Enchantment State News

In a mid-March tweet by the New Mexico Legislature, officials announced that the state capitol would be closed until at least April 6. On the third of this month, however, the legislature tweeted again that the closure had been extended "until further notice." The shutdown, a part of national efforts to smother the spread of the novel 2019 coronavirus, has proved to be problematic for some legislative agenda items. 

New Mexico Gov. Michelle Lujan Grisham announced in March that there is need for a special legislative session, especially to address the 7.5 percent surge in state general funding slotted for the annual budget to begin on July 1. The Associated Press reported that more than one-third of the state's annual income is generated by the petroleum sector, and with the world prices of oil in freefall the state is flinching as it prepares to take a hard blow to its annual revenue. 

With the budget having been signed and sealed before the prices of global oil spun out of control, the legislature must scramble to revise the budget in order to soften the punch from the market plunge.

Carla Sonntag, president and founder of the New Mexico Business Coalition, has been an advocate for business for more than two decades and seeks pro-business policy, reasonable regulation and fair taxation.

Sonntag said that the need for a special session is critical.

"The legislature passed a budget this year that significantly increased state spending for the second year in a row," Sonntag told Enchantment State News. "The excess spending was based on surpluses due to a strong oil and gas market. When the political issue between foreign powers caused that market to crash, the budget is no longer sustainable."

Sonntag said that the economy shutdown spurred by the COVID-19 pandemic adds urgency to the issue, and that legislators need to meet since the state will use an entire reserve fund to bridge the budget gap. 

"The state budget was increased by approximately $2.2 billion over the past two years to $7.6 billion," Sonntag said. "Fortunately, there was a reserve fund of $1.7 billion to help bridge the gap but the legislature will need to meet and make adjustments."

Despite this sense of timeless, action on the state's part remains untaken. It is unclear when the legislature will call the special session, since some want to wait until federal aid funds are received, and others want to amend the budget before this fiscal year is over in June. 

Sonntag speculates that the uni-partisan majority in both chambers and the governor's office may have something to do with the state's productivity. 

"There are a few pro-business Democrats in the Senate who will often work with Republicans to do what is right," she said. 

Sonntag said that one of the state government's top priorities should be the protection of New Mexico's businesses, including tax relief and finding ways for closed businesses to reopen. 

The New Mexico Business Coalition is reportedly "busier than ever," trying to help protect local businesses from the pandemic impacts. 

"Some hospitals have started laying off staff due to lack of revenue. All others have been shut down," said Sonntag. "We’ve got businesses closing permanently and others barely hanging on, praying that things will soon change."

The New Mexico Business Coalition is an advocate for businesses in the state that seeks pro-economic policy and legislative accountability. Updates on the NMBC's efforts can be found at nmbizcoalition.org.