New Mexico Finance Authority outlines lending, water and economic programs as session begins

Marquita Russell, chief executive officer of the New Mexico Finance Authority, told a House committee the agency operates a broad portfolio of loan and grant programs for public infrastructure, water and economic development and will appear frequently this session as bills are considered.

Russell said the authority is authorized to run 25 programs under 13 different acts and is governed by an 11-member independent board chaired by Kathy Keith. “We are a broad based finance agency that’s been in place since 1992,” Russell said.

The authority’s largest longstanding program is the Public Project Revolving Fund, a bond‑backed program that provides AAA tax‑exempt rates to small communities. Russell also described the Drinking Water State Revolving Fund, which she said is in need of statutory updates, and the Water Trust Board program, which she said has awarded more than $1 billion to date and will begin accepting wastewater applications in August. She noted the Water Trust Board receives an earmark of severance tax bonding (8.1 percent) while the Colonias Infrastructure Fund receives 4.5 percent.

Russell outlined recently added economic-development responsibilities. She said the authority has been tasked with delivering federal funds and other state appropriations for programs that support businesses, including a 2022 $74 million authorization to operate three federal programs. The authority also manages investment activity through a venture capital program and related funds that, she said, targeted investments in Native‑owned, women‑owned, agriculture and Latinx businesses. “We have invested all that we intend to invest with that $50 million,” Russell said, adding there is a small reserve for potential follow‑on investments.

Russell answered committee questions about staffing (the authority is budgeted for 77 positions, with two vacancies and three mid‑year expansions) and said the agency reorganized by function in 2020 into credit, regional finance, client services and program teams. She described technical assistance and regionalization work the authority will support for small and mutual domestic water systems, and noted new authority to use water project funds for planning and consolidation assistance.

On pending legislation, Russell previewed a recurring authorization bill to permit loans greater than $1 million from the Public Project Revolving Fund, a water trust board authorization that covers roughly $166 million in awards and related statutory housekeeping for the drinking water revolving fund to conform to federal rules. She also listed other bills that would affect the authority’s role, including measures on site readiness, solar access (House Bill 128) and expansion of a child‑care revolving loan fund (Senate Bill 175). Russell said the agency also recently received $295 million appropriated across three programs that include the venture capital program, the Opportunity Enterprise Revolving Fund and a Housing Development Revolving Fund.

The presentation drew questions from committee members and concluded with the authority offering to return during the session when bills touched the agency’s programs.

Less urgent details: Russell said the authority oversees three separate boards (the Water Trust Board, the Colonias Infrastructure Board and the Opportunity Enterprise and Housing Development Review Board) and that many of the authority’s economic development disbursements are federal dollars rather than state general fund appropriations.