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Sunday, October 18, 2009
Education Budget Likely To Take Hit
By Dan Boyd
Journal Capitol Bureau
SANTA FE — Gov. Bill Richardson stepped back from his hard line stance against using public education cuts to help plug a $660 million state budget deficit as New Mexico lawmakers waded into special legislative session Saturday at the Capitol.
After meeting with legislators Saturday morning, Richardson announced a revised budget plan that includes a 1.5 percent cut on public education spending for grades K-12 — about $40 million worth in a part of the budget he had strongly opposed touching.
However, Richardson continued to insist that classroom teaching should be protected from any cuts.
The Democratic governor's plan also called for 3.5 percent across-the-board cuts to state agencies and using federal stimulus money to avoid deeper cuts for schools. He said his plan would avoid furloughs and layoffs of state workers.
Lawmakers were discussing the proposals Saturday evening in closed-door caucuses. The special legislative session was scheduled to resume today and will probably continue into the new week.
Richardson said his revised plan was prompted by "new budget realities." He said the education cuts would have to be implemented in a way that didn't impact classrooms, students and teachers.
The governor's statement on the plan did not make it clear how the cuts would avoid any impact on classroom teaching. Administration expenses, however, were not exempted.
Public school spending for grades K-12 amounts to 43 percent of the state budget, and key legislators had told the governor that the state's $660 million revenue shortfall could not be made up for without touching schools.
"It just became necessary that there would have to be some cuts," said Richardson spokeswoman Alarie Ray-Garcia, who said the education cuts for the current budget could be targeted at administrative costs.
Richardson opposes tax increases to close the deficit for the current budget year, but, on Saturday, he opened the door to considering them next year when a new budget is drafted.
"I will consider revenue enhancements during the January session as long as they have gone through a review between now and then and can be proven to have a lasting, positive effect on the budget," the governor said in a statement.
House Democrats presented Richardson with a modified budget proposal of their own on Friday, which bore a strong resemblance to the plan unveiled by the Governor's Office.
Not all lawmakers agree that the state's $5.5 billion budget should be balanced with spending cuts.
Some progressive legislators said Saturday they'd continue to push for tax increases and fight against any proposed cuts to schools.
"There are a lot of people in our caucus who will not vote for any education cuts at all," said Rep. Mimi Stewart, D-Albuquerque.
Despite limits imposed by Richardson on what types of bills can be considered during the special session, members of the Senate introduced a slew of tax increase proposals, including plans to raise taxes on liquor, cigarettes, soft drinks and a proposal to repeal 2003 income tax cuts.
A Senate committee will meet today to decide whether the tax proposals will be considered.
Before the special legislative session began Saturday, crowds of protesters awaited legislators at the Capitol, demonstrating on behalf of domestic partnerships, less government spending and stopping education cuts.
Education union members held a press conference to claim that most New Mexicans favor plugging the budget gap without cutting education spending.
"People do not want education to be cut any further than it already has," said Carmen Lopez, the legislative chair of the New Mexico Parent Teacher Association.
The American Federation of Teachers-New Mexico, a teachers' union, called Richardson's proposal "unacceptable."
New Mexico's budget gap has worsened significantly in the last two months, with the state's projected revenue shortfall growing from $433 million in August to the current figure of $660 million.
Several top-ranking lawmakers described the situation as alarming and exhorted legislators to find consensus as quickly as possible.
"We can not afford a stalemate during this session," said House Speaker Ben Lujan, D-Santa Fe, who warned House members about the dangers of the special session dissolving into a "partisan spectacle."
While three legislative budget-balancing proposals rejected by Richardson last week would each generate $650 million in savings, the plan unveiled Saturday by the Governor's Office is a $617 million plan.
Richardson's plan also proposed:
• Cutting higher education spending by 1.5 percent.
• Using federal stimulus money to help offset cuts.
• Cancelling already stalled statewide infrastructure projects.
• Delaying approved increases in state contributions to two state retirement funds.
• Using short-term bond revenues to pay for general government operation.
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