State Auditor Joseph Maestas
From the Office of the State Auditor:
SANTA FE — In a major bipartisan victory for fiscal oversight and infrastructure reform, the New Mexico Legislature has passed the Public Accountability Act (HB 493) — landmark legislation designed to bring increased transparency and accountability to the state’s capital outlay process.
The bill passed the Senate unanimously (40–0) and cleared the House with overwhelming support (51–13), a rare alignment that underscores growing concern about New Mexico’s $5.8 billion backlog in unspent capital funds.
Gov. Michelle Lujan Grisham signed the bill into law on April 10, 2025. It goes into effect July 1, 2025.
Sponsored by Rep. Cynthia Borrego (D-Albuquerque), HB 493 gives the Office of the State Auditor (OSA) the authority to conduct performance reviews of state-funded infrastructure projects, in addition to its existing audit powers. It also requires more robust reporting from local governments and agencies that receive public funding.
“We are finally putting real tools in place to shine a light on how state dollars are spent — or not spent,” Borrego said. “This bill is about respecting taxpayers and getting projects off the ground faster.”
State Auditor Joseph Maestas called the legislation “a game-changing tool” in addressing the structural inefficiencies that often lead to delayed or abandoned public works projects.
“This legislation reflects our shared commitment to ensuring government serves the people efficiently, transparently, and responsibly,” Maestas said. “It’s about more than following the money — it’s about making the money work.”
According to the Department of Finance and Administration (DFA), more than $5.8 billion in appropriated capital funds remain unspent across the state. These dollars are earmarked for critical public needs — water systems, clinics, roads, and school improvements — but often languish due to administrative delays, permitting issues, or lack of capacity at the local level.
“As a former city councilor and urban planner, I’ve seen firsthand how delays in infrastructure projects can ripple through entire communities,” Borrego said. “HB 493 doesn’t just track spending — it tracks progress.”
Bipartisan Support and Senate Leadership
Senate Majority Leader Peter Wirth (D-Santa Fe), who helped guide the bill through the Senate, praised its forward-looking design.
“This legislation marks a crucial step toward ensuring public funds are used responsibly and transparently,” Wirth said. “By establishing clear standards for financial accountability and empowering the DFA with effective oversight tools, we can both strengthen the integrity of our grant and capital outlay systems and ensure that important local projects don’t face unnecessary delays. It’s a smart, necessary reform that supports good governance and long-term fiscal health for our communities.”
Rep. Borrego also thanked Wirth and the team at DFA for their collaboration and diligence in shaping the final bill.
What the New Law Does
Under HB 493, the OSA will:
- Conduct performance reviews of delayed or inactive capital projects
- Flag cost overruns and long-lagging construction efforts
- Work with DFA and local entities to diagnose and resolve bottlenecks
- Recommend corrective actions for projects at risk of failure or misuse
The law also creates new reporting mandates for all recipients of capital outlay funds, including progress updates, completion timelines, and spending data.
For smaller towns and rural communities with limited administrative bandwidth, the bill enhances interagency support and technical assistance.
“This is not about punishing anyone—it’s about supporting communities to succeed and making sure projects get built,” Borrego said. “When we improve coordination, we improve results.”
Next Steps
The OSA is expected to issue formal guidance this summer on how the new performance review process will work. The first round of reviews will begin later this year and will prioritize projects that have shown prolonged inactivity or unaccounted spending.
State Auditor Maestas believes the act lays the groundwork for broader fiscal reform across New Mexico.
“This legislation lays the foundation for smarter infrastructure investments,” Maestas said. “It will help us understand where the bottlenecks are, how to resolve them, and how to prevent waste in the future.”
Though it may not grab headlines like other legislative efforts, advocates argue that HB 493 could make the greatest difference in day-to-day life for New Mexicans — especially in communities long promised, but still waiting for, basic infrastructure.
“When a clinic doesn’t open on time, or a road goes unpaved, people feel the consequences,” Borrego said. “This bill helps restore faith that their government is working — and working for them.”