The Legislature asked a state district court Monday to invalidate 10 vetoes by Gov. Susana Martinez of bills state lawmakers passed during this year’s regular session. The petition filed with the First Judicial District Court in Santa Fe came after the Legislative Council voted to approve it earlier this year. A spokesman for the governor said the legal challenge is “another example of out-of-touch Santa Fe trial lawyers wasting time and taxpayer money going to court when they don’t get what they want.”
Democrats say Martinez violated the state constitution by not explaining why she vetoed the 10 bills. The complaint describes the two categories of vetoes: Half of the bills were vetoed within three days after being presented to the governor. But the governor did not include her “objections” as required by the state constitution.
In a letter to New Mexico’s legislative leaders yesterday, State Auditor Tim Keller summarized the state’s largest tax breaks and their distribution by size. About half of the revenue that the state does not collect as a result of tax breaks comes from three sources: extractive industry tax breaks, two broad gross receipts tax breaks and the exemption of nonprofit organizations from gross receipts taxes. Tax exemptions for a range of extractive industries, such as mining and drilling, comprises 27 percent of all tax breaks and total nearly $400 million. Compiled by the Office of the State Auditor, the data came from the New Mexico Tax and Revenue Department. But finding it was not easy.
Questions on what can be accomplished during a special session linger even as legislators head to Santa Fe today. The main priority for legislators is a budget. Legislators must pass a new budget after Gov. Susana Martinez vetoed the entire budgets of higher education and the Legislature. If a new budget isn’t passed before the start of the next fiscal year, which begins on July 1, New Mexico community colleges and universities will have no money. But Martinez also wants legislators to address a massive tax overhaul and confirm two University of New Mexico regents.
The New Mexico Supreme Court denied the Legislature’s lawsuit against Gov. Susana Martinez for her line-item budget vetoes, saying that the case is “not ripe for review.”
Their denial was announced Thursday morning, a day after the Legislature filed its response to the governor’s filing. All five members of the Supreme Court concurred with the order. Now, legislators and the governor will have to battle over the vetoes in a special legislative session, which Martinez called to begin on May 24. Note: This is a breaking news story and more information will be added as it comes in. The Legislature sued over line-item vetoes of the entire legislative and higher education budgets.
Gov. Susana Martinez officially called the state Legislature into a special session beginning at noon on May 24 to draw up a spending spending plan for the coming fiscal year, among other issues. The special legislative session is set to occur roughly one week after the state Supreme Court hears oral arguments in a case from the state Legislature challenging several of Martinez’s line-item vetoes on the budget passed earlier this year during the general session. Martinez’s actions included vetoes of the entire budgets for higher education and the state Legislature. Note: This is a breaking news story and more information may be added. In the proclamation, Martinez says there is “an essential and immediate need to enact a more responsible budget for the New Mexico higher education institutions and the legislative agencies that are provided for in state statute to assist New Mexico’s voluntary legislature for Fiscal Year 2018.”
Gov. Susana Martinez still hasn’t set a date for a special session, but just put another big item on the plate for the Legislature. Martinez said Thursday in addition to fixing the state budget, she wants legislators to act on tax reform. Currently, the budget has no money for higher education or the Legislature for the fiscal year beginning July 1 due to the governor’s line-item vetoes. According to the Albuquerque Journal, Martinez described an overhaul of the state’s tax code as “both a short-term and a long-term solution.”
Martinez announced the effort at the annual New Mexico Tax Research Institute Policy Conference in Albuquerque. Martinez has called for a quick special session in the past, saying she hopes legislators can come together in agreement before legislators convene.
The Legislative Council’s attorney in the lawsuit against Gov. Susana Martinez is stepping down from the case, just a day after the state Supreme Court agreed to hear oral arguments on the case. The case is challenging Martinez’s line-item vetoes to a state budget passed last month by the state Legislature. Late Monday, Thomas Hnasko filed a motion to withdraw from the case, which lists Martinez and Department of Finance and Administration Secretary Duffy Rodriguez as defendants. Hnasko is recusing himself because of a “perceived conflict of interest” and a request from the Risk Management Division of the state General Services Department. The motion says other attorneys at Hnasko’s firm, Hinkle Shanor LLP, “have been retained by [Risk Management] to defend designated state entities and employees against monetary damage and equitable claims asserted against those entities and employees.”
In a joint statement, Senate President Pro Tem Mary Kay Papen, D-Las Cruces, and House Speaker Brian Egolf, D-Santa Fe, said they believed there was no conflict.
The New Mexico Supreme Court scheduled oral arguments in the lawsuit filed by the state Legislature against Gov. Susana Martinez over some line-item vetoes she made to the state budget. The oral arguments will take place May 15 at 9 a.m. Ahead of this, the court ordered the governor’s office to submit a response to the suit by May 5. The Legislature will be allowed to file a reply by May 10. Also, the court asked the New Mexico Council of University Presidents to file a brief as part of the lawsuit by May 5. At issues are two large line-item vetoes Martinez made to the budget, one cutting the entire higher education budget and the other cutting the entire budget of the Legislature.
The New Mexico Legislature filed a lawsuit against Gov. Susana Martinez Friday morning. The suit accuses Martinez of violating the state constitution when she vetoed the entirety of the budgets for the state Legislature and all higher education in New Mexico. Filed by the Legislative Council’s lawyer Tom Hnasko, the lawsuit calls the line-item veto of legislative funding an “attempt to eviscerate the ability of the other branch [of government] to perform its essential functions.”
In his filing, Hnsako asks the court to invalidate Martinez’s line-item vetoes of both the Legislature and higher education. “They’re suing the Governor because they want to raise taxes, and she’s the only one standing in their way,” Martinez spokesman Michael Lonergan said in a statement. “It’s disappointing because it shows a refusal to compromise as this is nothing but an attempt to bully her by short-circuiting the legislative process before a special session.
Gov. Susana Martinez’s veto of the entire higher education budget is getting national attention. First, the Washington Post covered the veto earlier this week. Now, the Chronicle of Higher Education weighed in with a story. Martinez has said the veto was necessary to balance the budget, even as she says the budget—including higher education funding—will be addressed in an upcoming special session. The Washington Post analysis said the veto meant “nothing good” for students, adding the impasse could lead to “significant tuition increases at public universities.”
The newspaper cited a study by the Center on Budget and Policy Priorities that found, when adjusted for inflation, higher education funding in New Mexico dropped by 32.2 percent since the Great Recession, the third-largest such drop in the nation.