The special session is over. But the political ramifications of the recent meeting of the state Legislature could reverberate for the next several months.
Faced with an overwhelming budget crunch, Democratic lawmakers broke a prime unwritten rule of politics: They raised taxes during an election year.
Assuming Gov. Bill Richardson signs the bills, New Mexicans will paying more for food, cigarettes and, in fact, most goods and services because of an eighth-of-a-percent increase in the gross receipts tax.
Plus, New Mexicans who itemize their deductions will pay more in personal income taxes. Under the main tax bill that passed, they will be taxed on state income taxes that were deducted on federal tax returns. Currently, those deductions aren't counted as income for state tax purposes.
All 70 House members are up for re-election. Normally there are dozens of incumbents who face no primary or general election challenges. But House Republican Whip Rep. Keith Gardner of Roswell told a reporter immediately after the session, "Hopefully there will be people disgusted by these votes who will decide to seek office."
Though Republican lawmakers complained about being shut out of the negotiations on tax and budget legislation — and almost all of the amendments they offered were voted down — some GOP legislators already were crafting what sound like sure campaign sound bites. "All Republican Senators Vote NO! on Budget with NO Spending Cuts," screamed a subject line on an e-mail from Senate Republicans shortly after the Senate passed the budget bill. (Actually there were some cuts. Public schools and education programs will receive 1.2 percent less than last year. Most areas of state government face a 3 percent reduction. Some 3,000 vacant positions in state government were eliminated.)
Sen. Kent Cravens, R-Albuquerque, who is running for lieutenant governor, released a statement Thursday declaring this to be the "Darkest Week in State Senate."
"New Mexicans expect leadership and all this Legislature could come up with is shell-games, smoke and mirrors and Band-Aids," Cravens said in his statement.
Some Democrats spoke about the courage it took to vote in favor of tax increases during an election year.
Sen. John Arthur Smith, D-Deming, a fiscal conservative who chairs the Senate Finance Committee, told a reporter, "At some point we have to throw polling out the window and do what's responsible. We have to be honest with our constituents. Hopefully they'll appreciate that honesty."
But anti-tax Republicans aren't the only potentially angry voters. From the left there were those who opposed reimposing the tax on food while refusing to increase taxes on the rich or out-of-state corporations.
The session had barely ended before Think New Mexico — a Santa Fe think tank that fought to end the gross receipts tax on food in 2004 — sent an e-mail to supporters urging them to ask Richardson to line-item veto the food tax portion of the bill. The organization sent Richardson a letter reminding him that in his State of the State address in January he said he'd fight any such increase.
In a statement issued after the session, Richardson said he thought the Legislature's approach to the budget was balanced. But he said he was wary of some of the tax hikes: "I am especially concerned that the Senate insisted on including a food tax, which is regressive and hurts working New Mexico families, as a part of this package."
He didn't say whether he'd veto that or any of the other tax increases.
Contact Steve Terrell at 986-3037 or sterrell@sfnewmexican.com. Read his political blog at roundhouseroundup.com.