Dear KKIM Family,
State Rep. Janice E Arnold Jones gives us her take on the just completed New Mexico Legislative Special Session………
Dewey:
Special Session at best a band aid at worst a failure to act. We approved a budget bill HB17/33 that made across the board cuts in many agencies, but limited State Police cuts to 2% will directing the Governor to first cut 80 (revised to 102 by Senate) exempt positions and benefits. Very troubling was the reduction in Developmental Disability Waivers, about 4 million, but all the dollars were replaced with federal dollars that will run out at the end of 2010. Now what?
We swept all cash balances available, a prudent move, as long as you recognize that any emergency in an agency will now require Board of Finance action.
We “swapped” capital projects funded with General Fund dollars to be replaced with Severance Tax Bonds. This may be a problem as most of the projects are under way. If the Governor signs this bill, I believe all projects will come to a stop until the Bonds can be sold in December. You could look at this move as taking a second mortgage. Sometimes necessary. Incidentally, the reason some capital projects were funded with General Fund dollars was because we had cash. The more common way to fund such projects is with Bonds. Also, the projects involved in this “swap” must meet the criteria for bonds. Projects involving non-profit agencies, even though it is via an RFP through a local government, may not qualify for bonds.
We took $225 million from the operating reserve to pay for the overspending in 2009. We took $115 million from the Tax Stabilization fund (restricted reserve) to pay for shortfalls in 2010.
One of the problems we had in the session was to determine exactly how “overspent” we were for fiscal year 2009 that is already over. We we given figures that ranged from a low of $208 million to a high of $325 million. I hope that the $225 million covers it!
Dewey, a budget is a projection. We projected that the 2010 budget could be $5.4 billion. Well revenues are not keeping up. Four months into the year it is clear that the State will not meet that revenue projections. Most households would immediately change their spending habits so they could save up enough to get rid of the second mortgage quickly. We did not accomplish that step in our solvency plan.
PS: We were called into special session because it was an emergency. If the Governor takes the full 20 days to act, that will be the middle of November. If we can wait three weeks to solve this emergency might we have waited nine weeks for the regular session to do the job right?
Special session was very poorly planned. You would think that the Governor would have already listened to State employees to see where there were problems and potential cost savings. Very much like attending a High School Prom, except the Prom committee had only secured the location, but was still working on getting the band, decorations and food as everyone was arriving. All events, especially deliberative type events, require sufficient planning and organization to be successful.
Janice E. Arnold-Jones
Representative, House District 24
7713 Sierra Azul NE
Albuquerque, NM 87110
(505) 379-0902 cell
(505) 986-4451 Capitol Room 412C
I have to say…Janice is very astute when it comes to money management!!! I am so thankful for our relationship with Janice. It really helps in our attempt to bring forth the truth.
Governor Bill Richardson Asks Public for Input on Legislative Budget Cuts
SANTA FE – Governor Bill Richardson is asking New Mexicans to contact his office with their opinions about the budget bills passed last week by the Legislature.
While the Legislature made minimal cuts to education, legislators targeted state agencies under the control of the Governor for the most drastic cuts. That means critical services will be cut. For example, while legislators claimed to have protected Medicaid funding, critical programs such as behavioral health care, children’s healthcare and programs for the elderly were not spared.
The Governor has 20 days to sign, veto or partially veto the budget bills.
New Mexicans can contact the Governor’s Office with their thoughts about the budget bills by email: Special.session@state.nm.us or by phone: 505-476-2210
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