State Rep. Bobby Gonzales shook his head from side to side after listening to all the suggestions about how to meet a judge’s order to provide more resources to New Mexico children who, in the court’s view, are not receiving a good public education. “About 15 different ideas,” the Democrat from Taos said following a hearing on the topic last week in the House Appropriations and Finance Committee. “Maybe we need to break it all down. Maybe we can’t do it all in one year.” But the state doesn’t have a year, or even half a year, to comply with a mandate handed down in June by state District Judge Sarah Singleton of Santa Fe.
Three state agencies expressed a lack of confidence Thursday in the Office of the Superintendent of Insurance’s (OSI) ability to collect millions of dollars back taxes owed to the state from health insurance companies. State Auditor Tim Keller, Department of Finance and Administration State Budget Division Director A.J. Forte and Legislative Finance Committee Deputy Director Charles Sallee all expressed doubts in OSI’s plans to collect an estimated $193 million that it failed to collect from premium health insurance taxes from 2010 through 2015. The comments came at an interim Legislative Finance Committee hearing. “I think it’s very notable there are three oversight agencies looking at this,” Forte told state lawmakers. “There are too many inconsistencies for me to feel comfortable in this process.”
The controversy began when Keller’s office revealed the uncollected revenue in a special audit earlier this year.
Two House committees passed four Senate bills, three with no changes, but the one bill that must pass this year to balance the books on the budget for the year that ended three months ago passed with a change. If the bill passes in the amended form, the Senate would need to resolve the differences created by the House Appropriations and Finance Committee before it heads to the governor. In a bill that moves over $200 million from various funds, largely the tobacco settlement permanent fund, the change moved $1 million more from a legislative account. “I don’t want to say it’s a political movida, but it sounds to me like it’s a political movida,” Rep. Christine Trujillo, D-Albuquerque, said before the committee approved the changes. “If we don’t make an effort to increase our reserves, our bond rating is in danger of being down-rated,” committee chair Larry Larranaga, R-Albuquerque, said.
The state failed to collect nearly $200 million in taxes from health insurance companies during a recent five-year period, according to a report released Tuesday by State Auditor Tim Keller. The state Office of the Superintendent of Insurance (OSI) should have collected more than $193 million between April 2010 and April 2015, according to the report. OSI’s purpose is to collect premium taxes from insurers who do business in New Mexico. In the report, Keller noted that the $193 million total is based on a sample representing 26 percent of all premium taxes collected during the time period. In other words, OSI may have failed to collect more than that estimate.