NMFA CEO tells oversight committee PPRF activity and water programs are expanding; asks for health fund appropriations

Marquita Russell, CEO of the New Mexico Finance Authority, told the NMFA Oversight Committee that the authority's Public Project Revolving Fund is the agency's flagship and now represents about 70% of its operations. "We have made about 2,400 loans totaling more than $5,600,000,000 to date," Russell said during an overview presentation.

Russell said recent legislation and appropriations have increased the finance authority's capacity. She identified several measures from the most recent legislative session, including House Bill 63, House Bill 64 (which she said included a $13,250,000 appropriation from the PPRF to multiple funds), House Bill 109 (which allows the finance authority to make grants and loans from the Water Project Fund without prior legislative authorization through 12/31/2029) and Senate Bill 2 (which authorizes new highway project bonds the authority helps underwrite).

Why it matters: Committee members said the agency's increased lending and program offerings could accelerate local infrastructure projects and relieve planning backlogs for small communities. Russell said additional state appropriations would help translate planning activity into construction and local draws on funds.

Russell asked the committee to consider capital infusions to two small revolving programs. "Our ask over the last two years has been $25,000,000 into each of those" ' the Primary Care Capital Fund and the Behavioral Health Capital Fund, she said, adding that the Primary Care fund was established in the 1990s but has limited available dollars.

Committee members praised NMFA's conservative underwriting and bond-market relationships. Chair Senator Michael Padilla noted the PPRF's record of no defaults and described the program as a tool to provide low-cost borrowing for municipalities and other public borrowers.

The presentation included examples of recent activity: a $12,000,000 PPRF loan for a HomeWise infrastructure project in Santa Fe and a $2,500,000 loan for Aldo Leopold charter school financing in Silver City. Russell also described underwriting features such as interest-rate caps (an added 75 basis points at approval for most loans) and disadvantaged-entity interest rates set at 0% or 2% for qualifying borrowers.

What comes next: Russell said NMFA will return during the interim with reports on a technical assistance pilot for water systems, design-only grant openings under the Water Trust Board and proposed updated rules to govern conduit bonds under the Statewide Economic Development Finance Act.

Sources: Remarks and slides presented by Marquita Russell, CEO, New Mexico Finance Authority.