Where to next for RGF/reformers in 2025?

While New Mexico’s Democrats mourn the results of the 2024 elections nationally, we at the Rio Grande Foundation are frustrated that a majority of New Mexicans seem to have doubled-down on the State’s poor performance economically, educationally, not to mention crime and the loss of numerous young people to other states.

When voters continue to send far left legislators and governors to Santa Fe (especially when oil and gas money is flowing freely) it is going to be difficult to stop the myriad bad ideas that are pushed regularly in the Legislature. That said, with all of the oil and gas money available, even our leftist Legislature MAY decide to offer a bit of relief to taxpayers. We don’t expect gross receipts tax reform. We don’t expect big tax tax cuts (and we do expect tax cuts to be paired with tax hikes). So, here’s what we’ll be working on this session:

1. Maximizing the benefit and size of tax cuts while minimizing/eliminating tax hikes;
2. We want to lock in gross receipts tax elimination for medical providers (the current exemption sunsets in 2028) and further improve New Mexico as a destination for medical professionals.
3. Stopping economically-harmful paid family and medical leave. There are ways to make this economically-benign, but not the bill pushed in the 2024 session (or prior years);
4. Baby bonds are not the worst idea, but they need work. We plan to engage on this issue and raise concerns if the idea goes “off the rails.”
5. Oil and gas setbacks are a terrible idea lacking in scientific backing. If adopted the LFC says they’d cost New Mexico $800 million annually for years to come.
6. It looks like criminal justice and crime fighting will be discussed (perhaps not in ways that will be effective). We plan to engage in that debate in support of ideas that will positively impact crime issues;
7.  Any effort to reduce regulatory burdens will help New Mexico’s economy. One bipartisan idea is known as “regulatory sandboxes.” This idea was introduced by Democrats in 2023. We hope such an idea will gain traction in the 2025 session.