Governor urges fiscal responsibility on tax package
SANTA FE – Gov. Michelle Lujan Grisham on Thursday urged the Legislature to re-evaluate the magnitude of the omnibus tax bill now being considered. Following significant changes made on the House floor, House Bill 547 would reduce General Fund recurring revenues by about $1 billion, over a tenth of the state budget.
“Most New Mexicans have stinging memories of past years of painful funding cuts spurred by an imbalanced recurring budget. While this administration has done incredible work to diversify our economy and our revenue streams to protect ourselves from the busts of the oil industry, make no mistake that our state budget remains subject to unprecedented volatility with a high reliance on energy revenues.
Today, I’m worried that the Legislature may have a short-term memory.
The current tax package proposed in House Bill 547 would reduce the state’s recurring revenue by a billion dollars every single year – that’s a full tenth of the entire state budget. That’s on top of the $500 million in broad-based, recurring tax relief that we’ve worked with the Legislature to implement over the last four years.
Put simply: this tax package cuts too deep, too quickly.
I’m with the Legislature: let’s deliver bold, meaningful tax reform – but let’s also protect our future by making responsible choices today. Otherwise, public safety, education, and the other critical priorities we all share may end up on the chopping block.”