Presenting themselves as job creators, Senate Democratic lawmakers pitched several ideas Monday that they said would spark New Mexico's economy faster and better than tax cuts proposed by Gov. Susana Martinez.

"A lot of these ideas are big ideas. They are ideas that would put a 'Now Hiring' sign out in front of almost every storefront in New Mexico," said Sen. Tim Keller, D-Albuquerque. "We think it will make a difference right away."

One idea presented Monday would forgive a portion of a company's tax liability if it hires graduates of in-state universities. Others would lower what manufacturers, agricultural companies and construction contractors pay in taxes if they purchase new equipment and would encourage businesses to pay current workers more in return for an income-tax credit.

Still another proposal would allow 10 percent of the severance-tax permanent fund to be invested in New Mexico entrepreneurship funds and would double the amount to be invested in the New Mexico Small Business Investment Fund.

A governor's spokesman, on one hand, praised the Senate Democrats for discussing "how to make New Mexico more competitive" instead of "talking about how to kill job-creating tax reforms."

But Martinez was skeptical of some of the "risky proposals" put forward Monday "to raise taxes on vehicles and investment, and allow chosen corporations to gamble with our children's permanent fund," spokesman Scott Darnell wrote in an email.

The back-and-forth between the lawmakers and the governor Monday was the first salvo in a nascent battle, as Democratic state lawmakers and the Republican first-term governor try to outdo one another in backing job-creating proposals during this year's 30-day legislative proposal.

The battle over tax breaks framed as job-creating ideas also hammers home how politically important the jobs issue is this year, when the economy is on many voters' minds just months before New Mexicans go to the polls to elect state lawmakers and congressional representatives.

The focus on New Mexico's tax code this year has much to do with how well New Mexico is doing financially compared with recent years.

For the first time since 2009, lawmakers don't have to plug a budget shortfall. The state enjoys an estimated pool of $254 million in "new" money available for budget increases or to cover the cost of tax cuts.

Martinez has proposed using some of that "new money" to cut taxes on thousands of New Mexico businesses, an act that would help create jobs, she has said. Her proposal would lift the gross-receipts tax on 40,000 small businesses, those with a tax liability of less than $200 a month, and remove the tax from some transactions involving construction and manufacturing companies to lessen tax "pyramiding." Businesses experience pyramiding when they are taxed on services that are then incorporated into a final product, which also is taxed.

Martinez also proposed a tax credit for New Mexico companies that hire veterans returning from military deployments, exempting 25 percent of a veteran's pension from state income taxes.

The Senate Democrats said their package would put more money into the hands of New Mexico's businesses and would have a much quicker effect on the economy. Some lawmakers also used the event to criticize what they felt was an undeserved label often affixed to Democrats.

"Democrats are pro-business," said Sen. Majority Leader Michael Sanchez, D-Belen. "A lot of times, Democrats are looked upon as not supporting business. And I think that is a fallacy that will end today."

Although the lawmakers said their proposals would return more money to New Mexico businesses than the governor's, they did not know how much more. The governor's package of tax cuts would cost more than $50 million.

Sen. Stephen Fischmann, D-Las Cruces, said a bill he is sponsoring would forgive $110 million in taxes for New Mexico businesses.

"The governor is on the right track with addressing tax pyramiding," Fischmann said. But "I've upped the ante," he said, by expanding the cuts to more industries.

Senate President Pro Tem Tim Jennings, D-Roswell, said the proposals his colleagues unveiled Monday attempt to solve a perennial problem with which New Mexico struggles -- an overreliance on government as a job generator due to New Mexico's small private sector.

"This is an opportunity for us to diversify our economy," Jennings said.

Contact Trip Jennings at 986-3050 or at tjennings@sfnewmexican.com.