A View from Just Outside the Roundhouse
March 17, 2013
The last day of any legislative session is always frantic, filled with surprises—from filibusters to conference committee reports that neither chamber has a chance to examine adequately. I always used to hang on to my desk for dear life afraid someone would come up with a measure that suddenly put a toxic waste dump in my district, or an amendment which undid every bill I ever passed.
But this year—whoa, baby, a tax package-- developed on the ides of March before Saturday’s adjournment by Sen. John Arthur Smith and the Senate Finance Committee. It was jammed through at the last possible minute as an amendment to the “Breaking Bad” bill produced in the House in the aftermath of the Governor’s veto of it the day before. For progressives, and others who had feared that Smith might give away the farm to the Governor, this was really “breaking bad.”
Sponsored by Rep. Moe Maestas, the original bill, named after the TV series Breaking Bad, provided tax credits to TV shows that film in New Mexico, bringing more spending and revenue to the state than films. The Governor vetoed Maestas’s bill, because her other tax cuts were not passed, and she loudly threatened to veto the whole budget as well—signaling that a Special Session was in the works.
Now, there’s nothing legislators hate more than a Special Session. With that knowledge in his pocket--- Sen. Smith went to work Friday night putting together an amendment that gave the Governor the corporate tax cuts she wanted plus something he’d been talking about for years: a return to the state of revenue that had been lost because local governments had been “held harmless” when the gross receipts tax on food was removed back in 2004. (That meant that cities and counties didn’t have to absorb the loss of tax revenue because the state would reimburse them.)
Given the last minute nature of the Senate amendment, city and county lobbyists didn’t have time to respond to the move, which most likely will cause local gross receipts taxes to go up. Allegedly, there was a provision in the amendment that prohibited the re-imposition of local taxes on food and medicine, but who knew, and anyway, in the eyes of the public, it wouldn’t be the legislature that imposed the taxes, right? After Senators attached the amendment, and passed the fully loaded bill, it had to go back to the House-- with about 10 minutes to go. House members hadn’t even read it. There was no fiscal impact report. In a desperate move, the legislative staffer who drafted it was called in to explain the complex package. But there was no time. The question was called and House members voted on the bill without the information, even thought it was actually past noon, the time for adjournment. It passed. The “Hail Mary” pass was complete—and the Governor caught it in the end zone, declaring that there would be no special session after all.
Back in the Senate, after the Breaking Bad bill went to the House, Majority Leader Michael Sanchez finally called up HB 77, Rep. Miguel Garcia’s bill to require background checks at gun shows-- with about 40 minutes to go. The bill had attracted nationwide attention as a possible rebuke to the NRA, and garnered support from some House Republicans and the Governor. But, predictably, it was immediately besieged by amendments from Democratic and Republican opponents alike—doomed because of its scheduling on the floor on the last day of the session, when delay and filibusters are most effective. The Majority Leader gave the bill a last minute plug—but his words were not as loud as his deeds. Had the bill be scheduled the day before, the outcome could have been different.
What to make of all this? From just Outside the Roundhouse, it looks bad, and I am most disappointed—once again--- at how the Senate is willing to take a bullet for the NRA, in the face of common sense measures and incredible tragedies. And who knows whether the content of the tax package was a fair compromise that (as reported) filled some loopholes and instituted combined reporting for big box stores, as well as cutting corporate taxes? That will take some analysis—analysis that the public and most legislators-- outside of a few insiders – were not permitted to do before they had to weigh in. Do the means justify the end? It’s an open question, but I’m sure Gov. Susana Martinez is counting her lucky stars that quarterback, Sen. John Arthur Smith, got to make his pass before the buzzer sounded.
How Much Power Should One Senator Have?
Once again, a constitutional amendment to allow a vote on whether a small portion of the state’s permanent fund should be temporarily diverted to early childhood education was buried in the Senate Finance Committee. Chairman John Arthur Smith simply refused to bring the bill up for a vote. The measure has now passed the House twice, and most observers say it would pass the Senate should it hit the floor. It is, keep in mind, simply a measure to allow the public to weigh in on this important public issue. Many experts say that the state’s unwillingness to fund early childhood programs in earnest is the key reason our K-12 education system is in trouble. But no matter. This is the second time that Smith has deep sixed it. And the Senator regularly “pocket vetoes” many other measures—just ask any legislator who can’t get his or her bill through Senate Finance.
Several years ago, Smith was nicknamed “Dr. No” for his staunch opposition to tax increases and his hostility toward spending by then-Gov. Bill Richardson. With little countervailing power from other members of the Democratic leadership, Smith is now amassing power beyond the Finance Committee (see above), and the situation may soon resemble the 70s and 80s in the Senate when conservative Democratic senators Ike Smalley and Aubrey Dunn gave the rank and file little say in the budget. Here’s a little piece of history that new Senators might like to know. Once upon a time another Chairman of the Senate Finance Committee, Aubrey Dunn, tightly controlled information not even sharing fiscal impact statements with members. Bills were passed so fast that legislators did not have a chance to weigh in with debate on the floor. Sen. Dunn once passed 21 bills on the floor of the Senate with a single motion, an action that was later ruled unconstitutional by the New Mexico Supreme Court.
Sound a little like Saturday’s little amendment to the Breaking Bad bill? Not quite, maybe, but the last minute move, the lack of information, pushes the envelope. I wonder if anyone will push back? Someone finally rebelled against Smalley. His name was Manny Aragon.
Health Insurance Exchange Bill Passes
A lot of water had flowed under the bridge since the Governor vetoed the strong health care exchange bill I sponsored in 2011. Obamacare has been held constitutional. New Mexico has received over $140 million for clinics, training programs and other mechanisms to implement the new law in the past two years. Gov. Martinez has decided that yes, math does trump ideology, and she will expand the Medicaid program. The compromise health exchange that the legislature just passed ought to be viewed in this context. It’s not what I wanted but it is a better direction than the one the administration was headed in when it unilaterally decided that the Health Insurance Alliance, with its insurance company directors, would simply function as an exchange. Both the Legislature and the Governor will appoint the board of this exchange, and it will not have a majority of insurance company directors. Federal law will direct much of its functions. Finally, the exchange can now focus on its computer system, and prepare to offer policies by October. More than the actual framework of the exchange itself, I’m concerned about outreach and public education for the 70,000-100,000 who could sign up (if they know how to) in the first year. That means plenty of good “navigators” and a massive public awareness campaign. Stay tuned to see how that works out.
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