42nd in Financial Stability

42nd in Financial Stability

New Mexico

Strength of Policies:

The Assets & Opportunity Scorecard assesses states on the strength of 12 asset-building and asset-protection policies that help families move along a path from financial insecurity to economic opportunity. For each policy, the Scorecard evaluates states against four criteria that constitute a strong policy.

 

POLICY:  FINANCIAL ASSETS & INCOME

Tax Credits for Working Families

  • New Mexico has enacted a state EITC.
  • The New Mexico state EITC is refundable.
  • The New Mexico EITC is only 10% of the federal credit.
  • New Mexico has enacted a state-level Child and Dependent Care Tax Credit.

POLICY:  FINANCIAL ASSETS & INCOME

State IDA Program Support

  • New Mexico does not provide state support for IDAs.  The state should provide at least $200 in funding per low-income resident; designate a strong state steward to administer the program; allow 15% of funding to be used for administrative costs; and ensure that funding is stable over time.

POLICY:  FINANCIAL ASSETS & INCOME

Lifting Asset Limits in Public Benefit Programs

  • New Mexico has not eliminated the asset test in TANF; the limit is $1,500.
  • New Mexico has eliminated the asset test in Family Medicaid.
  • New Mexico has eliminated the asset test in SNAP.

POLICY:  FINANCIAL ASSETS & INCOME

Protections from Predatory Short-Term Loans

  • New Mexico does not protect consumers against predatory payday lending; the rate cap is 409% APR.
  • New Mexico does not protect consumers against predatory auto-title lending; there is no rate cap.
  • New Mexico does not protect consumers against predatory short-term installment loans; there is no rate cap.
  • New Mexico includes short-term predatory lending in basic consumer protection laws.

POLICY:  BUSINESSES & JOBS

State Support for Microenterprise

  • New Mexico funds microenterprise development or has codified its support in law.
  • New Mexico does not use federal block grant funding to support microenterprise development.
  • New Mexico has not implemented a Self-Employment Assistance program.
  • New Mexico does not provide funding to a State Microenterprise Association.

POLICY:  BUSINESSES & JOBS

Job Quality Standards

  • New Mexico does not have a strong minimum wage policy; the minimum wage is only $7.50.
  • New Mexico does not extend minimum wage protections to all classes of additional workers: agricultural, domestic, home care and tipped workers.
  • New Mexico does not require employers to offer paid family, medical, or sick leave.
  • New Mexico does not expand the federal Family and Medical Leave Act to cover additional workers.

POLICY:  HOUSING & HOMEOWNERSHIP

Foreclosure Prevention and Protections

  • New Mexico homeowners do not have access to judicial review and the state does not offer an automatic low-cost mediation program.
  • New Mexico does not regulate mortgage servicers.
  • New Mexico has limited deficiency judgments to help ensure foreclosed upon homeowners are not burdened with insurmountable debt.
  • New Mexico does not enable land banking to help stabilize communities after foreclosure.

POLICY:  HOUSING & HOMEOWNERSHIP

First-Time Homebuyer Assistance

  • New Mexico provides downpayment assistance through direct grants, second mortgages and resources financed with premium bonds.
  • New Mexico provides direct lending programs to first-time homebuyers.
  • New Mexico funds homeownership counseling.
  • New Mexico does not offer programs to transition low-income renters to homeowners.

POLICY:  HEALTH CARE

Access to Health Insurance

  • In New Mexico, parents with incomes up to 408% FPL are eligible for coverage under Medicaid or other state-funded programs.
  • In New Mexico, childless adults with incomes up to 414% FPL eligible for Medicaid or other state funded programs.
  • New Mexico has simplified at least 4 out of 7 enrollment and retention procedures in both CHIP and Medicaid; it has simplified 6 in Medicaid and 5 in CHIP.
  • New Mexico’s Medicaid program provides comprehensive dental coverage for adults.

POLICY:  EDUCATION

Access to Quality K-12 Education

  • Per-pupil education spending in New Mexico ($11,001) exceeds the national average of $10,591.
  • High-poverty school districts in New Mexico receive 8% more funding than low-poverty school districts.
  • New Mexico has closed teacher licensure loopholes to ensure teachers are qualified.
  • New Mexico has a strong system for teacher evaluation and retention.

POLICY:  EDUCATION

Financial Education in Schools

  • New Mexico does not require students to take a personal finance course.
  • New Mexico does not have content standards for personal finance courses.
  • New Mexico does not require schools to implement content standards for personal finance.
  • New Mexico does not require the testing of student knowledge in personal finance.

POLICY:  EDUCATION

College Savings Incentives

  • New Mexico does not automatically enroll all newborns into the state 529 plan.
  • New Mexico does not match 529 college savings of low- and moderate-income residents or all residents. To improve, the state should provide a match or tax credit that results in meaningful savings by the time young adults are ready for post-secondary education.
  • New Mexico does not minimize all barriers to saving for low-income families; the 529 plan includes fees or service charges, but there is no minimum deposit requirement.