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flag New Mexico dropped a 1% public worker pay raise for 2027 due to prior increases and new health insurance rules, sparking backlash over retention and service impacts.

flag New Mexico lawmakers removed a proposed 1% pay raise for public employees, including teachers, from the 2027 budget, citing prior pay increases and a new rule requiring employers to cover 80% of health insurance premiums for educators. flag Workers and unions say the decision undermines retention and morale amid rising living costs and worsening staffing shortages, warning it could harm public services. flag The change has sparked criticism over inconsistent messaging and long-term impacts on education and state operations.

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