House Bill 21 proposes amendments to the Land Grant-Merced Assistance Fund, which is aimed at providing financial support to land grants in New Mexico. The bill restructures the distribution rates based on the annual revenue of each assistance-qualified land grant-merced, redefining the thresholds for receiving varying percentages of the full distribution. This change seeks to better allocate funds to those land grants that may require more support based on their financial circumstances. The adjustments include raising the threshold for full and 75% distributions from $50,000 to $100,000 and setting new revenue thresholds for 50% and 25% distributions as well.
The creation of a non-reverting fund ensures that any unspent balance at the end of a fiscal year will remain in the fund, enabling continuous support for qualified land grants in subsequent years. This approach is expected to improve the financial stability of these groups working on land management and community development. The bill also outlines procedural changes, including the obligations of the state auditor and the land grant council in determining compliance with the Audit Act, which is instrumental in maintaining the integrity and accountability of fund distributions.
Notably, the bill has sparked discussions about the proper allocation of state financial resources, with proponents arguing that these measures will enhance local governance and accountability of land grants. However, some critics may raise concerns over the change in thresholds potentially limiting access for smaller land grants that might fall below the new revenue levels.
Overall, HB21 represents a significant shift in the funding model for land grant-merced entities, aiming to create a more equitable distribution system that aligns financial support with the actual revenue capabilities of each grant. Its implementation set for July 1, 2025, will be critical in shaping the future of land management in New Mexico.