Legislative Update

Tuesday, Jan. 30, 2024

HB11 on paid family and medical leave tabled, more liberal HB6 rumbles forward, dividing debate

Last week the House Health & Human Services Committee quickly passed a paid family and medical leave proposal HB6 while giving a competing bill, HB11, supported by a mix of Democrats and Republicans, short shrift (meaning it was tabled and essentially killed). HB 6 is currently scheduled to be heard in House Commerce & Economic Development on Wednesday, Jan. 31. This issue was one of the top on the Chamber’s list of legislative priorities. Consider lending your voice with messages to the committee.

Governor/Legislative LFC release budget proposals

HB177 did what little in Santa Fe has done lately, unite both parties. The NM Match Fund would be created if the bill passes. It proposes investing $100 in a fund that would be used to match federal funds for projects in both local and state governments. Often projects qualify for federal aid but don’t get done for lack of matching funds that may go unapproved during a legislative session. This would make those funds more immediately available and avoid leaving money on the table. Sen. Pat Woods was a co-sponsor of the bill. The bill passed the House Rural Development, Land Grants and Cultural Affairs Committee on Tuesday.

Bipartisan support found with so-called Match Bill

The House Appropriations and Finance Committee sent a $10.18 billion budget to the House Floor Monday. This budget is a 6.5% increase over last year’s Reserves are set at 32%of recurring appropriations with $4.43 billion set aside for public education. Unfortunately it only leaves $200 million for tax cuts, not enough to spark major tax legislation that could help businesses. One bright spot for business is the $100 million earmarked for Career Technical Education CTE. It also provides a $63 million increase in Medicaid reimbursements, another of our listed priorities. Republicans threw a fit over what they charged was an attempt to sneak money into the budget to provide for paid staff for legislators without debate and public airing.

Chamber releases 2024 Legislative Priorities

We warned you it would be coming and it materialized in the form of HB179, a massive increase in alcohol taxes. The bill would raise taxes on beer by 41 cents a gallon or 651%. Other spirits would be hit at varying amounts in an effort to curb the ill-effects of alcoholism. We don’t disagree we have an alcoholism problem, we do argue that balancing that problem on the backs of a few businesses and responsible adults is not the right way to go about it. High taxes didn’t work well last century as it just fueled a black market for alcohol. In our area folks would just jump in the pickup truck and tank up across the state line. That doesn’t help anyone.

Personal Income Tax indexes could see reform

HB252 would offer taxpayers a small amount of tax relief by re-indexing rate charts. The changes would target the greatest percentage of relief to the lowest bracket. It will provide the greatest relief to working families in lower middle class. Experts say while our state budgets have continually risen over the last several years, taxpayers are experiencing “bracket creep” as inflation increases.

We’re more than halfway to the finish

With the 30-day session now past the halfway mark the pace began to quicken this week. We noticed hours are getting longer as several of our east-side lawmakers had to hustle to make our Clovis/Portales Legislative Dinner Monday night in Santa Fe. Frustrations have been a little high overall for Republicans as they have complained about a tremendous amount of legislation in a short time in committee. The Democrats operate the Roundhouse Railroad and they get to dictate the schedule on which it runs. That leaves Republicans with only floor tactics to operate to their advantage. That rarely makes good legislation or wise use of New Mexico’s resources.

Check out the Chamber’s Legislative Priorities

Please take a look at the Legislative Priorities document approved by the Chamber Board earlier today. Download that document at the link below. It can be printed two-sided on a letter sheet and folded in half for ease of distribution.

2024 Legislative Priorities