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.”
Even the woman in charge of higher education in New Mexico didn’t have input on the governor’s veto of the entire higher education budget. Higher Education Department Secretary Barbara Damron said Gov. Susana Martinez did not consult with her before making the vetoes, according to the Albuquerque Journal. Damron made the remarks in a speech to the Economic Forum of Albuquerque this week. The governor vetoed the entire higher education budget, saying it was necessary to balance the budget, which became unbalanced when she vetoed a package that would have raised some taxes and fees. Martinez said the higher education budget could be solved in a special session.
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.
The final pieces of a 2018 fiscal year budget were falling into place Thursday with just enough money to balance spending and send lawmakers home without the need for a special session. Those measures were advancing even as other bills — such as an effort to increase the tobacco tax or raise money by closing tax loopholes — died in committees and looked to jeopardize any final agreement. One of the developments came as hospital executives met with Gov. Susana Martinez to discuss a section of House Bill 202, which increases taxes and fees in several areas. One of its provisions would equalize the gross receipts tax on all nonprofit and for-profit hospitals, with the money earmarked for Medicaid. The New Mexico Hospital Association helped craft a compromise with lawmakers to support the tax if some of the $80 million raised could be used to bridge a shortfall in Medicaid, which costs the state $916 million a year.
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.
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.
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.
Lawmakers looking for every possible penny of new revenue to balance the state budget moved ahead with an omnibus tax package Wednesday over the objections of hospitals and medical providers that claimed paying more to the state would harm health care in New Mexico. House Bill 202 is part of an effort to bring in revenue from the fastest-growing part of the state’s economy — physicians, hospitals and clinics, most of which now pay little or no gross receipts tax. Rep. Carl Trujillo, D-Santa Fe, said his bill equalizes the tax among the entire health care sector at just over 3 percent — and that amount is paid on just 40 percent of patient revenue. “I don’t know how you can be more fair than everyone in this profession paying the same,” he said. The measure would raise $250 million for the general fund and restore cash reserves to about 4 percent, Trujillo said.
The state Senate’s leading budget hawk challenged Gov. Susana Martinez on Thursday to reverse course and support proposals for raising taxes and fees or watch essential services get slashed even more. Sen. John Arthur Smith said any vetoes Martinez makes at this stage will force legislators to cut the budgets of public schools and health care as they follow the law to pass a balanced budget. “We’re out of places to find additional dollars,” Smith, D-Deming, said during a brief speech on the floor of the Senate. He spoke hours after the House of Representatives approved a $6.08 billion budget and then moved it to the Senate for consideration. The budget crafted by the Democrat-controlled House would increase state revenue by some $250 million with tax and fee increases.