New Mexico state budget
Energy policy • Public education • School choice • Public pensions • State budget • Ballot measures
|New Mexico state budget|
|State Credit Rating:||AA+ (as of May 2012)|
|Current Governor:||Susana Martinez|
|GF expenses:||$5.7 billion|
|All funds expenses:||$14.5 billion (FY 2013 estimate)|
|Spending % Change:||3.96%|
|% from Federal Funding:||36.61%|
|Per Capita State Debt:||$24,041|
|Other state budgets|
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- 1 Budget process
- 2 Expenditures
- 3 Revenues
- 4 State budgets by year
- 5 Historical spending
- 6 State debt
- 7 Federal aid to state budget
- 8 Budget transparency
- 9 Accounting principles
- 10 Contact information
- 11 See also
- 12 External links
- 13 References
- A summary of the budget drafting process
- Trends in expenditures and revenues
- Current and past fiscal year budget developments
- Financial transparency measures
Between fiscal year 2009 and fiscal year 2013, New Mexico's total expenditures decreased by approximately $900 million, from $15.4 billion in 2009 to $14.5 billion in 2013. This represents a 6.2 percent decrease, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).
- Budget instruction guidelines are sent to state agencies in July.
- State agencies submit their budget requests in September.
- Agency hearings are held in September and December.
- The governor submits his or her budget proposal to the New Mexico State Legislature on the first day of the legislative session.
- The legislature adopts a budget in February or March. A simple majority is required to pass a budget.
In New Mexico, the governor has line item veto, item veto of appropriations and item veto of selected words authority.
The governor is constitutionally required to submit a balanced budget. In turn, the legislature is also constitutionally required to pass a balanced budget.
Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:
- General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."
- Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."
- Federal funds: "Funds received directly from the federal government."
- Bonds: "Expenditures from the sale of bonds, generally for capital projects."
The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context). Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.
|Total state expenditures, FY 2013 ($ in millions)|
|State||General fund||Federal funds||Other funds||Bonds||Total||Per capita expenditures**|
| **Per capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.|
Source: National Association of State Budget Officers
Expenditures by function
State expenditures in New Mexico can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percents, indicating the share of the total budget spent per category.
|Expenditures by function, FY 2012 (as percents)|
|State||Elementary and secondary ed.||Higher ed.||Public assistance||Medicaid||Corrections||Transportation||Other|
|Source: National Association of State Budget Officers|
From 2008 to 2012, expenditures on elementary and secondary education, public assistance and transportation decreased. During that same time period, expenditures on higher education and Medicaid increased by one percentage point, a 5.5 percent increase in the share of the budget, and 3.9 percentage points, an 18.75 increase in the share of the budget, respectively. The table below details changes in expenditures from 2008 to 2012. Figures are rendered as percents, indicating the share of the total budget spent per category.
|Expenditures from 2008 to 2012 (as percents)|
|Year||Elementary and secondary ed.||Higher ed.||Public assistance||Medicaid||Corrections||Transportation||Other|
|Change in %||-0.10%||1.00%||-0.30%||3.90%||0.00%||-1.10%||-3.50%|
|Source: National Association of State Budget Officers|
The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
|Revenue sources in the general fund, FY 2013 ($ in millions)|
|State||Sales tax||Personal income tax||Corporate income tax||Gaming tax||Other taxes and fees||Total||Per capita revenue**|
| **Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.|
Source: National Association of State Budget Officers
The table below details the change in revenue sources in the general fund from 2009 to 2013. Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.
|Revenue sources in the general fund, New Mexico ($ in millions)|
|Year||Sales tax||Personal income tax||Corporate income tax||Gaming tax||Other taxes and fees||Total||Per capita revenue**|
|Change in %||25.92%||26.17%||53.37%||0.00%||-22.31%||6.28%||2.42%|
| **Per capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.|
Source: National Association of State Budget Officers
State budgets by year
See budget bill: House Bill 2
Fiscal year 2014
|New Mexico state budget -- 2014|
|New Mexico State Legislature|
|Introduced:||January 16, 2013|
|State House:||February 21, 2013|
|Vote (lower house):||53-16|
|State Senate:||March 12, 2013|
|Vote (upper house):||42-0|
|Signed:||April 5, 2013|
Governor Susana Martinez proposed a $5.88 billion budget for FY 2014, which was a 4.1 percent increase from FY 2013. Education made up 44 percent of the new spending proposed, and total spending on Medicaid came to $932.8 million in the proposed budget.
The FY 2014 budget was signed into law by the governor on April 5, 2013.
Fiscal year 2013
Fiscal year 2012
- See also: New Mexico state budget (2011-2012)
Fiscal year 2011
- See also: New Mexico state budget (2010-2011)
Fiscal year 2010
- See also: New Mexico state budget (2009-2010)
State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).
|Historical state budget spending in New Mexico ($ in millions)|
|Fiscal year||General Fund||Other funds||Federal funds||Bonds||Budget totals|
|Total||% of Budget||Total||% of Budget||Total||% of Budget||Total||% of Budget|
|General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.|
Other funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other funds” column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.
Federal funds: Funds received directly from the federal government.
Bonds: Expenditures from the sale of bonds, generally for capital projects.
According to a January 2014 report by the nonprofit organization State Budget Solutions, New Mexico had a state debt of over $50 billion. Its state debt per capita was $24,041. The report revealed that state governments faced a combined $5.1 trillion in debt, 33 percent of annual gross state product. The obligation amounts to $16,178 per capita in the nation. A bulk of the state debt -- 79 percent -- was linked to unfunded public pensions.
|Total state debt in New Mexico|
|Total state debt||$50,137,504,000||28|
|Per capita debt||$24,041||7|
|State and other fund expenditures||$8,556,000,000||7|
A 2012 report from the Pew Center on the States noted that New Mexico's pension system was funded at 72 percent at the close of fiscal year 2010, below the 80 precent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."
Taken together, the funding ratio for the state's pension systems decreased from 82.14 percent in fiscal year 2007 to 63.14 percent in fiscal year 2012, a drop of 19 percentage points, or 23.1 percent. Likewise, unfunded liabilities increased from roughly $4.5 billion in fiscal year 2007 to nearly $12.5 billion in fiscal year 2012.
States sometimes sell general obligation bonds to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). Credit rating agencies, such as Standard and Poor's, assign grades to states, evaluating their ability to pay the principal and interest on such bonds. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest. Generally speaking, a higher credit rating indicates lower risk for an investor, which in turn lowers costs for taxpayers.
The table below lists the Standard and Poor's credit rating for New Mexico from 2001 to 2012 (grades from surrounding states are provided for additional context).
|S&P credit ratings from 2001 to 2012|
Federal aid to state budget
- See also: Federal aid to budgets in the 50 states
The chart below notes how much of the state’s general revenues come from the federal government. Figures were calculated by dividing each state’s federal intergovernmental revenue into its general revenue. The number in the rightmost column indicates the state's ranking in relation to the rest of the nation (e.g., if "1," the state receives the highest percentage of federal funding in the nation). Figures from neighboring states are included to provide additional context.
State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.
|Federal aid to state budgets in 2012|
|State||Federal aid as % of general revenue||Total federal aid||National rank|
According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, New Mexico received $2.52 billion in federal stimulus funding from the American Recovery and Reinvestment Act between February 2009 and June 2013.
|NM Sunshine Portal|
|Line item expenditures|
|Public employee salaries|
|Last evaluated in 2012.|
The table to the right is helpful in evaluating the level of transparency provided by the New Mexico Sunshine Portal.
Multi-measure budget transparency profile
The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for New Mexico, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.
IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. New Mexico tied for eighth in the nation with 12 other states, earning six out of eight possible points.
|New Mexico - IGPA score for budget process, contents and disclosure|
|Budget transparency indicator||Yes or no?|
|"Generally Accepted Accounting Principles" budget|
|Binding revenue forecast|
|Legislative revenue forecast|
|Constitution or statutory tax/spend limitations|
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.
U.S. PIRG "Following the Money" report
- See also: Following the Money 2014 Report
The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending. According to the report, New Mexico received a grade of C+ and a numerical score of 77, indicating that New Mexico was "middling" in terms of transparency regarding state spending.
The New Mexico State Auditor is required by law to conduct annual financial audits of all government agencies. The State Auditor’s Office administers a competitive process whereby audit firms may submit applications and proposals to perform financial audits of certain agencies. The Office of the New Mexico State Auditor is a constitutionally established office, allowing the state auditor to serve two consecutive four-year terms. The Audit Act, §§ 12-6-1 to 12-6-14, NMSA 1978, provides the laws in which the state auditor operates. Audit reports were not published online as of 2009.
The state auditor has two statutory purposes:
- Ensure that the financial affairs of every agency shall be thoroughly examined and audited each year by the state auditor, personnel of the State Auditor’s Office designated by the state auditor or independent auditors approved by the state auditor.
- Cause the financial affairs and transactions of an agency to be audited in whole or in part.
These two statutory purposes grant the state auditor the authority to conduct both financial and special audits.
The Institute for Truth in Accounting (IFTA) rates New Mexico “worst” in filing the state’s Comprehensive Annual Financial Report (CAFR) – the annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and six states as worst. IFTA did not consider New Mexico's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis did not include significant liabilities for the pension plans and for other post employment benefits, such as health care. New Mexico was "worst of the 6 worst," taking and average of 602 days to issue its CAFRs for FY 2005, 2006, and 2007. New Mexico's CAFRs are prepared and published online by the New Mexico Department of Finance and Administration, Financial Control Division.
New Mexico Department of Finance and Administration
407 Galisteo Street
Santa Fe, NM 87501
- New Mexico government sector lobbying
- New Mexico public pensions
- Governor of New Mexico
- New Mexico State Legislature
- New Mexico State Senate
- New Mexico House of Representatives
- New Mexico State Auditor
- State Budget Solutions, New Mexico
- American Legislative Exchange Council
- Rio Grande Foundation
- New Mexico Department of Finance and Administration, Budget Division
- Governor's Office
- U.S. PIRG, "Report: Transparent & Accountable Budgets," April 8, 2014
- The New York Times, "Battles loom in many states over what to do with budget surpluses," February 3, 2014
- Center on Budget and Policy Priorities, "Policy Basics: The ABCs of State Budgets," February 7, 2013
- Refers to General Fund spending. Typically in state budgets the General Fund is spending that is most directly controlled by state legislators.
- This figure is derived by calculating the percent difference between the prior two years' spending levels according to the National Association of State Budget Officers.
- Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
- InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
- National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting," updated April 2011
- National Association of State Budget Officers "Budget Processes in the States, Summer 2008," accessed February 21, 2014
- National Association of State Budget Officers "State Expenditure Report, 2011-2013," accessed February 21, 2014
- United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
- National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
- National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
- National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
- National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
- United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
- Office of the Governor, "2014 Budget in Brief," January 10, 2013
- New Mexico Legislature, "2013 Regular Session: HB 2," accessed April 30, 2014
- State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
- Washington Examiner, "EXography: Unfunded public employee pensions drive state debts skyward," January 21, 2014
- State Budget Solutions "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
- Pew Center on the States, "Widening Gap Update: New Mexico," June 18, 2012
- Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
- United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
- Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
- Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
- Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
- U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
- New Mexico State Auditor Website, accessed November 1, 2009
- Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- New Mexico Department of Finance and Administration, Financial Control Division Website, accessed November 1, 2009