NM voters deserve real accountability on permanent fund draw

That didn’t take long. The ink was barely dry on Gov. Michelle Lujan Grisham’s signature on pulling an additional $2 billion-plus from the state permanent fund for early childhood programs and public schools over the next decade before talk shifted to a familiar refrain on government spending: It’s not enough.

Never mind that even without the extra money, the budget for the next fiscal year spends about $500 million on early childhood programs, up from $136 million in 2012. Or that critics have questioned if the money already allocated can be effectively spent. Or that lawmakers actually diverted some of the funding in the amendment from early childhood — long pointed to by supporters as the driving need for drilling deeper into the fund — to K-12, where it essentially will be spent at the discretion of districts.

Under the proposed amendment, the overall distribution from the fund, which fueled by oil and gas revenues now stands around $22 billion, will be increased from 5% to 6.25%. Of that 1.25% increase, 0.75% goes to early childhood, or roughly $127 million a year. The other 0.50%, or about $85 million, goes primarily to K-12. The initial proposal was to boost the draw to 6% with all new money going to early childhood.

This is new money on top of current spending. The K-12 public education budget just approved is $3.39 billion — a 5.5% increase supplemented by federal stimulus funds.

It should be noted the current 5% distribution contributes significant amounts to the state budget, much to K-12.

Assuming voter approval in 2022, it will be up to lawmakers to decide how to spend the money. Elizabeth Groginsky, secretary of the new Early Childhood Education and Care Department, says needs are “quite enormous.” For example, the additional money would be enough for near-universal pre-kindergarten for 4-year-olds and about half the state’s 3-year-olds. Or $137 million could expand voluntary home visits to another 39,000 families. Rep. Antonio “Moe” Maestas, D-Albuquerque, says increased pay for early childhood workers is needed to build an effective workforce.

Rep. Rebecca Dow, R-TorC, who has a background in early childhood education, would target families who most need help. “I think we’re already spending enough money. We continue to go broad when we really need to go deep.”

On the K-12 side of the ledger, a 2% teacher pay raise would cost about $30 million. Requiring extended learning time programs at every school, say adding 10 days to the academic year and expanding after-school and enrichment programs, would cost about $164 million. Five additional weeks to the school year for K-8? That’s about $223 million. (And performance metrics are gone under this administration, such as the PARCC standardized test given in many grades and as a graduation requirement, A-F school grades and teacher evaluations based in part on student improvement).

The constitutional amendment needs N.M. voters to OK trading future income for more money now. So it is reasonable to demand information on how an additional $200 million a year will be spent and whether anyone will ensure a return on investment. There is no sunset, so this spending goes on with no requirement lawmakers review it.

All against the backdrop of being told it’s not enough. Then again, it never is.