New Mexico Fast Becoming The Land of Taxpayer Disenchantment

(Washington, D.C.) - Today in Albuquerque, New Mexico, the Rio Grande Foundation and Citizens Against Government Waste (CAGW) released the 2008 New Mexico Piglet Book, focusing on government waste, fraud, and abuse in the New Mexico state budget.

New Mexico state spending rose from $3.9 billion to $6.0 billion between 2003 and 2008, an increase of approximately 54 percent.  Pork-barrel spending itself amounted to $341 million in FY 2008 and accounts for 5.6 percent of New Mexico’s $6 billion General Fund budget.  Though state spending between 1995 and 2003 was relatively steady, it exploded under Governor Bill Richardson, rising from $3.9 billion to $6.0 billion.  The Legislative Finance Committee projects that over the next six years revenues will rise by only 10.8 percent so the state is facing challenging economic times and policymakers should heed the calls for spending restraint.  The 2008 New Mexico Piglet Book should serve as a template for reducing spending.  The Piglet details some specific boondoggles, including:

The Economic Development Department (EDD) program, which received $9.3 million in 2008 in order to “build a diverse economy with high-wage, high-impact jobs that provide opportunity and prosperity for the city’s residents, businesses and entrepreneurs.”  EDD features tax credits like the High-Wage Jobs Tax Credit, the Manufacturer’s Investment Tax Credit, New Markets Tax Credit, the Rural Jobs Tax Credit, the Technology Jobs Tax Credit, and the Angel Investment Tax Credit.  It has also lavished subsidies on the film industry, Eclipse Aviation (which recently declared bankruptcy), and Tesla Motors (which vacated New Mexico for greener pastures in California.)  Other examples include:

• $9 million to fund the X-Prize Cup, an annual air and space expo which brings together all sectors of the aerospace industry to demonstrate their capabilities;
• $1.67 million to expand and renovate the New Mexico Farm and Ranch Heritage Museum, which will include a rural life center, a special events arena, and a gallery;
• $500,000 to plan and construct a rail spur and platform at Balloon Fiesta Park in Albuquerque. 
• $280,000 to put on a peace conference in Santa Fe in May, 2007; and
• $250,000 to purchase maintenance equipment for the Riverview golf course in the Central Consolidated School District in San Juan County.