Senate panel trims 2021 budget

A cut here, a whack there — and a budget takes form. But not without some acrimony. The Senate Finance Committee released considerable changes to the state’s main budget bill Tuesday, trimming the House’s spending plan in high-visibility areas such as roads and teacher pay raises, and scaling down one of Gov. Michelle Lujan Grisham’s most prized pieces of legislation, the Opportunity Scholarship. The committee unanimously approved its amendments to House Bill 2, which calls for a $7.6 billion budget for the 2021 fiscal year, and moves the legislation to the Senate floor. That would represent a 7.6 percent increase over the current year and would target reserves at 25 percent.

Crafting of state budget could go down to wire

On Monday morning, there was a sign on a key Senate panel’s door with underlined writing in all caps. “House Bill 2 will not be heard today,” it read. The General Appropriations Act, also known as the main budget bill for New Mexico state government, had been on the Senate Finance Committee’s agenda for Monday but would now have to continue awaiting action, as it has for nearly since two weeks since the House passed it. “We don’t have the amendments ready,” committee chair Sen. John Arthur Smith told The New Mexican. “It’s not an easy process when you have this many amendments.”

Indeed, the committee does have to sort through some 600 proposed amendments while it also figures out how to cut around $150 million from a House bill Smith says overshoots spending targets.

House bill continues budget battle

If legislation had taglines, this one’s might be: “How a highly technical bill became the latest partisan punching bag.”

On Friday, the Democrat-controlled House Taxation and Revenue Committee approved House Bill 341, which proposes to transfer money from the state’s enormous Tax Stabilization Reserve fund into its operating reserve if the latter drops to less than 1 percent of total appropriations. The legislation’s proponents say the measure would fix a structural issue created when the rainy-day fund was set up, and would even help the state avoid calling a special session when it’s not necessary. But it became a flashpoint for discord Friday, with Republicans critics contending the bill is a cover for Democrats spending too much during the session. “If we refuse to address the technical problem that has arisen, we’re not doing our job,” House Speaker Brian Egolf said Friday at the committee hearing before voting in favor of the bill. At issue is the balance in the state’s operating reserve, a sort of holding account for the general fund that provides a buffer in case there’s a revenue shortfall.

House Republicans say Dems overspending with budget

With a week left to this year’s 30-day legislative session, House Republicans in a Thursday news conference again complained their Democratic counterparts are spending too much, claiming if a “messed up” budget proposal isn’t trimmed, the state may come up short by as much as $200 million. 

Leaders on the Democratic side immediately countered, calling Republican claims  “ridiculous,” “absurd” and “wrong.” Welcome to the Roundhouse, day 23. During a Thursday morning news conference, Rep. Jim Townsend, R-Artesia, and Rep. Rod Montoya, R-Farmington, pointed to a Legislative Finance Committee financial update this week that indicated projected revenues would fall short of the proposed expenditures by $200 million. “It’s just another example of the crazy spending going on in your Capitol,” Townsend said. Republicans have recommended a 4.3 percent increase to the 2021 fiscal year budget, far smaller than the 7.5 percent increase passed in the House more than a week ago. 

The planned expenditures in the proposed budget, said Rep. Larry Scott, R-Hobbs, “are a concern.

New Mexico House passes $7.6 billion spending plan

The state House approved a $7.6 billion budget bill Wednesday, after Republicans criticized it and proposed an alternate plan during a floor debate. The House passed House Bill 2, the General Appropriations Act of 2020, by a vote of 46-24 along party lines after a three-hour debate. The spending plan represents a 7.5 percent increase from the current fiscal year, boosting spending in areas such as early childhood education. “Given all the important demands and the new demands, we made great progress,” House Speaker Brian Egolf said in an interview after the vote. “I think this is a budget that shows that we take very seriously the commitment to deliver on education, health care and public safety.”

Bill to fund tax-poor rural school districts clears first committee

As New Mexico lawmakers look for a way to provide extra funding for public school students in some of the most financially challenged areas of the state, a bill that eventually would provide $60 million a year for some of those districts to share cleared its first hurdle Wednesday. House Bill 4, sponsored by Democratic Reps. Brian Egolf of Santa Fe, Patricia Lundstrom of Gallup and Anthony Allison of Fruitland, would appropriate $18.9 million in fiscal year 2021 to start the new fund. Over the course of three years, the fund would grow to about $60 million in both operational funding and capital outay, Egolf said, adding 23 of New Mexico’s 89 school districts would be eligible for a share. The new funding is “a dire, dire need for us,” said Jvanna Hanks, assistant superintendent of Gallup-McKinley County Schools, a district that would qualify.

State budget takes center stage, advancing to full House

A House committee on Monday advanced a $7.6 billion budget plan for next fiscal year, giving Gov. Michelle Lujan Grisham much of the education funding she had asked for yet choosing not to back her marquee free-tuition plan. The House Appropriations and Finance Committee approved House Bill 2 with an increase of $529 million, or 7.5 percent, from the current year’s budget. The bill passed by a vote of 11-5 along party lines, with Republicans decrying the spending level as too high. The bill is expected to be taken up by the full House later this week. 

The House panel found a middle ground between the fiscal year 2021 spending plan proposed by Lujan Grisham and that recommended by a key legislative panel. The governor had called for a $7.68 billion spending plan, while the the Legislative Finance Committee recommended $7.55 billion. 

“It’s been a very good working relationship,” said Rep. Patricia Lundstrom, chairwoman of the committee, speaking of the Governor’s Office.

Spending plan to increase pay for New Mexico’s teachers

A key House budget panel met Saturday to review a spending plan that offers higher K-12 teacher pay raises and more money for early childhood services than suggested by the Legislative Finance Committee. The House Appropriations and Finance Committee reviewed a spending proposal that includes about $61 million more than recommended by the LFC, coming close to midway between Gov. Michelle Lujan Grisham’s and the LFC’s competing budget plans, which featured a $132 million overall difference. A document provided by the Legislative Finance Committee on Saturday shows that House Bill 2 will include $35 million more for public education and $4.7 million more for higher education than the LFC budget. It does not include money for the governor’s Opportunity Scholarship, which would cover public university education for New Mexico residents. State Rep. Patricia Lundstrom, chair of the House Appropriations and Finance Committee, said funding for the scholarship could still be offered in an amendment to House Bill 2 on Monday, when the committee plans to vote on the budget bill.

Budget discussions loom as session hits one-third mark

One-third of the way through the 2020 legislative session, the House and Senate have yet to hear the state’s main budget bill. But as that moment draws nearer, a flurry of negotiations over how to spend more than $7 billion are heating up in committee meetings and behind closed doors. Key talks involve bridging the gaps between the executive and legislative branches’ competing spending plans on education. A series of interviews on Thursday showed some of those discrepancies are being resolved, while others … well, not yet.

Republicans caution against overspending as reserves hit all-time high

Rarely has the phrase “financially prudent” been so hard to define at the Roundhouse. 

Amid the backdrop of a flush revenue stream and looming legislative races in November, Republicans are hammering away at Democrats and Gov. Michelle Lujan Grisham in the early days of the 2020 session — contending they are overspending in a state inextricably reliant on the unpredictable oil and gas industry. Yet Democrats say their spending plan is fiscally responsible, and key components of their argument are backed by the influential Legislative Finance Committee. 

An estimated 45 percent of general fund revenues are now dependent on oil and gas, and GOP members argue that when that contribution declines, the state will be hard-pressed to find funding for new budget increases in early childhood and higher education the governor has proposed this session. Lujan Grisham is proposing a $7.68 billion budget for fiscal year 2021, including a $74 million increase to the Early Childhood Education and Care Department, $200.3 million more on K-12 education, a 4 percent pay raise for teachers and $35 million for the Opportunity Scholarship program. For Minority Leader Jim Townsend, R-Artesia, Minority Whip Rod Montoya, R-Farmington, and other Republicans in the Legislature, the governor’s proposed 8.5 percent spending increase from last year is “irresponsible.”

“When we say it’s irresponsible, those words are not hyperbole. It is a fact — it’s irresponsible.