Difference between revisions of "New Mexico state budget and finances"

From Ballotpedia
Jump to: navigation, search
m (Text replace - "Level=Middling}}" to "Level=middling}}")
m (Text replace - "===U.S. PIRG Following the Money report===" to "===U.S. PIRG "Following the Money" report===")
Line 70: Line 70:
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref>[ [http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf University of Illinois 50 State Transparency Comparison]</ref><ref>[http://igpa.uillinois.edu/content/state-transparency-profiles University of Illinois State Transparency Profiles]</ref>
In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.<ref>[ [http://igpa.uillinois.edu/system/files/50_States_Transparency_Profiles.pdf University of Illinois 50 State Transparency Comparison]</ref><ref>[http://igpa.uillinois.edu/content/state-transparency-profiles University of Illinois State Transparency Profiles]</ref>
===U.S. PIRG Following the Money report===
===U.S. PIRG "Following the Money" report===
{{Following the Money 2014 Report by State|State=New Mexico|Grade=C+|Score=77|Level=middling}}
{{Following the Money 2014 Report by State|State=New Mexico|Grade=C+|Score=77|Level=middling}}

Revision as of 16:09, 21 April 2014

New Mexico state budget

Flag of New Mexico.png
Budget calendar:  Annual
Fiscal year:  2014
Other state budgets
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

New Mexico faced potential budget issues for FY2011.[1] In March 2010, Gov. Richardson vetoed a proposed tax on food, but signed other tax increases that would provide about $170 million next year to help balance the budget.[2] Gov. Bill Richardson and legislators were relying on that money to avoid more spending cuts in the upcoming 2011 fiscal year.[1] Gov. Richardson said then that he thought the taxes would be sufficient to balance the budget, and he also planned on $20 million of federal funds stimulus funds to shore up the budget.[1] Lawmakers had criticized the Governor's reliance on one-time sources.[1]

FY2010 State Budget New Mexico faced a $454 million shortfall in building its FY 2010 budget during the regular 2009 Legislative Session. A $5.47 billion General Fund budget was passed by the New Mexico State Legislature and signed by Gov. Richardson, $538 million (9%) less than the FY 2009 General Fund budget. A complete breakdown of the FY 2010 budget that started July 1, 2009 includes:[3]

  • $5.47 billion General Fund
  • $2.71 billion Other State Funds
  • $1.22 Internal Service/Interagency Transfers
  • $5.55 billion Federal Funds

Total $14.96 billion

The New Mexico Legislative Finance Committee predicted 5% revenue growth for FY 2011 and 2012 allowing replacement of federal stimulus funds.[4]

State revenue estimates upon which the FY 2010 budget was based proved to be too optimistic, requiring the New Mexico Legislature to meet in a special session in October of 2009 to close a $653 million deficit.[5] The special session made 7.6% cuts in most state agencies on top of the 6.4% cuts already made during the regular 2009 Session.[6] Gov. Richardson had until Nov. 12 to take action on all bills passed by the Legislature during the special session, which includes $153 million in cuts in the state's Human Services Department that impact Medicaid.[7] Gov. Richardson proposed 3% across the board cuts and leaving education exempt before the special session convened October 17, 2009.[8] The current debt per capita is $1,398.[9]

FY2012 State Budget

See also: Archived New Mexico state budgets

Legislative Proposed Budget

Lawmakers had sent the governor a blueprint for spending $5.4 billion next year on education and governmental programs, ranging from prisons and courts to health care for the poor. The measure cuts spending by $152 million, 2.7 percent, from FY2011. A bill capping film production rebates at $50 million a year freed up $23 million that went into the budget for schools, health care and public safety programs.[10]

Martinez had until early April to sign or veto bills passed during the Legislature's 60-day session, including budget bills.[10]


Lawmakers saved $111 million in the FY2012 budget by reducing government contributions to public employee pensions and also requiring state workers and educators to offset that by paying more into their retirement programs. The measure also allows the government to skip making higher contributions to an educational pension program that were mandated by a 2005 law.[10]

Governor's Proposed Budget

Governor Susana Martinez proposed a FY2012 state budget that reduced state spending by 3% and did not raise taxes.[11] The governor's proposed budget could be found online.[12]

The governor's proposed budget was based on estimates from December 2010 that the state’s revenues would increase 4.4 percent from FY2011 to FY2012. The budget reduced administrative costs from education, which reduced the education budget by 5%, and cuts the state environment department.[11] It also cut the auditor's budget by 8.8%.[11] The proposed budget would also have the state contribute $39 million less to employee pensions in FY2012 and had employees contribute 2% more than they currently did. Teachers, however, would not have to make the additional contribution.[11]

The House approved its version of the budget, House Bill 2, on March 2, 2011, and it now heads to the Senate.[13]

The biggest different between the governor's proposed budget and that set forth by the Legislative Finance Committee was that the LFC suggested cutting the corrections by $11 million and Martinez's cut were less dramatic so as to avoid the early release of prisoners.[11]

Budget transparency

Government tools

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

Criteria for evaluating spending databases
State Database Searchability Grants Contracts Line Item Expenditures Dept/Agency Budgets Public Employee Salary
Sunshine Portal NM
600px-Red x.png
600px-Red x.png
  • Line item expenditures were not fully provided, as expenditures were only listed to a categorical level.[14]
  • Contracts were listed under the purchases section.[15]
  • Agency and department budget details, including balances, were posted.[14]
  • Employee salaries were listed.[16]
See also: Evaluation of New Mexico state website

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 measures state transparency as of September 2011 using indicators from a range of organizations. These indicators measure both website transparency and other recognized facets of governmental transparency. In addition, IGPA presents 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.[17][18]

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[19][20]

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 background

The New Mexico State Legislature convenes in regular sessions on the third Tuesday in January each year. The Legislature meets for 60 days in odd-numbered years and 30 days in even-numbered years.[22] The General Appropriations Act passed by the Legislature was effective upon being signed by the Governor. Other appropriations with emergency clauses require a two‐thirds majority vote. The Governor can veto selected lines and items in any bill carrying an appropriation.[23]

Accounting principles

See also: New Mexico government accounting principles

The New Mexico State Auditor was required by New Mexico 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 was a constitutionally established office, allowing the State Auditor to serve two consecutive four year terms. Additionally, the Audit Act, §§ 12-6-1 to 12-6-14, NMSA 1978, provides the laws in which the State Auditor operates. Audit reports are not currently published online.[24]

The State Auditor has two statutory purposes:[25]

  • 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 and
  • Cause the financial affairs and transactions of an agency to be audited in whole or in part. Section 12-6-3, NMSA 1978. 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 6 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.[26] New Mexico's CAFRs were prepared and published online by the New Mexico Department of Finance and Administration, Financial Control Division.[27]

Credit Ratings

Credit Rating Fitch Moody's S&P
New Mexico[28] NR Aa1 AA+[29]


New Mexico received $2.52 billion in federal stimulus funding from the American Recovery and Reinvestment Act between February 2009 and June 2013.[30]

Public Employees

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

According to 20 Census data, the state of Colorado and local governments in the state employed a total of 144,371 people.[31] Of those employees, 114.314 were full-time employees receiving a net pay of $415.5 million per month and 30,057 were part-time employees paid $30.6 million per month.

External links


  1. 1.0 1.1 1.2 1.3 Budget Week "Analysis: NM could face more budget trouble" April 5, 2010
  2. NewMexican.com
  3. New Mexico Legislative Finance Committee, "Fiscal Impact Report General Appropriation Act of 2009," March 19, 2009
  4. New Mexico Legislative Finance Committee, "Fiscal Impact Report General Appropriation Act of 2009," March 19, 2009
  5. Associated Press, "New Mexico Legislature convenes in special session Saturday to deal with $650M budget deficit," October 16, 2009
  6. New Mexico Independent, "Is the guv getting ready for line-item vetoes?," October 26, 2009
  7. Gov. Bill Richardson Press Release, "$153 Million in Budget Cuts would have Devastating Impact on Services for New Mexicans," October 27, 2009
  8. National Conference of State Legislatures, "Fiscal Year 2010 Budget Status," October 28, 2009
  9. New Mexico Watchdog, Aug. 3, 2010
  10. 10.0 10.1 10.2 Businessweek "NM Legislature approaches finish line of session" March 18, 2011
  11. 11.0 11.1 11.2 11.3 11.4 The New Mexico Independent "Martinez budget proposal cuts 3 percent" Jan. 11, 2011
  12. Proposed FY2012 Budget
  13. The New Mexico Independent "House narrowly passes budget" March 2, 2011
  14. 14.0 14.1 Transparency Portal NM Budget
  15. Transparency Portal NM Purchases
  16. Transparency Portal NM Employees
  17. Institute of Government and Public Affairs
  18. University of Illinois Transparency Profile for New Mexico
  19. [ University of Illinois 50 State Transparency Comparison
  20. University of Illinois State Transparency Profiles
  21. 21.0 21.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
  22. New Mexico Legislature Web site, retrieved November 1, 2009
  23. National Association of Budget Officers, "Budget Processes in the States," 2008
  24. New Mexico State Auditor Web site, retrieved November 1, 2009
  25. New Mexico State Auditor Web site, retrieved November 1, 2009
  26. Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
  27. New Mexico Department of Finance and Administration, Financial Control Division Web site, retrieved November 1, 2009
  28. State of Indiana, “State Credit Ratings-as of June 24, 2009"
  29. Pew Stateline Infographic on State Credit Ratings. Accessed September 27, 2013
  30. Recovery, "Stimulus Spending by State"
  31. 2011 New Mexico Public Employment U.S. Census Data