Martinez threatens furloughs, promises special session

Gov. Susana Martinez criticized the state Legislature heavily Monday, promising to reject a budget sent to her desk and call a special session to redo the budget. She also warned of impending furloughs across state government if a new budget can’t be passed soon. Martinez faulted lawmakers for raising taxes in their budget—specifically gas taxes, auto sales taxes and internet sales taxes—and contended that their plan is not balanced as required under state law. “They overspent our projected revenue by $157 million,” Martinez said at an Albuquerque luncheon sponsored by the state chapter of the National Association of Industrial and Office Properties. “Then they passed a separate bill with $350 million in tax increases and called it a day.”

Budgets that require separate legislation to balance them are not unique—Martinez signed such legislation during a special session last year.

Martinez orders state hiring freeze to save money

Gov. Susana Martinez announced a hiring freeze Thursday, which goes into effect Saturday. The move, announced in a two-page memo to cabinet secretaries from State Personnel Director Justin Najaka, comes as Martinez indicated she will not sign the budget passed by legislators. “It is critical that Executive agencies take immediate action to control spending as we continue to refine the financial impact on state operations due to unprecedented budgetary challenges the State is currently experiencing,” Najaka wrote. Some positions will be exempted from the freeze, according to the memo, including wildland firefighters at the state Energy, Minerals and Natural Resources Department, law enforcement officers and forensic scientists at the Department of Public Safety, tax collectors and auditors at the Taxation and Revenue Department and highway workers at the Department of Transportation. Related: NM’s revenue still hasn’t recovered from pre-recession high

The order asks secretaries to cease recruitment for all other positions not listed in the memo and to notify applicants by March 31, 2017 that the advertisements have been closed.

Martinez, lawmakers end session in bitter standoff over budget

A legislative session that began 60 days ago with calls for bipartisanship to balance the state’s quavering budget ended Saturday with bitterness, acrimony and a promise by Gov. Susana Martinez to bring lawmakers back for a special session to craft a new budget without any tax increases. It would be the third year in a row that Martinez has called lawmakers into a special session to address budget shortfalls and other financial issues, illustrating the continuing discord between the Republican governor and Democrats in the Legislature. This session’s disharmony was particularly notable because it included skirmishes between the governor and some lawmakers of her own party. “Many in the Legislature failed to do their jobs this session,” Martinez told reporters shortly after lawmakers adjourned. “They actually squandered 60 days and cowed to special interest groups.

Santa Fe to have half-day for Roundhouse rally against education cuts

Santa Fe Public Schools will have a half-day today, similar to a “snow day” for students. The projected high today is 70 degrees, so it isn’t for snow. Instead, it’s for a day of action for teachers, parents and students to show opposition to further school budget cuts. Santa Fe Public Schools Superintendent Veronica García announced the decision Wednesday afternoon. Related: Unexplained vetoes rile lawmakers

The governor’s office wasn’t happy, and a spokesman called the plan “despicable,” according to the Santa Fe New Mexican.

Budget, revenue bills head to Senate floor

State Sen. Carroll Leavell broke a personal streak lasting decades by voting Friday for a tax increase. The Republican from Jal, one of the most conservative parts of the state, joined all other members of the Senate Finance Committee in support of a budget for fiscal year 2018 that is balanced only because of new taxes and fees. “This is my 21st year and to my recollection it’s probably the first time” supporting a tax increase, he said after the vote. “We’ve run out of any place else to get money and if someone wants to disagree with me, they can show me how to get it.” Leavell’s comments came after the committee advanced two separate measures.

NM’s revenue still hasn’t recovered from pre-recession high

No one following the legislative session and debate over the state budget will be surprised that New Mexico still isn’t back to peak, pre-recession levels on tax revenue. New Mexico is one of 13 states that still haven’t reached the pre-recession levels of tax revenue collection. The findings come from ongoing reports by the Pew Charitable Trusts of the most recently-available tax revenue data from states. All numbers are adjusted for inflation. New Mexico is one of 32 states that didn’t collect as much tax revenue in the most recently-available data since the recession.

Public school, college leaders warn lawmakers of effects from budget cuts

The superintendent of a small school district in Southern New Mexico told state lawmakers in no uncertain terms Tuesday how a 5 percent or 6 percent cut in his operating budget would affect his district. “Our teachers work very hard to put hope in front of those kids,” Ricky Williams, superintendent of Hagerman Municipal Schools, told members of the Senate Finance Committee. “With budget cuts, you take that hope away.” Williams was one of several district leaders and college presidents who put a human face on the realities of education funding cuts during a three-hour hearing at the state Capitol, which attracted about 150 people — many of them educators. Garrey Carruthers, president of New Mexico State University in Las Cruces, told the committee that colleges and universities may have to hike tuition rates by up to 30 percent to offset budget reductions.

GOP’s Senate leader expects deal on revenue, budget

Senate Minority Leader Stuart Ingle was in office 15 years ago, the only time the Legislature overrode a governor’s veto of the entire state budget. That showdown pitted Republican Gov. Gary Johnson against a Legislature controlled by Democrats. Ingle, R-Portales, said he is confident the impasse this year over spending and tax increases between majority Democrats in the Legislature and Republican Gov. Susana Martinez will not be a repeat of what happened in 2002. He said all parties agree on the priorities. Namely, the state needs to boost revenue to pay for education and day-to-day services included in the proposed $6.1 billion operating budget and stash away more in savings to help its credit rating.

Senate passes gas tax for road fund, but governor vows veto

The New Mexico Senate, hoping to improve state roads and rebuild cash reserves, approved a bill Thursday that would increase the state gasoline tax for the first time in more than 20 years. But the bill has little chance of becoming law. “If it reaches the governor’s desk, she will veto it,” said Chris Sanchez, a spokesman for Republican Gov. Susana Martinez. An override of Martinez’s veto is unlikely because the tax bill received support from only three of the Senate’s 16 Republicans. The measure, Senate Bill 95, would raise about $180 million annually through a range of taxes and fees.

Facing flat revenues, lawmakers prepare for new taxes

State lawmakers say revenues are no longer deteriorating but remain flat, and they are moving forward on a 2018 budget with proposals to infuse new revenue — including tax increases — to balance spending and replenish reserves. A new consensus revenue estimate for fiscal year 2018 was expected to be released Wednesday but was pulled back for more study. Still, lawmakers said they do not expect a significant change from December, when economists were forecasting a $125 million deficit for the 2018 fiscal year, which begins July 1. “I don’t believe there’s going to be a material change,” Sen. John Arthur Smith, D-Deming, told the Senate Finance Committee. A forecast presented halfway through last year’s legislative session showed state revenues cratering from the collapse of crude oil prices.