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.
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 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.”
Gov. Susana Martinez still hasn’t set a date for a special session, but just put another big item on the plate for the Legislature. Martinez said Thursday in addition to fixing the state budget, she wants legislators to act on tax reform. Currently, the budget has no money for higher education or the Legislature for the fiscal year beginning July 1 due to the governor’s line-item vetoes. According to the Albuquerque Journal, Martinez described an overhaul of the state’s tax code as “both a short-term and a long-term solution.”
Martinez announced the effort at the annual New Mexico Tax Research Institute Policy Conference in Albuquerque. Martinez has called for a quick special session in the past, saying she hopes legislators can come together in agreement before legislators convene.
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 New Mexico Legislative Council voted to sue Gov. Susana Martinez over some of her controversial budget vetoes and is planning for an extremely rare extraordinary session. “Following the legal briefing given by attorneys to the Legislature, the Legislative Council has made the decision to officially begin the legal process necessary to ensure the state constitution is upheld,” Senate President Pro Tem Mary Kay Papen said in a statement. “As legislators we take our oath to support the constitution and the laws of the state seriously. A strong system of checks and balances is crucial to the success of our democracy.”
It’s unclear how individual members voted. Democrats hold a 9-7 advantage on the panel, which is made up of members of both chambers.
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.
Gov. Susana Martinez criticized the state Legislature heavily Monday, promising to reject a budget sent to her desk and call a special session to redo the budget. She also warned of impending furloughs across state government if a new budget can’t be passed soon. Martinez faulted lawmakers for raising taxes in their budget—specifically gas taxes, auto sales taxes and internet sales taxes—and contended that their plan is not balanced as required under state law. “They overspent our projected revenue by $157 million,” Martinez said at an Albuquerque luncheon sponsored by the state chapter of the National Association of Industrial and Office Properties. “Then they passed a separate bill with $350 million in tax increases and called it a day.”
Budgets that require separate legislation to balance them are not unique—Martinez signed such legislation during a special session last year.
Gov. Susana Martinez announced a hiring freeze Thursday, which goes into effect Saturday. The move, announced in a two-page memo to cabinet secretaries from State Personnel Director Justin Najaka, comes as Martinez indicated she will not sign the budget passed by legislators. “It is critical that Executive agencies take immediate action to control spending as we continue to refine the financial impact on state operations due to unprecedented budgetary challenges the State is currently experiencing,” Najaka wrote. Some positions will be exempted from the freeze, according to the memo, including wildland firefighters at the state Energy, Minerals and Natural Resources Department, law enforcement officers and forensic scientists at the Department of Public Safety, tax collectors and auditors at the Taxation and Revenue Department and highway workers at the Department of Transportation. Related: NM’s revenue still hasn’t recovered from pre-recession high
The order asks secretaries to cease recruitment for all other positions not listed in the memo and to notify applicants by March 31, 2017 that the advertisements have been closed.