Despite pressure from many legislators in both parties (here are the House and Senate votes) and the various Chambers of Commerce, Gov. Martinez made the tough call of vetoing a $128 million tax hike that would have beefed up New Mexico’s unemployment insurance fund. Wisely, the Gov. did allow the benefit reductions in the bill to go into effect.
Martinez could have been excused for going ahead with the increase because if she didn’t, and revenues into the fund did not increase, the unemployment tax would have been forced even higher by the federal government.
Now Martinez’s decision appears to be vindicated (at least at this point) with new data saying that the fund is solvent at least through March of 2013.
Thanks to Gov. Martinez for making a tough decision that undoubtedly has helped to restore New Mexico’s economy to health.