Summary:

 Senate Bill 167 (SB 167) renames and transfers the balance of the Early Childhood Education and Care Fund to the Early Childhood Trust Fund and expands the fund’s allowable uses to include prenatal programs and services. The bill's implementation is contingent on the approval of a constitutional amendment (Article 20, Section 23 of the Constitution of New Mexico proposed by Senate Joint Resolution 6) creating the Early Childhood Trust Fund. 

Legislation Overview:

 Senate Bill 167 (SB 167) reallocates the balance of the Early Childhood Education and Care Fund to the newly established Early Childhood Trust Fund. The bill modifies statutory language to reflect this consolidation and expands the trust fund’s purpose to include prenatal programs and services, in addition to early childhood education initiatives. The transfer aligns with proposed constitutional amendments aimed at securing a long-term funding mechanism for early childhood programs. Additionally, SB 167 establishes a revised structure for how excess state revenue from oil and gas production, as well as federal mineral leasing payments, will be allocated to the Early Childhood Trust Fund. These allocations will continue annually, with priority given to maintaining adequate reserves before additional deposits are made.
The bill's implementation is contingent on the approval of a constitutional amendment (Article 20, Section 23 of the Constitution of New Mexico proposed by Senate Joint Resolution 6) creating the Early Childhood Trust Fund.

Implications
SB 167 consolidates early childhood funding into a single trust fund, potentially improving financial stability and oversight. The bill does not introduce new funding sources but redirects existing resources to a permanent trust mechanism. While the transfer does not immediately impact the General Fund, future state revenue fluctuations could affect the level of appropriations directed to early childhood programs. The financial impact will depend on oil and gas revenue trends and the overall performance of the trust fund’s investments.
 

Current Law:

 The Early Childhood Education and Care Fund statutes limit expenditures to early childhood education programs. SB 167 expands allowable expenditures to include prenatal services, and renames the fund, pending voter approval of a constitutional amendment. 

Amendments:

 Amended February 19, 2025 in SRC

SRCa/SB 167: The Senate Rules Committee amends Senate Bill 167 as follows:

On page 7, line 17, strike the period and insert in lieu thereof ", and the expenses of administering those programs and services.", 

and thence referred to the EDUCATION COMMITTEE.