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Governor's rebate proposal gets tepid response from candidates vying to take her place in 2027

Haaland, Hull both say they prefer more long-lasting approaches to providing financial relief

New Mexico gubernatorial candidates Gregg Hull and Deb Haaland, pictured, have both taken a wait-and-see approach to Gov. Michelle Lujan Grisham's push to authorize a new round of $250 taxpayer rebates.
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SANTA FE 鈥 The two candidates vying to be New Mexico鈥檚 next governor are taking a cautious approach to outgoing Gov. Michelle Lujan Grisham鈥檚 plan for a new round of rebates.

With New Mexico set to get an oil-fueled revenue infusion due to the Iran war, Lujan Grisham recently called on state lawmakers to authorize rebates of $250 per taxpayer.

But neither Democrat Deb Haaland nor Republican Gregg Hull has embraced the $300 million-plus idea, with both candidates saying they prefer more long-lasting approaches to providing financial relief to New Mexicans.

In an interview this week, Hull said he would rather see a gradual elimination of the state鈥檚 personal income tax system instead of another round of rebate checks. There are that do not have an income tax system, including Texas, Nevada and South Dakota.

鈥淵ou can have a short-term check that gives you $250, but the reality is what type of long-term impact is that going to have?鈥 Hull told the Journal.

鈥淲hat I would like to see is a thoughtful approach that would benefit taxpayers long term,鈥 he added.

For her part, Haaland lauded the efforts of the outgoing governor and the Democratic-controlled Legislature to address affordability issues in recent years.

But she also expressed a preference for New Mexico鈥檚 projected budgetary surplus to be used to make more systemic changes.

鈥淚f I鈥檓 elected, I will prioritize lowering costs for New Mexicans by creating long-term investments in more affordable housing, increasing middle-class tax breaks like the working families tax credit and the child tax credit, and healthcare reform that makes it easier and cheaper to see a doctor,鈥 Haaland said in a statement.

New Mexico is the nation鈥檚 second-highest oil-producing state 鈥 behind only Texas 鈥 and the recent spike in oil prices due to the conflict in Iran is projected to mean an additional $825 million flowing into state trust funds. That鈥檚 in addition to another $500 million in projected tax and leasing revenue, according to the Governor鈥檚 Office.

At the same time, many state residents have struggled with the rising cost of gas 鈥 the average cost in New Mexico was $3.79 per gallon as of Wednesday 鈥 and stubbornly high inflation rates.

Given that backdrop, Lujan Grisham said in a recent Journal op-ed that rebates would be appropriate as a way to 鈥渟hare what we鈥檝e collected.鈥 

鈥淲e can afford it,鈥 the governor also said. 鈥淢oreover, it鈥檚 just plain good sense to reinvest in the hard-working New Mexicans who fuel this state鈥檚 economy.鈥

However, Lujan Grisham has not indicated she plans to call lawmakers back to Santa Fe before December for a special session to approve the rebates. Such approval would be necessary since the Legislature is the state government branch with general spending authority.

The governor鈥檚 spokeswoman, Leah March, said Lujan Grisham is 鈥渘ot attempting to dictate how or when this rebate should be considered,鈥 but added the governor believes the proposal should be seriously debated.

Lujan Grisham鈥檚 rebate call has, in fact, already generated responses from some state lawmakers.

House Minority Leader Gail Armstrong, R-Magdalena, questioned why the governor did not push for tax rebates during recent legislative sessions, when the state also had oil-fueled revenue growth.

鈥淔amilies need permanent tax relief, not another one time rebate that conveniently arrives during campaign season,鈥 Armstrong also said.

Lawmakers last approved taxpayer rebates in 2023, though they did vote during this year鈥檚 30-day legislative session to create new tax breaks for New Mexico physicians, local news organizations and affordable housing projects.

Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at @DanBoydNM or reach him via email at dboyd@abqjournal.com.