Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Pinto
LAST UPDATED
ORIGINAL DATE 2/26/25
SHORT TITLE Low-Income Civil Legal Services
BILL
NUMBER Senate Bill 457
ANALYST Hilla
APPROPRIATION*
(dollars in thousands)
FY25 FY26
Recurring or
Nonrecurring
Fund
Affected
$20,000.0 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected DFA No fiscal impact $3.9 No fiscal impact $3.9 Nonrecurring General Fund
Total No fiscal impact $3.9 No fiscal impact $3.9 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to an appropriation in the General Appropriation Act, relates to Senate Bill 457
Sources of Information
LFC Files
Agency Analysis Received From
Department of Finance and Administration (DFA)
New Mexico Attorney General (NMAG)
SUMMARY
Synopsis of Senate Bill 457
Senate Bill 457 (SB457) appropriates $20 million from the general fund to the Department of
Finance and Administration (DFA) to provide civil legal services for low-income individuals in
FY26 and subsequent fiscal years.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
Senate Bill 457 – Page 2
FISCAL IMPLICATIONS
The appropriation of $20 million contained in this bill is a nonrecurring expense to the general
fund. Any unexpended or unencumbered balance remaining at the end of FY26 shall not revert to
the general fund.
DFA anticipates $3,900 in nonrecurring costs associated with receiving and managing the
appropriation.
SIGNIFICANT ISSUES
The House version of the General Appropriation Act (GAA) builds $7.2 million into DFA’s
operation budget for the Civil Legal Services Commission, which is administratively attached to
the department. The GAA as adopted by the House has a $4 million special nonrecurring
appropriation for the commission’s fund balance due to influx of the fund’s stability from
revenue received from court fees year over the year. The intent of the $4 million appropriation is
to preload the commission fund balance, and allow for $1 million to be expended in FY26, in
addition to the $7.2 million in DFA’s operating budget. A total of $11.2 million is dedicated to
civil legal services on the passage of the GAA.
Last year, civil legal services received $2.2 million in government results and opportunity (GRO)
funding for expenditure in FY26. This appropriation has a balance of $1.1 million. Should there
be no expenditure for the rest of FY25, civil legal services will have $12.2 million going into
FY26 available for expenditure.
The commission currently has contracts with 13 legal organizations to provide legal services
through funding received in DFA’s operating budget. It is possible that the commission may
enter into grant agreements with organizations it is not already in partnership with to provide
additional services. Senate Bill 457 – Page 3
Source: LFC Files
Although the appropriation is nonrecurring, utilizing these funds for ongoing expenses could
establish a recurring financial obligation within the commission’s operating budget. This
obligation may outpace the growth of state agencies’ operating budgets in any given fiscal year,
potentially leading to structural budget shortfalls if the nonrecurring funds are relied upon for
sustained expenditures.
The New Mexico Attorney General notes the bill does not define low-income persons, which is
the basis of outreach of SB457.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
SB457 relates to House Bill 529, which makes a $14 million appropriation from the general fund
for civil legal services for housing services, in addition to appropriations in the GAA.
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