SANTA FE, N.M. (AP) — New Mexico Gov. Michelle Lujan Grisham is urging legislators to reevaluate the magnitude of proposed tax changes that would forgo $1 billion of state government income each year. In a statement Thursday, the governor warned that proposed tax changes could undermine future spending on public education, policing and economic development initiatives. The Legislature is forecasting a $3.6 billion surplus in state income for the coming fiscal year in excess of current spending obligations. Tax changes endorsed by the state House, Senate or both include $500 individual tax rebates, refundable child tax credits of up to $600 per child, and a $155 million reduction in taxes on personal income.
SANTA FE, N.M. (AP) — New Mexico Gov. Michelle Lujan Grisham is urging legislators to reevaluate the magnitude of proposed tax changes that would forgo $1 billion in annual state government income each year.
In a statement Thursday, the second-term Democratic governor warned that proposed tax changes could undermine state spending priorities, including public education, public safety and economic development initiatives aimed at diversifying the economy.
"Let's deliver bold, meaningful tax reform — but let's also protect our future," Lujan Grisham said.
The legislature has until noon Saturday to deliver bills to the governor, who can veto bills entirely or cross out individual spending provisions.
The Legislature anticipates a $3.6 billion surplus in state income for the coming fiscal year in excess of current spending obligations. Most of the surplus is linked to surging oil production in the southeast region of the state — income that can fluctuate wildly over time with shifts in global energy prices.
Tax changes recently endorsed by the state House, Senate or both chambers include $500 individual cash rebates, refundable child tax credits of up to $600 per child, $155 million in reduced taxation on person income, and a reduction in tax rates on sales and business transactions.
Legislators have have endorsed limited tax increases on investment income, alcohol sales and tobacco products.
The House and Senate appointed a conference committee Thursday to reach a compromise on competing taxation proposals.
Annual state general fund spending would increase by 14%, or nearly $1.2 billion, to $9.6 billion under a budget bill approved Wednesday by the Legislature. The Legislature also has endorsed more than $1 billion in direct, one-time spending on infrastructure that reduces expenses associated with borrowing money to pay for construction.
I'll have a spot story about Democrats having second thoughts about a $1 billion package of tax cuts that might undermine their social programs later, recasting line in PB now.