CORRECTED

Last night HB8: Appropriation for Economic Development Training (JTIP) Speaker Lujan passed Senate Finance and now heads to the Senate Floor for approval.  This bill appropriates $5.0 million from the General Fund to the Development Training Fund for providing in-plant and classroom training.

The House Tax and Revenue Committee tabled two important bills:

SB112:  SEVERANCE TAX AND OTHER CAPITAL PROJECT BONDS Sen. C. Cisneros contains Capital Outlay dollars for much-needed economic development projects.

SB182: VOIDING AND REAUTHORIZING CAPITAL PROJECT EXPENDITURES also sponsored by Sen. C. Cisneros was tabled.  This bill known as the Severance Tax claw back is vital to balance the current year budget.  Without this bill, the state only has money for about 30 days, then will have to cut back to essential services mode only.

Also, still waiting to be heard on the Senate Floor is:

HB144: UNEMPLOYMENT COMPENSATION INCREASE sponsored by Rep. M. Stewart. 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.

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.