Billions of taxpayer dollars have flowed out of state since 2013 due to government purchases that are not filled — or cannot be filled — by New Mexico companies, a Searchlight New Mexico analysis finds. Over the past five years, 43 cents of every dollar the state paid companies and consultants went outside New Mexico’s borders, according to Searchlight’s analysis. That price tag stands at $3.2 billion and is growing. According to the state’s own data, spending on outside vendors grew faster than spending on in-state vendors over the past five years of Gov. Susana Martinez’ administration. That dynamic is unlikely to change without a significant overhaul of the state’s economy, according to several experts interviewed for this article.
The governor’s office contends a taxpayer-funded account used to host dignitaries and throw parties isn’t subject to open records laws to the same extent other public funds are. Sometimes the subject of controversy, the account catapulted into public view last winter when one of the parties its money was used for ended with police responding to noise complaints from a possibly intoxicated Martinez. Each year, the state Legislature grants $70,000 in taxpayer money to the governor for a contingency fund, which per state law she can use for “purposes connected with obligations of the office.”
The fund is unusual in that, unlike most state government accounts filled with public money, the state Legislature exempts it from required annual audits. But after NM Political Report filed an Inspection of Public Records Act request with the governor’s office this spring for six years worth of expense documents associated with the contingency fund, the office only provided broad summaries of the expenses. Missing were documentation like the checks, purchase orders, reimbursements and purchase requests associated with the fund that we asked for.
Gov. Susana Martinez isn’t properly managing the account she used to pay for her infamous holiday pizza party last year, according to an independent audit released this month. The finding stems from the governor’s contingency fund, which the state Legislature grants roughly $70,000 each year to for “purposes connected with obligations of the office,” according to state law. That’s been interpreted by past governors and Martinez as entertainment expenses for hosting officials and staff. Specifically, Martinez’s office is supposed to revert any unspent money remaining in her contingency account by the end of a fiscal year to the state’s general fund, according to the audit. Instead, her office kept leftover money into that account.