State funds would support loans for providers serving underserved areas

The state investment officer invests money in the trust fund, and the fund sends an annual distribution to the program fund. The trust fund may receive state money, investment income, gifts, grants, donations, and other deposits. Investments require state investment council approval and consultation with the state treasurer. Money may go to the general fund only to cover a budget shortfall after specified reserve funds are exhausted. Starting July 1, 2027, the trust fund would send 5% of its average year-end value to the program fund each July 1. The calculation uses up to three years, or fewer if the trust fund has existed for less time.

The higher education department administers a fund for provider loan repayment and loans in return for service. Eligible participants are people attending or graduated from medical school, physician assistant programs, or graduate nursing education who contract to serve in a department-designated New Mexico area where residents do not have enough health care. The legislature must approve spending from the fund before money can be used. Initial priority goes to loan repayment applicants, especially those with certain graduate degrees from New Mexico or bordering-states-agreement universities, and participants committed to primary care.

The state transfers money to the trust fund and sets aside money for the program fund. The transfer and appropriation are for the medical provider recruitment trust fund and program fund. The program fund money is for provider loan repayment and loans in return for service. Unspent money stays in the fund at the end of each fiscal year. The $5 million transfer would occur in fiscal year 2026. The $1 million appropriation would be available in fiscal year 2027 and later years.