It’s a Whole New Day…. or is it, after budget deal falls apart on last night of short session
The Legislature will come in again Monday at noon to try again to put together a deal on the budget that will satisfy both the House and the Senate. The difference between the two budgets is huge, with the House raising $340 million in revenue through a ½% gross receipts tax (GRT) hike, a 1.5% surtax on the income of the wealthiest New Mexicans, and a measure to get taxes from out of state owners of business partnerships. The Senate budget included deeper budget cuts in state agencies, including education and health care, but did propose a tax on non-essential food items (SB 10) and a $1 additional cigarette tax. These would have raised about half the revenue ($180 million) as the taxes passed by the House.
The obvious deal was somewhere in between, with a combination of taxes and budget cuts. I though we were moving in that direction, but when the House Taxation and Revenue Committee defeated my cigarette tax (SB 30) on the last night of the session, I knew that any deal would collapse. It was like removing a small block from a foundation that we thought we could all agree upon.
House Speaker Ben Lujan had amended my bill in committee, actually making it better in my mind, removing the one-year sunset, reducing the tax to .75 per pack and attaching a tribal “fix” which would have enabled the tribes to raise their prices as well. When the votes were tallied, however, all the Republicans voted against the tax, along with two Democrats, Rep. Andrew Barreras, of Valencia County, and Rep. Jim Trujillo, of Santa Fe. Earlier that day, the House had defeated the tax on non-essential items (SB10) proposed by Sen. Bernadette Sanchez.
Perhaps this was just settling the score from the previous day, when Speaker Lujan’s own GRT hike was defeated in the Senate Corporations Committee. The 1.5% surtax had also been defeated earlier in that committee, which killed virtually every tax measure it heard.
What now? Usually deals are negotiated before special sessions, and this may be why the session start date was changed from Wednesday to Monday. One possible deal might include a tax package that includes one from column A (the House) and one from column B (the Senate) as well as splitting the difference in cuts….but that is pure speculation. Everything depends on the spirit of compromise.
2010 Session “Sleepers”
Just so you don’t think that the whole session was a waste, I’m giving herewith my top ten list of little-known bills that survived and are on their way to the Governor’s office. Some of these are milestones in transparency, consumer protection, and health care reform. They should not be overlooked. If you agree, please pick your favorites and call the Governor’s Office at 476-2200 and urge him to sign ‘em.
#1 HB 12 Setting the Medical “Loss” Ratio for insurance companies at 85%, sponsored by Rep. John Heaton. This is a major piece of health care reform that we’ve been trying to pass for five years. It will direct that insurance companies (in the small group market) pay at least 85% of their revenue from premiums on actual medical care, not on administration or profit. The sponsor had to negotiate it down to 75% in the individual market, but it is still a substantial victory, one has not been achievable on the national level. Yippee.
#2 SB 148 bans health insurance companies from using gender for rating purposes, preventing discrimination against women. This is a great victory for Sen. Nancy Rodriguez and women who sometimes are paying 150% more than men for the same coverage. This is another reform that was to be included in national health care legislation—now we’ve got it here first.
#3 SB 195, sponsored by Sen. Sander Rue, will establish a “Sunshine Portal” through which the public (imagine that!) can see how state agencies are spending money, track capital outlay projects, look at contracts and leases. I’ll give you more information when the web site is up and running this summer.
# 4 Whistleblower protection will be provided by HB 165 and SB 96, which are duplicates. This is an important step to uncover waste fraud and abuse, as well as to protect the individuals who come forward. Let’s hope the Governor signs this bill this time. He vetoed another variation in 2008.
#5 SB 18,218,238, etc. was a combined effort led by Sen. Tim Keller to reform the State Investment Council to provide more accountability, professionalism and to restrict contributions and conflict of interest. This governor-appointed body (SIC) has been the scene of mismanagement, alleged corruption and financial loss.
#6 HB 205 Mortgage Foreclosure Fraud Act, sponsored by Rep. Ken Martinez, regulates unscrupulous mortgage consultants who take advantage of those facing foreclosure.
#7 SB 152, sponsored by Sen. Michael Sanchez, prohibits the sale of student lists to credit card companies for marketing purposes.
#8 SB 254, sponsored by Sen. Clint Hardin, restricts inquiry into and consideration of a conviction in the initial stages of the hiring process. This bill “bans the box” that applicants must check on applications, but it doesn’t prevent discussion of convictions during interviews. I think it gives those who made mistakes a second chance.
#9 HB 131, sponsored by Rep. Bill Rehm, requires consumer reporting agencies to remove certain information from credit reports because of identity theft or false reporting.
#10 SB 70 requires continuing care facilities (retirement homes like La Vida Llena which require a cash down payments) to disclose financial information, reserves, etc. to protect seniors and their families from unexpected bankruptcies or closures. Sen. Carlos Cisneros was the sponsor.
There were many other good bills-- like HB 44 requiring health education for high school graduation, HB 127 allowing teenagers to serve as poll workers, and SB 1 setting head injury protocols for school athletes-- that didn’t quite make my top ten list. I hope the Governor signs them as well.
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