Current:Home > ScamsNew Mexico legislators back slower, sustained growth in government programs with budget plan-LoTradeCoin
New Mexico legislators back slower, sustained growth in government programs with budget plan
View Date:2025-01-09 22:42:26
SANTA FE, N.M. (AP) — Leading New Mexico lawmakers on Friday recommended a 5.9% increase in general fund spending for the coming fiscal year amid a windfall in oil-related income, while also sounding a cautionary note on the future of the state’s petroleum bonanza and setting aside more money in savings and investment accounts.
The proposal from a lead budget writing committee to the Democratic-led Legislature would increase general fund spending by $566 million to $10.1 billion for the fiscal year running from July 2024 to June 2025. The increased general spending represents a fraction of an anticipated $3.5 billion surplus of state income in excess of current tax obligations.
The budget blueprint would bolster efforts to improve student achievement in public education, buttresses health care for people in poverty or on the cusp as federal support for Medicaid recedes in the aftermath of the pandemic, and provide pay raises averaging 4% to state employees along with compensation boosts at public school and colleges.
Support for childhood wellbeing also figures prominently, including a recommendation to increased spending from an early childhood education trust to expand prekindergarten and home visits from nurses for parents of infants and toddlers. The early childhood education trust was established in 2020 amid an extraordinary surge in oil-related income and already contains roughly $6 billion.
State Sen. George Muñoz of Gallup warned that the state budget is more reliant than ever on income from oil and natural gas — a commodity subject to volatile swings in pricing and production.
“That’s a very dangerous situation in the end,” said Muñoz, chairman of two lead budget-writing committees. “I think this is a very sound budget. ... It keeps the state of New Mexico able to grow over the next couple years without having massive cuts” later on.
The legislature convenes Jan. 16 for a rapid-fire, 30-day legislative session centered on budget negotiations. Gov. Michelle Lujan Grisham can veto any and all budget provisions approved by legislators.
Republican state Sen. Pat Woods of Grady said he’s urging colleagues in the Democratic majority to be reasonable and slow the pace of recent budget increases.
“Do we even know what we’re funding is working?” said Woods, one of 14 GOP senators who are outnumbered nearly 2-1 by Democrats in the chamber. “Do we need to maybe hold off from any more big expenditures to get a general idea of where the funding is working.”
Spending on public schools would increase increase by $243 million, or 5.8%, to $4.42 billion under the proposal from legislators.
The plan also would significantly increase spending on the state courts system, local prosecutors and public defenders amid heightened concerns about crime and gun violence in Albuquerque.
State Rep. Derrick Lente of Sandia Pueblo said the budget plan leaves room for $200 million in tax reductions and incentives.
Lujan Grisham last year used her veto powers to scale back a tax relief package based on concerns it could undermine future spending on public education, heath care and law enforcement. Vetoed items included reduced tax rates on personal income, sales and business transactions. Credits toward the purchase of electric vehicles and related charging equipment also were vetoed — but are back on the negotiating table this year.
“We’re taking a much more conservative approach for our tax proposal this year,” said Lente, chairman of lead House committee on taxation.
A rival budget proposal from Lujan Grisham would increase general fund spending more dramatically by about $950 million, or nearly 10%, to $10.5 billion, with major initiatives to shore up homeownership and affordable housing opportunities.
Both budget proposals signal a likely end to three straight years of bulk state money transfers to New Mexico households. The most recent rebates in 2023 exceeded $600 million in individual payments of $500.
veryGood! (129)
Related
- Chris Pratt and Katherine Schwarzenegger welcome their first son together
- Details emerge about deaths of dad and daughter from Wisconsin and 3rd hiker who died in Utah park
- Jurors resume deliberations in Sen. Bob Menendez's bribery trial for third day
- Griff talks new album 'Vertigo' and opening for Taylor Swift during Eras Tour
- College Football Fix podcast addresses curious CFP rankings and previews Week 12
- The Eagles make it a long run at the Sphere with shows in January: How to get tickets
- President of Dickinson State University in North Dakota resigns after nursing faculty quit
- The Eagles make it a long run at the Sphere with shows in January: How to get tickets
- Megan Fox and Machine Gun Kelly are expecting their first child together
- 2 boys die, 6 others hurt, when SUV overturns and ends up in standing water in North Dakota
Ranking
- Satire publication The Onion buys Alex Jones’ Infowars at auction with help from Sandy Hook families
- Shannen Doherty, ex-husband Kurt Iswarienko's divorce settled a day before her death: Reports
- Police announce Copa America arrest totals after fans stampede, breach security
- I'm a Shopping Editor, Here's What I'm Buying From Prime Day 2024: The Top 39 Best Deals
- World War II veteran reflects on life as he turns 100
- Who is Ruben Gutierrez? The Texas man is set for execution in retired schoolteacher's murder
- Biden is trying to sharpen the choice voters face in November as Republicans meet in Milwaukee
- Hybrid work still has some kinks to work out | The Excerpt
Recommendation
-
Panel advises Illinois commemorate its role in helping slaves escape the South
-
Federal jury returns for third day of deliberations at bribery trial of Sen. Bob Menendez
-
Tesla's Cybertruck outsells Ford's F-150 Lightning in second quarter
-
Joe 'Jellybean' Bryant, Kobe Bryant's father, dies at 69
-
IAT Community Introduce
-
The nation's 911 system is on the brink of its own emergency
-
Ingrid Andress Checking Into Rehab After Drunk National Anthem Performance at Home Run Derby
-
Ingrid Andress Checking Into Rehab After Drunk National Anthem Performance at Home Run Derby