SANTA FE, N.M. — New Mexico state budget officials project a $150 million to $200 million deficit this fiscal year due to falling oil prices; and advocates say Gov. Susana Martinez's order for a five percent spending cut by state agencies could hurt New Mexico's most vulnerable children.
Critics blame the state's business development policies for putting New Mexico in the hole. James Jimenez, executive director at New Mexico Voices for Children, said the state's kids are already near the bottom in national rankings for overall well-being. And less spending will only make it worse.
"The agencies are under tremendous strain right now,” Jimenez said. “And a big concern is whether or not they have adequate staff to provide the services that people need here in the state."
There's nothing left to cut from programs aimed at improving kids’ lives, Jimenez said. In the most recent KidsCount survey, New Mexico ranked 49th among the 50 states and District of Columbia, in children's education and health and in family economics.
According to Jimenez, the governor is expected to call a special legislative session in the next few weeks to deal with the revenue shortfall. He said state officials need to devise new strategies: an immediate plan to raise additional revenue, and a long-term repair plan for New Mexico's broken economy.
"It's clear - to me, anyway - that we have pursued a rather flawed economic development strategy that hasn't worked for New Mexico,” Jimenez said. "They've tried to use tax cuts as a way of drawing business here, and the evidence shows that that's a pretty flawed strategy."
Current state policies are shortchanging children and families and putting the state's future at risk, he said. Jimenez's solution is to cultivate a healthy and well-educated workforce, which he believes will go much further than tax cuts in attracting businesses with good jobs to New Mexico.
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In the Wyoming governor's new supplemental state budget, the biggest line item by far is wildfire recovery.
Gov. Mark Gordon on Monday gave a virtual speech to kick off several days of agency budget meetings, in which legislators request supplements to the 2025-2026 biennial budget adopted in March.
Gordon noted the historic nature of the 2024 wildfire season, which he said burned 850,000 acres across the state and cost more than $55 million in suppression efforts. The price tag emptied several state coffers, he said, and he requested $130 million be added to the new budget for similar purposes.
"Without further appropriation, Wyoming will not have sufficient unobligated funds to effectively respond to future fires or other potential emergencies such as flooding or rapid runoff or massive winter and spring snowstorms," Gordon contended. "Which as we know are not uncommon to Wyoming."
The funds would also help with recovery efforts after wildfire, such as preventing invasive plant species from taking over burned landscapes and providing assistance to restore lost infrastructure and stabilize watersheds.
Gordon also requested funds to both mitigate past federal actions and prepare for future ones. One example is the federal COVID-era American Rescue Plan Act, designed to fund local governments' infrastructure projects. The deadline for the plans was this year. Many proposed project in Wyoming were delayed, Gordon said, because of "federal deadlines and supply-chain issues." He asked for more than $20 million in mineral royalty grants to fill the gaps.
"The unprecedented influx of federal programs, beginning with the CARES Act, skewed Wyoming's homegrown approach to addressing community emergencies and needs," Gordon argued. "This is the time we can return to the more conservative and direct approach our state is accustomed to."
Gordon also asked for two additional senior attorneys to be funded for the Attorney General's Office to continue challenging federal regulations, which, he said, "hinder our ability to manage agriculture, energy, water and wildlife."
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As President-elect Donald Trump prepares to take office, federal health programs affecting 85 million low-income Americans, including more than 12 million in California, may face cuts to reduce inflation and debt.
As of 2024, California has the largest state Medicaid program in the U.S. Programs such as Medicaid, CHIP, and SNAP could be affected by fiscal tightening in the upcoming year.
Mayra Alvarez, president of the Children's Partnership, told an Ethnic Media panel Medicaid cuts would deeply affect families.
"It's these public programs that are core to helping families meet the day-to-day needs of raising healthy kids," Alvarez contended. "These have been bipartisan programs that have helped our families thrive."
Political experts said Congress is expected to act swiftly on its agenda next year, with key actions likely starting in January, before the presidential inauguration.
Medicaid is funded by the federal government and individual states but each state runs its own program.
Joan Alker, executive director of the Georgetown University Center for Children and Families, who also participated on the panel, said cuts to the program will have widespread effects.
"Medicaid accounts for about 56% of all federal money that is flowing to states, is coming in through Medicaid," Alker pointed out. "If we do see big cuts to Medicaid, that will affect all areas of states' budget."
Key proposals include setting federal funding caps, reducing federal match rates, and eliminating mandatory benefits such as nursing home care. Medicaid advocates are also concerned plans to replace benefits with private insurance vouchers could offer less coverage.
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More than 580,000 Wisconsinites are unpaid family caregivers and they serve as the backbone of the state's long-term care system, and one organization advocating for seniors said the state could do more to acknowledge it.
Family caregivers often go without vital support, even as they provide an estimated 538 million hours of care to loved ones each year, according to AARP data.
Martin Hernandez, associate state director of advocacy for AARP Wisconsin, said while the holidays can bring added stress to their already full plates, times like these are when important discussions should happen.
"This is an opportunity to come together with family and friends and have those open and frank conversations that people should be having about caregiving," Hernandez urged. "Both in the situation they might be currently, but then also planning for the future."
It's estimated caregivers spend on average about $7,000 a year on related out-of-pocket expenses. He noted AARP Wisconsin will ask state legislators to once again consider a tax credit for family caregivers of up to $500 in the next session. A bill in Congress for a larger, federal tax credit for caregivers has sat in a U.S. House subcommittee for almost a year.
Expanding the state's family medical leave law to include up to 14 weeks of paid leave is also needed, Hernandez argued. Eight in 10 caregivers say they juggle interruptions to their work schedules, including having to change their work hours or leave early.
"Oftentimes there's different barriers, whether those are cultural or economic, where people don't necessarily want to see this as a 'transaction' that has to do with their pocketbook," Hernandez observed.
Proponents also hope the state will prioritize the needs of caregivers and the state's aging population as they develop the next state budget, which could include adopting the Medicaid expansion. Wisconsin is one of 10 states to not yet expand its Medicaid program, which would extend eligibility to about 91,000 more residents.
Disclosure: AARP Wisconsin contributes to our fund for reporting on Budget Policy and Priorities, Consumer Issues, Health Issues, and Senior Issues. If you would like to help support news in the public interest,
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