Martinez Eliminated Largest Structural Deficit in State History Without Raising Taxes

New Mexico Has Heavily Relied On Federal Dollars And Is Now “Learning What Happens When Uncle Sam Slows The Flow Of Money.” “This State, Which For More Than A Century Has Relied So Heavily On Federal Government Economic Support, Is Learning What Happens When Uncle Sam Slows The Flow Of Money. … Given The Budget Wars In Washington And, In Our Post-Pete Domenici/Post-Jeff Bingaman Era, The Relative Lack Of Clout Of Our Congressional Delegation, Only The Most Cockeyed Optimist Is Waiting For A Return To The Old Normal Of Growing Employment Courtesy Of The Federal Government. Many Politicians, Business People And Economists Have Argued For Years That New Mexico Needed To Decrease Its Reliance On Federal Spending And Diversify Its Economy, And They Are Absolutely Right.” (Winthrop Quigley, “New Mexico’s ‘New Neutral,’” Albuquerque Journal, 5/20/14)

Richardson Administration Changed Budget Deficit Estimate After 2010 Election From $260 Million to $452 Million:

“New Mexico’s Budget Crunch For The Coming Fiscal Year Could Be $190 Million Worse Than Previously Thought, And Announcement Of The Bad News Set Off Another Fiery Exchange Between The Outgoing Administration Of Gov. Bill Richardson And Gov.-Elect Susana Martinez.”” (Dan Boyd, “Richardson Drops Bomb”, The Albuquerque Journal, November 12, 2010)

  • “Richardson’s Finance Secretary Dannette Burch Said Thursday That Martinez And State Lawmakers Will Face A $450 Million Revenue Shortfall For The Fiscal Year, Starting Next July 1, Just To Maintain The State’s Current Level Of Services.” (Dan Boyd, “Richardson Drops Bomb”, The Albuquerque Journal, November 12, 2010)
  • “That’s A Much Higher Number Than The Legislative Finance Committee’s Earlier Projected Shortfall Of $260 Million.” (Dan Boyd, “Richardson Drops Bomb”, The Albuquerque Journal, November 12, 2010)

“New Mexico’s Budget Deficit Has Been Revised Upwards From An Estimated $260 Million For Next Year Up To $452 Million, According To Outgoing Gov. Bill Richardson’s Financial Expert.” (Rob Nikolewski, “URGENT: NM budget deficit NOT $260 million — try $452 million!”, Capitol Report New Mexico, November 11, 2010)

“Originally, The State Budget Deficit Was Estimated At $260 Million. Then, Shortly After The Election, Gov Bill Richardson’s Budget Experts Came Back With An Estimated Figure Of $452 – A Number That Shocked Lawmakers And Voters Alike. Thursday’s LFC Revenue Estimate Did Not List A Precise Number On The Size Of The Overall Deficit But Sen. Smith Told Us That He Thinks $300 Million Is A Good Ballpark Figure.” (Rob Nikolewski, “The good news? Revenues adjusted upwards $55.8 million. The bad news? We’re still broke”, New Mexico Watchdog, December 2, 2010)

Legislative Council Service and LFC Described Budget Shortfalls In December of 2010:

“Budget Shortfall Estimates For FY 2012 Range From $215 Million To $410 Million.” (New Mexico Legislature Council Service and New Mexico Legislative Finance Committee, “New Mexico Economic Summary”, December 2010)

Many Businesses Did Not Want New Taxes To Fix Budget Deficit:

 “With The State Facing A Budget Deficit Estimated By The Legislative Finance Committee To Be $215 Million — And About Double That By The Governor’s Office — Businesses Know Some Legislators Will Look To Them To Foot The Bill, Speakers At A Recent Economic Forum Meeting In Albuquerque Said.” (Winthrop Quigley, “No Tax Increases, Eased Regulations Lead Off Some Business Wish Lists”, The Albuquerque Journal, December 27, 2010)

Gov. Martinez Vowed To Not Raise Taxes And Opposed Cutting Core Budgets Of Public Schools And Medicaid:

“Martinez Has Vowed Not To Raise Taxes During Her Four-Year Term. She Has Also Said She’ll Oppose Cutting The Core Budgets Of Public Schools And Medicaid, Though Those Items Make Up About 60 Percent Of The State’s Spending.” (Dan Boyd, “”State Budget Cutting Still Looms”, The Albuquerque Journal, December 3, 2010)

Despite Senator Howie Morales’ Ridiculous Claim on the Campaign Trail that No Deficit Existed, Morales Himself Acknowledged the Deficit in 2011 And Advocated that Taxes Be Raised.

“I Don’t Think We Should Tax Our Way Out Of This Shortfall Nor Should We Cut Our Way Out. With This Said, During The Governor’s State Of The State (Campaign Speech) She Said ‘Revenue Generators, Revenue Enhancements, Tax Increases, Call Them What You Want, They Will All Be Vetoed’ This Statement Was Accepted With Much Applause From The Republican End Of The Chambers. I Shook My Head And Knew This Was A Closed Minded (Yet Politically Popular) Approach To Balancing The Budget.” (State Senator Howie Morales, “Letter From State Senator Howie Morales”, Gila Region Community News, Calendar, Forum, February 28, 2011)

  • “There Are Some Tax Breaks That Are Legitimate, But I Also Feel There Are Many More That Could Be Eliminated Or Reduced To Increase Revenue To The General Fund.” (State Senator Howie Morales, “Letter From State Senator Howie Morales”, Gila Region Community News, Calendar, Forum, February 28, 2011)

Morales Even Advocated Kicking the Can Down the Road Again by Using One-Time Stimulus Funds to Avoid Tough Decisions in Closing Deficit

State Senator Howie Morales: “I did ask the governor and met with the governor’s staff earlier this session, there’s about 56 million dollars of unused stimulus money. I felt that this unused stimulus money could go a long way in assisting in helping balance the budget. I do know it is a one-time money. The money wouldn’t be available next year, but it’s my hope, just as last week we found that we’re about 36 million over in our estimation. The economy is bouncing back. We’re bouncing back. So I would really like that option to be able to use unused stimulus money at this time, to help balance the budget and really protect our citizens of the state.” (“Your Legislators: Sen Howie Morales”, KRQGnews Video, 9:05-9:38, Uploaded 03/04/2011, Accessed 04/07/2014)

Gov Martinez Signed Bi-Partisan Budget Compromise That Balanced Budget Without Raising Taxes

“SANTA FE — Gov. Susana Martinez Signed Into Law Friday A Slimmed-Down $5.4 Billion Budget For The Coming Year That Cuts Spending..But Avoids Tax Hikes For New Mexicans.” (Dan Boyd, “Martinez Signs Budget Bill, With Deletions”, The Albuquerque Journal, April 9, 2011)

  • Governor Susana Martinez: “”We did it without furloughing state employees, we did it without decreasing the salaries of state employees and we did it especially without raising taxes,”” (Dan Boyd, “Martinez Signs Budget Bill, With Deletions”, The Albuquerque Journal, April 9, 2011)

“Money To Help Balance The Budget Came From Two Separate Measures Approved By Martinez On Friday.” (Dan Boyd, “Martinez Signs Budget Bill, With Deletions”, The Albuquerque Journal, April 9, 2011)

  • “One Measure Approved By The Governor Reduces Financial Burden On The State By Requiring State Employees And Teachers To Pay More Into Their Retirement Plans — Cutting Their Take-Home Pay. The Other Saves The State Money By Capping Film Production Rebates.” (Dan Boyd, “Martinez Signs Budget Bill, With Deletions”, The Albuquerque Journal, April 9, 2011)

“The Budget Signed By Martinez For The Fiscal Year That Begins In July Trims Total State Spending By About 3 Percent, Or Slightly More Than $150 Million, From Current Levels.” (Dan Boyd, “Martinez Signs Budget Bill, With Deletions”, The Albuquerque Journal, April 9, 2011)

State Senator John Arthur Smith Describing The Balanced Budget: “Pretty Durned Responsible.” (Rob Nikolewski, “A Balanced Look At The Balanced Budget Heading To Gov. Martinez”, Capitol Report New Mexico, March 18, 2011)