Legislative Finance Committee staff told the subcommittee that a $20 million multi‑year appropriation originally intended to seed evidence‑based behavioral‑health services for children had been mostly spent on items LFC says may not be eligible for Medicaid or Title IV‑E reimbursement.

Rachel Garcia of the LFC summarized the history: the $20 million was originally appropriated in an earlier session and reauthorized with a split between agencies; LFC flagged that expenditures documented in the state financial system did not clearly align with the original legislative language requiring start‑up costs for evidence‑based, Medicaid‑billable children’s behavioral health services. LFC staff reported some spending on group‑home placements and other items LFC characterized as outside federal reimbursement eligibility.

Action taken: Senator Tobias moved and Senator Trujillo seconded a motion that the subcommittee send a letter to both the State Auditor and the New Mexico Attorney General to review the appropriation and determine whether expenditures complied with the reauthorization language. The motion was seconded and carried without recorded objection. The committee directed staff to transmit the draft LFC letter to both offices for review and any recommended next steps.

Why it matters: LFC staff and multiple legislators said the question has fiscal and policy implications: if the funding was used for items not eligible for federal reimbursement or not consistent with the appropriation’s intent, the legislature and oversight bodies should understand why and whether corrective action is required.

Ending: The subcommittee asked LFC staff and the agency for expedited follow‑up documents (detailed expenditure listings and contracts) to support any potential audit or legal review.