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New Mexico Revenues and Expenditures: A Mid-Recession Snapshot Only two other states had a employment picture more dismal than New Mexico's this June. With unemployment at 8.2 percent—and likely to be as high as 6.3 percent until 2015—New Mexico has a ways to go before its recovery from the recession is complete.
The Great Recession: How New Mexico Workers Are Faring The ′Great Recession′ has hammered New Mexico workers hard, but not all job sectors have suffered equally. The sectors that grew rapidly in the pre-recession years—namely construction and mining—also fell the hardest after the housing and energy bubbles burst in 2007. But some sectors have actually gained jobs. Ethnicity and gender have also been factors in how workers are faring.
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New Mexico's Economy and the Recovery Act The American Recovery and Reinvestment Act of 2009 hasn't been in effect long, but it's already had a positive impact on the state's economy. New Mexico's economy will continue to improve as the rest of the $3.381 billion share of the stimulus funds creates as many as 10,000 jobs.
Potential Revenue Generators Why the state should take a balanced approach to solving the budget shortfall.
Economic Development Tax Credits in New Mexico: Are They Doing the Job? Every year the state gives out tens of millions of dollars in economic development tax credits. Whether these incentives are a good investment, however, is unknown because the state does not study their economic impact.
Updated! Tax Increment Development Districts (TIDDs) FAQs Is this use of tax money to pay developers for building public infrastructure an appropriate incentive or a developer give-away? Answers to frequently asked questions.
- Download TIDD FAQs (Updated Jan. 2009; 4 pages; pdf)
Updated! Corporate Shell Games: How Wal-Mart and Others Shield Their Profits from New Mexico Taxes The state of New Mexico is losing millions in corporate income tax every year because of a flaw in the state's tax policy. The policy benefits major multi-state corporations and puts locally owned businesses at a disadvantage.
- Download the report (Updated Jan. 2009; 6 pages; pdf)
- Download the quick facts on unitary combined reporting (pdf)
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New Mexico’s Revenue Crisis: State Revenues and the Economy, FY08 to FY13 The consensus revenue forecast presented in December 2008 shows New Mexico in the grip of a crisis. New Mexico’s general fund revenues have fallen below the level they were in fiscal year 2008 (FY08), and this trend is expected to continue through FY11. The revenue level of FY08 will not be sufficient to maintain the current level of services, such as health care, public safety, and K-12 educational programs.
The Economic Impact of Increasing Food Stamp Utilization by New Mexico Families Just over 60 percent of the New Mexico families with children that qualify for Food Stamps receives them. Raising the rate of utilization to 80 percent would bring more than $40 million in federal funding, which would create more than $42 million in new economic activity and create more than 900 jobs.
Medicaid: An Integral Part of New Mexico's Economy Medicaid is good medicine for New Mexico. Besides the benefits of keeping some of our most vulnerable populations healthy, Medicaid also boosts our economy. The federal funds that Medicaid injects into the state translate into job creation and billions in related economic activity.
State of Working
New Mexico 2008 New Mexicans have seen their personal income rise faster than the national average over the past few years. Job growth has also been strong, but both seem to have peaked and are now slowing. Those and other indicators of workforce well-being are updated in this annual report. Released in cooperation with the Economic Analysis and Research Network (EARN).
Immigrants and the New Mexico Economy: Working Hard for Low Wages The current debate over immigration – and particularly over immigrants without legal residency status – often centers on whether or not this group of people contributes to the economy or diminishes it. This report shows that not only are immigrants here to work, they are represented in the workforce in greater percentages than are U.S.-born citizens. They also receive government safety-net assistance at half the rate of the native-born.
New Mexico's Revenue Forecast: The Coming Drought The Legislative Finance Committee's 2008 Post Session Review estimated that a baseline budget will need to grow by about 3.4 percent per year, but expected revenue growth will not be enough to meet baseline levels starting in FY 2010.
The Federal Economic Stimulus Package and the New Mexico Impact While the stimulus package was created and passed quickly, it is inadequate and will eventually have a negative impact on state budgets.
2007 State of Working New Mexico This annual report looks at employment factors in New Mexico from wage and income levels to the quality of jobs, unemployment rates, and more.
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Revenues in New Mexico: The Five-Year Path to a Revenue Squeeze Why the trajectory of New Mexico's general fund revenue growth during the Richardson administration will lead to budgetary problems.
Tax Expenditures and General Sales Taxes in New Mexico Tax expenditures are a way for the state to "spend" money indirectly by allowing exceptions to the ordinary tax code. This paper, a follow-up to the 2006 "Moving Toward Revenue Policy Transparency Policy" paper (below), shows how tax expenditures have become a significant drag on the revenue-producing capacity of the general sales tax in New Mexico.
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Expand Opportunity to All New Mexicans: Raise State Minimum Wage to $7.50 Indexed to Inflation New Mexico has the largest portion of hourly paid workers in the United States that survive on minimum wage. Raising the minimum wage to 7.50/hour would increase the economic opportunities of working adults in New Mexico and help reduce poverty.
An Economic Success Story: Job Growth and Poverty Reduction in States that have Raised the Minimum Wage A comparative study of states reveals that raising the minimum wage promotes steady job growth and reduces poverty.
Moving Toward Revenue Policy Transparency in New Mexico Every year in New Mexico, hundreds of millions of dollars worth of tax cuts, credits and incentives, known as "tax expenditures," go to individuals and businesses through exceptions to normal tax law. But because no one is required to keep track of the combined annual cost, they've ballooned into a $5 billion annual giveaway.
- Download the report (Sept. 2006; 12 pages; pdf)
- Download the PowerPoint (Mar. 2006; 7 slides; pdf)
- Download the press release (pdf)
- Link to New Mexico Business Weekly news coverage
2006 State of Working New Mexico This annual report looks at employment factors in New Mexico from wage and income levels to the quality of jobs, unemployment rates, and more.
Undocumented Immigrants in New Mexico: State Tax Contributions and Fiscal Concerns Estimates how much undocumented immigrants pay the state in gross receipts and property taxes and how much undocumented immigrant children cost the state in K-12 educational services.
Workforce Environment Index—New Mexico and Neighboring States Ranks the states on a set of measures such as job quality, job opportunities, and workplace fairness that describe what the environment is like for working people.
- Download the report (March 2006; 8 pages; pdf)
The Path to a High Road Economy: Investing in People, Creating Opportunity A report of the Working Poor Families Project, it looks at everything from work supports (from adult basic education to health care for all) to economic development incentives.
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2005 State of Working New Mexico This annual report looks at employment factors in New Mexico from wage and income levels to the quality of jobs, unemployment rates, and more.
The Social Infrastructure and Economic Development in New Mexico Every year, our state budgets tax dollars to support social infrastructure programs. This report explores the benefits of social infrastructure in terms of job creation and economic development that the public rarely sees. It suggests that social infrastructure is a key ingredient of successful economic development and should not be ignored.
- Download the report (July 2005; 53 pages; pdf)
State Tax Policy and Child Poverty in New Mexico Based on average
poverty rates over the years 1995, 1996 and 1997, the U.S. Census Bureau reports
that the state of New Mexico had the highest rate of poverty of any state in the
nation. Children in particular suffer the long-term effects of growing up in poverty.
This paper presents the results of simulations conducted for several proposed
tax-based programs designed to decrease child poverty in New Mexico.
- Link to the report (July 2005)
Faulty Foundations: State Structural Budget
Problems and How to Fix Them Tax cuts passed in 2003 have made New Mexico's budget overly reliant on revenues from the extraction of oil and natural gas. As this is an unstable revenue source, the state budget is at risk. By the Center on Budget and Policy Priorities.
Tax Effort in New Mexico: Need for a Fair Tax System The 2003 personal income tax cuts made New Mexico’s tax code much less progressive. This report explores the ramifications of regressive tax policy, and argues the need for a more progressive tax policy in New Mexico.
- Download the report (April 2005; 3 pages; pdf)
Who's Minding the Store? New Mexico's Income Tax Cut: Poor Performance, Wrong Choice The personal income tax cut in 2003 promised to produce noticeable results in public infrastructure and job growth. This report explores how tax cuts damage the state budget and avoid transparency.
Social Security: What it Means to New Mexico Sixteen percent of New Mexico’s population relies on Social Security benefits. Social Security does not exclusively benefit the elderly, but also assists the disabled and those who have lost the family bread-winner. This report examines the financial dilemma of Social Security, its proposed solutions, and its positive effects on the New Mexico economy.
Personal Income Tax Cuts Do Not Equal Economic Growth This report demonstrates how New Mexico’s personal income tax cut falls short of its promise of job growth and economic development.
Social Security Essentials Stats on who gets Social Security benefits in New Mexico by county, compiled by the Economic Policy Institute.
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2004 State of Working New Mexico This annual report looks at employment factors in New Mexico from wage and income levels to the quality of jobs, unemployment rates, and more.
New Mexico's Personal Income Tax Cut: What it Means to You Because of the personal income tax cut, the state will collect $350 million less in taxes each year. This revenue crisis has lawmakers cutting funding for social services.
- Download the report (March 2004; 2 pages; pdf)
