ALBUQUERQUE — New Mexico governors have great leeway and little oversight in spending a contingency fund tucked into the state budget under a larger amount allocated for expenses of the governor.

The only restriction: The fund must be spent "for purposes connected with obligations of the office."

State law excludes it from being audited.

The fund, which has received as much as $90,000 a year in tax dollars approved by the Legislature, is not like other government appropriations — it's treated as personal income governors must report on state and federal tax forms.

Republican Gov. Susana Martinez, who took office Jan. 1, asked the Legislature to reduce the fund to $6,000 a month. Her office said the fund had been $6,750 a month since April 2009, compared to $7,500 a month from January 2003 to March 2009.

Longtime state Rep. Luciano "Lucky" Varela, D-Santa Fe, said lawmakers have expressed little interest over the years in changing the process.

Senate Republican Leader Stuart Ingle of Portales said the idea was looked at a few times, but the discussions always ended up being political: "Oh, you're trying to cut our guy off."

Governors are required to give only a general summary of how they spent the fund each year.

For 2008, for example, Democratic Gov. Bill Richardson reported spending nearly $139,000, including more than $60,600 for food and beverages, $41,700 for contract staff and nearly $13,000 for "miscellaneous/flowers/kitchen equipment/supplies." The fund began the year with more than $145,800 and ended with a balance of just under $7,000.

A spokeswoman for Richardson, Alarie Ray-Garcia, said the fund received $90,000 a year until Richardson ordered a 10 percent cut in January 2009. Lawmakers boosted the fund from $30,000 to $90,000 shortly after Richardson took office in 2003.

Republican Gov. Gary Johnson reported spending more than $15,200 in his first six months in office in 1995, including nearly $7,300 on reception expenses, $2,600 on the governor's residence and $430 on business meals.

Martinez has pledged to file quarterly rather than annual reports. Spokesman Scott Darnell said the first will be filed at the end of March.

The balance in the fund carries over from year to year, and although governors can keep unspent money as an income supplement, some have returned it.

Richardson refunded $22,000 when he left office.

Johnson refunded a surplus of $203,505. He never spent the budgeted amount, which varied from $30,000 to $80,000 annually during his eight-year tenure.

Johnson, who said he loved the gesture of returning the money, said the fund was essential for official events.

But he complained there was "absolutely no accountability at all."

"I could have taken it as income had I wanted," he said.

Sen. John Arthur Smith, D-Deming, said the fund is meant to give governors "the latitude to promote the state as much as possible."

"The bottom line is they are the governor of our state, and we've tried to be fair," Smith said. "They have expenses most ordinary New Mexicans don't have."




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