Blowing Minds: Billions In Surplus Bowl Over Santa Fe; Tax Relief Gets More Urgent, Plus: On The Nonsense Beat

How gargantuan is the pile of cash accumulating in Santa Fe? So large that the conservative bean counters at the Legislative Finance Committee confess that their minds are blown:

Mind-blowing is how legislative analysts describe New Mexico’s budget numbers, saying during a briefing that projected revenues have been outpacing previous spending at levels never seen before.

Full report here. 

As usual, the prolific oil fields of Southeast New Mexico are behind the mind-blowing surpluses. Higher inflation is also pushing the numbers up along with higher interest rates that mean billions stashed in reserve are earning more.

But how long can that money just sit there? That's been the question the past two years as the Legislature grapples with the most welcome problem of having too much money. The latest state report says for the budget year that ends this month, reserves will be nearly $600 million more than they predicted just several months ago. 

Even mild-mannered state Senate Majority Leader Peter Wirth now says MLG went too conservative by vetoing most of a tax relief package passed at the '23 session. He says that package will be back on the table next year. But the administration is going to have to craft a deal beforehand if they don't want to again cross swords with their fellow Dems who control the House and Senate.

For New Mexicans, most of whom are about to see rebate checks of $500 or $1000 beginning this week, they probably can count on another round of rebates next year and perhaps a cut in the state gross receipts tax as well as other tax relief. 

And with more billions rolling in, the question arises of whether any New Mexican making less than $40,000 a year should be paying any state income tax at all while this boom lasts. 

NONSENSE BEAT 

SOS MTO

As a blogger we have the luxury of not having to pay intense attention to the more nonsensical proposals emanating from the far right because we discuss what's important in the long term. Another reason is that we happen to have a Secretary of State who has been more than adept with her fire extinguisher in putting out the flames before they can spread. The latest: 

A state judge rejected a challenge to Secretary of State Maggie Toulouse Oliver’s authority to determine whether New Mexico laws targeted for repeal are exempt from referendum under the state Constitution. The ruling by 13th District Court Judge James Noel represents a setback for a coalition of groups who have sought to annul six laws passed this year by the Democratic-controlled Legislature via the rarely-used referendum process. 

Several of those laws, which deal with abortion, elections and gender-affirming care, are set to take effect this week. Toulouse Oliver, a Democrat, ruled after receiving a referendum petition targeting a law prohibiting public bodies from limiting access to abortion services and gender-affirming care that the bill — House Bill 7 — meets an exemption for “public peace, health or safety” of the state. For that reason, she denied the referendum petition. . .

“It is very disappointing that New Mexicans are being misled about the referendum petition process. Toulouse Oliver said. “But I’m pleased to see the court clarify this matter with their ruling in favor of our position that the laws being targeted for referendum are, in fact, exempted from the referendum process.” 

Amen. 

So when do we get back the Republican Party that specialized in economic issues? Is that party gone for good? 

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(c)NM POLITICS WITH JOE MONAHAN 2023