Secretary of State warns election services at risk as Legislature underfunds office

Secretary of State Maggie Toulouse Oliver told the Senate Finance Committee on Feb. 3 that her office’s requested FY27 baseline of $15,880,000 reflects ongoing operating needs and that state and federal budget decisions have left the office underfunded.

The office said it is seeking supplemental and special appropriations to backfill lost federal services from CISA and Help America Vote Act grants and to pay for required upgrades to voting equipment. "We've been operating with negative cash balance going into elections," the secretary told senators, urging an infusion to reimburse counties and vendors on time.

Why it matters: The SOS argued the funding is not discretionary. The agency said workforce stability is a central issue — it is operating at roughly a 12% vacancy rate — and warned that further reductions would risk service degradation and statutory noncompliance. The presentation flagged an immediate need to meet voluntary federal voting-system guidelines that the state statute adopts and estimated a multiyear C2 (capital) need to replace and upgrade tabulators.

Supporting details: Tony Chavez, the agency’s budget director, said the executive and LFC recommendations fall millions short of the requested baseline and that the agency’s c.7 requests include IT and election-logistics projects (statewide voter database improvements, an election logistics system and ADA website work). The House substitute for HB2 included two $15 million pots in the election fund (one for FY26 primary and one FY27 special for the general) but left recurring operational gaps, agency staff and some senators noted.

Senators pressed how the shortfall would affect large counties. The secretary said the election fund reimbursement covers statutorily required county costs but that large counties like Bernalillo often incur additional local expenses that must be absorbed locally. On tabulators, the secretary said current equipment meets older federal guidance and that vendors are moving to VVSG 2; the state requested $9 million for upgrades and replacements but reported roughly $6.4 million currently in proposed capital outlay, leaving a shortfall the agency will try to address in the capital bill.

Next steps: Committee analysts and agency staff agreed to follow up with precise cost breakdowns and work to reconcile HB2 language for capital outlay requests. Senators indicated they will continue to press appropriators to prioritize the election fund and operational restorations ahead of the 2026 election cycle.