Despite state Supreme Court ruling, Lujan Grisham's administration continues to spend federal funds

Dec. 2—Despite the New Mexico Supreme Court ordering a freeze on federal pandemic aid spending until the Legislature makes appropriations, the administration of Gov. Michelle Lujan Grisham this week paid a $269,000 invoice with the funds.

"This appears to violate the New Mexico Supreme Court's Order and Writ," Linda Bennett, an attorney for State Treasurer Tim Eichenberg, wrote Tuesday in an email to Holly Agajanian, the governor's chief general counsel.

"By 3:00 tomorrow, I expect the money to be returned to the account or to receive an explanation as to why this is not a violation of the Supreme Court's clear and unambiguous Order and Writ," Bennett wrote.

In response, Agajanian wrote Wednesday "the money at issue had been obligated for administrative expenses" before the state's high court issued its order.

"However, [the Department of Finance and Administration] was able to stop the withdrawal with the exception of some payroll money that had already been removed," she wrote.

State Sen. Jacob Candelaria, D-Albuquerque, who filed the lawsuit against the governor alongside Sen. Greg Baca, R-Belen, to settle which branch of government had the authority to appropriate federal funds, said he plans to file a motion to require the governor and Department of Finance and Administration Secretary Debbie Romero to explain why the money was transferred and why they should not be held in contempt of court.

"The Supreme Court's order entered on Nov. 18 — 12 days earlier — made perfectly clear that the governor and no one under her control, quote, 'shall not transfer, encumber, commit, expend or appropriate any additional funds out of the [American Rescue Plan Act] account in the state treasury absent legislative appropriation,' " he said.

"The Legislature did not appropriate the fund transfer that they made on Nov. 30, so this to me is a pretty serious, clear and glaring violation of the Supreme Court's order and makes clear that despite the Supreme Court's order, this administration chose to spend an additional $269,000 out of this fund illegally and in direct violation of the court's order," he added.

Candelaria called it "a level of blatant contempt" for the court's order.

"This administration governs in many ways like the prior administration," he said, referring to former Republican Gov. Susana Martinez. "They want their way. There is no room for debate or discussion, and they will engage in whatever scare, bully and intimidation tactics possible to just get their way."

The governor's press secretary, Nora Meyers Sackett, reiterated the money "was for services rendered and was obligated before the Supreme Court issued its stay."

She wrote in an email, "DFA informed the state treasurer yesterday that it would immediately redeposit the funds, which it has done."

She added, "We will not be responding to the senator's gratuitous invective."

This is a developing story. Stay tuned for updates.

Follow Daniel J. Chacón on Twitter @danieljchacon.