A lot of New Mexicans who usually give congressional activity only a passing glance will perk up this week when lawmakers return to DC. The reason? The money in their pockets.

Since the start of the pandemic over 238,000 New Mexicans have filed unemployment claims. Tens of thousands of them are still jobless and receiving regular benefits plus an extra $600 a week in a special federal benefit. But the supercharged benefit is set to expire at month's end--unless Congress reauthorizes it or a lesser amount.

The battle is in the GOP controlled Senate--the House has already approved an extension. The critics think the weekly $600 has dissuaded folks from going back to work. They propose a back to work bonus and are also considering a benefit extension of less than $600.

Combined with regular unemployment checks that average around $300 a week, that $600 has many working class employees taking home $3,600 a month for three months or $10,800. In relatively inexpensive New Mexico that’s enough to cover the rent or mortgage, utilities and other necessities. The funds have also helped prop up the recessionary economy.

BUSY BEAN COUNTERS

The Santa Fe bean counters, fresh off a $2 billion fix in the June special legislative session for the current budget year, are already eyeing the budget for the year beginning July 1, 2021. What these fortune tellers see isn't pretty--another deficit of nearly $1 billion in the now reduced $7 billion state budget.

That's another reason why New Mexico's eyes are on the Capitol this week. Congress will debate whether to approve direct cash payments to deficit-ridden state and local governments to ease the downturn’s impact.  If they do, there's a good chance that our little corner of the world will get something in the $1 billion area--enough to cover the forecast deficit, or even more if the bean counters prove overly gloomy.

There's more econ news. Federal eviction protections are set to expire July 25. That could mean an increase in the already burgeoning homeless population, especially in ABQ. The good news is that the NM Supreme Court on March 24 ordered a temporary moratorium on evictions for an inability to pay rent. The court order remains in effect until "amended or withdrawn."

There is a glimmer of good news to push back against the Gloomy Gus scenarios, but just a glimmer. Instead of  a $100 million deficit in its annual $377 million budget, the city of Santa Fe could see that drop, says City Councilor and Finance Committee Chair Roman "Tiger" Abeyta:

Initially we expected GRT to drop by 25 to 30%. But the April numbers show that it was actually closer to a 19% drop. . . I don't think we're going to see a $100 million deficit. . . maybe we're looking at $70 to 80 million as opposed to $100 million, so there's going to be an adjustment…We are going to have to continue to readjust the budget throughout the year because with COVID-19 we have no idea what's going to happen.

Wiser words could not be spoken: “We have no idea what's going to happen." And that goes for. . .well. . .everything.