Las Cruces officials get 2024 legislative wrap-up as city wins capital awards and tax fee phase‑out

Larry Horan, the city of Las Cruces’ state lobbyist, told the City Council on April 8 that the abbreviated 30‑day 2024 legislative session produced results that will affect municipal revenues and local projects. He described a fiscal backdrop of roughly $3.5 billion in excess state revenue and a reduced, targeted omnibus tax bill that passed this year.

Horan highlighted a bill that phases out the Taxation and Revenue Department’s 3% administrative fee for remitting gross‑receipts taxes to municipalities, saying the fee will phase out by fiscal year 2029 and that the city stands to save “about $8,000,000 over five years” in the 2019–2024 window. He described the change as significant for long‑range municipal finance.

Why it matters: the phase‑out reduces ongoing collection costs for Las Cruces and shifts more gross‑receipts revenues to local budgets. Horan said the tax package also contained technical fixes the city requested so local redevelopment financing tools can be implemented.

Horan said the city worked on a technical fix to a bill he identified as Senate Bill 236 to allow gross receipts tax increment financing to function in metropolitan redevelopment areas; he described that change as "technical" and said it will not delay project timelines. He also reported that a separate bill (referred to as Senate Bill 151) was amended to direct approximately 5% of a property and casualty premium tax to EMS services statewide — an amount Horan estimated at about $11,000,000 per year for distribution across New Mexico.

The session included new statewide funding targeted to housing and homelessness: Horan said $125,000,000 was allocated to a New Mexico Finance Authority revolving fund, $50,000,000 to a state Housing Trust Fund, and just under $20,000,000 to statewide homelessness initiatives. On capital outlay, Barbara Bancomo, the city's chief administrative officer, briefed the council on projects that received appropriations. She said the largest award for the city was the Amador Crossing Housing Project ($5,975,000, including $3,000,000 the governor contributed), and that the total awarded across the city’s listed projects was $11,755,000.

Horan also flagged a new state match fund of $75,000,000 designed to help local governments meet match requirements for federal infrastructure grants, and outlined components of House Bill 2 that the council should note, including $25,000,000 for local fire and EMS recruitment grants and an additional $25,000,000 for local law enforcement and corrections. He said $50,000,000 was allocated to a water project fund and $50,000,000 to the water trust fund.

Policy items left unresolved: Horan described ongoing debate over criminal competency legislation and said advocates expect the issue to return in a 60‑day session or a possible governor‑called special session. He also raised paid family medical leave (referred to as Senate Bill 3), saying the more expansive 12‑week proposal failed a floor vote, "it died 34 to 36," but that variations of the policy will likely return and could apply to the city as a large employer.

Council next steps: Horan recommended individual meetings between staff and councilors in May–June to identify policy priorities for interim committee work. Bancomo said staff will provide a detailed breakdown of which legislators funded which projects and will supply quarterly updates for project sponsors; she also said staff will continue training and outreach to nonprofit partners on capital outlay processes.

At the session’s end, councilors raised the local septic/hookup issue and the city's interest in pursuing enabling legislation tied to the anti‑donation clause to fund home hookups; staff said they will begin drafting and vetting proposals during the interim.

Sources: Remarks by Larry Horan and Barbara Bancomo to the Las Cruces City Council, April 8, 2024.