Committee hears Department of Health budget pitch, approves LFC operating recommendation
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Summary
The Appropriations & Finance Committee reviewed the Department of Health’s FY26 operating budget and heard requests for veterans-home staffing, case navigation for substance‑exposed newborns, and public-health specials before voting to adopt the Legislative Finance Committee’s recommendation for the operating budget.
The Appropriations & Finance Committee on Feb. 1 heard the Department of Health present its FY26 operating request and supplemental priorities, then adopted the Legislative Finance Committee (LFC) recommendation for the department’s operating budget.
Emily Hilla, the LFC analyst for the Department of Health, walked members through the agency packet and five‑year appropriation history, noting transfers in FY25 that shifted programs to the Health Care Authority and the overall differences between the executive and LFC packages. "We are gonna be in Business Unit 665," Hilla said, directing members to narrative pages and the performance measures in the committee packet.
Why it matters: The hearing focused on a handful of programmatic requests that would affect service delivery statewide—most prominently a $2.0 million recurring request to staff the New Mexico Veterans Home at full census and a $3.4 million supplemental to support the Care program for substance‑exposed newborns. The committee's choice of the LFC operating recommendation preserves recurring baseline funding while reserving final decisions about specials and supplementals for later work sessions.
Top requests and details: Secretary Tina de Blasio told the committee the agency’s operating total is approximately $695 million across funds and that the veterans home is operating at full census (131 beds), generating higher staffing needs. "We're really needing this additional $2,000,000 in order to ensure that we can appropriately staff the New Mexico veterans home," she said, describing heavy use of temporary agency staff and vacancy challenges for CNAs, LPNs and RNs.
On the Care program, de Blasio said the agency requested $3.4 million to support intensive care navigation for substance‑exposed newborns that moved to DOH earlier this year and that a statutory transfer to the Health Care Authority will take effect July 1, 2026. She described daily cross‑agency case reviews and home visits aimed at linking families to early intervention and treatment services.
Other specials the department highlighted include $1.0 million for the Senior Farmers Market Nutrition Program, $1.5 million for adult respiratory vaccines and $250,000 for a clinical mentoring program administered through the University of New Mexico to train providers on long‑acting reversible contraception. De Blasio also flagged a $2.0 million facilities maintenance request to preserve eight department facilities statewide.
Key questions from lawmakers: Members pressed the agency on three lines of oversight—how temporary and contract staffing at the veterans home can transition to permanent hires; whether the Care program's care navigators duplicate home‑visiting services run by ECECD or MCOs; and why budget quick‑facts reversions in earlier materials differed from audited numbers. The secretary said the department is pursuing internal hiring where possible, is coordinating warm handoffs with MCOs and partner agencies to avoid duplication, and will provide follow‑up documentation on reversion details.
Audit and financial control: Lawmakers raised the agency’s FY24 audit findings. The secretary said the department implemented a financial management plan, replaced financial leadership and reduced the number and severity of audit findings between FY24 and FY25, noting "no material weaknesses" remained in the FY25 audit.
What happened next: After questions and discussion, Vice Chair Dixon moved that the committee adopt the LFC operating recommendation for Business Unit 665; the motion was seconded and the committee adopted the LFC recommendation. Decisions on many special appropriations—including the $3.4 million Care supplemental and larger nonrecurring requests—were deferred to the specials and supplementals work sessions and staff follow‑up.
What’s next: The committee recorded follow‑up requests for more detailed breakdowns of veterans‑home revenue sources (federal vs. Medicaid vs. private pay), a timeline for converting contract staff to permanent hires and written clarifications on the Care program’s data‑sharing and case‑management interfaces with CYFD, ECECD and MCOs.
