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Thursday, October 22, 2009
Lawmakers Struggle for Budget Deal
By Sean Olson And Dan Boyd
Journal Staff Writer
SANTA FE — New Mexico legislators were inching closer to a deal to bridge the state's $650 million budget gap Wednesday night.
Senate Democrats worked furiously behind the scenes, promising a package of four bills to make up for the shortfall in the state's $5.5 billion budget before the night was over.
One key lawmaker said cuts to education spending probably would be 2 percent or less, with larger cuts in store for general government.
Details about the bills were slim, but Senate Majority Leader Michael Sanchez, D-Belen, said they could bring a conclusion to the special session by this afternoon.
Senate President Pro Tem Tim Jennings, D-Roswell, said Democratic leadership was horse-trading behind the scenes to get at least 22 of the state's 42 senators on board with the bills.
Republicans favor deeper cuts to recurring funding and have promised to vote against any bill that doesn't do enough to balance future budgets. Progressive Democrats won't support a bill that has significant cuts to education.
"I think we're getting closer — people are tired," Jennings said. "We're getting to the point where (legislators) are ready to give their final offer."
House Democratic leadership spent much of Wednesday behind closed doors. It was unclear whether the House would propose a similar package of bills late Wednesday.
The Senate bills were expected to include a combination of spending cuts and cash-savings maneuvers to narrow the budget gap.
The measures included a cut to state government agencies of about 5 percent, a smaller cut to public education, canceling stalled infrastructure projects and sweeping money from various state funds.
"I'm not happy with a lot of those bills ... but I think it's imperative we get something out," said Sen. John Arthur Smith, D-Deming, chairman of the Senate Finance Committee.
A number of Democratic lawmakers pushed to have tax increase proposals considered, despite guidelines from Gov. Bill Richardson that ruled out such measures for the special session.
After that effort failed, many legislators were trying to limit the scope of cuts.
"I think when people made commitments to their constituents, they were under the impression they would have all the tools at their disposal," said Rep. Antonio "Moe" Maestas, D-Albuquerque, who added in reference to spending cuts, "When no one's happy, it's probably a good resolution."
With education cuts appearing imminent, state education officials were working with lawmakers to give the state's 89 school districts the ability to absorb the reduced funding.
Bills that would relax limitations on class sizes and total number of school days were under discussion, as well as a proposal to have the state pay for a portion of schools' insurance costs.
"It's obvious that if districts wind up having to take a cut, they're gong to need some flexibility," Public Education Secretary Veronica Garcia said.
Rank-and-file lawmakers spent much of the day lounging on the floor of the legislative chambers, waiting for leadership to bring forward revised budget proposals.
With the promise of a deal on the horizon, however, legislators said they're optimistic about wrapping up their work.
"Progress is being made," said Rep. Jeff Steinborn, D-Las Cruces, "There are tough negotiations going on. We are getting closer."
Lawmakers on Wednesday gave final approval to a measure allocating $370,000 to pay for the special legislative session dealing with a state budget deficit.
The measure unanimously passed the Senate without debate and is headed to Richardson to be signed into law. The House previously had approved the bill.
The money for the session comes out of cash balances maintained by the Legislature. Smith said the measure will cover costs of a session lasting up to a week.
Lawmakers convened on Saturday.
Whether to include education in cuts to state spending was the chief sticking point through the first four days of the session.
Progressive Democrats, supported by education unions, opposed any school cuts and battled to have the Legislature agree to consider tax increases, or a repeal of tax cuts, to help plug the budget gap. They appeared to lose that battle Tuesday in the Senate.
Richardson has said he doesn't want tax increases to be considered in the special session, but has opened the door to considering them in January, when the Legislature will convene for a regular session.
Lawmakers will begin work on the state budget for the coming fiscal year in that regular session and are expected to again face a sizable revenue shortfall if personal and corporate income taxes continue their recessionary slide.
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