Legislative Update
12 February 2004
Number 04- 02
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As we enter the final days of the Third Session of the Legislature under the Richardson Administration, it is appropriate to pause and reflect on the spending and tax score-card to this date. Here are the figures from the Richardson initiatives that come from the combined totals of Session One (ended March 2003) and the Second Session (the special session that ended November 2003). These numbers represent the tax or fee, or forced revenue figures for Fiscal Year 2005. The amounts are based on laws passed in the Regular Session, January-March 2003 and the Special Session, October-November 2003. They do not reflect any additional taxes, fees, or reductions, if any, that may be passed during the ongoing 2004 Regular Session.
First Full Year Totals (Regular and Special Session)
Net Tax Increases for Fiscal Year 2005
|
Cigarette tax (@70cents/pack) |
$ 47 Million |
Total New Tax, first Full Fiscal Year: $ 182 Million
Net New Forced Revenues to the general Fund:
|
Raid Tobacco Permanent Fund Raid |
$ 37 Million |
Total New Forced Revenues(1st FY): $ 115 Million
Grand Total New Taxes/Forced Revenues: $297 Million
(1st Full Fiscal Year):
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Tax relief in First Full Year, Fiscal Year 2005:
|
Income Tax Reduction |
$ 72 Million |
Tax reductions totals = $ 108 Million
Net INCREASE in taxes for F Y O5 = $ 74 Million
Net INCREASE in tax/forced revenue: $ 189 Million
[Source: Legislative Council Service, Janet Peacock, Economist, Legislative Fiscal Analyst]
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As we published in the last Legislative Update, the figures for the first year of the Richardson Administration are reprinted below. Keep in mind that New Mexico's Fiscal Years are from 1 July to 30 June. Governor Richardson's first year in office began on January 1, 2003, but the first six months of that calendar year were part of Fiscal Year 2003 which was the responsibility of the legislature and former Governor Gary Johnson.
Here are the figures for Fiscal Year 2004 (July 1, 2003 through June 30,2004):
Net Tax Increases for Fiscal Year 2004:
|
Cigarette tax (@70cents/pack) |
$ 43 Million |
Total New Tax, FY 2004: $ 120 Million
Net New Forced Revenues to the general Fund, 2004:
|
Amendment 2, Raid of Perm Fund (FYO4 portion only) |
$34 Million |
Total New Forced Revenue, FY 2004: $ 71 million
Total FY 2004 New Tax/forced Revenues: $191 million
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Tax relief in FY 2004:
|
Income Tax Reduction |
$17 million |
Tax reductions totalled = $ 46 million
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Net INCREASE in taxes for Fiscal Year 2004: $ 74 million
Net INCREASE in total forced Revenues, FY 2004: $ 145 million
Note: It is true that tax relief from income tax reduction
may in fact reach $360 million for 2008 if it stays in place until
then. Remember, however, that no legislature can bind another legislature,
so it may be repealed at any time.
In summary, during Governor Bill Richardson's first year and a
half (not counting legislation he has called for this session but
has not yet been completed) a total of $302 Million in new taxes
have been enacted and collected. Counting raids on "permanent
funds" total new forced revenues enacted and collected have
soared past $ 488 Million. Total tax reductions during the same
18-month period are $154 Million. The citizenry is upsidedown to
the tune of $ 334 Million.
Net tax increases over tax relief stands at $148 million.