The House Education Committee unanimously passed a bill that would eliminate the Gross Receipts Tax on small business owners operating early childcare centers. HB 137, GRT Deductions for Child Care Assistance, will, if enacted, eliminate the 8 percent to 9 percent GRT that early childcare centers are required to pay on children who qualify for state assistance. State Rep. Micaela Lara Cadena, a Democrat from Mesilla, sponsored the bill and she called the bill an equity issue as most early childcare centers are operated by women of color. Cadena said that early childcare centers that serve Children Youth and Families Department contracts “have to pay GRT on those same contracts and reimbursement rates.”
“We hold providers to really high standards. We expect them to meet those same outcomes, have the same quality of care and we expect them to meet that with 8 percent or more less revenue.
In November, voters will vote whether an additional 1.25 percent of distribution will come from the Land Grant Permanent Fund to help support early childcare education in New Mexico, as well as address some of the concerns raised in the Yazzie-Martinez lawsuit. The fund, also known as the Permanent School Fund, at around $25 billion, is one of the largest sovereign wealth funds in the world. It grows annually based on a rolling five-year average, which protects the fund from stock market crashes and reductions in oil and gas revenues. The state currently distributes 5 percent of the fund, annually, to the New Mexico Public Education Department and to 20 other public institutions. For 10 years legislators and early childcare advocates worked on a joint resolution that would allow voters to decide if an additional 1.25 percent of the fund’s growth could be spent on early childcare and at-risk students.
New Mexico voters embraced candidates in the 2020 elections that have historically been underrepresented, including women, in elected office. The state saw a slew of “firsts” this year.
For the first time in the state’s history, New Mexico’s three seats in the U.S. House of Representatives will be held by women of color. And both Yvette Herrell, who will represent the state’s 2nd Congressional District, and Deb Haaland, who won reelection to the state’s 1st Congressional District, are enrolled members of Indigenous nations. Haaland is a member of Laguna Pueblo, and Herrell is a member of the Cherokee Nation, making New Mexico the first state in the U.S. to have two Indigenous Representatives.
Teresa Leger Fernandez, who won New Mexico’s 3rd Congressional District, is Latina.
Terrelene Massey, Diné (Navajo) and the executive director of Southwest Women’s Law Center, said she’s really excited to see more representation from women, especially women of color and Native American women. “I think they’ll provide different perspectives on the different issues they’ll be working on,” Massey said.
When Neomi Martinez-Parra heard her doctor tell her she needed an abortion about 14 years ago, she went numb. Martinez-Parra, 51, talked to NM Political Report this week about the story of her pregnancy and her abortion because she feels it is important for her to talk about her experience. “I was so embarrassed and ashamed to talk about it,” she said. “Now I’m running for office and I’m talking to lots of women and victims and realize how important it is for women to speak out and speak up.”
Martinez-Parra beat long-time Democratic state Senator and Senate Finance Committee Chair John Arthur Smith in the Democratic primary this June. Smith has held state Senate District 35 for 31 years.
Governors don’t usually sign a budget twice in one year. But this is no normal year. Gov. Michelle Lujan Grisham gave her blessing to New Mexico’s revised budget legislation Tuesday, but she also used her veto power to cancel some of the cuts legislators approved during the special session. “We must recalibrate our state’s budget to meet these challenging times,” Lujan Grisham wrote in a letter to the state House of Representatives upon signing House Bill 1. “However, we should not lose sight of the important work that is still needed to create lasting opportunities for all New Mexicans.”
The budget plan uses a combination of spending cuts, reserves and federal funding to deal with a projected $2 billion drop in state revenue for the next fiscal year, which begins Wednesday.
The New Mexico Legislature finished its main task of mending the state’s huge fiscal shortfall Saturday, but the special session wasn’t over as the House of Representatives still had work to do.
The Senate approved 30-12 a modified budget planthat uses a combination of spending cuts, reserves and federal funding to deal with a projected $2 billion drop in state revenue for the next fiscal year. “It’s certainly not the perfect response, but it darn well may be the only response we can give right now,” Sen. John Arthur Smith, chairman of the Senate Finance Committee, told his fellow legislators. After approving the budget, senators adjourned “sine die” and promptly left the Capitol, with several members eager to hit the road home. But the special session continued on. A long debate and dramatic revote on an election reform bill delayed the House’s proceedings, and representatives said they would need to return Monday to finish up.
State workers would see a drop in their pay raises for fiscal year 2021 and spending for most agencies would be cut significantly under the draft budget overhaul lawmakers began debating Wednesday. Whittling a record $7.6 billion budget to $7.34 billion — and filling wide spending gaps with cash reserves, pandemic-related aid from the federal government and other measures — is no small task for the New Mexico Legislature as it convenes Thursday for a special session to address a steep decline in projected revenues. Members of the state House and Senate finance committees met Wednesday to review the plan, which would slash higher education spending by 6 percent — the biggest cut for any single agency — and reduce the 4 percent pay raises for state workers, approved earlier this year, to 1.5 percent for those who earn less than $40,000 a year and 0.5 percent for higher earners. Funding for the new Early Childhood Education and Care Department, set to take over all services for young children July 1, would be cut by $3.3 million; the spaceport would lose $600,000; and $17 million would be slashed from the Medicaid program. Lawmakers, however, hope to shift money from the Tobacco Settlement Permanent Fund to fill the Medicaid gap.
Proposed education budget cuts could worsen racial and economic inequities in the state, according to some school superintendents. Veronica Garcia, the superintendent of Santa Fe Public Schools, said that if the Legislative Finance Committee’s proposed budget cuts in education are passed, she expects to be looking at a $10.3 million hole in her district’s budget. She is starting with a $7 million deficit in her school budget and if the LFC’s proposed cuts go through, she expects to see another $3.3 million loss. Like the state, Garcia has to balance her budget annually. She says that situation will leave her with no choice but to make cuts that will enlarge classroom size, reduce programming and shrink ancillary roles such as social workers, librarians, nurse aides and nurses.
The New Mexico Senate’s conservative-leaning Democrats long have been the gatekeepers — the ones who ultimately decide if legislation backed by the governor and the House of Representatives can become law. Of course, the control they wield has an expiration date after a number of their most influential members lost primary elections this month to more progressive challengers. Those lawmakers will be leaving the Legislature at the end of the year. Even so, they’ll have one last hurrah to exercise their power — the upcoming special session — and they could use it again to block bills backed by their colleagues. This time, they might do that by leaving town.
In a historic defeat, Neomi Martinez-Parra won Senate District 35, defeating state Senator Sen. John Arthur Smith who has held the seat for 32 years. Martinez-Parra’s win did not come as a surprise Wednesday. She pulled ahead of Smith in the Democratic primary late Tuesday night and appeared to be the presumptive winner. She won by 500 votes. She received 2,793 votes to Smith’s 2,293 in unofficial results.