one legislative session to refer the amendment to the ballot. This amendment was introduced as House Joint Resolution 1 (HJR 1) on January 19, 2021. On February 12, 2021, the state House passed HJR 1 in a vote of 44-23 with three absent. On March 18, 2021, the state Senate passed it in a vote of 26-16. Both votes were largely along party lines. New Mexico has a Democratic state government trifecta.
The amendment was sponsored by Democratic Representatives Antonio Maestas, Javier Martínez, Elizabeth “Liz” Thomson, Georgene Louis, and Senator Pete Campos (D).
Sen. Leo Jaramillo (D), who voted in favor of the amendment, said, “Studies show that pre-kindergarten and other programs for kids 5 and under later pay off with higher high school graduation rates and fewer incarcerations.”
Sen. Bill Sharer (R), who opposes the amendment, said, “Each time we tap into it, we harm that compound interest,” he said of the endowment. “Each time we do that, sometime in the future we are somehow harming children.”
Similar amendments were introduced during the last six legislative sessions but did not pass both chambers of the state legislature.
Between 1995 and 2020, New Mexico voters approved 87% (89 of 102) and rejected 13% (13 of 103) of the ballot measures that appeared statewide.