Two New Mexico funds that handle public money are exposed to possible losses of about $28 million that was invested with disgraced Wall Street money manager Bernard Madoff.

A spokesman said the state's big permanent funds, which total more than $12 billion, had about $18 million invested in hedge funds related to Madoff.

And the Educational Retirement Board, which runs the retirement system for school employees, had investments of up to $10 million with Madoff. The board's total investments are about $8 billion.

A third big public fund, the Public Employees Retirement Association, did not have any Madoff investments.