New Mexico state budget and finances

From Ballotpedia
(Redirected from New Mexico state budget)
Jump to: navigation, search

New Mexico budget and finances
Policypedia Budget Policy-logo-no background.png
General information
Budget calendar:
Annual
Fiscal year:
2015
State credit rating:
AA+ (as of 2014)
Current governor:
Susana Martinez
Financial figures
Total spending (state and federal funds):
$16.2 billion (estimated for 2014)
Per capita spending:
$7,780 (estimated for 2014)
Total state tax collections:
$5.2 billion (2013)
Per capita tax collections:
$2,493 (2013)
State debt:
$50.1 billion (as of 2014)
Per capita state debt:
$24,041 (as of 2014)
State budgets and finances
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Horizontal-Policypedia logo-color.png
Total state expendituresState debtTax policy in New Mexico
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total spending in New Mexico increased by approximately $1.7 billion, from $14.5 billion in fiscal year 2013 to an estimated $16.2 billion in 2014. This represents a 11.6 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned New Mexico a credit rating of AA+.[1][2][3]
In 2014 total estimated spending in New Mexico amounted to $16.2 billion. New Mexico ranked seventh in the nation for state debt per capita, which amounted to $24,041 in 2014.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

Total estimated spending in New Mexico amounted to $16.2 billion, lowest among its neighboring states. Estimated spending per capita was the highest among its neighboring states at $7,780.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
New Mexico $10,100 $6,126 $16,226 2,085,572 $7,780.12
Arizona $16,068 $12,837 $28,905 6,731,484 $4,294.00
Colorado $22,531 $7,756 $30,287 5,355,866 $5,654.92
Oklahoma $14,721 $7,425 $22,146 3,878,051 $5,710.60
Texas $65,373 $34,676 $100,049 26,956,958 $3,711.44
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in New Mexico can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In 2013 Medicaid took up the largest portion of New Mexico's budget at 25 percent. New Mexico dedicated a smaller portion of its budget to corrections than any of its neighboring states.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
New Mexico 19.5% 19.3% 1% 25% 2% 5.7% 27.4%
Arizona 18.6% 14.3% 1.2% 29.8% 3.5% 5.6% 27%
Colorado 26% 8.3% 0% 22% 2.6% 8.5% 32.6%
Oklahoma 16.2% 22.7% 0.9% 23% 2.6% 7.1% 27.5%
Texas 27.4% 15.7% 0.1% 31.7% 3.6% 8.9% 12.6%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the portion of New Mexico's budget dedicated to Medicaid rose from 20.5 percent to 25 percent. Meanwhile, the portion spent on expenditures labeled as "Other" fell from 30.9 percent to 27.4 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 19.5% 19.3% 1% 25% 2% 5.7% 27.4%
2012 19.7% 19.3% 0.5% 24.7% 2.0% 5.9% 27.9%
2011 18.9% 17.8% 0.9% 22.9% 2.3% 5.2% 31.9%
2010 21.1% 18.0% 1.1% 22.1% 1.9% 8.8% 27.0%
2009 19.6% 17.5% 1.0% 20.5% 2.0% 8.3% 30.9%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

Total tax collections in New Mexico amounted to $5.2 billion, lowest among its neighboring states. Per capita collections were highest among its neighboring states at $2,493.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
New Mexico $71,587 $2,651,625 $255,968 $1,240,945 $267,457 $713,998 $5,201,580 2,086,895 $2,492.50
Arizona $762,651 $8,206,708 $412,769 $3,397,707 $662,026 $29,829 $13,471,690 6,634,997 $2,030.40
Colorado N/A $4,279,544 $637,707 $5,528,485 $652,180 $147,746 $11,245,662 5,272,086 $2,133.06
Oklahoma N/A $3,848,451 $1,010,430 $2,916,615 $585,146 $531,861 $8,892,503 3,853,118 $2,307.87
Texas N/A $39,277,583 $7,788,864 N/A N/A $4,647,848 $51,714,295 26,505,637 $1,951.07
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
New Mexico tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In New Mexico, sales taxes and gross receipts accounted for nearly 51 percent of total collections.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
New Mexico 1.38% 50.98% 4.92% 23.86% 5.14% 13.73%
Arizona 5.66% 60.92% 3.06% 25.22% 4.91% 0.22%
Colorado N/A 38.06% 5.67% 49.16% 5.8% 1.31%
Oklahoma N/A 43.28% 11.36% 32.8% 6.58% 5.98%
Texas N/A 75.95% 15.06% N/A N/A 8.99%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historical New Mexico budget and finance information

Fiscal year 2015

DocumentIcon.jpg See budget bill: SB 313

Governor Susana Martinez announced her fiscal year 2015 budget proposal on January 6, 2014. Under the governor's proposal, total general fund spending for fiscal year 2015 would have equaled approximately $6.07 billion. In addition to recurring expenses, this figure included approximately $112 in one-time expenditures.[10]

On March 11, 2014, Martinez signed into law the fiscal year 2015 budget. The enacted general fund budget totaled $6.15 billion. This represented a 4.3 percent increase over fiscal year 2014.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, New Mexico had a state debt of approximately $50.1 billion. Its state debt per capita was $24,041. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
New Mexico $50,137,504,000 $24,041 7
Arizona $61,082,635,000 $9,321 45
Colorado $86,879,414,000 $16,748 19
Oklahoma $44,151,947,000 $11,574 40
Texas $340,944,239,000 $13,083 31
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: New Mexico public pensions and New Mexico public employee salaries

Between fiscal years 2008 and 2012, the funded ratio of New Mexico's state-administered pension plans decreased from 82.8 percent to 63 percent. The state paid 83 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $12.5 billion. This amounted to $6,218 in unfunded liabilities per capita.[12][13]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[14][15]

The table below lists the Standard and Poor's credit ratings for New Mexico and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[16]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
New Mexico AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+
Arizona AA- AA- AA- AA- AA- AA- AA AA AA AA AA
Colorado AA AA AA AA AA AA AA AA AA- AA- AA-
Oklahoma AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA AA AA AA
Texas AAA AAA AA+ AA+ AA+ AA+ AA AA AA AA AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

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.[17]

The table below notes what share of New Mexico’s general revenues came from the federal government in 2012. That year, New Mexico received approximately $5.2 billion in federal aid, 36.4 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[17]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
New Mexico $5,171,367 36.43% 11
Arizona $10,394,549 36.46% 10
Colorado $6,310,538 28.84% 35
Oklahoma $7,363,043 35.57% 15
Texas $37,310,756 34.51% 20
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

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.[18]

Budget process

New Mexico operates on an annual budget cycle, with each fiscal year beginning in July. The sequence of key events in the budget process is as follows:[19][20]

  1. Budget instruction guidelines are sent to state agencies in July.
  2. State agencies submit their budget requests in September.
  3. Agency hearings are held in September and December.
  4. The governor submits his or her budget proposal to the New Mexico State Legislature on the first day of the legislative session.
  5. The legislature adopts a budget in February or March. A simple majority is required to pass a budget.

New Mexico is one of 44 states in which the governor has line item veto authority.[20]

The governor is constitutionally required to submit a balanced budget. In turn, the legislature is also constitutionally required to pass a balanced budget.[20]

Agencies, offices and committees

The following standing committees in the New Mexico State Legislature deal with budget and finance matters:

  1. Appropriations and Finance Committee, New Mexico House of Representatives
  2. Finance Committee, New Mexico State Senate
  3. Ways and Means Committee, New Mexico House of Representatives

The New Mexico State Auditor performs annual audits of the finances of every state agency in New Mexico. The auditor is elected in midterm election years and may serve two consecutive four-year terms. The office is partisan.

The New Mexico Treasurer serves as the chief financial officer of the state, overseeing the state's bank accounts, managing its debts and loans, and investing funds on behalf of the state. The treasurer is elected in midterm election years and may serve two consecutive four-year terms. The office is partisan.

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

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.[21] 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.[21]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
State finance.jpg
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: State and local government budgets, spending and finance on the ballot and List of New Mexico ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in New Mexico.

  1. New Mexico Amendment 1 (1996)
  2. New Mexico Amendment 2, Public Education Funding Act (September 2003)
  3. New Mexico Amendment 4 (1998)
  4. New Mexico Land Grant Fund Investments, Amendment 5 (2014)

Recent news

This section displays the most recent stories in a Google news search for the terms "New Mexico budget."

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

New Mexico state budget and finances - Google News Feed

  • Loading...

Contact information

New Mexico Department of Finance and Administration
407 Galisteo Street
Santa Fe, NM 87501
Phone: 505-827-3638
Fax: 505-827-4330

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Morningstar, "The State of State Pension Plans 2013: A Deep Dive Into Shortfalls and Surpluses," accessed September 16, 2013
  13. The Pew Charitable Trusts, “The Fiscal Health of State Pension Plans Funding Gap Continues to Grow,” accessed April 8, 2014
  14. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  15. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  16. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  17. 17.0 17.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  18. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  19. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  20. 20.0 20.1 20.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  21. 21.0 21.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014