EARLY CHILDHOOD TRUST FUND

SB 167 transfers the remaining balance of New Mexico's existing Early Childhood Education and Care Fund into a new Early Childhood Trust Fund, expanding its purpose to include prenatal programs and services. It reorganizes funding mechanisms to direct oil and gas revenue (specifically excess annual receipts above a five-year average) into the Trust Fund, with annual distributions of at least $500 million to early childhood programs. The bill also establishes rules for investing the fund's assets and allows limited transfers to the general fund if other reserves are exhausted. The Trust Fund's effective operation depends on voter approval of a constitutional amendment creating it, as noted in the bill's text.