New Mexico Has Plenty of Room to Right-Size

The cutting’s about to begin.

The Albuquerque Journal reports that the Department of Health and Department of Cultural Affairs “will be among the agencies hit hardest by budget cuts that take effect next month.”

“If we had our choice, we would not be doing this,” harrumphed a Department of Health spokesman, whining about cutting 6 percent in contract costs, due to “the loss of about $12.5 million in state funding in the coming year, from $304.4 million to $292.9 million.”

The Department of Cultural Affairs is planning to lay off 11 employees, and will “leave vacant staff positions open, freeze noncritical contracts and trim the schedules of at least some museums and historic sites.”

But bureaucrats’ grumbling aside, it’s worth noting that New Mexico is, unquestionably, the biggest-spending state in the Southwest. Here’s a graph of per capita spending, in 2013, for the region’s six states:

percap

The expenditure data are from the U.S. Census Bureau’s Annual Survey of State Government Finances. They include every penny the states spent — on schools, highways, prisons, Medicaid, food stamps, subsidized housing, corporate welfare, debt service, quasi-government entities, etc. (Beware New Mexico’s “general fund” figure, which excludes many categories of spending, as well as the revenues received from the federal treasury.)

With the Land of Enchantment’s economy stuck in neutral, and the future of oil-and-gas production anyone’s guess, it’s all but certain that more austerity lies ahead. The Foundation looks forward to weighing in on what additional cuts need to be made to the fiscal 2017 budget.

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2 Replies to “New Mexico Has Plenty of Room to Right-Size”

  1. Government downsizing is sorely needed but will be painful to watch. What’s likely to happen is that the cuts will be evenly spread, instead of targeted, and that agencies will inflict maximum pain on the public by cutting service personnel (caseworkers, etc.) while leaving bureaucracies intact.

    I spent my career in a service business that downsized dramatically by eliminating layers of management, contracting-out services and eliminating unnecessary departments. But customers never noticed because we did not cut a single customer service position. This is what most private businesses do routinely, and it’s not unreasonable to expect our government to do likewise.

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