A record $8.47 billion budget that would increase state government spending in New Mexico by nearly 14% in the coming fiscal year passed the House in a vote of 56 against 13 on Thursday after a three-hour debate that largely focused on whether the unprecedented level of spending is sustainable.

The proposed budget, which includes funds to provide raises to teachers, judges and other state workers, as well as what one lawmaker called “transformative investments” across the state, is now before the Senate for consideration.

Although the spending plan received bipartisan support, the 13 lawmakers who voted against the budget bill are all Republicans.

GOP members raised concerns about the roughly $1 billion spending increase and presented an alternative proposal that would have increased spending by about half of what is proposed in the bill. budget, i.e. 7%. The Democratic-controlled chamber rejected the replacement.

Dubbed New Mexico’s working families’ first plan, the GOP proposal called for $802 million in tax relief.

The House-approved bill leaves about $400 million for tax-related initiatives, including measures pending approval by the Legislative Assembly during the remaining two weeks of the 30-day session.

Even the sponsor of the replacement bill, Rep. Jason Harper, R-Rio Rancho, acknowledged that his proposal was dead on arrival.

“I understand that it won’t pass and that we don’t need to spend all our time talking about it when we have the actual bill…which should be the focus of this debate,” he said. -he declares.

However, the debate veered into politics. Critical Race Theory, to be exact.

Rep. Rebecca Dow, R-Truth or Consequences, who is running for governor and has lobbied to ban critical race theory in public schools, introduced an amendment calling on the Department of Public Education not to approve the operating budget of a school offering courses “tied to any theory or ideology that espouses the view” that one race is inherently racist, sexist, or oppressive, or responsible for the oppression of another race.

Democrats also overturned his proposal, voting to table the amendment.

Democrats praised members of the House Appropriations and Finance Committee for what Rep. Moe Maestas, D-Albuquerque, called a “tremendous job” of crafting the budget.

“We are in a completely different world than we were from April 2020, when the pandemic hit the international community and we had to go back and cut budgets lest an economy bottom out,” said Maestas. “This is not the case [for the upcoming fiscal year]. There are robust revenue streams coming into the state.

The budget calls for reserves of $2.57 billion, or 30% of spending levels.

“This budget has the highest reserves we’ve ever seen, so it’s sustainable,” Maestas said. “It’s sustainable.”

When questioned, Rep. Patty Lundstrom, D-Gallup, who chairs the appropriations committee, agreed.

“As part of the credits process, we go through an agonizing process of revenue creation by consensus; we are going through stress tests,” she said. “We’re very, very close to where the economy is going, and at this point, at least for the few years we’re looking at, that’s sustainable.”

The high level of reserves would allow the state to deal with lower-than-expected revenues or other financial challenges, she said.

“The reserve provides a cushion if we run into problems like we did a few years ago in oil and gas, particularly [when] oil prices have fallen,” she said. “We had those funds at our disposal.”

In a press conference before the floor session, Lundstrom said New Mexico has the opportunity to increase spending by 13.8% while maintaining a strong rainy day fund.

“When I talk to the New Mexico constituency, they’d rather see that money put to work than be a reserve account,” she said. “So either we have a 13% spend with a 30% reserve, or we have a 60% reserve with a 6% spend. But I can tell you that with the needs we have in this state, people want that money. They want it to work for them.

Lundstrom said the appropriations committee had a “tremendous opportunity and responsibility” in this year’s legislative session.

“We offer responsible investments in education, public safety, rural communities, our environment, energy and economic development,” she said. “We believe this will lead to transformational results for the people of our state.”

Budget plans record revenue tied to expected tax growth, rebounding oil and gas markets and federal pandemic aid.

But some lawmakers remain concerned.

“I’m just worried that we got a pay raise but we’re spending more than we got in our pay raise and so what that means is we eventually have to go and cut things or take out things,” the House said. Minority Whip, Republican Rep. Rod Montoya of Farmington.

“I was here when we swept our K-12 public school sales, and it was incredibly painful,” he added. “No one wanted to do it, but we put ourselves in a situation where it was one of our few remaining options.”

In addition to needing Senate approval, the budget bill also needs the blessing of Governor Michelle Lujan Grisham, whose office has expressed some reservations about the spending plan.

The governor’s press secretary said earlier this week that the Lujan Grisham administration would “continue to advocate” for a budget that includes additional funding for higher education and public safety, among other areas.

Related