CHAMBER OPPOSES PROPOSED REVISIONS TO STATE EDUCATION FUNDING FORMULA

We’re Back at the Roundhouse Representing You………

Welcome to the first edition of the 2008 ABQ Chamber Legislative Round-Up. We’ll be updating you twice a week on legislative actions and activities at the Roundhouse as the Chamber weighs in on the legislation our members care about. Look for us in your e-mail box Mondays and Thursdays during the remainder of the session.  

Thirty-day sessions occur in even numbered years. The Constitution of New Mexico states: “Every regular session of the legislature convening during an even-numbered year shall consider only the following: 1) budgets, appropriations and revenue bills; 2) bills drawn pursuant to special messages of the governor; and 3) bills of the last previous regular session vetoed by the governor.”    

This would suggest that very few bills are introduced or, at a minimum ruled germane, but surprisingly, that is not what happens. After just two and one half days, a total of  548 pieces of legislation have been introduced and this number is going to climb rapidly until January 30 which is the deadline for introduction of new legislation.  The session itself ends at noon on February 14.

Opening Day

The Second Session of the 48^th New Mexico Legislature began on January 15, 2008 at noon with Opening Day ceremonies on the floor of the House of Representatives. State officials, former Governors, members of Congress and other dignitaries as well as members of the Senate joined House members to hear Governor Richardson’s State of the State address. Chamber Chairman Paul Sowards, President Terri Cole, and Chamber lobbyist Jacqueline DuBose Christensen were seated on the floor as guests of Representatives Dan Silva and Jimmy Hall. We appreciate their generosity in allowing us to join them. 

The Governor emphasized his focus on health coverage for every New Mexican. He stated that his plan (+the Health Care Solutions New Mexico Act) laid out “a common-sense and pragmatic approach to address our health care challenges”. He noted that his proposals will make coverage more affordable, care more accessible and the system more accountable. Governor Richardson stated that “doing nothing means more uninsured, more expensive health care, more of the state budget dedicated to health costs and less for everything else”. He also said that he wanted to address cutting energy consumption through efficiency, further fighting domestic violence, striving for serious ethics reform and working to ensure that domestic partners have legal rights.

Our Legislators Are Off and Running…

With nearly 550 pieces of legislation already introduced, the House and Senate adjourned for a three day weekend. While the Roundhouse is relatively quiet today, senators and representatives will be back on Monday morning and ready to get down to business.  

As we watch the session unfold over the next several weeks, it is important that each of us participate in the process by letting our legislators know what we support and what we oppose. The men and women who represent us in Santa Fe are essentially unpaid volunteers who are doing the very best they can to represent their constituents. Whether or not you agree with them, be sure and take the time to thank them for their efforts. Theirs is not an easy job. 

Healthcare

Let’s go right to the heart of the matter, no pun intended; health care reform is the issue in Santa Fe for – at least – the next 30 days. And from the Chamber perspective, it is an issue getting the attention it deserves.

On Wednesday, the Health Care New Mexico Solutions Act, HB 62, was introduced by Representative John Heaton along with Speaker of the House Ben Lujan and House Majority Leader Ken Martinez. Rounding out the trio of competing health care bills are: SB 3, the Health Security Act, sponsored by Sen. Carlos Cisneros, and HB 147 and SB 225, the Health Care Authority Act, sponsored respectively by Rep. Danice Picraux and Sen. Dede Feldman. 

The Health Security Act would deliver to our state a single payer system, or in other words a government-operated and managed health care system. This arrangement is opposed by the Chamber because it squeezes the private sector -- and the benefits that competition brings -- out of the health care system. It is also important to note that despite a similar title, the Health Care Authority Act is not part of the Health Care New Mexico Solutions Act, which calls for the development of a Health Coverage Authority to be formed and made up of qualified New Mexicans appointed subject to specific criteria demonstrating their qualifications based on experience and expertise in the health care.

Earlier today the Chamber’s Board of Directors voted unanimously to support the Health Care New Mexico Solutions Act. The discussion was spirited as you would expect for a issue with such huge ramifications for business and the state as a whole. The decision to support the Health Care New Mexico Solutions Act was based on the belief that universal coverage is needed, is the right thing to do and that this particular plan is the best structured legislation of those proposed to achieve it while also protecting the competitive nature of health care insurance and provision. In addition, the business community knows that the cost of doing nothing is too high. There are some 400,000 New Mexicans without health insurance and all efforts in the past to get them coverage has resulted in essentially no change.

We have a window of opportunity and now is time to act because the Health Care New Mexico Solutions Act provides a framework to achieve universal coverage and can result in more affordable coverage through lower increases in premiums, more competition, and additional transparency and accountable in the system. We don’t have to tell you that the Chamber board is comprised of diverse, pragmatic business people. They understand that there is no silver bullet out there that will solve all the problems. As one of our Board members said, “However, don’t let great get in the way of good. 

The Chamber Board Health Care Position

Chamber Legislative Agenda

This morning the Chamber’s Board of Directors reviewed the Chamber’s proposed legislative agenda and voted unanimously to approve the recommendations brought forward by our members through the various task forces and committees on which they serve.

The agenda addresses a number of issues including economic development incentives , mortgage lending issues, crime initiatives, taxes, energy, ethics reform and transportation. As in the past, we support funding for the job training incentive program, funding for cooperative advertising, business incubator development programs, MainStreet projects, extension of the sunset clause for high wage jobs incentives and the R & D small business tax credit, and continuation of the current corporate income tax reporting options.  

As we all know, mortgage lending issues have been a significant concern for individuals and companies throughout the country. New Mexico is one of the least affected states though some 300 to 500 families in the state may be facing foreclosure during the next six to eight months. We are supporting formation of a Crisis Intervention Team to assist those families facing immediate foreclosure with appropriate services. In addition, the Team will identify homeowner education gaps in an effort to better educate individuals who may be purchasing homes.  In a related matter, the Chamber is also supporting legislation to require that mortgage brokers and loan originators be required to have significant training and experience before they can be licensed. While most mortgage brokers and loan originators are professionals running above board businesses, there are some with little training and experience who may have provided borrowers with inadequate information relative to the their loans and purchase of their new homes. We need to make sure this doesn’t happen again. Chamber President & CEO Terri L. Cole, CCE served on the Governor’s Task Force on Mortgage Lending. 

Late last fall, the Chamber hosted a conference on property crimes in an effort to identify the significant issues affecting the business community and community as a whole. Following up on recommendations made at the conference, the Chamber’s Crime Task Force determined that our initial legislative efforts should be made in the area of auto theft which is not only a significant crime, but as noted in this week’s Albuquerque Journal, on the rise especially on the west side of the City. In fact, in 2007, in Albuquerque, one vehicle was stolen about every 95 minutes. 

The legislation we are striving to get introduced includes moving auto theft from the Traffic Code to the New Mexico Criminal Code which will allow for enhancements to certain penalties for auto theft. Additionally, we are supporting establishment of a State Auto Theft Authority similar to that in Arizona where auto thefts have been significantly reduced. The Authority would serve as a statewide clearinghouse for the investigation of auto thefts. 

Other positions related to crime include support for more drug court funding, additional resources to shorten arrest to trial delay, expansion of three strikes legislation, graduated penalties and mandatory treatment for domestic violence abusers and increased sanctions for DWI offenders who try to beat the system and not use their interlock devices.  

Energy legislation which we support is very straightforward and is focused on permanently funding LIHEAP which provides assistance to pay energy bills for those New Mexico families faced with rising heating costs which they can ill afford. We are also supporting amendments to the 2007 Efficient Use of Energy Act in order to increase energy conservation efforts through tax deductions, low interest loans and utility company incentives.  

As we did last year, the Chamber is supporting ethics reform in government through establishment of a State Ethics Commission, limitations on campaign contributions, compensation for legislators to assist them in addressing constituent communication needs and extension of voluntary public campaign financing to candidates running in statewide offices.  

Faced with fewer funds to meet road construction and repair needs of the state and its communities, we are supporting an amendment to the Regional Transit District Act to extend to regions the right to use any funds raised for roads as well as transit needs. Of course, we also remain committed to dedication of the vehicle excise tax to transportation needs.  

Finally, we are opposing a legislative initiative to increase education funding and to simplify the existing funding formula. We truly appreciate and acknowledge the hard work of the Funding Formula Task Force co-chaired by State Representative Mimi Stewart and Superintendent Dick Pool. And based on our long standing involvement and commitment to education reform in New Mexico, we agree with the task force consultant and members that schools most likely are underfunded and that the proposed simplified basic funding formula appears to have identified the appropriate factors to achieve an equitable distribution of funds. 

But, and it is a big “but”, we have significant concerns with 1) the lack of identified and pre-agreed upon funding sources for the nearly $350 million additional dollars that will be required and 2) the lack of accountability at both the local and state levels as to how the additional funds will be spent. The Chamber believes it is critical that there be a direct correlation between funding and outcomes with accountability tied to a system of both rewards and consequences. The full position and legislative agenda are attached.

Education Position

Roundhouse Highlight of the Week

We’d like to take this opportunity to note the loss during the past year of two members of the Legislature. Representative Manuel Herrera of Bayard who held the District 39 House seat from 1998 until his death in late 2007 and President Pro Tempore, Senator Ben Altamirano of Silver City who was the longest serving member of the Senate having been first elected in 1971. Both of these gentlemen were devoted to the state and its citizens and we are appreciative of their dedication and service to New Mexico. Their loss will be felt by all with whom they worked and especially by their wives Kathleen Herrera and Nina Melendez Altamirano and their families to whom we extend our deepest condolences. 

Greetings to the Following Legislators Celebrating Birthdays This Week…..

·         Representative Jeanette Wallace

·         Representative Joe Cervantes

·         Representative Miguel Garcia

·         Representative Eric Youngberg

·         HB8 (Lujan) Job Training Incentives Program

·         HB37 (Wirth) Electronic Transmission of Insurance and Medical   Record Systems

·         HB62 (Heaton) The Health Care Solutions New Mexico Act

·         HB100 (W. Martinez) The interlock Ignition Licensing Act

·         SB66 Jennings) Amendment to Minimum Wage Act

·         SB86 (Leavell)  Support for Business Incubators

        ·        SB3 (Cisneros) The Health Security Act

·        HB51 (Wirth) Requires Unitary Tax Reporting by Corporate Groups