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Budget Transcends Political Boundaries

Thursday, February 11, 2010

The following op-ed appeared today in the Albuquerque Journal under the heading, “Permanent Fixes Needed to Reconcile State Budget,” and is offered for submission to all media.

 

Budget Transcends Political Boundaries

 

Submitted by the 49th New Mexico State Legislature House Republicans

 

 

With so much at stake and so little time left in the 49th New Mexico Legislative Session, we would like to lift the curtain on how the budget process is unfolding.  The story this year has so far been a dramatic one as we and our Democrat colleagues clashed, debated, maneuvered, and finally come together in an effort to allow the budget to transcend political boundaries.

 

When this session began, New Mexico had a budget deficit for the upcoming fiscal year of $600 million.  The Legislative Finance Committee proposed a budget to the House Appropriations and Finance Committee that would reduce that deficit to $200 million.  Rather than taking that recommendation and working to scale it back even further, the House Appropriations and Finance Committee added $90 million to it, creating a total deficit of $310 million with most of the balance temporary dollars. 

 

The possibility of raiding our already depleted rainy day funds permeated budget discussions despite figures that proved they should be left alone to replenish.  Once a thriving 13% of recurring appropriations, the state reserves have been reduced to 2.5% of recurring appropriations, or about $133 million.

 

It was clear from the beginning that the chances of receiving large amounts of temporary additional federal money is slim.  The $23 million of federal money that is headed our way for education and the federal funding for the Medicaid program that will allow New Mexico to reduce general fund appropriations by $70 million are temporary.  We will have to replace them next year.

 

A few weeks ago, Rep. Ken Martinez extended a hollow invitation when he said, “Even if you [the House Republicans] will not vote for any type of revenue enhancement I think you can have a hand in the policy making by just giving us your good ideas.” 

 

In fact we had provided the powerful House Rules Committee that is controlled by Democrats ten of our “good ideas” in the form of bills that would institute responsible and necessary budget cuts that are not temporary.  All of these bills were voted down, eliminating any chance of debate, testimony from New Mexicans around the state, and other legislative action that is vital to making responsible budget decisions.

 

It appeared that Democrats had chosen taxes increases as their solution to this enormous budget mess.  They seemed oblivious to the reality that increased taxes would only halt job creation by compelling the businesses and individuals that pay these taxes to reduce the number of their employees, curtail any plans to expand, or move out of state to compensate for the new taxes they have to pay.

 

Fortunately, Friday’s budget and tax votes indicated a shift in thinking among some of the House Democrats.  The bi-partisan votes indicate an abandonment of party-line agenda in favor of objective analysis.  Eight Democrats voted against HB9, a bill to impose a surtax for three years on certain personal income, making the margin of victory for the bill only four votes.  Democrat and Republican opposition to HB270, a bill to take away itemized tax deductions, caused the bill to fail 34 to 33, with ten Democrat votes against it.

 

There are still some large flaws in our pending budget and tax legislation.  For instance, there are a lot of temporary dollars in the six main House budget bills.  Temporary tax increases are burdensome because they are tax increases that later go away and leave government thirsty.  They also add a variable to the fiscal landscape and make it more difficult for individuals, families, and businesses to plan.  Another problem is that we are simply spending too much and must further decrease our fiscal year 2011 expenditures. 

 

In the face of great challenges, it is important to remember that the budget process is only half over.  As the budget bill moves to the Senate, we hope the tax and spend liberals will recognize the long term ramifications of this problem and help create permanent solutions rather than temporary fixes. 

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Track Legislation Essential to Economy

Wednesday, February 10, 2010
The following editorial appeared in the Ruidoso News today under the heading “Support track legislation,” and is offered for submission to all media.  
 
Track Legislation Essential to Economy
 
By State Representative Zach Cook, District 56
 
We in Ruidoso make up a small community and we rely heavily on tourism to support our local economy.  Currently the Ruidoso Downs Race Track and Casino is being threatened by low revenue and is considering relocating.  In fact, the race track has gone as far to file an application with the New Mexico Horse Racing Commission asking for permission to move the business to the Las Cruces area.  
 
The loss of the track would have a significant impact on our community’s economic well being and would result in significant job loss as well as a large decline in tourism to the area.  This session I’m supporting legislation (HB 203) to provide the people of Lincoln County the opportunity to keep the race track in Ruidoso.  
 
The track has a local payroll that is close to $ 4.8 million and employs more than 130 people year-round.  During the racing season employment climbs to more than 400 employees, boosting the economy of the entire Ruidoso region.  In addition, tourism escalates to nearly 300,000 visitors each year.  All of this activity adds up to an impact of more than $30 million.
 
HB 203 allows the community the option to hold a vote for a county gross receipts business retention tax.  If counties with race track casinos choose to take this option, the race track will be able to take a credit against the tax.
 
Recently a survey was taken to gauge support for such an option.  Greater than 74% of those surveyed were residents of Lincoln County and nearly 26% lived in other counties but took an interest in the issue. The survey found that residents and non-residents alike support the race track casino by an overwhelming margin and believe, rightfully so, that it provides an enormous economic impact to the area.  According to an executive summary of the survey, more than 76% of respondents were familiar with tax parity legislation while more than 86% responded that they would support a local option county business gross receipts retention tax to help keep the race track casino in Ruidoso Downs.
 
If HB 203 is not approved this legislative session the Ruidoso region will likely lose Ruidoso Downs Race Track and Casino.  This means that at least 530 of us will lose full-time or seasonal employment.  This means that we will lose many of the 300,000 visitors to our corner of New Mexico throughout the year, who help bring in nearly $30 million a year to the region.  This means that our community will lose a major piece of our economy.
 
I strongly urge you to write, call, or visit your legislators to support this legislation.  Without your support, HB 203 will not make it through the process and we could lose Ruidoso Downs Race Track and Casino.
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The Case for Protecting Our Teachers

Monday, February 08, 2010
website: http://www.nmhousegop.com/  
twitter: http://www.twitter.com/nmhousegop
FOR IMMEDIATE RELEASE:  
January 28, 2010
CONTACT:
(505) 216-6342

The following editorial appeared in the Santa Fe New Mexican on February 6, 2010 under the heading “Law says fund schools first,” and is offered for submission to all media. 

 

The Case for Protecting Our Teachers

 

By State Representative Dennis J. Roch, District 67

 

As the state legislature deliberates over New Mexico’s budget shortfall, I have frequently heard the statement, “Every program must take its share of cuts.”  This statement assumes that every program is of equal value, and has an equal return for our future benefit, an idea which is far from the truth.

 

On the contrary, public education is a constitutional requirement and an essential government service.  It deserves to be fully funded before we even think about spending our hard earned tax dollars on non-essential services.

 

Our schools have already suffered cuts of more $200 million in general fund dollars over the last two years, a decrease of more than 10%.  Because such a large portion of school funding is in personnel, cuts of this magnitude compel schools to eliminate positions, resulting in larger class sizes and causing student performance to suffer.  As someone who has taught both high school and middle school and now serves as a district-level administrator, I have seen firsthand how teacher funding affects education.  Colleagues of mine who were excellent teachers have sought other professions that compensated them more fairly for their education, skills, and experience.  I have seen students who were once energetic and passionate about their studies become disenchanted or frustrated because they were not getting what they needed in order to succeed.

 

So where did the $200 million that was cut from education go?  Shockingly, it was diverted to such non-essential programs as the Spaceport.  As of last year, the state had spent $198 million on this project, one for which I don’t see any requirement in the state constitution.  I called on my colleagues to suspend expenditures on the Spaceport, both in this session and in last fall’s special session.  Both times, my efforts were thwarted in committee.  So while school funding is threatened, the state pays for a third chef at the Governor’s Mansion, a Rail Runner that loses thirty-four million dollars a year, a jet for Governor Richardson and Lt. Governor Denish, and university lobbyists with staggering six-figure salaries—paid for with tax dollars to lobby for more tax dollars.

 

While all of these extravagances continue to receive funding, some have even suggested a 2% cut to teachers’ salaries.  This proposal comes after these same employees were hit this year with a mandatory increase in their retirement contributions, reducing their wages by another 1.5%.  Then, on top of all this, there is now talk that educators’ health care deductibles could nearly double next year, increasing their out of pocket expenses and further decreasing their take-home pay yet again.

 

Trust me, shortchanging education has dire consequences for New Mexico’s teachers and students.  So before buying the line that, “Every program needs to be cut,” consider how the loss of even one excellent teacher compares to the loss of the Governor’s jet or his third chef.  There couldn’t be a stronger case for protecting our teachers.

 

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Something's Fishy

Wednesday, February 03, 2010
website: http://www.nmhousegop.com/  
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FOR IMMEDIATE RELEASE:  
January 28, 2010
CONTACT:
(505) 216-6342

The following editorial appeared in the Farmington Daily Times on January 31, 2010 and is offered for submission to all media. 

 

Something’s Fishy

 

By Republican House Leader Tom Taylor

 

Recently I introduced legislation (HB51) to create a trout stamp for catch-and-release fishing in the San Juan River.  Specifically, the bill allows the state game commission to designate special management areas on the San Juan River below the Navajo dam, commonly known as “the Juan,” as trophy fisheries management areas.  Anglers in these areas will be required to purchase permits.  Funds derived from the sale of the permits will be used exclusively in the management areas for maintaining habitat.

 

The list of tasks include conducting habitat and fishery studies, mitigating siltation, and improving the quality of the fishery.  The fees for the annual permits, slated to be five dollars for New Mexico residents, and ten dollars for those out of state, are expected to cover the cost of most of these improvements.  If you have ever seen this portion of the San Juan River you would probably agree that it is worth spending the same amount of money you would for a hamburger to help maintain its health. 

 

This meandering 4.25 mile stretch of part of the San Juan River holds an estimated 80,000 trout and offers some of the loveliest views in New Mexico.  Diverse plants and animals populate its banks.  In addition to offering premier trout fishing, it is a popular spot for camping, whitewater rafting, and hiking.

 

Through the legislation I am working to enact, those who enjoy trophy fishing on our scenic San Juan River will be responsible for ensuring that it remains clean and safe for future generations to enjoy.  This legislation fosters a culture of responsible environmental stewardship.  The Juan deserves nothing less.

 

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Budget Business

Monday, February 01, 2010
website: http://www.nmhousegop.com/  
twitter:http://www.twitter.com/nmhousegop
FOR IMMEDIATE RELEASE:  
February 1, 2010
CONTACT:
(505) 216-6342

The following editorial appeared in the Albuquerque Journal on January 29, 2010 under the heading “N.M. Taxpayers Didn’t Create, Can’t Fix, Budget Mess,” and is offered for submission to all media. 

 

 

Budget Business

 

By Republican House Whip Keith Gardner

 

If you think that this legislative session is different from all of the others, you are correct.  This year the state legislature will be faced with New Mexico’s most serious budget crisis in our state’s history.

 

As we take on this problem, it is important to keep in mind some key points.  We are not just tackling this year’s crisis, we have last year’s budget problems to deal with as well.  We are currently facing a roughly 600 million deficit between FY2010 and FY2011.

 

Raising taxes is not the answer.  Unemployment remains high in New Mexico, while tax revenues have declined since 2008.  This cycle of economic downturn will not be fixed by raising taxes.  It is unfair to New Mexico working families to raise taxes.  Raising taxes would only offer momentary relief to the state treasury before the businesses and individuals that paid the new taxes reduce the number of their employees, curtail any plans to expand, or move out of state to compensate for the new taxes they have to pay.  New Mexicans already carry a heavy tax burden when compared to other Rocky Mountain states.  Increasing taxes now will likely discourage future business development and job creation and cause the recession to last even longer in New Mexico.          

 

The Richardson/Denish administration proposed to raise taxes “temporarily.”  The idea of a $200 million temporary tax increase has been circulating the Capitol as a solution to bring the budget into balance.  In fact, if history is any indication, these taxes would very likely not be temporary or result in a decrease in the budget deficit.  Afterall, there is nothing more permanent than a temporary tax.

 

To solve our budget problems we are going to have to cut out all extraneous spending.  Remember, the budget is not in bad shape only because of the economy, the budget is in bad shape because of overspending.  Between FY 2003 and FY 2009, state government spending increased by nearly 53 percent and the number of budgeted state employees grew by 27 percent. 

 

Today, for every 100 private sector jobs in New Mexico, there are 25 state and local jobs.  Again, our neighboring states are more cost conscious than we are.  In Oklahoma there are only 22 state and local jobs for every 100 private sector jobs.  In Texas there are 17, and Utah, Colorado, and Arizona each have only 16.  This session, we must halt this trend and reverse it. 

 

As a businessperson as well as a legislator who cares about jobs, I maintain we must also resist over-regulation.  One example is the Pit Rule, which has damaged our oil and gas industry by increasing the cost of drilling a well.  The license fees that the Richardson/Denish administration increased last year are another example.  License fees have the same affect as taxes.  In addition, they are a hassle, and if implemented incorrectly they can burden businesses with ambiguous liability that ranges from annoying to frightening.  We must limit business regulation to just essential laws that will reform legitimate, existing problems and take antiquated and unnecessary laws regarding commerce off the books.  We as legislators need to be about the business of making it easier to do business in New Mexico.      

It’s quite clear that New Mexico’s current budget problems were not the result of taxpayers being asked to pay too little, but rather a state government that spends too much, mismanages much of what it does spend, and creates a hostile environment for business and job creation.  Instead of considering ill-conceived tax increases and over-regulation, my colleagues and I must take a hard look at how state services are delivered and implement fundamental changes in the way state government operates.  

 

 

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Representative Taylor - Top 5 Myths

Thursday, January 21, 2010
Representative Taylor had his "Top 5 Myths" of the session published earlier today over at NMPolitics.net. Click here to read the piece.
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