Feb. 2 Chamber Legislative Roundup

Roosevelt County Chamber's
Legislative Report
Feb. 2, 2017
 

Solvency Package Done
Governor Susana Martinez signed the solvency package earlier this week wiping out the $69 million deficit in FY 2017. That leaves reserves at around $120 million or approximately 2 percent of spending. While this is nowhere close to the 4-5 percent folks in the know would like to see, it does allow the legislature to get on with business including plans to address the FY 18 budget before the session ends. New revenue projections will be out soon but Senate Finance Committee Chair John Arthur Smith is saying the shortage will likely be between $300-500 million.

LEDA cuts vetoed
The good news in the solvency package is that Governor Martinez used her line-item veto power to preserve a key economic development fund that should help grow new revenue. The Local Economic Development Act (LEDA) fund, which is used as a closing instrument by local governments for new or expanding business, was on the chopping block to have $26 million or more than half its fund stripped away.

Feed Bill fireworks
One of the big stories in the last week has been the fight over the so-called Feed Bll, the package that is passed early in each session to fund the actual work of the session. After the traditional HB1 stalled, the Senate got creative and came up with SB176. The House finally concurred and the bill was sent to the Governor late last week where she promptly killed it with a veto, saying it would actually increase the Legislature's operating budget by nearly 24 percent while lawmakers were asking other state agencies to take cuts. Early this week HB1 was resurrected and eventually sent to the Governor who has until Friday to sign or veto it. Sure would be terrible if legislators don't get paid until after the session is over.

Permanent Fund raiders still out there
A measure to amend the constitution to provide funds for early childhood development programs with 1 percent more funding from the Land Grant Permanent Fund has been introduced. Known as HJR1  https://www.nmlegis.gov/Legislation/Legislation?Chamber=H&LegType=JR&LegNo=1&year=17, the proposed measure could drain the fund over time to a level from which it might not ever recover.Rep. Dennis Roch pointed out numerous problems with implementation of the proposed changes during discussion in the House Education Committee. Opponents say we've already seen how volatile a sudden decrease in Oil and Gas revenues can be and say the fund would eventually be drawn down. "If you think now is a rainy day, then will be a storm," said Roch. The bill was passed out of committee on a 7-6 partisan vote.

Pot a big debate
One big topic everyone knew was coming was marijuana. In fact if you type in "marijuana" in the bill search tool on the http://www.nmlegis.gov website you get 14 different bills. The big ones are the two companion bills HB89 and SB278 which seek to make recreational marijuana legal in New Mexico. So far neither has been in committee but watching the new livestream feeds from the Roundhouse once these get going could prove interesting. What are your feelings on the matter? Stay tuned we'll try to figure out a way to poll folks on this question down the line.

NMCEA releases legislative positions
The New Mexico Chamber Executives Association, of which the Roosevelt County Chamber is an active member, has released its legislative priorities list in the last week. To download and read it Click Here