Summary:

 Senate Joint Resolution 6 (SJR 6) proposes an amendment to the New Mexico Constitution to create the Early Childhood Trust Fund. The fund would serve as a permanent trust, generating investment income for prenatal and early childhood programs. Distributions from the fund would be limited to supporting these programs, except in instances where state fund balances are insufficient to meet previously authorized expenses. The amendment will be submitted to voters in the next general election or an earlier special election. 

Legislation Overview:

 Senate Joint Resolution 6 (SJR 6) establishes the Early Childhood Trust Fund as a constitutionally protected, permanent trust fund. The fund's purpose is to finance prenatal services and early childhood education programs until children reach kindergarten eligibility. Investment earnings from the fund would be credited to its corpus, with an annual distribution equal to the greater of 5% of the fund’s average year-end market value over the preceding three years or five hundred million dollars ($500,000,000). If state revenue shortfalls occur and General Fund balances cannot cover previously authorized appropriations, the legislature may access the trust fund, but only in amounts necessary to prevent a deficit. The amendment will be presented to voters for approval.

Implications

SJR 6 would establish a long-term funding mechanism for early childhood services while ensuring that principal funds remain intact. The required annual distribution could provide consistent funding for early childhood programs, but it may also constrain legislative flexibility in future appropriations. The provision allowing access to the fund in cases of revenue shortfalls provides a safeguard against fiscal crises, but it could also reduce available funds for early childhood programs in such circumstances. Implementation costs would depend on fund management expenses and market performance affecting investment returns. 

Current Law:

 Under current law, New Mexico funds early childhood programs through general fund appropriations and the existing Early Childhood Trust Fund, which operates under statutory authority rather than constitutional protection. The proposed amendment would provide constitutional security for the fund and establish permanent investment and spending rules.