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Multi-billion Tax $urplus’ yet the State Agency has a Deficit…Why?

  • Post published:June 21, 2023
  • Post category:News
The NM state budget has increased 60% since Governor Lujan Grisham took office. So why does the General Services Department (NMGSD) have a $119 million deficit, which they now want local governments to cover? It’s a good question, especially since the state reported a $3.6 billion surplus going into the 2023 legislative session. The NMGSD deficit relates to a fund for NM state employees healthcare premiums. Now, NMGSD has sent invoices to municipalities around the state with a 60-day deadline to cover the shortfall in the insurance fund. 
Taxpayers often wonder why taxes increase without accountability for where the money is going. Here is an example of where you can bet local governments will be looking for taxpayers to cover the additional healthcare premiums. There is no real answer or accountability from the governor’s office or NMGSD on who is responsible for the ‘deficit’. So NMBC called to speak with the NMGSD Secretary, listed on their website as John Garcia. We learned Mr. Garcia resigned from the position in February. The new Secretary will have their hands full no doubt. When the agency that manages billions of tax dollars can’t even maintain/update their website, it’s no surprise other problems surface too. Read more HERE.

NMBC Commentary

There is a pattern of state cabinet secretaries resigning right before or shortly after very bad news comes out for their area of responsibility. Yet, there is zero accountability and a gracious ‘Thank you for your extraordinary public service,’ press release from the governors office.
It’s not just the situation detailed above. The Department of Workforce Solutions Secretary resigned shortly after NMBC helped uncover illegal policy decisions and over $250 million dollars in lost tax dollars to unemployment insurance fraud. There have been several Public Education Department Secretaries come and go as NM is repeatedly ranked ‘worst in the nation’ for education. Likewise, the Children Youth and Family Department (CYFD) Secretary job has been a revolving door with cases of children who were killed after a lack of action by CYFD to separate the child from a known, abusive situation.
We often hear elected officials in NM talk about all the tax dollars that are growing government dependence: free college, free meals for school children, expanding free healthcare for New Mexico residents regardless of legal status, free childcare, etc. When is the last time you heard an elected official talk about good stewardship of tax dollars, which includes holding appointees who make $125K or more, accountable for their actions and policy decisions?