The Legislature and governor are going to have a lot of money to deal with in the 2007 legislative session that begins in January.
The continuing increase in oil revenues means the state will have an unprecedented $723 million to spend on increasing the budget and cutting taxes, and $1.08 billion to spend on capital outlay, an increase from the $913 million that was available during this year’s session.
“We’re fortunate to have the amount of money we have in order to address the needs of
But he also cautioned, appropriately, that increasing the state budget too much could hurt the state if a future downturn in the economy cuts revenue to the state.
“It’s very difficult for us to try to contain the appetite for spending, both by the executive and the Legislature,” Varela told the news service.
The LFC is set this week to make decisions on a proposed budget for the next fiscal year that begins in July. Both Gov. Bill Richardson and Varela are advocating tens of millions of dollars in tax cuts.
“The consistent strength of our economy gives me confidence that we can cut taxes, invest in our schools and make health care available to more New Mexicans, while maintaining prudent cash reserves,” he said in a news release.
Tax cuts are good, but the state should also use this money to help those who live in such poverty that they won’t benefit from tax cuts. My wife is a social worker, and she visited two homes in rural
Education, economic development, health care, infrastructure and funding for non-profits that help those in need should continue to be top priorities. I like a tax cut as much as anyone else, but others need the cash more than I do.
And investing in economic development will help ensure the economy remains healthy.