Gov. Michelle Lujan Grisham said she was going to take the “shackles” off the state’s film industry by removing an annual $50 million cap on tax rebate payouts to eligible production companies that film in the state. While she didn’t exactly get her wish, Senate Bill 2 comes close. It increases that cap from $50 million to $110 million, appropriates $225 million to pay off a backlog of film tax credits owed to production entities and, to sweeten the deal, offers another 5 percent in tax rebates for productions that shoot in rural areas. The House of Representatives voted 41-24 to approve Senate Bill 2 after a nearly three-hour debate around 3 a.m. Friday. One Democrat, Candie Sweetser of Deming crossed party lines to join 23 Republicans in opposing the initiative.
The New Mexico Senate voted Tuesday night to raise the limit on tax credits paid to the film industry and pay off a mounting backlog. Senate Bill 2 has been a priority for newly elected Gov. Michelle Lujan Grisham and a burgeoning sector of the state’s economy that has brought a certain renown to New Mexico. But budget hawks on both sides of the aisle have been wary of eliminating the current $50 million annual limit on tax credits, arguing that the state needs some sort of cap for reliable budgeting. And critics contend efforts to subsidize the film industry here just aren’t worth it and amounts to sending money to out-of-state corporations. Still, when it came times to vote, the bill passed by a vote of 32-8, with several Republicans joining Democrats to back the measure.
Gov. Susana Martinez had a relationship with the film industry that could seem at times like something out of a shoot-em-up Western. Now, her successor wants to be the new sheriff riding in to town to save the day. Gov. Michelle Lujan Grisham touted new legislation on Friday that would eliminate the cap on tax credits for film and television shows shooting in New Mexico, a move backed by the burgeoning industry but still likely to meet with opposition from fiscally conservative lawmakers in her own party. Lawmakers voted in 2011 to limit the amount of money the state could pay under the incentive programs to $50 million a year. The state was not doling out that much money in credits at the time.
The proposal to expand early childhood education across New Mexico died quietly Tuesday at the state Capitol, scotched because a vote on the initiative will not be taken in the state Senate Finance Committee. Sen. John Arthur Smith, the Democrat from Deming who chairs the committee, said in an interview that he had decided not to give a hearing to the proposed constitutional amendment before the legislative session ends at noon Thursday. “It doesn’t have the votes,” Smith said of the measure, House Joint Resolution 1. Asked if he had polled his 12-member committee, Smith said he expected that at least he and the five Republican members probably would vote down the initiative. That would leave the measure no better than a 6-6 tie, meaning it could not advance to the full 42-member Senate.
The state Senate majority leader says three bills that Gov. Susana Martinez vetoed during the last week will become law after all, including legislation that would legalize research of industrial hemp. Setting up a constitutional showdown, Sen. Peter Wirth, D-Santa Fe, told the chamber Thursday night that Martinez had missed her deadline to veto the bills. The governor has three days during a legislative session to sign or veto bills. If she does neither, the bills become law. The constitution also says governors are to state their objections when vetoing a bill, giving lawmakers some sort of explanation.
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.
Gov. Susana Martinez on Wednesday vetoed six bills that cleared the Legislature with overwhelming support, rankling lawmakers who complained that she never explained any of her decisions. Martinez’s own tone was equally sharp when she called a Senate override of one of her vetoes a stunt, even though that challenge to her was initiated by a fellow Republican. But when it came to issuing veto messages, Martinez didn’t give legislators any idea of why she rejected bills ranging from an uncontroversial proposal that would have given local governments a new option to pay for expanding broadband networks to arcane changes in horse-racing regulations. Spokesmen for the governor did not respond Wednesday to repeated requests for comment. Related: Senate votes to override Martinez veto on teacher absences bill
The day before Martinez spiked the six bills, the Senate voted 34-7 across party lines to override her veto of a bill to let teachers use more sick days without being downgraded on their performance evaluation.
Gov. Susana Martinez vetoed two bills Tuesday that passed the Legislature with overwhelming support, including legislation that would have allowed high school students to count computer science classes toward math and science credits needed for graduation. The second vetoed bill would have made what appeared to be a minor change to state law dealing with tax increment development districts. Such districts are formed by local governments as a means to finance public infrastructure, like streets and utilities, for new development
Martinez did not provide explanation in her veto messages to legislators. The governor also signed two bills Tuesday. House Bill 230 allows horse-racing tracks that are combined with casinos, known as “racinos,” to change the number of days it hosts races each week.
With the state still running a deficit and reserves depleted, Democrats in the New Mexico House of Representatives have identified four tax or fee increases they say would prevent more cuts to education and put the state on better financial footing. The initiatives — taxing all internet sales, raising the permit fee on heavy trucks, closing a loophole that benefits nonprofit hospitals and increasing the tax on vehicle transfers — could raise more than $200 million in ongoing revenue. Some of it would go to avoid cuts in state agencies and some to beef up reserves. The move to bring together the House Democratic caucus came on the same day as state economists restated a revenue forecast from December that shows the economy has stabilized but reserves are far below the desired level of $300 million, or 5 percent of recurring revenue. The reserve account for the $5.6 billion budget at the end of the fiscal year on June 30 is projected at 1.6 percent.
Debbie Pace says she cries when she goes to the Smith’s grocery store because she “can’t afford anything.” Pace, 59, of Albuquerque, says she receives just over $730 a month in Supplemental Security Income from the federal program for the disabled and others with little income. She also receives $33 in monthly food stamps. The $33 in food stamps goes quick, she says. So, she goes to a local church for free food.