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Gaming regulator seeks carryover language to cover IT modernization costs
Summary
The Gaming Control Board told the committee that mandated increases in IT and central monitoring maintenance are fixed obligations that the LFC recommendation only partially covers; the board requested carryover authority for previous IT C2 funding to offset an FY27 shortfall and to cover a first‑year software license for a new agency database.
Terry McGaha, acting executive director of the New Mexico Gaming Control Board, told the Appropriations subcommittee that the agency — which is funded entirely by the general fund — faces unavoidable, recurring cost increases in IT maintenance, central monitoring and GSD/DOT mandated charges. McGaha said those fixed costs leave “insufficient capacity to absorb mandated inflationary and contractual cost increases” under the LFC recommendation.
The Gaming Control Board is modernizing a legacy licensing database (in operation since 1997) and expects ongoing annual software license and maintenance costs. Agency leaders proposed a language‑only request to extend carryover authority for IT C2 funding so that first‑year licensing and maintenance can be paid from current carryover instead of an immediate general‑fund increase. McGaha said that approved carryover language would reduce the FY27 shortfall from about $192,900 to roughly $38,000.
LFC staff clarified that reauthorization language for the C2 funds was already included in their recommendation; with that language the remaining gap is smaller and the committee asked staff to monitor ongoing license/maintenance obligations for future budgets.
The committee adopted the LFC recommendations for the Gaming Control Board and asked staff to keep IT modernization and audit‑service needs under review.
