Rio Grande Foundation “Spend-o-meter” Re-Winds for Start of New Fiscal Year: Will Spin Faster

For further Information, Contact:
Paul Gessing 505-264-6090

(Albuquerque, New Mexico) How fast does New Mexico’s state government spend taxpayer dollars? In FY 2006, the state spent approximately $380 of your money every second. In FY 2007, with total state spending having grown to $12.6 billion, the state will spend $400 per second. Either way, as the spend-o-meter makes clear, New Mexico spends money faster than the human eye can see.

Once again, thanks to the New Mexico Spend-O-Meter, taxpayers and policymakers will be able to see the real-time spending of the State of New Mexico for the upcoming fiscal year, which begins on Saturday, July 1.

As Foundation President Paul Gessing noted, “With its up-to-the-moment numbers, the New Mexico Budget Spend-O-Meter clearly illustrates to New Mexicans just how fast their money is being spent. It also exposes the fact that our state government spends far more money than most of us realize.”

Gessing went on to point out that “Most discussions about New Mexico’s budget focus on the General Fund, which will total $5.1 billion in FY 2007. But, New Mexico’s government will spend more than 12 billion taxpayer dollars.”

According to Rio Grande Foundation calculations, New Mexico’s government is on pace to spend $6,538 for every man, woman, and child in the state. Based on data from the New Mexico Tax and Revenue Department estimating that there are 875,000 tax filers in the state, the state plans to spend $14,409 for each and every tax filer in FY 2007. That works out to over $1,200 every month for each-and-every New Mexican that filed a tax return.

Gessing concluded by arguing that, “New Mexico’s economy would benefit tremendously if our leaders slowed spending growth by eliminating wasteful spending and reforming broken programs like Medicaid and the education system, and used the savings to further reduce the income tax burden.”

The New Mexico Budget Spend-O-Meter is available at the Rio Grande Foundation website, www.riograndefoundation.org. The state data on which the spend-o-meter is based can be found in the “total recurring” column at: http://legis.state.nm.us/LCS/lfc/lfcdocs/2006Addendum.pdf