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.
Gov. Susana Martinez would be willing to sign a food tax into law if it were part of a larger tax reform. The governor told media this after a speech at the Economic Forum of Albuquerque at the Hotel Albuquerque Wednesday. Purchases of food are exempt from the state’s gross receipts tax and have been since 2004. Those who support the exemption say the tax has a larger impact on poor New Mexicans, since food represents a higher percentage of their spending. Martinez did say she would oppose the food tax as a “standalone piece,” according to both the Albuquerque Journal and the Santa Fe New Mexican.
Many New Mexicans are fully aware that, with the summer, fire season is just around the corner. But James Canyon Fire Chief Bill Hanson goes further. “Fire season is here,” Hanson said. What is approaching, Hanson said, is the end of the fiscal year. And his volunteer fire department, located just east of Alamogordo, still doesn’t know how much money they’ll receive or when the money will arrive.
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.
A handful of bills passed by both the state Senate and House of Representatives continue to sit in limbo. Normally, those bills would be signed or vetoed by the governor. Instead, their fate likely lies with the judicial branch. The head of the Legislative Council Service (LCS), the nonpartisan administrative arm of the state Legislature, said he and his staff suggested to lawmakers and the secretary of state that some vetoed bills should actually be chaptered. Chaptering, or printing, the bills is typically the first step to writing them into state statute.
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.
New Mexico’s 60-day legislative session doesn’t end until noon Saturday, but Gov. Susana Martinez already is preparing to call a special session because of ongoing budget problems, her staff said Friday night. “A special session could be called as soon as Monday or Tuesday,” said the governor’s spokesman, Chris Sanchez. Note: This post has been updated throughout to reflect news on likely special session. Keith Gardner, Martinez’s chief of staff, said a special session is almost a certainty. “If something doesn’t change dramatically from tonight, yes,” Gardner said at the Capitol on Friday night.
A wide-ranging tax bill that passed the House of Representatives in a unanimous vote ran into obstacles at a Senate hearing Wednesday and isn’t likely to advance in the 2017 Legislature. “Anything still has a chance of moving,” said Sen. Clemente Sanchez, D-Grants, chairman of the Senate Corporations and Transportation Committee, after a four-hour hearing on House Bill 412, sponsored by Rio Rancho Republican Rep. Jason Harper. But during the hearing, lawmakers were more skeptical as they heard concerns from lobbyists for doctors, hospitals, broadcasters, nonprofit organizations, schools, farmers, the dairy industry, hospice nurses and nursing homes about how the tax changes would affect their operations. Related: NM’s revenue still hasn’t recovered to pre-recession levels
Harper was not surprised. “We’ve jokingly called this bill the lobbyist full-employment act.