New Mexico state budget
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New Mexico faces potential budget issues for FY2011.[1] In March 2010, Gov. Richardson vetoed a proposed tax on food, but signed other tax increases that will provide about $170 million next year to help balance the budget.[2] The states revenues are down by 32.5 million in 2010, and it's expected to negative $159.3 million by 2011.[3] Gov. Bill Richardson and legislators are 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 have 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. Bill 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:[4]
- $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.[5]
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.[6] 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.[7] Gov. Richardson has 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.[8] Gov. Richardson proposed 3% across the board cuts and leaving education exempt before the special session convened October 17, 2009.[9] The current debt per capita is $1,398.[10]
Outlay funds The state has identified $1 billion in outlay funding, approved since 2005, remains unspent.[11] Capital outlay funds are collected through "voter-approved general obligation bonds, paid off with property taxes; severance tax bonds, backed with tax revenue from oil and mining activity; and non-recurring general fund revenue" according to the New Mexico Watchdog.
[edit] 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.[12] The General Appropriations Act passed by the Legislature is 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.[13]
See New Mexico state budget (2008-2009) for more information.
[edit] The 2009 Deficit
- New Mexico has $454 million MID-YEAR FY2009 BUDGET GAP.[14]
- The school system in New Mexico has a $475 million deficit [15]
- The New Mexico state budget crisis has an additional challenge due to the "expected cost of our health care system will increase from $6 billion to $8 billion by 2011," according to Roxanne Spruce Bly, executive director of Health Action New Mexico.[16]
[edit] The Federal Stimulus Package
- The State of New Mexico submitted 215 projects for funds from the American Recovery and Reinvestment Plan.[17]
- The funding request for 215 projects totals $2,937,146,132 for the cities of Alamogordo, Albuquerque, Bayard, Espanola, Las Cruces, Rio Rancho, Santa Fe, and Silver City.[18]
- A report by New Mexico Watchdog shows that the stimulus is creating very few new jobs in the state. The vast majority are public sector jobs. The state has seen an increase of only 332 stimulus-funded jobs over the previous quarter, though the stimulus provided over $2 billion in funds. Additionally, the number of jobs created has barely budged since October.[19]
- A May 4, 2010, press release from the New Mexico Office of Recovery and Reinvestment claims 3,009 jobs full-time jobs funded. Of those jobs, 2,271 were in public education.[19] The Santa Fe Reporter found that federal stimulus money created only 2 private sector jobs in Santa Fe.[20]
[edit] ARRP errors
On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[21][22]
The first of the errors was uncovered in New Mexico, where there are only 3 Congressional Districts. The ARRP website reported that $26,462,307 in funds would go to 10 fictional districts to "create/save" at total of 61.5 jobs.[23]
It was also reported that Lt. Governor Diane Denish spent $225,000 in federal stimulus funds to pay for a driver, a contractor to take Christmas pictures and write Christmas cards, a lawyer to make hotel reservations, opinion polling and public relations services. [24]
[edit] Accounting Principles
The New Mexico State Auditor is 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. Hector Balderas was elected New Mexico State Auditor in November 2006. The Office of the New Mexico State Auditor is 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.[25]
The State Auditor has two statutory purposes:[26]
- 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 does 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 does not include significant liabilities for the pension plans and for other post employment benefits, such as health care. New Mexico is "worst of the 6 worst" taking and average of 602 days to issue its CAFRs for FY 2005, 2006, and 2007.[27] New Mexico's CAFRs are prepared and published online by the New Mexico Department of Finance and Administration, Financial Control Division.[28]
Anthony Armijo is State Controller and Director of New Mexico Financial Control Division, Department of Finance and Administration.[29]
| Credit Rating | Fitch | Moody's | S&P |
| New Mexico[30] | NR | Aa1 | AA+ |
[edit] Chart on Spending FY 2001 to FY 2009
The following table provides a history for New Mexico's budgeted and actual expenditures from the General Fund.
| Fiscal Year | General Fund Budgeted | General Fund Actual | Change (%) |
|---|---|---|---|
| 2000-2001 | $[31] | $3,543,300,000[32] | |
| 2001-2002 | $[33] | $3,870,430,000[32] | |
| 2002-2003 | $[34] | $3,895,800,000[32] | |
| 2003-2004 | $[35] | $4,119,800,000[32] | |
| 2004-2005 | $[36] | $4,406,400,000[32] | |
| 2005-2006 | $[37] | $4,707,400,000[32] | |
| 2006-2007 | $[38] | $5,115,100,000[32] | |
| 2007-2008 | $[39] | $6,015,000,000[32] | |
| 2008-2009 | $5,719,000,000[40] | $*[32] |
*Actual expenditure data is not yet available for Fiscal Year 2009.
[edit] Budget transparency
[edit] News
- Sign up for the showmethespending.com weekly transparency e-updates. As transparency news about New Mexico becomes available, it will be sent out by email and posted here.
[edit] Legislation
Although New Mexico Senate Bill 159 (2009), the "Budget Transparency Act," passed the Senate, it died in committee in the spring of 2009.[41][42] It was introduced by New Mexico Senator Sander Rue.[43]
[edit] Government tools
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary | Exemption Level |
|---|---|---|---|---|---|---|---|
| None | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
- See also: Evaluation of New Mexico state website
[edit] Limitations and Suggestions for Improvements
This section will be developed once New Mexico has a spending transparency database in place.
[edit] Public employee salary information
- The Albuquerque Journal has several lists of the salaries of top state officials on their Watchdog resources page.
- A listing of the New Mexico state payroll from 2009 is posted here
[edit] See Also
New Mexico taxpayer-funded lobbying
[edit] External links
- State Budget Solutions, New Mexico
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- Rio Grande Foundation
- New Mexico Department of Finance and Administration, Budget Division
- Governor's Office
[edit] References
- ↑ 1.0 1.1 1.2 1.3 Budget Week "Analysis: NM could face more budget trouble" April 5, 2010
- ↑ NewMexican.com
- ↑ New Mexico Watchdog, Gov’s estimates were wrong: NM rev down by $32.5m for 2010, $159.3m for 2011, July 21, 2010
- ↑ New Mexico Legislative Finance Committee, "Fiscal Impact Report General Appropriation Act of 2009," March 19, 2009
- ↑ New Mexico Legislative Finance Committee, "Fiscal Impact Report General Appropriation Act of 2009," March 19, 2009
- ↑ Associated Press, "New Mexico Legislature convenes in special session Saturday to deal with $650M budget deficit," October 16, 2009
- ↑ New Mexico Independent, "Is the guv getting ready for line-item vetoes?," October 26, 2009
- ↑ Gov. Bill Richardson Press Release, "$153 Million in Budget Cuts Will Have Devastating Impact on Services for New Mexicans," October 27, 2009
- ↑ National Conference of State Legislatures, "Fiscal Year 2010 Budget Status," October 28, 2009
- ↑ New Mexico Watchdog, Aug. 3, 2010
- ↑ New Mexico Watchdog, More Than $1 Billion Unspent in NM Capital Outlay Funding, Aug. 11, 2010
- ↑ New Mexico Legislature Web site, retrieved November 1, 2009
- ↑ National Association of Budget Officers, "Budget Processes in the States," 2008
- ↑ Center on Budget and Policy Priorities, "State Budget Troubles Worsen", March 13, 2009
- ↑ AOL News, "School Budget Crisis: $475 Million Deficit", November 9, 2008
- ↑ New Mexico Independent, "Budget crisis requires health care reform, advocates say", December 10, 2008
- ↑ Stimulus Watch: Keeping an Eye on Economic Recovery Spending, "Find Projects by State or Territory", 2009
- ↑ Stimulus Watch: Keeping an Eye on Economic Recovery Spending, "Projects in New Mexico", 2009
- ↑ 19.0 19.1 "Stimulus Creates Few New Jobs in NM," New Mexico Watchdog, May 17, 2010
- ↑ "The Stimulus Spin," Santa Fe Reporter, April 7, 2010
- ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ New Mexico Watchdog, Denish Used Federal Funds for Personal Driver, Polling and Christmas Cards, Nov. 4, 2009
- ↑ New Mexico State Auditor Web site, retrieved November 1, 2009
- ↑ New Mexico State Auditor Web site, retrieved 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 Web site, retrieved November 1, 2009
- ↑ The National Association of State Auditors, Comptrollers and Treasurers Web site, retrieved November 1, 2009
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
- ↑ 2007 RecommendVolIII
- ↑ 32.0 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 2007 RecommendVolIII
- ↑ 2007 RecommendVolIII
- ↑ 2007 RecommendVolIII
- ↑ 2007 RecommendVolIII
- ↑ 2007 RecommendVolIII
- ↑ 2007 RecommendVolIII
- ↑ 2008 Recommend VolIII
- ↑ February 2009 Rev Testimony
- ↑ February 2009 Rev Testimony
- ↑ Rio Grande Foundation, "New Mexico Votes: Progress of 2009 Senate Bill 159"
- ↑ New Mexico Legislature, New Mexico Senate Bill 159
- ↑ State Senator Sander Rue
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