lcsun-news.com
OPINION
Posted: 01/15/2012 04:38:40 AM MST

For the first time in four years, state legislators will not face the grim task of cutting the budget when they arrive in Santa Fe on Tuesday for the start of this year's legislative session.

In fact, there will be about $250 million in so-called "new money" available to legislators this year to increase spending above last year's level. That does not mean, however, a return to the salad days of the first term of Bill Richardson's administration, when the Legislature increased spending to an unsustainable level. Our budget is still closely tied to oil and gas revenue, which has always been incredible volatile.

The Legislative Finance Committee and Gov. Susana Martinez have both taken a cautious approach in preparing their budgets. Legislators would increase spending by 4.6 percent, targeted to public schools, universities, the courts and Medicaid services for small children. They would also add $65 million to the state's reserves, with the goal of beefing total reserves up to $570 million, or about 10 percent of the proposed $5.68 billion total budget.

The governor's budget addresses many of those same priorities, with additional money for education and health care. But instead of beefing up reserves, she is proposing $55 million in tax cuts for small businesses with revenues of $40,000 to $50,000 a year. Martinez said she was hopeful that businesses would use the tax cut to increase hiring, but there is no requirement that they do so.

And, without a "hold-harmless" provision to reimburse local governments, exemptions from the gross receipts tax could have a devastating impact on a town like Mesilla, which has nothing but small businesses and does not have the property tax base to absorb a cut to its GRT revenue. We believe restoring the state's reserves is the more prudent step this year. If state revenue continues to be strong, a tax cut can always be considered down the road.

Because this is a 30-day session, the governor has control of the agenda. Any bills not directly related to the budget must be approved by Martinez before they can be considered.

One bill sure to win the governor's approval would end the state's practice of issuing driver's licenses to illegal immigrants. The bill introduced last year by Rep. Andy Nuñez of Hatch, the Legislature's lone Independent, was the most contentious of the session. House leadership tried to block it in committee, but Nuñez had the support for the rare step of bypassing the committee process.

When New Mexico passed a bill several years ago to provide driver's licenses to illegal immigrants, we were one of several states with such a provision. Now we are one of three, along with Utah and Washington, and the only state in proximity to the southern border that does not require proof of citizenship to obtain a driver's license.

While we think the governor is likely over-stating the public safety dangers, we agree that our now-unique status has made New Mexico a target for illegal immigrants with no ties to the state who come in hopes of obtaining a driver's license with fraudulent documents claiming they live here.

We also support the governor's proposal to add funding for reading instruction and hold back third-graders who cannot read proficiently.

Others bills that could be considered this year, and that we think have merit, would eliminate the statute of limitations for second-degree murder, bring much-needed reform to the Public Regulation Commission and ensure that the state unemployment insurance fund has the revenue needed to remain solvent well into the future.

Our View: 'New money' drives this year's Legislature - Las Cruces Sun-News