The Budget and Finance Division receives gaming revenue sharing and regulatory fee payments that are generated by the State's tribal casino gaming operations.
Receives Gaming Revenue From Casinos
The Budget and Finance Division is responsible for accounts payable, travel reimbursements, receiving and processing invoices for goods and services, and contracts rendered in compliance with the Model Accounting Practices (MAP) manual issued by the New Mexico Department of Finance and Administration. The Division also procures goods and services in compliance with the State Procurement Code.
Manages Accounts Payable, Travel Reimbursements, Invoices, & Contracts
The Budget and Finance Division is also responsible for recording, reconciling, and disbursing investment interest earned and treasury transaction postings to the General Ledger. The Division is accountable for accounts payable, procurement in compliance with the State Procurement Code, professional contracts, fixed asset inventory, and all financial accounting and reporting activities for the State Treasurer’s Office.
Records, Reconciles, & Disburses Investment Interest
The Budget and Finance Division formulates and projects annual operating budget needs for each Division in coordination with key personnel within the State Treasurer’s Office. The division manages the operating budget and ensures compliance with the budget authorized by the Legislature and approved by the Governor.
Formulates & Projects The Annual Budget
The Budget and Finance Division is the investing authority for the general obligation and severance tax bond proceeds and as the paying agent for the debt service payments, the division coordinates with the State Board of Finance to manage and account for the State’s bond activities.
We Are The Investing Authority
Chief Financial Officer (CFO) is responsible for the State Treasurer's Office budget as well as the reconciliation of all state funds. The CFO is responsible for ensuring that financial transactions and reporting activities are in compliance with Generally Accepted Accounting Principles (GAAP), the Governmental Accounting Standards Board (GASB), and the Financial Accounting Standard Board (FASB) requirements. The CFO is responsible for facilitating annual independent financial audits and overseeing the audit activities.
CFO Responsibilities
The Budget and Finance Division Director serves as the Chief Financial Officer (CFO) for the State Treasurer’s Office. The CFO provides technical and professional advice on the day-to-day administrative and financial operations of the Office.
Budget & Finance
The Investment Transaction Bureau provides administrative assistance to the Local Government Investment Pool (LGIP), whereby they communicate with stakeholders and STO portfolio managers daily. Several reconciliation processes take place regularly, including a weekly reconciliation submission to the Standard & Poor’s rating agency for the LGIP.
Local Government Investment Pool (LGIP)
The Investments Transaction Bureau tracks movement of funds and recording of investment activity into the Treasurer’s sub-ledger accounting system and the custody system. The bureau verifies all trade activity from trade documentation and enters the data into the investment accounting and custody system. All wire transfers and month end closings are handled by this bureau.
Investments Transactions
The Investment Compliance Division reviews and audits all purchases and sales of investments trade documents for compliance in accordance with the New Mexico State Treasurer’s Office Investment Policy and reports investment activity to the State Treasurer’s Investment Council (STIC).
The Division also processes Broker-Dealer applications for all firms that want to execute trade with the State Treasurer’s Office (STO) and reviews firms and representatives to ensure compliance with all requirements of the State Treasurer’s Investment Policy. The State Treasurer presents Broker-Dealer applications to the State Board of Finance (SBOF) for approval.
Investment Compliance & Broker Dealer
The Compliance & Risk Manager ensures adequate protection of State Bank Deposits by requiring all qualified financial institutions to pledge collateral to secure public deposits. Risk assessment reports are then analyzed to determine data accuracy, the institution’s financial condition, and the percentage of collateral required. The pledged collateral is constantly monitored and must comply with all State requirements and custodial agreements. The Compliance & Risk Manager provides monthly reporting to the State Treasurer’s Investment Council (STIC) regarding compliance by all financial institutions.
Compliance & Risk Management
The Cash Management Division is responsible for projection of the State’s short-term and long-term cash balance needs, utilizing an automated data aggregation system and historical trends, together with ongoing receipts and disbursements. The cash forecasting system is updated daily to provide reporting to the STO’s Investment Division, the STIC and the SBOF.
Cash Forecasting
The CMIA Coordinator is responsible for compliance with the Cash Management Improvement Act of 1990 (CMIA). Congress established the CMIA to ensure efficiency, effectiveness, and equity in the transfer of funds between State and Federal governments. The bureau performs annual compliance audits of State agencies that receive Federal funds exceeding an established threshold and for compliance with the CMIA and regulations outlined in the U.S. Treasury/State Agreement (TSA).
Cash Management Improvement Act
The Banking Resources Bureau monitors all balances and activity related to State funds in financial institutions. Specific activities of this Bureau include development of regulations related to approximately 1,100 bank accounts, with approval, analysis, and authorization of these State agency bank accounts.
The Bureau also validates deposits and withdrawals into and out of the State's fiscal agent accounts, including all adjustments to the accounts such as returned checks, stop payments, and other miscellaneous transactions posting to the accounts. The Bureau compares fiscal agent bank accounts’ activity to transactions in the State’s enterprise accounting system (SHARE) daily.
Banking Activity
The position of State Cash Manager was established within the State Treasurer’s Office in 1993 pursuant to NMSA 1978, 8-6-3.1and its duties include: issue regulations to enforce the Federal Cash Management Improvement Act of 1990; monitor State agencies’ cash activity and the balances on hand in financial institutions; monitor deposits and cash balances on hand to enable projection of short-term and long-term cash available for investment; determine and update warrant clearance patterns; and prepare a monthly written report to the State Treasurer’s Investment Council (STIC) and State Board of Finance (SBOF) of the State fund balances in financial institutions.
Cash Management
The Repurchase Pool acts as a repository for cash balances from the portfolios managed the Educational Retirement Board, the State Investment Council, and the Public Employees Retirement Association.
Overnight Repurchase Pool
The Severance Tax Bonding Fund holds severance tax receipts pledged for debt service on severance tax bonds. Excess receipts can then be spent on permitted uses or transferred to the Severance Tax Permanent Fund held by the State Investment Council. During the FY2024 the Severance Tax Bonding Fund reported $34.9 million in earnings.
The Severance Tax Bonding Fund
The Local Government Investment Pool (LGIP) is a fund created pursuant to NMSA 1978 6-10-10.1 to allow municipal, city, county, tribal, and quasi-governmental bodies to voluntarily remit money to the State Treasurer to receive professional money management on a pooled basis. In addition, with consent of the State Board of Finance (SBOF), the State Treasurer’s Office added a medium-term fund in partnership with the State Investment Council (SIC) with a total of $1 billion invested in FY2024. The LGIP Short-Term (LGIP ST) is rated "AAAm" by Standard & Poor's, the highest principal stability credit rating awarded, and has been reaffirmed annually since August of 2007. The State Treasurer continues to welcome and inform eligible entities about the benefits of investing in the LGIP in coordination with the New Mexico Municipal League (NMML) and the New Mexico Counties (NMC). All LGIP participants receive their monthly investment statements and quarterly LGIP Newsletters. Quarterly LGIP Newsletters contain information about fund performance, investment strategies, and economic conditions. During FY2024 the Local Government Investment Pools (LGIP ST and LGIP MT) reported $99.7 million in total earnings.
Local Government Investment Pool Short-Term (LGIP ST) And Medium-Term (LGIP MT)
During FY2024 the bond proceeds investment pools (BPIP) reported $137.6 million in earnings. At fiscal year end, the bond proceeds pools had $31.1 million in unrealized gains, based on mark-to-market.
The State Treasurer is responsible for investing bond proceeds from the issuance of State bonds sold by the State Board of Finance for capital projects, which include general obligation bonds, severance tax bonds, and supplemental severance tax bonds. These bonds are long-term obligations issued by the State of New Mexico to fund various infrastructure projects on behalf of all New Mexicans. Bond proceed monies are managed according to whether the issued bonds were tax-exempt or taxable.
The Tax-Exempt Bond Proceeds Investment Pool (Tax-Exempt BPIP) holds proceeds from tax-exempt general obligation and severance tax bonds issued by the State Board of Finance until they are expended on capital projects.
The Taxable Bond Proceeds Investment Pool (Taxable BPIP) holds proceeds from taxable severance tax bonds issued by the State Board of Finance until expended on capital projects.
The BPIPs facilitate the tracking of investment earnings and project draws to assure compliance with arbitrage restrictions and rebate requirements in accordance with the Federal Tax Reform Act of 1986.
The Bond Proceeds Investment Pools
During the FY2024 the General Fund reported $403.1 million in earnings. At fiscal year end, the General Fund Investment Pool had an unrealized gain of $78.2 million based on mark-to-market. Most investments are held to maturity.
The General Fund Investment Pool consists of three main components:
General Fund Liquidity Portfolio - Immediate cash needs of the State are met with the General Fund Liquidity Portfolio. The Liquidity Portfolio is expected to have minimal liquidity risk and all investments in this portfolio are constrained to less than one year.
General Fund Core Portfolio - The Core Portfolio is comprised of balances that are not necessary to meet the short-term cash-flow needs of the State. Accordingly, it may be invested over a longer term than the Liquidity Portfolio. Investments are constrained to maturities of five years or less.
General Fund Tax and Revenue Anticipation Notes (TRAN) Portfolio - The TRAN portfolio may temporarily hold proceeds of short-term Tax and Revenue Anticipation Notes, which are periodically issued and sold by the State Treasurer pursuant to NMSA 1978, Section 6-12A-5. There were no TRANs issued in FY 2024.
The State Treasurer's Office makes a portion of the General Fund money available for investment in Certificates of Deposit (CDs) with New Mexico banks and credit unions to foster the economy of their communities. The passage of House Bill 471, the "Linked Deposit Program," during the 2007 legislative session expanded the CD program to allow the Treasurer to place time deposits with qualifying financial institutions (those serving economically disadvantaged rural communities) at favorable rates.
The General Fund Investment Pool
The State Treasurer's Office makes statutorily defined investments that may be subject to further limitations or restrictions by the State Treasurer's Investment Policy, which provides guiding principles for all investment decisions. All portfolios are invested by qualified and experienced in-house portfolio managers. The internal investment advisory team discusses, agrees upon, and recommends the security types and terms prior to purchase and reports the executed portfolio activity to the STIC monthly.
The Division, with the assistance of the investment advisor, develops benchmarks against which the portfolios' performance can be measured. The portfolio managers invest the available cash based upon the intended uses into one of the pools described below.
Investment Portfolio Management
During the FY2024, the division earned approximately $670 million. At the end of the FY2024, the five portfolios totaled approximately $17 billion. All funds are invested in a manner that conforms to Federal, State, and other legal requirements. The Division is charged with observing the following priorities in making investment decisions, in the order described:
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Safety —The priority is to preserve the principal of the funds to be invested.
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Liquidity—Second is to maintain sufficient availability of cash, or the capacity to obtain it without sacrificing principal loss, to satisfy the reasonably anticipated, continuing operational requirements of the specific fund invested.
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Yield—Third is to maximize investment return, consistent with the higher priorities of safety and liquidity of principal.
Investment Strategy
The STIC is an advisory council that meets monthly to review the investment portfolios for statutory compliance, quality and risk assessment review, diversification, maturity, duration, and performance. The STIC also reviews portfolio controls and collateral adequacy and recommends investment procedural changes.
Periodically, the council recommends changes to the State Treasurer's Investment Policy. STIC is a five- member advisory council consisting of the Treasurer, the State Cash Manager, the State Board of Finance Director, one member appointed by the Treasurer, and one member appointed by the SBOF.
State Treasurer's Investment Council
Chief Investment Officer
Vikki Hanges
The Investment Division Director serves as the Chief Investment Officer (CIO) for the State Treasurer’s Office. The CIO and the internal investment team discuss, agree upon, and recommend the security types and terms prior to purchase; secure and distribute post-trade documentation; facilitate trade settlement initiation; and report the executed portfolio activity monthly to the State Treasurer’s Investment Council (STIC) and the State Board of Finance (SBOF).
Investment
In 2020, House Bill 44 (HB44, 2020), sponsored by Sen. Bill Tallman, Sen. Michael Padilla, Rep. Tomás Salazar, Rep. Christine Chandler, and Rep. Gail Armstrong, passed in the legislature and was signed into law by Governor Michelle Lujan Grisham. This legislation created the non-compensated New Mexico Work and Save Board which gives them powers and duties; allows for a voluntary savings program for private-sector employees, nonprofit employees, and self-employed individuals via a Roth Individual Retirement Account (Roth IRA); allows for a web-based “retail” Retirement Savings Plan Marketplace; provides protection for covered employers; provides for confidentiality of participants and account information; and requires annual reports. The program is voluntary for both employers and employees.
A Request For Proposal was created during the previous administration, but no one expressed interest. It was later stated that in order for the program to be successful, it needed to be mandated to require all business to participate with the option to opt out. Legislation was proposed in 2022 and 2023 to require specific employers to register as participating employers, automatically enrolling their employees in the New Mexico Work and Save IRA Program and allowing employees to opt out of automatic enrollment. That legislation did not move forward. There was also legislation introduced to remove Work and $ave from the Treasurer’s Office. That legislation did not move forward either.
NEW MEXICO WORK & $AVE (RETIREMENT PROGRAM)
STO is committed to focusing on financial empowerment for women, working to improve financial stability for women across New Mexico. By providing continuous access to financial information, free financial resources, and financial literacy, we can close the gender wage gap and bridge the wealth divide.
Financial Empowerment for Women
Treasurer Laura M. Montoya has initiated several programs to improve the financial literacy of New Mexico's citizens. By building partnerships with state agencies, school districts, non-profit organizations, and financial institutions, we provide financial literacy resources that change lives for the better. Treasurer Laura M. Montoya and the New Mexico State Treasurer's Office are also coalition members of the Jump $tart and the Bank On NM coalitions, both of which are dedicated to helping improve the financial stability of households in New Mexico.
Financial Fitness
The New Mexico State Treasurer’s Achieving a Better Life Experience (NM STABLE) accounts are administered as 529A accounts. Participants can choose from a variety of investment options, similar to 529 college savings accounts or Roth IRAs. They can withdraw and spend money as needed for qualified disability expenses that help increase and/or maintain their health, independence, and quality of life. NM STABLE provides exempted clawbacks on accounts and balances from Medicaid recovery so that New Mexicans with disabilities can save, invest, and plan for the future with the same confidence as anyone else.
Starting January 2026, the ABLE Age Adjustment Act broadens eligibility for ABLE accounts, allowing individuals who acquired a disability before age 46 (currently age 26) to save and invest without losing public benefits.
Learn more here: https://www.youtube.com/watch?v=Icfwtrab3Rc
NM STABLE provides:
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Access to STABLE accounts specifically for New Mexicans with disabilities
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Tax-free savings for disability-related expenses
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The ability to save and invest without losing needs-based benefits
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NM STABLE provides exemptive clawbacks on accounts and balances from Medicaid recovery so that New Mexicans with disabilities can save, invest, and plan for the future with the same confidence as anyone else.
For more information and to open an account, visit NM STABLE
New Mexico Achieving A Better Life Experience (NM STABLE)
A Baby Bond is a trust fund created to allow each baby to receive a pledge startup of capital that will grow over time and be of use after that baby turns 18 years old. Baby Bonds is an initiative that will bridge the gap of inequity and ensure that all children born in New Mexico have an opportunity to achieve financial independence. Baby Bonds will promote financial fitness for our youth so that they may build generational wealth.
Baby Bonds legislation will be drafted to create a government-funded trust account, which will incur interest and provide startup capital to every baby born in New Mexico after July 1, 2025. Before the age of 18, these recipients will complete a STO approved financial literacy component. After the age of 18, Baby Bond recipients will have indirect access to the accumulated funds, which will allow them to pursue higher education or a trade school, put a down payment on a home, purchase a reliable vehicle, have start-up capital to open a business, or save for retirement.
Baby Bonds Initiative
Programs & Outreach Director
Christina Perea
The Programs & Outreach Division is a new division that oversees the Baby Bonds Initiative, the New Mexico State Treasurer’s Achieving a Better Life Experience (NM STABLE) program, Financial Fitness program, Financial Empowerment for Women program and the New Mexico Work & $ave program.
Programs & Outreach
The Information Technology (IT) Bureau operates, maintains, and monitors the State Treasurer’s Office IT systems. The bureau evaluates business processes and plans for automating functions where possible. The bureau maintains the agency servers, computers, local area network, investment systems, accounting system, and telecommunications for the office. The bureau also maintains the disaster recovery network and manages the security systems and information systems (software and hardware). The bureau is responsible for cyber security and the maintenance of the State Treasurer’s Office Disaster Recovery & Business Continuity Plan. The State Treasurer’s Office maintains a Disaster Recovery Site (Hot Site) at an off-site location in New Mexico. The bureau continuously reviews and evaluates the hardware and software to determine future technology needs to ensure that the State Treasurer’s Office can continue operations with minimal time down and maximum efficiency.
Information Technology Bureau
Link to chaptered 2019 Laws regarding Forfeiture
Link to NMSA 1978 regarding Forfeiture
The purposes outlined in the New Mexico Forfeiture Act are:
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to make uniform standards and procedures for the process;
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protect people’s constitutional rights;
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deter criminal activity by reducing its economic incentives;
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increase pecuniary loss from criminal activity;
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protect against wrongful forfeiture;
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and ensure that only criminal forfeiture is allowed.
Forfeiture Program
The Forfeiture & Information Technology Bureau is responsible for facilities management and security, agency vehicle maintenance, mail processing, and inter-agency deliveries. It also provides information technology and daily office operations support to the State Treasurer’s Office. The Division responds to internal employee needs and works with external agencies and stakeholders.
For more information, call (505) 955-1120.
Forfeiture & Information Technology Bureau
