The General Services Department’s Facilities Management Division told the subcommittee it manages hundreds of state properties and is pursuing a mix of acquisitions, renovations and new construction to reduce lease costs and improve state facilities.

"FMD owns and manages approximately 45% of all state buildings and land," GSD Cabinet Secretary Anna Silva said, noting the division manages roughly 860 buildings with an estimated asset value of about $6.5 billion. She added that the division pays approximately $44 million annually in leases and is actively working to move agencies from lease space into state‑owned buildings where feasible.

What staff told the committee: Silva highlighted completed projects and ongoing work. Recent and active items include a 2023 crime lab, a 2023 veterans home, a 2021 Meadows long‑term care facility and the Pine Tree purchase and renovation in Albuquerque. "We are saving the state roughly $3,000,000 a year in lease savings" by moving agencies into the Pine Tree facility, Silva said. She also said the department plans to purchase the Fifth Street building in Santa Fe to move CYFD out of leased space and save about $1 million a year in lease costs.

Executive Office Building: The department described the long‑running Executive Office Building project west of the Capitol and said it needs additional construction funding to complete the project. Silva said the plan has not been fully funded and that the department will request the remaining amount in future capital outlay. She told members the design will be considered by the state H Board in November and that completing the project requires approximately $130 million in additional appropriation, bringing the estimated total to about $220 million.

Mora courthouse: The department took responsibility for the incomplete Mora courthouse project and outlined an accelerated schedule. Silva said GSD had brought on an architect and structural analysis and planned to complete design by the end of the year with construction scheduled next year.

Costs and construction environment: Silva and Billingsley discussed higher construction costs statewide and the effects of labor shortages. GSD described procurement and design controls intended to limit cost escalation — requiring consistent schedule of values and site visits, tighter change‑order controls and project‑cost databases to compare actual bids.

What legislators asked: Representatives and senators asked about the transfer of cemeteries, the status of the literacy and STEAM institutes and timeline for the Mora courthouse. Silva said the Taos cemetery transfer requires State Board of Finance steps and expected completion in September. On the literacy center (a roughly $30 million project) Silva said design work is underway and a ribbon cutting is expected next year; the STEAM institute land negotiations with UNM are underway and design can proceed even if land negotiations continue.

What’s next: GSD will seek design approval for the Executive Office Building before the H Board in November and continue work to move agencies from leased to state space, using acquisitions where cost‑effective. GSD keeps a portfolio of project managers (the division said it currently has 13 project managers) and told the committee it will provide updated project lists and public reporting as its site‑to‑web publishing is restored.