NEW MEXICO OFFICE OF
RECOVERY &
REINVESTMENT
INFORMATION • STATISTICS • REPORTS

The New Mexico Office of Recovery and Reinvestment was created by executive order in March 2009 to oversee New Mexico's implementation of the American Recovery and Reinvestment Act.

This Office is charged with ensuring that the state applies for and obtains every dollar possible; that the funds are expended efficiently, effectively, and quickly to spur economic activity, create and retain jobs, and promote long-term economic prosperity; and, that the state avoids any fraud, waste or abuse in the use of such funds.

It is important to note that a significant portion of the Recovery Act was dedicated to tax relief, and there is little discretion in the use of the majority of Recovery Act funding coming to New Mexico. This is so because many of the funds were federally allocated to stabilize the state budget and ensure that critical funding for public schools continue, while other funds help people counter the economic downturn through programs such as Medicaid, unemployment benefits and food stamps.

Other Recovery Act funds were allocated to existing programs to encourage economic growth, strengthen New Mexico's infrastructure and invest in education and energy efficiency.

New Mexico was well-prepared to receive Recovery Act funds. To the extent that Recovery Act funds go for other state initiatives, they go through existing state programs. These programs have their own long-standing procedures that, by law, must be followed in allocating such funding. Often, state agencies have a waiting list of qualified applications received from local governments and other New Mexicans throughout the state that are shovel-ready and just waiting for funding from whatever source. If Recovery Act funds become available to these agencies, they often must first consider funding these pending applications and, after doing so, there is often no funding remaining.

The Office is also responsible for ensuring compliance with federal requirements for funds flowing through state agencies. We will help state agencies comply with federal requirements by providing guidance, a compliance matrix, and a qualified staff dedicated to audit and compliance activities.

The American Recovery and Reinvestment Act is providing a significant infusion of billions of dollars into New Mexico's economy. New Mexico state agencies are integral to efforts to create and save jobs, keep essential public services flowing, and build the infrastructure for a revitalized economy by making greater use of technology, renewable energy and an improved public school system.

New Mexicans will benefit from $3.9 billion in Recovery Act awards; about $1.1 billion in tax relief and one-time economic payments flowing directly to individuals; and $488 million in additional bonding authority to provide for school construction and other economic boosts.

Of New Mexico's $3.9 billion, about $2.5 billion will flow through state government and about $1.4 billion flows from the federal government to cities, towns and tribes, or will be spent directly by federal agencies on projects in New Mexico.

These funds are being distributed according to guidelines established by Congress. In many cases, the Recovery Act boosts funding to existing state programs such as clean water, energy efficiency, or state highway programs. The state is then legally obligated to use existing programs and procedures – and, often, pending lists of shovel ready applications – to determine which projects qualify for the new funds. In other cases, Congress directed that funds be used for unemployment benefits, state budget deficit reduction, Pell Grants for college students, and more than one-half billion dollars for education.

The New Mexico Office of Recovery and Reinvestment was charged with ensuring that state agencies applied for all of the funding they were entitled to under the Recovery Act; and, with assisting New Mexicans in applying for all possible federal competitive grants available, including grants for renewable energy, technology improvements, broadband, additional infrastructure, and education reforms. Many of these tasks are now complete.

The New Mexico Office of Recovery and Reinvestment has made it a priority to ensure that state agencies spend Recovery Act funds quickly, efficiently, and effectively. Many deadlines for New Mexicans to apply for these funds flowing through state agencies have expired. Now it is essential that state agencies promptly move Recovery Act funds into New Mexico communities.

Over the next several months, the New Mexico Office of Recovery and Reinvestment will transition to an audit, compliance, and reporting focus to make sure the money is spent appropriately and to provide the federal government with timely and accurate reports as required by the Recovery Act.

To date, the Recovery Act in New Mexico has created or saved thousands of jobs, provided a major boost to the state budget to allow essential services to continue, and funded infrastructure projects across the state.