Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Healthcare Finance topic
No spam. Unsubscribe anytime.
Committee tables HB 196, one-time NMFA loan funding for health and childcare programs
Summary
House Bill 196, which would appropriate one-time funds for three New Mexico Finance Authority (NMFA) capital loan programs serving behavioral health, primary care and childcare providers, was tabled after committee discussion about program uses and because budget language is pending in the Senate.
The House Appropriations and Finance Committee tabled House Bill 196 after hearing a summary of the bill and questions from members. Representative Garrett introduced HB 196, which would make one-time appropriations to three NMFA programs: $25 million to the Behavioral Health Capital Fund, $25 million to the Primary Care Capital Fund, and $10 million to the Childcare Revolving Loan Fund. The sponsor said the programs provide low-cost loans to eligible providers in medically underserved and childcare-desert areas and that the funds would support facility renovation, expansion, equipment and working capital.
Marquita Russell, CEO of the New Mexico Finance Authority, described program results to date: the NMFA’s programs have financed about 30 projects, served more than 350,000 patients with roughly 1.4 million visits, and 80 percent of funded services were in rural and frontier communities. Russell said the programs have been used to refinance projects, buy out facilities, and, after 2023 statutory changes (Senate Bill 423), may be used for limited working capital to bridge payroll or start-up costs during ramp-up periods.
Committee members asked detailed questions about the use of loan funds. Representatives asked which programs could cover payroll or staffing; witnesses said the 2023 change allows for modest working-capital use, typically 3–6 months, during construction or start-up. Committee members asked about interest rates; Russell said the primary care and behavioral-health programs are currently offered at 2 percent interest and childcare program at 3 percent (with plans to reduce childcare to 2 percent). Representative Duncan asked about program performance and repayment history; NMFA staff said most projects repaid as expected, with past program adjustments and reappropriations addressing solvency.
Because the bill’s funding level and Senate action were still in flux, Chair Small asked for a motion to table; Representative Duncan moved to table and Representative Herrera seconded. The motion carried by voice vote with no recorded opposition.
