Summary:

 Senate Bill 209 (SB 209) appropriates $29.5 million from the General Fund to the Rural Libraries Endowment Fund for expenditure in FY26 and subsequent fiscal years. The bill ensures that any unexpended or unencumbered balance at the end of a fiscal year will not revert to the General Fund. 

Legislation Overview:

 Senate Bill 209 (SB 209) makes a one-time appropriation of $29.5 million from the General Fund to the Rural Libraries Endowment Fund, which supports sustained funding for rural and tribal libraries across New Mexico. The appropriation will be available for expenditure in FY26 and beyond, with no reversion of unspent funds.

The Rural Libraries Endowment Fund is designed to provide long-term financial stability for rural libraries by generating investment income to support operational expenses, literacy programs, infrastructure improvements, and community services. The additional funding from SB 209 will strengthen the fund’s ability to provide stable and predictable financial support to rural libraries that often operate with limited local resources.

By ensuring that funds do not revert to the General Fund, SB 209 guarantees that the appropriation will be used exclusively for the benefit of rural libraries, rather than being subject to annual budget fluctuations.

Implications
SB 209 provides a significant financial boost to the Rural Libraries Endowment Fund, ensuring greater stability for library operations, literacy initiatives, and community programming in underserved areas. The $29.5 million appropriation will increase the fund’s investment capacity, allowing for sustained revenue generation to support rural libraries over the long term.

The bill does not impact state revenue collection, but it does represent a substantial allocation from the General Fund, which may reduce the availability of funds for other state programs. However, by preventing reversion, the appropriation will not be subject to annual budget cycles, allowing rural libraries to plan for long-term sustainability without the risk of losing allocated funds.

SB 209 aligns with statewide efforts to improve educational resources, digital literacy, and public access to information in rural and tribal communities. Strengthening the financial foundation of the Rural Libraries Endowment Fund could lead to expanded library services, infrastructure upgrades, and enhanced educational opportunities in areas with limited access to broadband, educational institutions, and community resources. 

Current Law:

 The Rural Libraries Endowment Fund is designed to provide permanent financial support for rural and tribal libraries in New Mexico. The fund is administered by the State Library Division of the Department of Cultural Affairs, which distributes investment income to eligible libraries based on statutory funding formulas. Under current law, funding for rural libraries is often dependent on legislative appropriations and fluctuating state revenues. SB 209 increases the principal investment of the endowment fund, allowing for greater financial stability and expanded grant opportunities for rural libraries.