Amid record revenue, lawmakers fail to address risk of waste and fraud

Legislative Finance Committee analysts described over reliance on emergency procurement as resulting from mismanagement in their October report. Legislative analysts have repeatedly warned since 2016 that government agencies’ increasing reliance on no-bid contracting puts New Mexico at increased risk of waste and fraud. Their most recent admonition came a month after a state grand jury indicted a former powerful lawmaker for racketeering, money laundering and kickbacks related to a no-bid contract. 

Lawmakers have largely ignored those warnings; in fact, a bill pre-filed for the legislative session starting Tuesday in Santa Fe appears to create new exemptions to the procurement code. Nor is reform a high priority for Democratic Gov. Michelle Lujan Grisham, whose three years in office have been marked by a sharp rise in no-bid contracting. 

“Such an item is not currently an element of the agenda,” said Nora Meyers Sackett, a spokeswoman for Lujan Grisham, who has the power to set this year’s 30-day legislative agenda, as lawmakers are otherwise limited to budget matters. “But the governor’s office will, as always, review and evaluate potential initiatives.” 

Since 2019, Lujan Grisham’s first year in office, her administration has circumvented competitive bidding on at least 886 occasions, approving sole-source and emergency contracts worth more than $796 million, greatly outpacing her Republican predecessor, according to New Mexico In Depth’s analysis of reports from state agencies under Lujan Grisham’s control.

House Republicans benefit most from lobbyist campaign cash

Registered lobbyists and their employer campaign donations made up about 25 percent of what legislative candidates spent during the 2016 election. And most of that money went to House Republicans. Despite that lobbyist largesse, the GOP lost control of the House to Democrats, while Senate Democrats increased their margin. Lobbyists and their employers reported donating more than $2.8 million to candidates and political action committees in 2016. That brings their total for the 2015-16 elections cycle to nearly $4 million, with more than 90 percent of that money going to legislative candidates or partisan PACs.