LEGISLATURE
Bill would enshrine universal child care in state law, with a few economic off-ramps
State early childhood secretary says she's on board with Democratic-backed plan
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SANTA FE — It might come with some training wheels, but New Mexico’s state-subsidized child care program could be on the road to permanence under a bill that passed its first assigned committee Friday.
The bill, Senate Bill 241, was filed this week and would authorize universal child care statewide. The program largely exists now mostly in rule after being implemented by Gov. Michelle Lujan Grisham's administration.
In a sign of the importance of the issue to the governor, several Cabinet officials in her administration testified in support of the legislation during Friday's hearing of the Senate Education Committee.
The bill passed the committee on a 6-3 vote, with Sen. Gabriel Ramos, R-Silver City, joining Democrats in voting in favor of the legislation. The committee's other GOP members cast "no" votes.
Early Childhood Education and Care Secretary Elizabeth Groginsky, who's been tasked with implementing the universal child care rollout, said the legislation would ensure state-paid child care remains in place even after Lujan Grisham leaves office at the end of this year.
"This is an opportunity to protect future administrations and set rules based on that," Groginsky told the Journal after Friday's hearing.
She also said the agency is on board with certain "triggers" built into the bill, including allowing co-pays for higher-income families and child care wait lists. Those steps would be triggered under certain economic situations, such as elevated inflation rates and a downturn in oil prices.
"We hope that none of them come into play," Groginsky said.
Lawmakers initially balked at the Lujan Grisham administration's request for an additional $160 million in the coming year to pay for the universal child care initiative. New Mexico became the first state to offer state-subsidized child care for all working families when Lujan Grisham announced the program in September.
But the bill approved Friday — along with more than $60 million in state funds earmarked in a separate budget bill — could signal a growing embrace of the program at the Roundhouse.
Sen. George Muñoz, D-Gallup, one of the bill's sponsors, said the legislation will provide lawmakers — and state residents — with stability as the state expands child care assistance.
The state appropriated funding to provide no-cost child care to 32,000 children last year, but that number is projected to increase to 58,000 children by the 2029 budget year under the universal child care program, according to a legislative analysis of the bill.
Already, roughly 10,000 more New Mexico children have enrolled in the state's child care assistance program since November, Lujan Grisham said in her State of the State address last month.
Given that rapid increase, Muñoz said it's important lawmakers build a steady runway for the initiative with triggers if economic conditions deteriorate or if enrollment in the child care assistance program exceeds expectations.
"It's a slow-moving deal," said Muñoz of the effort to build the necessary infrastructure for universal child care. But he said the expansion would put "real money" in New Mexicans' pockets by not forcing them to choose between working and expensive private child care.
Despite the bill's guardrails, skeptics said they're still worried about the long-term price tag of universal child care.
"Fiscal sustainability of this is going to be iffy," said Sen. Candy Spence Ezzell, R-Roswell, during Friday's debate. "I hope we recognize that one day this might come crashing down."
In addition, Sen. Ant Thornton, R-Sandia Park, took issue with the framing of the program, saying, "This is being marketed as free universal child care and it's not."
But backers said the creation of an early childhood trust fund in 2020 could provide a financial lifeline for the program. The fund has seen its value skyrocket over the last several years — from $300 million to nearly $11 billion this year — thanks to record-high oil production levels in southeast New Mexico.
Even if $100 million is taken out of the fund every year to help pay for child care assistance, it would still remain solvent for decades even if investment income over that time period is flat, said Sen. William Soules, D-Las Cruces.
Meanwhile, early childhood workers have touted a separate $60 million appropriation in the House-approved budget bill for salary increases that would be tied to experience levels.
Making universal child care a reality will require an estimated 5,000 additional early childhood workers around the state, and supporters of the idea say pay raises are a key part of making that happen.
"It will take some time, but we have made great strides," said Sen. Natalie Figueroa, D-Albuquerque.
The bill now advances to the Senate Finance Committee with less than two weeks remaining in this year's 30-day legislative session.
Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at @DanBoydNM or reach him via email at dboyd@abqjournal.com.
