THINGS YOU NEED TO KNOW
1. "A MOUNTAIN OF MONEY AVAILABLE" -- $907 MILLION IN NEW MONEY FOR STATE GOVERNMENT; WILL DEMOCRATS WASTE IT?
The oil and gas industry in New Mexico continues to deliver millions in new revenues for New Mexico state government. But House Republicans are issuing a warning to Democrats: don't waste this money by expanding state government.
From the Albuquerque Journal:
For the second straight year, New Mexico lawmakers will likely have a mountain of money available for spending on public schools, roads, health care and other programs.
The state will have an estimated $907 million in “new” money available in the coming budget year due primarily to unprecedented oil production levels and related economic growth in southeast New Mexico, according to new revenue figures released Wednesday by legislative and executive economists.
Overall, the state is on track to spend more than $7 billion in year-over-year spending this budget year, while revenues are expected to reach an all-time high of nearly $8 billion for the 2021 budget year, which starts next July.
New money is defined as the difference between projected incoming revenue and current state spending levels.
In addition, the state is on pace to have nearly $2.3 billion in reserves at the end of the current budget year, giving legislators options for possible one-time cash infusions – such as road repairs and shoring up the state’s two large public retirement systems.
House Minority Leader James Townsend, R-Artesia, said the additional dollars should be targeted at one-time expenditures – including rural broadband expansion and overhauling the state’s gross receipts tax system.
“Using this money to permanently expand the size of state government will only set up future state leaders for failure,” Townsend said.
2. EARLY CHILDHOOD EDUCATION SPENDING UNDER WATCHFUL EYE OF LEGISLATORS
It's looking like legislators (including several Democrats) are concerned that money for early childhood education isn't getting the desired results. Keep in mind that Democrats, including the Governor, want to raid our permanent fund for millions more, but that's another story.
From the Albuquerque Journal:
New Mexico is getting mixed results from its increased investment in early childhood education and services – with a lack of coordination among the key challenges, legislative analysts say in a new report.
In some cases, programs are competing for children rather than complementing each other, creating an oversaturation in parts of the state and too few services in others.
Sen. William Burt, R-Alamogordo, said it was “just unacceptable” to see wide differences in the availability of programs, given the amount of money New Mexico is funneling toward early childhood services.
“We cannot leave anybody behind,” he said Wednesday.
State and federal spending on prekindergarten, home visits, child care assistance and other programs is expected to hit $546 million in New Mexico this year, an increase of $135 million over last year....
Wednesday’s report found a “weaker” positive effect for pre-K in their most recent analysis, compared to previous years....
Analysts said the findings may be a warning sign that New Mexico should focus on measuring and improving the quality of its prekindergarten programs.
The report also found “uncertain outcomes” in the state’s childcare assistance program and questioned what the state will get for its money if eligibility requirements are expanded.
Rep. Patricia Lundstrom, a Gallup Democrat and chairwoman of a powerful budget-writing committee in the House, bluntly questioned state officials during Wednesday’s meeting and suggested they can expect more scrutiny.
“I don’t see a lot of coordination with this, and that needs to change,” Lundstrom said.
3. OTHER NEW MEXICO NEWS BRIEFS
Justices overturn New Mexico election law changes. Democrats had tried to move elections for district attorneys from presidential election years to midterm election years.
State agency says political parties can’t hold raffles. NM Gaming Control board stops Los Alamos GOP gun raffle.
-Republican Party of New Mexico