Dependency on Federal Spending Hurts New Mexico’s Economy

New Mexico is more reliant on federal government spending than any other state, and experts agree that is why our state has been especially hard hit by the national recession and the dysfunction in Washington, D.C.

Governor Martinez and reform-minded Democrats are making remarkable progress when it comes to diversifying our economy by working to grow the private sector through bipartisan tax and regulatory reforms.  The last thing we need to do is adopt the same failed job-killing policies championed by our opponents that created this dependency in the first place and made our state’s economy so vulnerable to the dysfunction in the nation’s capital.

Federal Budget Cuts & Dysfunction In Washington Have Hurt New Mexico. “It’s Called Sequestration, But For New Mexico It Should Be Called A Reality Check … The Alarm Bell Has Sounded.  Blame It On Federal Budget Cuts Set Off By The Failure Of Congress Last Fall To Reduce Federal Spending — And The U.S. Senate Going On Three Years Without Passing A Budget.  Although Employment Would Continue To Grow, It Won’t Grow As Fast.  That Means New Mexico Could Have 20,000 Fewer Jobs By 2014 Than It Would Have Had Without Sequestration, According To The University Of New Mexico Bureau Of Business And Economic Research.” (Editorial, “Loss Of Federal $$ Is Wake-Up Call For N.M.,” Albuquerque Journal, 3/17/12)

Top Economists Agree That New Mexico’s Reliance On Federal Dollars Has Hurt Our Economy. “New Mexico’s Economy Seriously Lags The Rest Of The Country, And Slowing Federal Spending Is A Major Reason Why, According To The Head Of The Federal Reserve Bank Of Kansas City’s Denver Branch.” (Winthrop Quigley, “Cuts In Federal Spending Weigh On N.M Economy,” Albuquerque Journal, 11/19/12)

A Poll Found That A Majority Of New Mexican Companies Report That Federal Spending Cuts Hurt Their Businesses. “6 In 10 Of The 252 Companies Polled Last Month Said Federal Budget Cuts Last Year Hurt Their Businesses.” (Nick Pappas, “Poll: Growth Barriers In NM,” Albuquerque Journal, 2/5/14)

The Proportion Of Jobs In New Mexico That Come From The Federal Government Is Very High. “New Mexico’s Per Capita Federal Worker Rate Was 15.22, For The Fourth Highest Rate Among The States.” (Dennis Domrzalski, “New Mexico Tied For Most Dependent On Federal Government,” Albuquerque Business First, 3/26/14) 

Studies Have Found That New Mexico Is More Dependent On Federal Spending Than Any Other State. “In Fact, New Mexico Came In First Place In Two Recent Studies On Washington Spending Per State And Each Year, New Mexico Receives More Than $13,000 Per Person From The Federal Government.” (Rob Nikolewski, “New Mexico: A State Of Dependency,” Capitol Report, 12/30/13)

A Pew Study Found That New Mexico Is The State Most Reliant On Federal Spending. “In September, A Study From The Pew Charitable Trusts’ Fiscal Federalism Initiative, New Mexico Came In First Place As The State Most Reliant On Government Spending.” (Rob Nikolewski, “New Mexico: A State Of Dependency,” Capitol Report, 12/30/13)

George Mason University’s Mercatus Center Also Found New Mexico To Be The Most Dependent On Federal Spending. “A National Survey By Two Researchers At The Mercatus Center At George Mason University Found That New Mexico’s Economy Has The Highest Percentage Of Public-Sector And Government-Contract Jobs In The Country.” (Rob Nikolewski, “New Mexico: A State Of DependencyCapitol Report, 12/30/13)

New Mexico Gets A Lot More Back In Tax Dollars Than It Sends To Washington. “New Mexico Gets $2.83 Back For Every Tax Dollar It Sends To The Government, For The Eighth-Highest Return Among The States.” (Dennis Domrzalski, “New Mexico Tied For Most Dependent On Federal Government,” Albuquerque Business First, 3/26/14)

State Revenue In New Mexico Is Very Reliant On Washington. “Federal Funding Totaled 37.9 Percent Of All State Revenue, Giving The State The 10th Highest Rank In That Area.” (Dennis Domrzalski, “New Mexico Tied For Most Dependent On Federal Government,” Albuquerque Business First, 3/26/14)