The New Mexico Higher Education Department (HED) and higher education institutions (HEIs) have set long-term statewide goals to increase 4-year graduation rates, improve transfer and articulation, and improve remedial education outcomes. HED is pursuing these goals through the following initiatives: (1) Statewide common course numbering and alignment of lower division coursework; (2) Developing meta-majors and transfer modules; (3) Reforming the general education core curriculum; (4) Co-requisite remediation and Math pathways; (5) Decreasing the number of hours required for both associate's and bachelor's degrees; (6) Incentivizing 4-year graduation; and (7) Implementation of outcomes based funding. This annual report outlines each of the initiatives. Accomplishing these timely and aggressive goals requires remarkable collaboration among all the HEIs and between the HEIs and the HED. With the Governor's leadership, the HED, the HEIs, and the legislature have made incredible strides this year in working together. The higher education community throughout the state has come together in unparalleled fashion and is committed to improving student success and the on-time graduation rates in New Mexico. Executive summaries are provided from the following divisions: (1) Policy & Programs; (2) Planning and Research; (3) Adult Education; (4) GEAR UP; (5) Private and Postsecondary Schools; (6) Financial Aid; (7) Institutional Finance; and (8) Capital Projects.