MLG signs lame tax bill, vetoes provision preserving 4-day school week

Unlike last year when the Gov. vetoed large swaths of the “tax omnibus” bill (HB 252), Gov. Lujan Grisham signed this year’s bill. Using FY 2026 numbers as the baseline (they change with time), the bill reduces personal income taxes by $159 million annually, increases capital gains taxes by $61 million, and raises corporate income taxes by $16 million annually.

So, overall, the bill is about an $88 million tax cut with numerous other subsidies and credits (some being worthwhile while others being abject wastes of money, like the EV tax credit). Meanwhile, the Gov. signed a budget that increases government spending by $653 million. With a $3.5 billion this is a lame effort (only 2.5% of the surplus is being returned in the form of tax cuts). It will certainly not “move the needle” for New Mexico in terms of economic standing. In fact, because the tax hikes will hit businesses directly one could argue that the tax bill actually makes New Mexico LESS attractive to business.

The Gov. also seems hellbent on forcing rural school districts into line with 5-day school weeks. She vetoed a provision inserted into the budget on a bipartisan basis that would have prohibited the Gov. from using the budget to force 5 day school weeks.