Gov. Susana Martinez signed legislation that reinstates funding to the Legislature and higher education— two things she vetoed during the regular session. Martinez also partially vetoed a bill that would have moved money from other funds into the state’s general fund. In her message, Martinez criticized the Legislature for taking money from fund balances “that do not exist.”
“We cannot balance a budget with funny money,” Martinez wrote. Martinez also vetoed a proposal to increase gas taxes and permits for gas haulers. “I have said since my first day in office that New Mexicans are overtaxed and state government overspends.”
The Legislature is set to reconvene Tuesday to decide whether to override Martinez’s vetoes or adjourn until next year.
Both the House and Senate recessed Thursday afternoon—without officially ending the special session. Now, the governor has three days to take action on four bills aimed at tax changes and reinstating funding to the Legislative branch and institutes of higher education. By recessing until Tuesday instead of adjourning, the House and Senate could still introduce new legislation to replace anything Gov. Susana Martinez might veto. Martinez, in an atypical statement, praised the Legislature for some of their work. “In a bipartisan manner, lawmakers passed my plan to put more funding toward cancer research and student financial aid, while at the same time forfeiting their pork projects and a small portion of their personal legislative retirement accounts to fill the budget hole — something I’ve urged them to do for months,” she said.
A complex tax overhaul bill failed to clear its committee, and that’s going to further complicate the special session in which legislators are supposed to address the budget in New Mexico. Rep. Jason Harper, R-Rio Rancho, presented his 430-page tax overhaul bill Thursday morning. It took him nearly an hour to describe the bill to the House Labor and Economic Development Department. “That in very high-level, broad terms is what is in this bill,” Harper said when he finished describing the bill and how it differed from a similar bill legislators already passed in March. After public comment and questions from the panel, the committee voted 6-5, on party lines, to table the bill.
The House of Representatives passed three pieces of budget legislation Wednesday afternoon and evening with little debate. The first restored funding to higher education and the state Legislature. Earlier this year, Gov. Susana Martinez vetoed the entire budgets for both during the regular session, citing her opposition to tax increases. Two Republicans—state Reps. Jason Harper of Rio Rancho and Rod Montoya of Farmington—voiced concerns for the spending bill.
It isn’t often that a bill that it seems no one likes passes a legislative chamber, but that happened Wednesday afternoon in the Senate with two different bills. The chamber voted 36-3 to pass a bill that would essentially borrow money to balance the budget, something that no senator said they were happy about. Update: Added information on a third bill passed by the Senate
The Senate also passed a tax package on a 25-16 vote that included an increase in the gas tax and the motor vehicle excise tax as a way to shore up depleted state reserves. Borrowing money to balance budget
Senator John Arthur Smith, D-Deming, and Senate Minority Leader Stuart Ingle, R-Portales, each mentioned the idea of using severance tax money to help balance the budget came from the governor’s office. “We do not think it is very responsible, it sets a poor precedent…But in an effort to try and find forward movement with the executive branch, we have swallowed that bill and are willing to do it,” Smith said.
A House panel passed a bill to restore funding vetoed by Gov. Susana Martinez for next year for higher education, courts and the state Legislature Wednesday afternoon. Meanwhile, tax packages that would increase taxes on things like internet sales and gasoline also moved forward. The budget vote came mostly on party lines save for state Rep. Sarah Maestas Barnes, R-Albuquerque, who joined Democrats in supporting it. Maestas Barnes was also the lone Republican to vote for a failed override attempt of Martinez’s budget vetoes earlier in the day. In total, the bill appropriates roughly $765 million—$745 million for higher education and $19 million for legislative offices—for the next fiscal year, which begins July 1.
Attempts to override Gov. Susana Martinez’s vetoes of money for higher education and the Legislature failed in the first hour of the special session. Both the House and Senate moved quickly to attempt the budget veto overrides, a rarity in New Mexico politics. In the House, state Rep. Sarah Maestas Barnes, R-Albuquerque, was the only Republican to join all Democrats in voting for the override. The final vote tally was 39-29; the measure needed two-thirds of lawmakers present, or 45 House members, to vote yes to pass. The motion failed in the House with no debate.
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.
State House Republicans unveiled a spending plan for the upcoming special legislative session that would transfer $12.5 million from the state Legislative Retirement Fund to the general fund to solve the New Mexico’s budget shortfall. Martinez announced the special session will begin Wednesday, May 24. GOP House leaders announced the plan publicly in a press release Tuesday, touting it as a solution to fix the state’s budget issues without raising taxes. “This plan covers New Mexico’s budget needs for the upcoming fiscal year and increases funding for cancer care as well as support for students working to obtain a college degree,” state Rep. Larry Larrañaga, R-Albuquerque, said in a statement. “I urge my colleagues in the Legislature to adopt these proposals so we can resolve this budget impasse fairly and for the benefit of all New Mexicans.”
But the ranking lawmaker in the House Appropriations and Finance Committee questioned whether the Legislature could legally transfer money already invested the retirement fund.
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.