Higher Education Department asks Legislature for $1.5 billion, proposes formula tweaks to prioritize completion

Secretary Stephanie Rodriguez told the Legislative Finance Committee that the New Mexico Higher Education Department is seeking $1.5 billion for FY27, with about $1.3 billion targeted to instruction and institutional funding. The department recommended a 3% increase to the higher education funding formula and a $30 million base adjustment to strengthen institutional operating capacity.

Rodriguez said the department adjusted the formula this year to move momentum points toward student credit hours and completion measures and reduced the research measure from 11% to 7% to rebalance support across community colleges, branch campuses and research institutions. "Reallocating the funds to broaden support across all sectors will support community colleges, branch campuses and research institutions while maintaining a dedicated research investment," Rodriguez said.

The secretary cited four consecutive years of enrollment growth and 26,000 students completing credit-bearing credentials in the most recent academic year as the rationale for emphasizing both access and attainment. She warned that the department is seeing federal funding impacts — canceled grants and project delays — totaling about $123 million as of November, which the department factored into the recommendation.

The request also includes $128.3 million for research, projects, student services and quasi-state agencies (a 4.5% increase over last year). Rodriguez noted the department prioritized programs that lost federal support, such as public broadcasting and tribal education initiatives. The presentation said $6 million already appropriated in a prior special session helped public broadcasters; another $6 million is still needed to complete their federal grant cycles.

On dual credit, Rodriguez and institution leaders said institutions currently waive $15–18 million in dual-credit tuition annually while receiving only a small portion of reimbursement through the formula (institutional figures cited in committee). The institutions urged statutory language requiring the Public Education Department to pass the portion of the $55 million dual-credit allocation the PED receives on to postsecondary institutions that actually deliver the instruction.

What happens next: the department's recommendation will be considered by the legislature in the session. The secretary said the department will return with additional documentation and data requested by members.

Sources: Secretary Stephanie Rodriguez; institutional presidents and chancellors who presented the unified priorities.