We all know that New Mexico relies heavily on federal spending and according to a report from WalletHub which I happened to run across, New Mexico is THE MOST RELIANT state in the nation when it comes to federal money beating out even Mississippi which came in 49th (or 2nd depending on perspective).Source: WalletHub Source: WalletHub
There’s no doubt that New Mexico needs to build its private sector economy. Gov. Martinez’s reforms were thwarted by the hostile Democrat-controlled Senate during the 2015 session. Will the status quo persist in the 30 day 2016 session?
The next time you hear a “progressive” decry “cuts” to New Mexico’s budget, respond with this statistic: 22.3 percent. That’s how much the state’s inflation-adjusted spending grew between 2004 and 2014.
It received scant media coverage, but earlier this month, the state’s latest Comprehensive Annual Financial Report was released. In fiscal 2014, all expenditures — from unemployment insurance to the state fair, the New Mexico Finance Authority to government schools, prisons to legislative costs — totaled $17.1 billion.
In 2010, spending peaked at $18.4 billion. (Aided, of course, by the Obama administration’s “stimulus.”) Expenditures have indeed dropped a bit since then, but remember that New Mexico is losing population. And viewed from a decade-long perspective, it’s clear that New Mexico does not suffer from slumping state expenditures.