LFC report: early‑childhood funding has grown but implementation gaps remain, capacity shortfalls for infants and toddlers

Legislative Finance Committee staff and the Early Childhood Education and Care Department (ECECD) presented a biennial early‑childhood accountability report in Las Cruces, concluding that state funding has grown substantially but that implementation challenges limit measurable improvements in some child outcomes. At the LFC briefing, LFC analyst Dr. Allego Hernandez said the report’s main finding is that “funding levels remain sufficient and that implementation remains an issue in every topic area that we will discuss.” The report examined child care assistance, prekindergarten, the Family Infant Toddler (FIT) early‑intervention program, home visiting, and child‑welfare prevention strategies. Why it matters: New Mexico has sharply increased early‑childhood appropriations in recent years, and the state is expanding universal and targeted programs. LFC staff and ECECD officials said more capacity, a larger and better‑paid workforce, and clearer accountability are needed to convert investment into stronger readiness and safety outcomes for high‑risk children. What LFC reported: the report lists several quantifiable gaps. LFC said early‑childhood funding reached about $918 million in FY 2026 (up from under $200 million in FY 2012). State‑funded prekindergarten enrollment was about 15,000 children in the 2024–25 school year; preK funding grew roughly 418% from FY 2018 to FY 2026 (from $52.3 million to $272 million). But child‑care system capacity has not kept pace for the youngest children: statewide LFC counted roughly 32 infant/toddler slots per 100 children under age 2 and reported a loss of registered child‑care homes (from about 6,000 to 3,000 in a two‑year span), a decline that disproportionately affects low‑income families. FIT and Medicaid billing: LFC said the Family Infant Toddler (FIT) program is projected to serve about 17,000 children in FY 2026 and the legislature appropriated roughly $76 million for FIT that year. LFC also flagged potential underbilling of FIT services to Medicaid, which could mean the state is not capturing available federal reimbursements. Home visiting and child maltreatment: LFC reported FY 2025 home‑visiting spending at about $51 million and that 7,775 children were served in FY 2024. LFC staff found that program completion rates remain low and that substantiated maltreatment among participating families rose modestly (from about 0.62% in FY 2021 to roughly 1.0% in FY 2024). Garrett Mosley, an LFC program evaluator, told the committee that targeted preK expansion could yield measurable gains: "If 5,000 more low income students participated in 1 of the highest performing pre kindergartens, approximately 2,000 or 10% more students would enter kindergarten proficient in reading." The report recommends monitoring implementation fidelity to ensure programs deliver intended benefits. Child welfare reforms: presenters noted the 2025 legislative passage of Senate Bill 42, which requires the state to develop a Family First Prevention Services Act (FFPSA) plan and to implement a multilevel response to child‑maltreatment reports. LFC staff said New Mexico had not yet received FFPSA approval from the federal government and that approval would unlock federal funding for evidence‑based prevention services; staff estimated statewide savings from some multilevel response scenarios of roughly $4.9 million to $10.8 million. ECECD response and next steps: the ECECD secretary (representing the department in the transcript) said the state has built important infrastructure and data tools and is expanding quality measures such as Classroom Assessment Scoring System (CLASS) and county‑level Early Development Instrument dashboards. ECECD officials told the committee they will continue to expand workforce supports, improve data and accountability systems, and work with tribal governments; the department also highlighted county fact sheets and interactive dashboards meant to improve local oversight and planning. What lawmakers asked: committee members pressed officials about whether universal approaches or more highly targeted investments will best serve the highest‑risk families; about the definition and measurement of “completion” for home visiting; and about the connection between home visiting, child welfare, and Medicaid billing. Presenters said they will follow up with detailed data on completion measures, Medicaid billing for FIT, and county‑level capacity studies. The LFC report is available under the committee’s tab materials; presenters encouraged members to review county dashboards and to follow up with staff for district‑level data.