Do New Mexico tax breaks work? It’s hard to tell in expenditure report

New Mexico lawmakers this week looked at a report that shows how much money escapes government collections due to tax breaks approved over the years. As lawmakers and the governor continue to examine how to reform New Mexico’s tax code, it’s timely. 

Called a tax expenditure budget, the report details more than a hundred tax deductions, credits and exemptions, how long each has been on the books, why they were enacted, and whether they achieve their desired result. (Need a primer on what a tax expenditure budget is? See our special report in 2016). 

While the report is the size of a small book and would take more than an afternoon to read, lawmakers complained it didn’t have enough information, per Dan McKay at the ABQ Journal. 

And they’d have a point. There’s no data for some of the listings, and much of the report has limited usefulness for evaluation purposes. Many items have brief evaluation paragraphs with little information, or in some cases, simply the word “none.” 

More information about how government policy is made and whether it’s meeting intended goals is always better than less. 

Not only is this tax expenditure report incomplete, however, the data it contains isn’t as accessible to the public as it could be. 

For example, if you go to the National Conference of State Legislatures website, you’ll find a nifty tool: a searchable database of tax breaks for every state.

New Mexico lawmakers cautious on early childhood funding, even though cash rich

Lawmakers want to pump hundreds of millions more into public education this year, but advocates and some lawmakers say too little is going to early childhood programs that serve children under the age of five, and continue to argue the state needs to tap New Mexico’s permanent land grant fund. Over the past decade, how much to increase the state’s investment in such early childhood programs has aroused deep passions among advocates and lawmakers. Nothing has changed in 2019. According to a legislative analysis, the Legislature is proposing to spend $125 million more for early childhood programs for the year that starts July 1, but most of that is made up of a $90 million increase to K5 Plus, a program for children aged 5 and over. The Legislative Finance Committee describes New Mexico’s early childhood care and education as running from before a baby is born to when he or she reaches 8 years of age.