With New Mexico’s Special Session to begin (in darkness) on June 18, the Gov. has finally put out her main proposals for addressing the economic situation. KOB TV Channel 4 has the details (the proposals weren’t listed on the Gov.’s official website).
According to KOB, the plan is to:
- Use $725 million of federal coronavirus relief funds
- Tap the state reserves.
- Refinance road projects and reduce pay raises for state employees from 4 to 2 percent.
The Gov. added that “furloughs and layoffs are not on the table.”
In other words, no serious action will be taken to address the budget. While many businesses STILL remain shut down by order of the Gov. and the economy struggles to regain momentum New Mexico government employees will not only NOT suffer any pain from being “all in this together,” they will see pay raises.
1) The Gov. is hoping that recent “progressive” gains will give her the freedom to tap New Mexico’s various permanent funds in January and beyond if needed. Some of those dollars may be used to support businesses impacted under COVID19 in a move that could prove politically-popular (providing support/stimulus for businesses without raising taxes by tapping permanent fund dollars);
- 2) The Gov., however, doesn’t want to do anything politically-unpopular (program cuts or tax hikes) before November’s election.
3) As the newly-minted leader of the Senate “progressives” Sen. Jerry Ortiz Y Pino outlined in a recent column, tax hikes are very much on the table.