The law requires that those signors print their name exactly as they are registered for the signatures to be valid.  Most of us who registered to vote years ago really can’t remember how we registered. “Let’s see, did I use my middle initial or name; uh, was I Jr. or not”.  The district number also has to be stated on the ballot.  Most candidates know full well what district they are in but if you walk up and down the street asking, very few people know what district they are in and even fewer know who “their” representative is.  This is no aspersion to the voters; it’s just the fact that it isn’t advertized, is not something you use for ID and frankly, doesn’t affect your day to day life in the least.  Here in San Juan County I get calls all the time from individuals outside my district and that is just fine because in practice I don’t pay much attention to whether a person lives on the east or west side of Butler Street.  The whole process is designed to ensure one person one vote and once that is accomplished in the redistricting and elective process it really doesn’t play a role until the next election.

As a result of this year’s plethora of challenges, I can guarantee there will be some legislation that will question the sanity of the law and in a flurry of solutions will enact a correction that without doubt the following year will be questioned again. 

Just for the record I was very careful to make sure that my petitions were signed by voters in my district with the number clearly displayed in the proper but elusive spot and that 101 were signatures followed by a printed name exactly as registered.

2012 Sessions Tactics:

As expected, with the Majority party of both chambers differing from the executive, we saw a change in tactics.  One such change included an increase in House Memorials.  Traditionally used to commemorate important days or recognize prestigious members of our communities, memorials have since evolved to direct state agencies to undertake studies in an attempt to influence administrative policy changes.  This session also saw a large increase in House Joint Resolutions.  As constitutional amendements, HJRs do directly to the voters.  Clearly, the increase was an attempt to address contentious issues without passing legislation or giving the governor an option to veto.  Some examples include:  increasing the disbursements of the state’s land grant permanent fund for education and requiring the state to annually increase the minimum wage.  We also saw an hjr that would make health care a fundamental human right.  The cost of the “right” was upwards of $14 billion dollars, nearly three times the cost of NM’s total annual state budget.

The Budget:

As a 30 day session, the 2012 Legislative Session was first and foremost a budget session.  For the first time in several years the Legislature crafted a budget that did not use federal stimulus funds.  The budget process was several months in the making and in the end saw a modest increase of less than 4%.  Even though the $5.65 billion dollar budget was increased by approximately $200 million over the prior year’s budget, it is important to remember that state government is still operating with almost $400 million less than in fiscal year 2009, which was the highpoint.  This year’s budget passed out of the House leaving $40 million dollars on the table to be used for tax cuts; some of those tax credits/reductions are listed below.

Education:

New Mexico’s education budget has increased by more than $600 million in the last 10 years (FY2002: $1.8 billion, FY2013: 2.4 billion) yet, depending on which study is cited, education in NM continues to lag in many crucial statistics. Rather than throw money at a system without any accountability, the House Republicans have continued to push reform legislation the last couple of years and this year’s session was no different.

HB249, the Teach and School Leader Effectiveness Act, would have required all schools to implement a teacher and principal effectiveness evaluation program.  This evaluation system would have focused on reliable student growth and achievement figures, rather than simply being based on assessments.  50% of the evaluation in HB249 would have been based on student achievement.  Alternative bills were offered that suggested evaluations of teachers only factor in 30% “student learning”.  These bills did not pass.

There was also legislation introduced aimed at addressing the social promotion of 3rd graders.  Once again, the majority in the legislature failed to allow the passage of legislation that would stop, or intervene in, passing kids who cannot read proficiently by the end of 3rd grade.

The House Republicans did manage to negotiate some of the Governor’s education reforms into HB2, giving the executive more authority to address failing schools via placement of education funds.  The hope is that direct interaction in addressing failing schools will yield better results and pull New Mexico up from the bottom of education statistics.  Beyond that, the Majority decided to maintain the status quo on education.

Jobs:

With New Mexico’s current Economic Outlook Ranking at 35, only 15 states have poorer prospects, the need for economic growth is clear.  The Economic Outlook Ranking, developed by the American Legislative Exchange Council in the 4th edition of Rich States Poor States*, is comprised of 15 state policy variables such as personal and corporate income tax rates and public employee population.  The push to bring about economic growth in NM is unmistakably highlighted by the following tax proposals put forth during the 2012 Session:

HB130 reduces the Corporate Income Tax Rate.  This is the second year in a row we have tried to bring New Mexican corporation tax rates in line with neighboring states.  NM ranks 27 in corporate tax rate while our neighbors, CO, UT, TX and OK rank 6, 7, 14 and 16 respectively*.  Did not pass. 

HB159 provides a Gross Receipts Tax deduction for services rendered to the Department of Defense for energy or satellites.  The purpose of this deduction is to promote new and sophisticated technology, enhance the viability or existing directed energy and satellite projects and attract new projects to NM with concomitant high-technology employment opportunities.  Did not pass.

HB184 proposed an exemption from gross receipts for construction services, including leasing of construction equipment, provided the contractor delivers a Non-Taxable Transaction Certificate (NTTC).  As amended, HB184 includes the provisions of HB256 which expands the gross receipts tax exemption to cover tangible property consumed in the process of manufacturing, including utilities and other non-reusable resources.  Signed by the Governor, this bill reduces double taxation on the construction sector and the tax burden across the board.

HB189 allows “small businesses” to deduct the gross receipts payments if the business’s total annual gross receipts in the preceding calendar year did not exceed $50,000.00.  This bill would have significantly reduced the tax burden on our small businesses, encouraging growth and entrepreneurship.  Did not pass.

HB322 gives a tax credit to businesses for each high impact economic development project, as well as for establishing permanent, full-time, well-paid jobs.  Did not pass.

The 1/2 percent tax increase on everything else is not generating enough to replace what is passed to the cities in the hold harmless agreement.  With about a $125 million shortage.  As the economy has slipped over the past few years, people are buying less but spending the same on food and medical.  Also, the poorest of New Mexicans on food stamps got no discount on their food and everything else cost them more than before.   This further exacerbates the problem and the state coffers are the loser.

Bottom line is the legislature passed a very flawed piece of legislation that was touted as helping the poor but in fact has raised their taxes and damaged the revenue base that pays their subsistence.

The PRC was created with far too much power and it was highly technical.  Unfortunately, the only qualification to run for PRC office was that you had to be 18 years old.  The Commission struggled into existence as the resolution was interpreted by the rule makers.  It combined the Public Utility Commission and the State Corporation Commission and brought in the Department of Insurance (which operates somewhat independently) and became the most powerful state Regulatory body in the US.  Finding its ground took a few years and with the very different responsibilities from rate cases to appointing the state fire marshal the commission is compromised by not having commissioners specialized in the various areas of its charge.

The recent news stories about Jerome Block Jr., who was elected while under investigation for fraud, has only added to a history of controversies internal to the PRC.  The ill-conceived body has suffered as a result and is an embarrassment to New Mexico.  It is imperative that the legislature seriously reconsider the structure and responsibilities of the Commission and ask the voters to amend our constitution.  Bringing the PRC a new life and respect will require a thorough remodel.

It is for that very reason that we don’t have a compromise plan in the house.  The Republicans realized the problem and faced up to it and submitted plans pairing some of our own.  The Democrats on the other hand did not.  They had a tough situation because the House of Reps has 36 D’s, 33R’s and one independent.  If the D’s paired anyone they could lose their slim majority and fail to pass a plan at all.  The Democrats passed their plan on a straight party line vote.

What happens in the next few weeks will determine the make up of the House and Senate districts for the next decade.  In New Mexico our populations are shifting at such a rate that what ever plan is decided on will inevitably be out of date long before we reach the next census. 

With 11 other items on the agenda only a couple made it to the Governor’s desk for consideration.  She has 20 days to decide on signature or veto.  Before her is an in-state preference bill for local contractors, a capital outlay bill at about 81 million (includes the first 15 million in the Navajo Water Rights settlement and a bit over a million for a project at our national guard armory) and a Medicaid fix.

That is it in a nut shell.  For me it was 12 and 14 hour days and dreams at night of maps.  The next few weeks will determine if all that work paid off or not.  For me I always plan for the worst and hope for the best and therefore I am rarely disappointed.

Second, the Feds are expecting the states to be innovative in creating their plans and will seriously consider waivers to the Fed rules. 

Third, it is clear that the deadlines imposed in the Act are not achievable and the Fed is encouraging the states to forge ahead.  The problem is the Fed has not designed the national exchange that is supposed to fill in the holes left by the states exchanges.  That process will take far more time than is allotted.  While it may appear to the casual observer that New Mexico is not doing much on our own exchange, the fact is that numerous individuals and groups are working toward a solution for our state.

“So what is a Health Insurance Exchange?”, some of you may ask.  The easiest explanation I can come up with is to use the NY Stock Exchange as an example.  If you desire to purchase a stock in Company X, you consult with your broker or use you electronic opportunity and you buy the stock you want.  If you move, change jobs or whatever, you still own your stock.  In a Health Insurance Exchange you consult with your agent and buy an insurance plan that best suits your needs.  The product is portable and it’s your’s and not connected to your job.