The New Mexico Business Coalition (NMBC) is calling for Congress to deny changes to the state’s Land Grant Permanent Fund in a letter to New Mexico’s Congressional delegates on Dec. 20, according to a news release.

“Responsible withdrawals from the LGPF are key to providing for our children’s education in perpetuity,” said Carla Sonntag, president of the New Mexico Business Coalition, in a press release. “It also saves taxpayers approximately $950/year per household in taxes. To increase withdrawal rates and risk our children’s future is irresponsible and would jeopardize the fund.” 

According to NMBC, the amount spent on New Mexico’s educational challenges have not yielded the return on investment promised despite numerous policy proposals and actions. Members believe the answer is direct learning programs that yield beneficial results without violating federal requirements, rather than increasing the rate of LGPF disbursements.

Educational funding in New Mexico increased $5.15 billion from 1995 to 2021, going from $1.45 billion to $6.6 billion, the business coalition said.

“We urge you to vote ‘NO’ on any changes to New Mexico’s Land Grant Permanent Fund (LGPF),” the coalition wrote in a Dec. 20 letter to New Mexico's Congressional delegation. “To change beneficiaries or increase distribution amounts would be detrimental to the fund and future generations. This fund was set up by Congress when New Mexico became a state, and it was designed to serve the recipient’s needs in perpetuity. These proposed changes would most likely endanger the fund.”

Although New Mexico is ranked 14th in the nation for “per pupil” funding, it ranks 51st in the nation for quality of education, falling behind the District of Columbia.

New Mexico is currently taking a distribution from LGPF at a rate of 5%. If changes to LGPF are passed, there would be an additional 1.25% taken out annually. 

New Mexico is currently unable to spend all the money available for education. Many recognize the money is not needed, including New Mexico’s Democratic leadership. On Aug. 26, 2021, Rep. Patricia Lundstrom (D-McKinley), chair of the House Appropriations and Finance and Legislative Finance Committees, publicly stated, “We have more money than we need.”

The Land Grant Permanent Fund, also known as oil and gas extraction tax, was established by Congress in 1912 when New Mexico officially became a state.

“The LGPF is NOT a rainy-day fund; it is an asset depletion fund,” the NMBC said in its news release.