NM Legislative Report Questions The Use of Endowment for Economic Development Incentives

From canadienbusiness.com - SANTA FE, N.M. (AP) - Economic development investments by a state endowment fund have cost New Mexico $12 million a year that otherwise could have financed public schools and governmental services, according to a legislative report released Thursday. With New Mexico facing a budget squeeze, lawmakers seized on the report to question whether the $3.7 billion severance tax permanent fund should continue to make economically targeted investments, such as providing capital for startup companies in New Mexico or interest-free loans to film projects. "We need to make the decision, `Do we want to see this fund grow or live or do we want to have economic development?' I think to combine the two of them is probably not the most prudent thing to do at this juncture," said Sen. John Sapien, D-Corrales. According to the report by staff of the Legislative Finance Committee, economically targeted investments account for more than $400 million, or 11 percent, of the severance tax permanent fund. More here

NM Legislative Report Questions The Use of Endowment for Economic Development Incentives