Key Senator Cites ‘Issues’ With Paseo Interchange Funding

SANTA FE – The Senate was poised Monday evening to take action on one of the biggest bills facing the Legislature during its 30-day session that ends Thursday – a $5.6 billion spending plan for the coming year.

Meanwhile, influential Senate Finance Committee Chairman John Arthur Smith, D-Deming, suggested about $36 million in money unspent in the plan could be used on one of two high-profile proposals put forward by Gov. Susana Martinez, but likely not both.

The two proposals are tax breaks aimed at breathing life into New Mexico’s economy and a state commitment toward rebuilding Albuquerque’s frequently crowded Paseo del Norte interchange.

Smith told the Journal there were some “issues” with including the Paseo del Norte funding in the Legislature’s annual public works package, also known as capital outlay, but did not specify what those issues might be.

After three straight years of recession-caused spending cuts, the proposed budget would increase state spending for the fiscal year starting July 1 by about $220 million – or 4 percent – from this year’s levels.

Most of that increased spending would go toward public schools and Medicaid, which account for about 60 percent of the state’s budget.

A spokesman for Martinez said Monday the governor has been working with Democratic lawmakers to find common ground on the budget.

“She has been clear that our budget must reflect a few central priorities, including our commitment to helping those in need, reforming education to ensure that our kids can read and succeed and passing meaningful tax reform to make New Mexico more competitive so that we can create jobs,” Martinez spokesman Scott Darnell said.

The Senate Finance Committee on Sunday made minor changes to the spending plan, which had been approved last week by the House of Representatives on a unanimous 70-0 vote.

Those changes included more funding for drug courts, services for individuals with developmental disabilities and for soil and water conservation districts.

In addition, the Senate committee removed language from the House spending plan that had called for automatic spending reductions for most state agencies in the event that revenue collections fall short of currently projected levels.

Martinez had voiced objection to the language, claiming she would rather have the authority to make targeted cuts in such a situation.

Once approved by the full Senate, the budget bill will be returned to the House so members there can weigh in on the changes. If the House signs off on them, the bill will then advance to Martinez’s desk for final consideration.

Martinez will then have until March 7 to sign or veto the bill or make line-item vetoes.

The 30-day legislative session ends at noon Thursday.
— This article appeared on page A4 of the Albuquerque Journal