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 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.
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.
Gov. Susana Martinez met with legislative leaders Friday morning to discuss a budget fix ahead of the upcoming special session scheduled to start next Wednesday. Martinez’s spokesman, in a statement, called the meeting “productive” and said the governor is confident her office would come to an agreement on funding the coming fiscal year, “including funding for higher education.”
“The Governor reiterated that she will not support standalone tax increases, but is hopeful that we will be able to find a bipartisan path forward on tax reform,” spokesman Michael Lonergan said. The statement potentially leaves room for tax increases as a part of a comprehensive tax overhaul similar to what state Rep. Jason Harper, R-Rio Rancho, spearheaded during the recent general legislative session. Martinez last week told the Santa Fe New Mexican that she would support reinstating the food tax as part of such a reform—a marked contrast from even just two months ago when she vowed to “definitely veto every tax increase on my desk.”
State House Speaker Brian Egolf, D-Santa Fe, however, told NM Political Report that “there is still tremendous uncertainty about what sort of tax reform proposal is going to be offered during the [special] session.”
Egolf described the meeting with Martinez as “a first crack” at agreeing to a budget solution. “It wasn’t really a horse trading kind of thing,” Egolf said.
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 latest New Mexico revenue projections appear to be convincing economists and state officials there is enough money to finance state government through June without resorting to government furloughs. “Based on the projections we see, yes, I think there are adequate funds,” Deputy state Treasurer Sam Collins told NM Political Report. New Mexico State University economics professor Jim Peach recently gave the Santa Fe New Mexican a similar answer. But Gov. Susana Martinez, who has been threatening furloughs for a month, had a different take. Martinez spokesman Michael Lonergan warned that the state still may not have enough cash on hand to avoid furloughs and is calling on the state Legislature to fix this in a special session.
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.
Candidates for the Albuquerque mayoral election filed their campaign finance reports over the weekend. The financial reports shed some light on which privately-financed candidates have raised the most money and from whom they’re getting their contributions. Right now, 16 official candidates are running for the city’s top office, but only four have raised significantly large amounts of money. Brian Colón Former Democratic Party of New Mexico Chairman and one-time candidate for lieutenant governor Brian Colón leads the pack in fundraising. Most of his $350,000 haul came in large donations from business owners and executives.
The governor signed the Legislature’s state budget plan Friday morning—but with $800 million worth line-item vetoes, making a future special session a reality. The vast majority of the money vetoed by Gov. Susana Martinez came from vetoing all funding for New Mexico colleges and universities. She cited the Senate’s lack of hearings for nominations of regents for “several higher education institutions,” calling it “a clear violation of its constitutional duty.”
In a separate statement, Martinez said she had to take out the “entire higher education budget” to balance the budget, but said this would be fixed in the special session. Related: Banning guns for domestic abusers vetoed, conversion therapy ban signed among Martinez actions
Senate Majority Leader Peter Wirth denounced the veto of the higher education money. “Governor Martinez has chosen to play extreme political games rather than act responsibly,” Wirth said.