Susana Martinez
The next governor of New Mexico will immediately be tasked with balancing a budget deficit in the hundreds of millions of dollars. This deficit is not a sudden occurrence, but the result of mismanagement and neglect by the Richardson/Denish Administration.
Clearly it is time we change the budgeting process. We cannot continue budgeting by hoping for the best and planning for the best. We must hope for the best and plan for the worst.
The picture is clear – there has been a huge growth in government with a continued unfriendly tax policy – New Mexico has some of the highest tax burdens for both individuals and business in the region and country. It is obvious that the Richardson/Denish Administration’s policies of taxing and spending have left us with a broken system that will result in perpetual deficits unless we enact bold change.
Certainly, these decisions are not always easy, but given the dire situation of our state’s finances, strong and focused leadership is needed to get New Mexico back on track.
Along with commonsense leadership, I am providing a detailed plan to re-establish our priorities and pull our state back from the brink of bankruptcy. Individuals and small businesses have tightened their belts and done more with less during this challenging economic time, and our state government must as well.
To achieve fiscal responsibility
In order to achieve fiscal responsibility in New Mexico, we must begin by:
1. Instituting fiscal responsibility: The New Mexico state budget should be based on the overall goals of limited government, low taxation and efficient and wise use of taxpayers’ dollars. At the same time, we can still provide public safety, create a world class education system and provide a reasonable safety net of services to assist those most in need in a financially responsible manner. When the state takes in surplus tax dollars, we should not immediately look to grow government by creating new government programs. Instead, a good portion of those funds should be returned to the taxpayer and used to phase out job killing taxes in order to improve our economic competitiveness.
2. No-growth budgeting: We must require most state agencies to operate on no-growth budgets until we get our fiscal house in order. The Richardson/Denish Administration has instead chosen to operate on unrealistic projections – and assumed 6 percent growth – which did nothing more than justify deficit spending and delay tough decisions. By instituting no-growth budgets, state government will be able to live within its means without raising taxes.
3. Creating a business-friendly environment: More government spending does not create more jobs – only businesses can create sustainable, long-term jobs. The more businesses we have producing jobs, the more revenue the state will take in. By establishing a pro-job growth budget and investing in future private economic activity, we eliminate the possibility of large tax increases down the road to fund state government that has grown beyond its means.
4. Truly balanced budgets: Our state Constitution requires a balanced budget every year. We must not use budget gimmicks to give the impression that the budget is balanced. And if one-time funds are used to help fund government operations they should be used for one-time expenses, not long-term government financing.
5. Doing more with less: The only way to ensure the state has a balanced budget is to compare the spending side with the revenue side. Simply put, we cannot spend more than we take in. The current budget situation is not caused by taxes being too low, but is the result of spending being too high during the past eight years. We must do more with less.
6. Demanding results: We must demand results each budget year. Too many agencies spend large sums of money during the final part of the budget year because they may lose funding during the next budget year. Budget decisions must be based on what is required to get the job done, not on a use-it or lose-it mind set.
7. Efficient use of funds: While programs are undergoing review, we must determine if they are meeting the goals laid out in the previous budget. If they are poorly operating or determined not to be the best use of taxpayer funds, they should be eliminated.
8. Identifying waste, fraud and abuse: We must do a better job of tracking taxpayer dollars. It is inexcusable that any government agency or organization goes un-audited and their expenditures unaccounted for. Properly accounting for expenditures should be a requirement for receiving additional appropriations. Not only that, but employees and beneficiaries of services, those who know government programs best, should be rewarded for reporting waste, fraud and abuse.
9. Budgeting transparency: We must restore transparency in all levels of our budgeting process and re-establish the trust of New Mexico’s taxpayers that their money is being spent wisely. Turning New Mexico around requires the confidence of the people.
10. Budget reserves: We must not use our state reserves, or rainy-day funds, during good economic times to simply finance higher government spending. The use of these funds should be limited to times of severe economic duress or when state revenues change in a dramatic or unexpected manner. If and when budget surpluses occur, the extra money should be used to reduce the tax burden on New Mexicans.
More sensible and accountable
These detailed principles may sound like common sense, but they represent a bold departure from the way business has been done in the Roundhouse under the Richardson/Denish Administration over the past eight years. And the results speak for themselves with a budget deficit climbing into the hundreds of millions.
The way state government handles taxpayer money must change, and we cannot continue the reckless and unsustainable spending that has taken place under Lieutenant Governor Diane Denish’s watch.
In a Martinez Administration, we will be more sensible and accountable with our spending, plus we will ensure that taxation is kept at a low level by making bold changes to the way state government functions, starting with getting New Mexico’s fiscal house in order.
Martinez is the Republican candidate for governor.