NEW YORK: Republican Gov. Susana Martinez and the Legislature decided this year to pour tens of millions of dollars more into wooing businesses and spurring job creation, an infusion that New Mexico’s top economic development official said will help make the state even more competitive.
“It’s an arms race in economic development. Everybody is chasing that bright shiny ball out there,” Economic Development Secretary Jon Barela told lawmakers during a Legislative Finance Committee meeting in Albuquerque.
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The key, he said, is balancing the incentives offered to private companies with the revenues and jobs those businesses promise to create.
New Mexico already spends close to $470 million annually on tax incentives and other programs aimed at boosting economic development. While the economy is growing faster than in recent years, legislative analysts say the state has seen little growth in jobs despite the “full toolbox” of incentives provided by lawmakers.
New Mexico has had 33 straight months of job growth, but the rate of that growth continues to lag behind neighboring states and the nation as a whole, according to labor statistics.
Rep. Luciano “Lucky” Varela, D-Santa Fe, said he’s disappointed in the numbers, particular for rural areas in northern New Mexico.
The fight over incentives, taxes and job creation will only become more politicized in the coming election year, Varela said.
“I don’t have high expectations that we’ll do better in New Mexico,” he said.
Barela dismissed Varela’s pessimism, saying New Mexico is now in the top half of the nation when it comes to wage growth and is ranked No. 1 in the country when it comes to the growth of trade-related jobs.
