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Opinion editorials Handling of Pit Appeal Calls for a Time-Out |
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opinion editorialsThis editorial first appeared in the Albuquerque Journal. It was written by editorial page staff and is unsigned as it represents the opinion of the newspaper rather than the writers
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Tuesday, February 16, 2010
State Budget Needs Cut-and-Tax Officials
Nobody wants a tax increase — especially not in this economy — much less $180 million worth.
But at least the state budget passed by the state Senate also includes spending cuts of 3 percent. Compare that to the House plan, which jacks up taxes by at least $300 million but cuts spending just 1 percent.
Fiscal conservatives might say the Senate didn't try very hard to shrink government spending, but over in the House it looks like members didn't try at all.
Faced with a $500 million to $600 million shortfall for fiscal 2011, lawmakers have just two and a half days to reconcile the versions of HB2 or get ready for a special session, which runs around $50,000 a day.
On Sunday, Senate Majority Leader Michael Sanchez, D-Belen, seemed resigned to a special session. On Monday, House members hemmed and hawed over Senate cuts in caucus meetings.
Out in the real world, if folks don't reconcile their budgets in 30 days, utilities get shut off and vehicles get repossessed. It's past time for New Mexico's lawmakers to get real, too.
Is state government such a well-oiled machine that cutting around $165 million from $5.5 billion — the Senate plan — slices past all the fat, waste and duplication and into the bone? In a budget that has grown over 50 percent since 2003?
It's worth repeating that New Mexico averages 24.5 state workers for every 100 in the private sector; the national average is just 16.22. About 400 state jobs were added in '08, costing $1 million every two pay periods. Some 468 governor appointees were hired in the past two terms. Over $1.4 billion languishes in undone capital outlay.
The Senate's "non-nutritional" food tax by Sen. Bernadette Sanchez, D-Albuquerque, is taking a lot of political flak, but SB10 is preferable to the House half-cent sales-tax hike on nonfood items. That version takes an even bigger bite out of all of our collective paychecks.
And New Mexicans certainly don't need the proposal in the House that would have removed the tax deduction for the state sales tax we already pay. Proponents say it's not a tax on a tax. It is.
So as lawmakers work on reconciling the state checkbook — and that's something they should get out of caucus and do in front of the public, honoring the spirit and the law of newly open conference committees — they should continue to rein-in government spending.
That's the only way to justify HB2 measures like dipping into the rainy day fund for $83 million and the education lock box for $49 million.
Average New Mexicans, who already feel tapped-out, know you can do that just so many times before the money's gone. Responsible lawmakers should get on it and ensure some spending is gone as well.
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