Challenging the myth of scarcity

As New Mexicans, many of us can attest to a common refrain when we talk about our most important programs: “We just don’t have the funding.” The underlying theme throughout conversations about our state’s most pressing needs is that resources are scarce and we simply don’t have enough of the pie to go around. Through […]

Challenging the myth of scarcity

As New Mexicans, many of us can attest to a common refrain when we talk about our most important programs: “We just don’t have the funding.”

The underlying theme throughout conversations about our state’s most pressing needs is that resources are scarce and we simply don’t have enough of the pie to go around.

Through our work at the State Auditor’s office, we’ve found a surprisingly different reality. While the plunging revenues certainly create a huge challenge in the near-term, the concept of long-term scarcity is more of a myth, one often perpetuated by those who control resources going back to colonial times. Over the last several years, we’ve researched three primary connections between government and economy that challenge the myth of scarcity.

Tim Keller is New Mexico’s State Auditor.

State Auditor Tim Keller

Tackling these structural issues is not a substitute for addressing the shrinking budget that the legislature is grappling with right now. But at some point, we need to move beyond plugging holes and applying band-aids to develop lasting solutions for our volatile and struggling economy. Taking a step back from the yearly budget crisis, we have identified structural changes that can help New Mexico get off of the bottom of the bad lists. By rethinking the status quo, we can help government make better decisions and get out of the cycle that holds us back.

First, consider our annual “Fund Balance Report.” The report tallies government’s own financial audits and has identified billions of dollars sitting in hundreds of agency accounts across state government. Most of these dollars have already been allocated towards reserves, loan funds and thousands of specific projects. The legislature has examined many funds closely to “sweep” out hundreds of millions of unused balances. The longer term challenge is understanding why millions of these dollars never made it out the other end of the pipeline into our economy. The Fund Balance Report is a road map to help find ways to prevent buildups of underutilized stagnant funds so they can be put to use building infrastructure and creating jobs.

Second, it’s time to get serious about fixing our “Swiss cheese” tax code. Every year, our state loses over a billion dollars in revenue to over a hundred different types of tax breaks. We’ve fought for comprehensive reporting to understand which tax cuts are working and which are not. It’s very encouraging to see that the legislature is beginning to tackle legitimate tax code reform. When there is a return, our government can justify doubling down, and when there isn’t, we need to stop giving away our tax dollars.

Third, let’s address the hundreds of millions of dollars that our government spends with out-of-state businesses. One example is in the information technology sector, where our research found that 84 cents of every public dollar goes to companies outside New Mexico. Awarding some of those contracts to homegrown businesses would go far to nurture our local industry and economy. Many of these out-of-state government contracts are awarded without a public competitive bid, never giving a local firm a shot at the business.

Instead of starting from the point of “we don’t have enough,” we need to find solutions for how to do better with what we have. Scarcity is a choice leaders make every time they avoid tackling these big issues. We should not shy away from the complexities that connect government finance and our economy.  It also takes courage to stand up to the entrenched political forces behind this status quo. Let’s draw a line in the sand and not buy into the myth of scarcity, and fight for long-term structural changes to improve our economy, create jobs, and truly move the needle in our communities.

Details and full reports available at www.saonm.org/government_accountability_office

We're ad free

That means that we rely on support from readers like you. Help us keep reporting on the most important New Mexico Stories by donating today.

Related

Lujan Grisham pocket vetoes two bills

Lujan Grisham pocket vetoes two bills

Gov. Michelle Lujan Grisham pocket vetoed two bills the legislature passed this legislative session: one changing the Cybersecurity Act and the other concerning law…
Gov signs bills with some vetoes 

Gov signs bills with some vetoes 

Gov. Michelle Lujan Grisham signed 69 bills that the legislature passed during the 2024 legislative session. These included the General Appropriations Act which contains…
Guv signs state budget

Guv signs state budget

Gov. Michelle Lujan Grisham signed the budget bill for Fiscal Year 2025 and the Capital Outlay spending bill. The FY25 state budget bill passed…
Advocates travel to D.C. to push for additional protections for the Gila River

Advocates travel to D.C. to push for additional protections for the Gila River

New Mexico advocates seeking to have the Gila River designated as a Wild and Scenic River will travel to Washington D.C. this week to…

NM Supreme Court annuls $10,000 penalty in PNM/Avangrid merger case

The New Mexico Supreme Court ruled on Monday that a penalty the New Mexico Public Regulation Commission levied against the state’s largest utility was…
State fines oil company more than $2 million after spill

State fines oil company more than $2 million after spill

The Energy, Minerals and Natural Resources Department fined an oil and gas company operating in the Permian Basin more than $2 million over produced…
Amid new graduation requirements, what do high schoolers want to learn?

Amid new graduation requirements, what do high schoolers want to learn?

By Margaret O’Hara, The Santa Fe New Mexican The main things that bring Brayan Chavez to school every day: Seeing, talking to and engaging with…
Special ed teachers hope lawmakers OK pay raises, admin changes

Special ed teachers hope lawmakers OK pay raises, admin changes

By Margaret O’Hara, The Santa Fe New Mexican Brittany Behenna Griffith has a laundry list of adjectives to describe the ideal special education teacher:…
Lawmakers must find consensus on competing education spending plans

Lawmakers must find consensus on competing education spending plans

By Margaret O’Hara, The Santa Fe New Mexican A challenging task awaits New Mexico lawmakers in the next 30 days: Reconciling three very different…
Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Gov. Michelle Lujan Grisham announced Friday $10 million in funding from the federal American Rescue Plan Act was awarded to six tribal nations and…
Proposal to curb executive powers moves to House Judiciary

Proposal to curb executive powers moves to House Judiciary

The House Government, Elections and Indian Affairs Committee discussed a potential constitutional amendment that seeks to limit the governor’s executive powers. The committee approved…
Supreme Court censures attorney over conduct in anti-COVID policy suits

Supreme Court censures attorney over conduct in anti-COVID policy suits

The New Mexico State Supreme Court censured a New Mexico attorney because of her “misconduct” in two unsuccessful cases pushing back on COVID-19 regulations…
Supreme Court to hear two abortion cases this spring

Supreme Court to hear two abortion cases this spring

Later this month, the U.S. Supreme Court will hear oral arguments on the case against the abortion medication mifepristone. It will hear a second…
How Biden, others highlighted reproductive rights at the State of the Union

How Biden, others highlighted reproductive rights at the State of the Union

President Joe Biden highlighted reproductive rights issues as part of his State of the Union speech Thursday. Biden delivered his 2024 State of the…
Stansbury invites OB-GYN doctor as her state of the union guest 

Stansbury invites OB-GYN doctor as her state of the union guest 

U.S. House of Rep. Melanie Stansbury has invited an OB-GYN doctor from Roswell as her guest for President Joe Biden’s State of the Union…
Supreme Court to hear two abortion cases this spring

Supreme Court to hear two abortion cases this spring

Later this month, the U.S. Supreme Court will hear oral arguments on the case against the abortion medication mifepristone. It will hear a second…
How Biden, others highlighted reproductive rights at the State of the Union

How Biden, others highlighted reproductive rights at the State of the Union

President Joe Biden highlighted reproductive rights issues as part of his State of the Union speech Thursday. Biden delivered his 2024 State of the…
Stansbury invites OB-GYN doctor as her state of the union guest 

Stansbury invites OB-GYN doctor as her state of the union guest 

U.S. House of Rep. Melanie Stansbury has invited an OB-GYN doctor from Roswell as her guest for President Joe Biden’s State of the Union…
See who’s going to be on your primary ballot in June

See who’s going to be on your primary ballot in June

Tuesday marked the official beginning of the 2024 New Mexico primary season for the legislature, with candidates officially filing for candidacy. This is the…

Bill to require disclosure of use of AI in campaign materials goes to governor

The Senate approved a bill aiming to require the disclosure of the use of artificial intelligence or other changes made by computers to campaign…
House amends, passes bill banning firearms near polling places

House amends, passes bill banning firearms near polling places

The House narrowly approved a bill that would ban firearms near polling places. The House voted 35-34 to pass the bill following an extensive…
Advocates travel to D.C. to push for additional protections for the Gila River

Advocates travel to D.C. to push for additional protections for the Gila River

New Mexico advocates seeking to have the Gila River designated as a Wild and Scenic River will travel to Washington D.C. this week to…
U.S. Supreme Court lets ban on Couy Griffin from holding office stand

U.S. Supreme Court lets ban on Couy Griffin from holding office stand

The U.S. Supreme Court declined to hear an appeal of a Republican official who was barred from holding office after being convicted for a…
Politics Newsletter: legislative leaders not running for reelection

Politics Newsletter: legislative leaders not running for reelection

Hello fellow political junkies! Candidate filing day has come and gone, and members of House and Senate leadership opted to either not seek reelection…

GET INVOLVED

© 2023 New Mexico Political Report