We don’t yet know the date, but a special session will soon be called to tackle New Mexico’s budget woes. The fiscal year that ended June 30 fell into the red, and the current fiscal year is facing a deficit of hundreds of millions of dollars.
One stat that’s sure to be heard again and again during the special session was recently cited by the Albuquerque Journal — “the state’s $6.2 billion budget.”
Technically, that amount is correct. But it describes just one portion of New Mexico’s total expenditures, namely, the General Fund. Described by the Legislative Finance Committee as “the primary state fund from which the ongoing expenses of state government are paid,” the General Fund derives its revenue from the GRT, income tax, energy levies, investments, and miscellaneous sources, such as tribal casinos, license fees, and “reversions of unspent funds from state agencies.”
To see how much loot the General Fund fails to include, consider another amount: $19.1 billion. That’s the all-in figure for 2015’s state expenditures, which include transportation, subsidies from Washington, and quasi-public entities.
Here’s a look at the last dozen years of total spending, courtesy the state’s comprehensive annual financial reports:
Expenditures in the 12-year period rose by an inflation-adjusted 46.5 percent. In contrast, population growth was just 9.8 percent.
The bottom line? New Mexico spends far, far more when every dollar is accounted for — not just the bucks that fall within the General Fund. Something to remember, when politicians and activists wail about “cuts” to “essential public services.”
5 Replies to “New Mexico’s Real Budget Numbers”
Excellent work by the RGF. Here’s the web page link to the comprehensive reports: http://www.nmdfa.state.nm.us/New_Mexico_CAFR.aspx
Someone check my math, I must be wrong. 19 billion divided by 2.5 million (rounded up the population of NM) is $7,600,000 spent for every man, women and child in our state!!!!!!!!!!!! Now, I do want government services and I do want/expect to pay for them, but I don’t want $7.6 million dollars worth of services. Get the scissors out and cut that budget. People of NM need to take responsibility for their lives, pay their way and actually contribute to society. Just like the Federal spending, this is unsustainable.
On a side note, I watched both conventions and there was a brief clip of John Kennedy’s famous quote (shown at the Democratic convention) “Ask not what your country can do for you, ask what you can do for your country” This certainly does not apply to the Democratic platform anymore. Their platform is a nanny state telling the people to expect more from government. There are two simple things that would solve our government problems. 1) term limits. 2) government cannot spend more that it takes in (and one expenditure should be a rainy day fund).
$7,600 not $7.6M
So embarrassing, I didn’t think that sounded feasible. And I used a calculator!!!!!!!!! To be fair though, there was not enough room for all the zeros, so that is what goofed me up.