Committee hears plan to fund rebuilding of UNM School of Medicine; bill held for tax package

Senators heard testimony on legislation to create a statutory building fund for replacing the University of New Mexico School of Medicine building and to dedicate a stream of hospital gross receipts tax (GGRT) revenue to that fund.

Sponsor Senator Gonzales said the bill would create a fund supported primarily by the GGRT currently paid by UNM Hospital (described in committee testimony as approximately $32 million a year), plus an annual $4 million contribution from School of Medicine self‑generated revenues. Dr. Michael Richards, executive vice president of UNM Health Sciences Center and CEO of the UNM health system, told the committee the project is driven by an expanded clinical delivery system and the need to grow health workforce training. He described a $600 million estimated project cost and said a $30 million capital design appropriation is under consideration for the current session.

Committee members asked how narrowly GGRT would be drawn (for UNM Hospital only vs. statewide hospital GGRT), whether the stream would be time‑limited and how the bill interacts with other higher‑education major projects funding under House Bill 449. Committee staff and fiscal witnesses said UNM Hospital’s GGRT is approximately $32 million and that a larger statewide GGRT pot recently estimated at about $37 million could be misunderstood; the sponsor said the intent is to confine the primary GGRT dedication to UNM Hospital receipts and to build complementary language into a tax package amendment.

Senators asked for draft amendment language that would narrow GGRT to UNM Hospital and for a clear sunset or reversion schedule; the sponsor agreed to provide specific amendment text ahead of the tax package. The committee agreed to hold the bill pending consideration as part of any forthcoming tax package or major‑project funding package.