As the session draws to a close, the House has still not heard or concurred with the Senate version of HB2 (the budget).  The House version only contained 1% in cuts and significant tax increases, whereas the Senate met halfway, with $153 million in cuts, and $153 million in increased taxes.  It would appear that New Mexico is heading for yet another special session, especially since the Governor has indicated that he supports the House version of the budget.

Today, on the Senate Floor, HB144: UNEMPLOYMENT COMPENSATION INCREASE, sponsored by Rep. M. Stewart, will be heard. This bill raises the unemployment compensation contribution by employers having a positive balance in their reserve account of at least one percent. The contribution increases by two-tenths percent of payroll for the period July 1, 2010 through December 31, 2011. The bottom line is that if nothing is done the Department of Workforce Solutions would be forced to take out a loan from the US Department of Labor.  As soon as that happens, and as repayment begins, the statutorily defined ratios vis-à-vis fund balance would dictate that we would move immediately from UI tax schedule 0 to schedule 6. (from $156 average contribution per employee to $528).  Needless to say, this would be a disaster for New Mexico businesses of all sizes. If the total fund amount is equal to three-tenths percent of the total payrolls in the state at any given time, the Secretary must implement schedule 6.  House Bill 144 does seem to be a good way to address the crises by spreading out the impact over time and avoiding crisis mode.  ACI will continue to support this bill.

Also on the schedule is HB237: GOVERNMENT RESTRUCTURING TASK FORCE sponsored by Rep. L. Varela creates a 17-member Government Restructuring Task Force to study the resources of the state’s agencies’ programs, services, funding and polices, and the public need served by them; and also seeks to examine the laws, constitutional provisions, rules and court decisions governing state government and reorganization. The task force must meet at the call of the chair at least one time per month beginning no later than April 22, 2010. The task force must make a report of its findings and recommendations by December 1, 2010 to the Governor and Legislature, and must make presentations to the Legislative Council, the LFC and the LESC. A final report and proposed legislation must be made available to the Governor and legislators by December 31, 2010. ACI supports this bill.

Yesterday, the Senate Corporations and Transportation Committee tabled HB180: WORKER ADJUSTMENT RETRAINING AND NOTIFICATION ACT sponsored by Rep. Mimi & Speaker Lujan will be heard today in the House Judiciary Committee.  This bill, if passed, will drastically expand the current federal WARN Act. (This is the federal law that requires employers to provide notice of a mass layoff or shutdown of operations).  This legislation would have increased the regulatory burden for employers across the state. ACI opposed this bill.

Not yet scheduled for a hearing in Senate Finance is HB8: Appropriation for Economic Development Training (JTIP) sponsored by Speaker Lujan.  This bill appropriates $5.0 million from the General Fund to the Development Training Fund for providing in-plant and classroom training. This is an important bill for economic development in the state.