LOCAL COLUMN
OPINION: New Mexico is now No. 1 in financial transparency 鈥� let鈥檚 build on it
New Mexico is now the most financially transparent state in the country.
In May, Truth in Accounting released the 2026 Financial Transparency Score, ranking New Mexico No. 1 nationally after evaluating states on the quality, timeliness, accuracy and reliability of their financial reporting. Our score has climbed steadily upward from 69 in 2024 to 80 in 2025 to 87 in 2026 鈥� the highest in the nation. While several large states received qualified or disclaimer audit opinions this year and others failed to publish timely financial reports at all, New Mexico distinguished itself for all the right reasons.
Financial transparency has measurable value for New Mexicans. When the state maintains clean audits and strong financial reporting, it can borrow money at lower interest rates for roads, schools and infrastructure. Moody's Analytics recently assigned an Aa2 rating to both New Mexico鈥檚 proposed and outstanding severance tax bonds. Moody鈥檚 also assigned the state an Aa1 issuer rating 鈥� meaning the state is an exceptional investment partner. New Mexico鈥檚 2026 ratings place our state among the highest in the country for the second straight year.
Truth in Accounting evaluated states based on clean audit opinions, timely Annual Comprehensive Financial Reports, proper reporting of retirement liabilities, independent auditing practices and transparent financial disclosures. Half of the entire transparency score is tied directly to whether a state receives a clean audit opinion.
The Department of Finance and Administration produces the state's Annual Comprehensive Financial Report 鈥� essentially a financial report card covering revenues, expenditures, liabilities, pension obligations and long-term fiscal position. Rating agencies, bond markets and policymakers rely on it to evaluate how the state manages public funds.
Earning the No. 1 ranking took years of sustained work. But we can do even better. Right now, state agencies conduct separate, duplicative audit processes for federal spending. That results in inconsistent timelines, higher costs and fractured oversight. New Mexico is one of the only states in the country without a consolidated federal single audit. Consolidating that process into a centralized statewide approach would reduce administrative burden, accelerate audit completion and strengthen accountability for federal funds flowing into New Mexico communities.
In 2026, DFA supported legislation to make this important change on behalf of New Mexicans. Senate Bill 145 passed the Senate nearly unanimously before time ran out in the House. We hope lawmakers will reconsider this bill in the next legislative session as a way to boost our standing as the best in the nation even higher. New Mexico is now being recognized by multiple national financial institutions for how it conducts the public's business. Rating agencies (like Moody鈥檚), bond markets, policymakers and citizens rely on it to evaluate the state's fiscal health and stewardship of public funds. As Truth in Accounting emphasized, timely audited financial reporting remains one of the strongest indicators of government accountability and transparency.
A sustained focus on statewide financial accountability drove New Mexico to the top of the rankings, and that is something all New Mexicans should be proud of because it demonstrates that centralized financial leadership works. Now, it鈥檚 time to build on this solid financial foundation, maintain our momentum and ensure that New Mexico's finances are accountable and working productively for the people they serve.
Wayne Propst is the secretary of the Department of Finance and Administration.
