Lawmakers react to guv’s action on budget

Gov. Bill Richardson’s action on the budget drew mixed reviews from lawmakers on Thursday. One of the more notable quotes came from Sen. John Arthur Smith, chairman of the Senate Finance Committee, who has warned for years that hard times were coming.

Often, Smith’s warnings were met with skepticism or even a rebuke. But Smith’s words have become reality, and he said Richardson’s Thursday action to cut jobs, force agencies under his control to cut their budgets and require that employees take furloughs prove that the governor now realizes that.

“He’s been in denial, and is no longer in denial. He’s realizing what’s happening now,” Smith said in an interview. “The bottom line is hopefully it’s striking home that we are in a serious, serious financial situation.”

Here are reactions from several lawmakers, including Smith, to Richardson’s action:

Smith, D-Deming

Regardless of what Richardson did on Thursday, Smith said he “wouldn’t be surprised” if the state has to take additional action in January to balance this year’s budget. In addition, he said the state could face a shortfall of as much as another $600 million in next year’s budget, which lawmakers will also be discussing in the 30-day session.

Many lawmakers are pushing for revenue-raising measures including tax increases to help address the crisis, and the governor has said he will consider such proposals. Smith didn’t close the door on tax increases, but he also wasn’t excited about the idea.

“I’m really going to have to look at them,” he said. “…I’m very reluctant to support any revenue enhancements.”

Smith also expressed concern about the attempts by the governor and others to keep cuts to education as small as possible, saying that is leading to much more painful cuts to other agencies. Richardson originally wanted no cuts to education.

“I will not support another reduction that doesn’t treat all New Mexicans equally,” Smith said. “I don’t want to support holding one group harmless over another.”

Rep. Nate Cote, D-Las Cruces

In response to the governor’s announcement that he will cut “at least” 84 political appointee jobs, Rep. Nate Cote, D-Las Cruces, said more than 60 of those jobs are already vacant.

“So really, he’s getting rid of very few,” said Cote, who was one of the first to propose cuts to the governor’s political appointees during the special session. “Personally, I don’t think it’s enough. … He probably has 20 people that are occupying those positions that are leaving anyway.”

“I don’t think he’s sacrificing much by doing this,” Cote said. “Meanwhile, I think he’s sacrificing some of the hard-working state employees with furloughs.”

Still, Cote said he is OK with the governor making cuts by executive order.

“It does allow him that flexibility as a manager, and personally I can’t disagree with that,” Cote said. “Me, as a manager, I would certainly want that type of flexibility.”

One area the Legislature and governor have yet to tackle in looking for ways to cut the budget is state boards and commissions. Cote said he plans to take a look in January at cutting some of the expenses of those organizations.

Rep. Dennis Kintigh, R-Roswell

Rep. Dennis Kintigh, D-Roswell, said he was glad to learn that the governor had found a way to avoid closing prisons and releasing inmates early. Richardson had warned that, if he OK’d the cuts approved by the Legislature, two state prisons would close and 600 inmates would be released early.

“That was a huge concern of mine, so that, to me, is good news,” Kintigh said.

Asked about Smith’s statement that the governor is finally realizing the severity of the situation, here’s what Kintigh had to say:

“It’s taken longer for some parts of the Legislature and executive branch to want to get their arms around this whole issue. We’re moving in the right direction,” he said. “I’m not happy with how far we’ve gotten but I’m happy that we’re moving in the right direction.”

Kintigh sounded even more reluctant than Smith to vote for any tax increases.

“I have a real concern that tax increases stifle economic activity, and what we’re trying to do here is we’re trying to create wealth,” he said. “… If we do things that stifle wealth creation, or commerce, or business activity, then it hurts. I have yet to see a scenario I would be supportive of.”

Still, Kintigh said he wants to hear the revenue-raising proposals. One other proposal he doesn’t want to be open for discussion is the raiding of the Land Grant Permanent Fund.

“I’m going to fight that tooth and nail,” he said. “We’d be fools to tamper with that.”

Rep. Joe Campos, D-Santa Rosa

Rep. Joe Campos, D-Santa Rosa, said he’s concerned about the 1 percent cut to Medicaid that Richardson ordered on Thursday.

“One issue that we had is we didn’t want to have any cuts in Medicaid. We knew that. They were already being underfunded as it is,” he said in an interview. “Taking out another 1 percent is just going to be creating more harm than good.”

Campos added that the state will lose three federal dollars for every $1 in state money it cuts from Medicaid.

Sen. Tim Keller, D-Albuquerque

Sen. Tim Keller, D-Albuquerque, noted that the Legislature “passed a bipartisan bill with broad support” during the special session, even though it was “restricted by the governor’s narrow call” for the session.

“It specified that the executive should cut 7.6 percent of the budget overall. Where and how has always been solely up to (Richardson’s) leadership and discretion,” Keller said.

“We have structural budget challenges, so regardless of today’s action, I hope the governor and Legislature can make the tough decisions on revenue and spending in (January) and avoid another round of ‘kick the can,’” he said.

“The guv basically did his own solvency with veto/exec order,” Keller said. “Was it really necessary to go into a special session to do ‘the first draft?’”

Sen. Eric Griego, D-Albuquerque

Sen. Eric Griego, D-Albuquerque, said it was unfortunate “that the Legislature and governor could not take a more balanced approach to solving this fiscal crisis by raising some revenues to minimize the amount of cuts to critical public services.”

Griego was one of the most vocal advocates of tax increases during the special session.

“Hopefully, rolling back tax cuts for the highest-income New Mexicans and eliminating corporate tax loopholes will be on the table in the January session,” he said.

Sen. Dede Feldman, D-Albuquerque

Sen. Dede Feldman, D-Albuquerque, said she had no problem with the governor issuing an executive order to make cuts instead of accepting cuts approved by the Legislature.

“I think that’s fine. He is in a position to be more strategic when it comes to the exact cuts that are being made,” she said.