SANTA FE – Leading New Mexico lawmakers on Monday proposed a 5.5 percent increase in spending on teacher pay with minimum salary raises of as much as 13 percent as they grapple with a court order to increase resources to improve learning opportunities for students from minority and law income households.
Unveiled on the eve of a 60-day legislative session, the budget proposal from the Legislative Finance Committee would increase overall, annual state general fund spending by 11 percent, or $673 million, to $7 billion for the fiscal year starting July 1.
More than 60 percent of the increase in general fund spending – $417 million – would go toward public education. New Mexico’s school districts and charter schools rely primarily on state funder for operations and facilities.
That proposed increase includes major investments in pre-school, spending directed at at-risk students and a five-week extension to the school year for many elementary schools.
Pay changes for educators include minimum salary increases for teachers as they advance through three certification levels, and a 5.5 percent overall spending increase on teacher pay. Base pay for mid-career teachers would increase by more than 13 percent, from $44,000 to $50,000.
The budget proposal also would devote $373 million to roadway and construction projects without borrowing money, part of effort to diversify an oil-dependent state economy.
“As we reform education, increase education funding, we will be making wise investments of this money so that five, 10 years from now we are closer to a diversified revenue stream for our state so that the reforms in education can be sustained year after year,” said Democratic House speaker Brian Egolf of Santa Fe.
Egolf and other leading Democratic lawmaker said they were confident the outlined spending changes will help resolve a lawsuit by parents and teachers who have turned to the judiciary to resolve frustrations with educational funding and attention to minority and low-income students.
Major provisions of educational spending include a $113 million increase on spending directed at at-risk students. Another $90 million would go toward extending the school year by five weeks at many elementary schools.
The budget plan mirrors many of the major spending initiatives outlined by Democratic Gov. Michelle Lujan Grisham last week, though lawmakers have taken a slightly more austere approach.
A surge in oil and natural gas production in the state’s southeastern corner has provided state government with a multibillion-dollar windfall in income. State revenues are expected to surpass current annual spending obligations by $1.1 billion for the fiscal year starting in July – or 17 percent of the current annual general fund budget.
Many lawmakers say they are wary of committing more money from the state budget surplus immediately to initiatives that must be sustained year after year, for fear of a downturn in the state’s oil-dependent economy.
“That windfall also throws up a flag of caution,” said Sen. John Arthur Smith of Deming, Democratic chairman of the Senate Finance Committee. “Forty-five cents out of every dollar we appropriate is coming from oil and gas. ... We have an awful lot of eggs in one basket.”
