House Appropriations committee adopts narrower BAR authority after debate over agency flexibility

Santa Fe — The House Appropriations & Finance Committee on Jan. 26 adopted a more-limited package of budget-adjustment authority (BAR) language after hearing hours of testimony from LFC and executive agency staff and extended exchanges among members.

Committee staff led by Emily Hilla of the Legislative Finance Committee and DFA analysts walked members through the packet of FY26 additional BAR language and FY27 reauthorization requests. Hilla told the committee that BAR authority lets agencies move money within categories and, for statutory funds, generally allows a 5% adjustment; staff urged language be specific in purpose and dollar amounts so authority does not conflict with the legislature’s intent in the General Appropriation Act (House Bill 2, section 4).

Members probed examples of permissible and questionable BARs. Dr. Courtney (LFC) told the committee LFC tracks BARs monthly and will flag “questionable ones”; the LFC director can object to a BAR, triggering a special hearing within 30 days. Agency witnesses including Jonas Armstrong of the New Mexico Environment Department said some program-transfer flexibility is needed because the department now operates a newly created compliance-and-enforcement division and manages more than 100 grants across multiple funds.

The discussion repeatedly returned to two fault lines: how much flexibility agencies need to respond to changing federal funding or emergencies versus how much discretion the legislature should delegate midyear, and whether language should permit program transfers (broad reassignments of funds between named programs) or be restricted to transfers between budget categories (personnel, contractual services, other costs).

Representative questions focused on concrete dollar impacts: LFC staff noted the Department of Environment’s current general fund budget is roughly $38 million and that an 8% transfer authority would amount to about $3 million; multiple members asked staff to supply precise balances and prior BAR activity for flagged agencies before catch-up cleanup.

The committee voted to adopt the HAFC scenario (a more-limiting set of BAR authorizations) on a motion by Vice Chair Dixon, seconded by Representative Lehi. Representative Dow, Representative Vincent and Representative Pettigrew were recorded in opposition; the motion passed. Members instructed staff to work with agencies to add specificity to flagged line items and said follow-up would be taken up during catch-up cleanup.

What happens next

Staff will provide the committee with follow-up detail on flagged items (including exact fund balances and timelines for expenditure) and will present amendments during catch-up cleanup if members choose to add or narrow any BAR language. The committee also moved immediately into a public health working group meeting, and later adopted LFC recommendations for Section 5 reauthorizations after additional questions and follow-up flags.

Votes at a glance

- Motion: Adopt HAFC BAR scenario; mover: Vice Chair Dixon; second: Representative Lehi. Outcome: Adopted; recorded oppositions: Representative Dow, Representative Vincent, Representative Pettigrew.

Sources: Committee hearing transcript and agency staff presentations.