NM’s $10.8B budget fiasco: Climate change, beavers, cash for illegals + more

The New Mexico House of Representatives has approved a state budget proposal valued at $10.8 billion—an amount that, if enacted, would mark the largest in state history with nearly a 6% increase over last year’s record spending. While proponents argue that the budget is designed to invest in key priorities, critics say it represents a bloated and fiscally irresponsible expansion.

According to House Appropriations and Finance Committee Chair Rep. Nathan Small (D-Las Cruces), the proposal builds on the Legislative Finance Committee’s recommendations by adding significant, recurring investments in areas such as education, public safety, economic development, and water protection.

“I think we can all agree that those are key priorities for all New Mexicans,” Small stated during a news conference ahead of the hearing. He maintained that these investments would have an “immediate impact for New Mexicans and set us up for sustainable growth in the long run.”

Under the plan, the Public Education Department would see a 6% funding bump, while Higher Education would gain nearly 3%, and Early Childhood Education and Care would receive an over 21% increase. The state remains the worst in the country in terms of higher education despite massive funding bumps to education budgets.

Other departments—such as the new Health Care Authority and the Energy, Minerals and Natural Resources Department—are slated for double-digit growth. Furthermore, public safety, corrections, and legal services are among the areas set to receive recurring increases, and state employees could expect an average raise of 4%.

Yet behind the fanfare of “transparent and collaborative” budget-making—Small even hailed it as “the most open, transparent and collaborative budget ever” and emphasized that “if you’re a rancher in Raton, this budget’s for you. If you’re a 6th grade student at Seboyeta Elementary, this budget’s for you. If you’re worried about affordability and access to health care in Albuquerque and any other part of the state, this budget’s for you”—there is a growing outcry over the sheer magnitude and scope of the spending.

A GOP substitute, introduced by Rep. Cathrynn Brown (R-Carlsbad), sought to pare back the proposal by cutting $1.5 billion in what she called “low-priority” one-time spending. Her version aimed to bolster state reserves further and redirect record oil and gas revenues directly to residents in the form of $600 payments. However, Democrats quickly criticized her plan for slashing investments in climate change and free housing for vagrants, among others.

Despite the contentious debate, the House approved the budget by a vote of 50 to 18, with the proposal now moving to the Senate and eventually to Governor Michelle Lujan Grisham for potential line-item vetoes.

Adding to the chorus of fiscal alarm, Rep. John Block (R-Alamogordo) and Piñon Post editor took to Twitter to lambaste the budget, including its over $31.2 million allocated for climate change, $3.5 million for American beavers, over $600,000 for illegal alien programs on state college campuses, $35 million for paid family and medical leave funding, and more. His tweet read:

Critics argue that the lavish spending priorities, including what they describe as extraneous allocations for “culturally competent healthcare” and unconventional items like conserving the American beaver, reveal a troubling disregard for fiscal restraint. While advocates insist that these investments are critical to New Mexico’s future, opponents see the budget as an unnecessary and unsustainable expansion of state expenditures—one that places excessive burdens on taxpayers in the name of “progress.”