Further analysis on MLG’s proposed FY 2026 budget

As we shared in this space last week despite continued growth in oil and gas revenues (totaling an expected $13.6 billion in FY 2026) Gov. Lujan Grisham’s proposed budget contains NO tax cuts or rebates for New Mexicans or business owners. Here is a bit more analysis of the Gov.’s proposed budget plan which represents a 7% increase over the previous year’s budget. Aside from the lack of any tax cuts or rebates, the most notable aspect of MLG’s budget is its size. Clocking in at $10.9 billion it represents a 73% increase from the final budget of her predecessor Susana Martinez back in FY 2019.

Have New Mexicans benefited from all of this new spending? Our roads are poor, our education system remains dead last (despite the addition of “free” pre-K and “free” college), and public safety remains a serious issue. Analysts note that New Mexico continues to grow more dependent on oil and gas.

More government spending hasn’t solved New Mexico’s big problems, but MLG and the Legislature show no signs of being willing to shrink the size of government and bring economic growth and prosperity to the State. So, we’ll continue to fritter away this unique opportunity to transform New Mexico into a prosperous, freer state.