By Tom Taylor
On behalf of the House Republican caucus
New Mexico’s state government is experiencing its most difficult budget challenge in recent memory. While the economic slowdown is playing a role, New Mexicans should also be aware that current budget problems have been made worse by the 54-percent increase in government spending and the 27-percent increase (5,700) in new government employees that have occurred during the six years of the Richardson administration.
With these increases in spending and personnel, every state resident should be asking why the quality and performance of state services have not improved by 54 percent. In other words, taxpayers should be wondering what these billions of dollars in additional state spending bought.
We legislators must now face the problem of balancing revenues with expenditures. Cuts in spending are necessary, and every area of state government must eliminate waste and inefficiency. Even more important, all state government agencies must be required to do more with less — just as most private businesses across New Mexico are doing to cope with the current economy.
Simply reducing bureaucracy, however, is not going to be enough to solve the budget shortfall that will occur next year unless the revenues increase more than 50 percent, which is unlikely. More than 80 percent of the state budget is comprised of spending on education, health care and public safety. Policymakers cannot reduce spending by the required hundreds of millions of dollars without asking all aspects of state government to spend less.
State government is overweight and it needs to go on a diet.
Federal dollars aren’t the answer
While New Mexico will receive an anticipated $1.5 billion in new federal money over the next 27 months, these federal dollars are not the solution to our state’s fiscal problems. This money is a one-time, non-recurring payment, and using federal money to maintain an excessive and unsustainable level of state government spending will only make our fiscal problems worse in 2011, 2012 and beyond.
Therefore, the Legislature must be cautious in determining how and for what these federal dollars are used. In other words, despite how many federal goodies are laying around, we must remember the federal buffet will only last a short time.
Rather than depending upon short-term federal dollars to balance the state budget, we must create future budgets based on sound fiscal principles, including:
• No new taxes.
• Restricting spending to growing at or below the growth of revenues.
• Building the state’s savings account, which may be needed when those federal dollars evaporate and for future state emergencies.
A rare opportunity
Our state’s current fiscal situation is a difficult challenge, but it also presents a rare opportunity to consider and enact real changes in the way our state does business. We must find new and innovative ways to educate our children, provide health care and protect our communities, while at the same time being fiscally responsible in spending taxpayers’ money.
We legislators have a choice. We can address the budget shortfalls with Band-Aids and temporary federal dollars, or we can set in action a new course of change — one that will put the state on sound financial footing and encourage economic growth and job creation in the years ahead.
Taylor is a legislator from Farmington and the House minority leader.