Conservative Democrats on a Senate committee joined with Republican members Sunday to kill several bills that would have raised taxes to help alleviate the growing state budget crisis. The Committees' Committee voted to find 11 of 13 bills "not germane" to the session because the bills didn't conform to Gov. Bill Richardson's proclamation that called a special session of the Legislature.
Among the bills effectively killed by the committee were those that would close a loophole that allows out-of-state corporations to avoid state income taxes and measures to raise taxes, to avoid state income taxes, a bill to scale back some of the 2003 personal income tax cuts on high-income residents; and to increase taxes on cigarettes and alcohol. Many of these bills, or similar measures, will rise again in the House. Rep. Brian Egolf, D-Santa Fe, on Sunday introduced a bill to raise taxes on all tobacco products and another that would raise the alcohol tax by about 10 cents a drink. The House Rules Committee will decide whether those bills are germane.
The votes against the tax measures were a blow to teachers and others who have advocated rescinding tax cuts for the wealthy to solve the budget crisis without cutting education. The American Federation of Teachers recently commissioned a poll by Research & Polling Inc. of Albuquerque that showed 49 percent supported repealing tax cuts for New Mexicans earning $295,000 or more a year; 61 percent supported closing loopholes for corporations that don't pay state taxes on New Mexico profits; and 70 percent favored raising taxes on alcohol and tobacco.
Richardson's proclamation, issued Saturday, specifically said the measures to be considered could not include those that would raise taxes, eliminate tax credits or deductions or impose new taxes. The proclamation also said the Legislature couldn't consider bills that would cut salaries in state government.
Some lawmakers questioned the governor's constitutional authority to restrict the Legislature.
Sen. Dede Feldman, D-Albuquerque, said she believes Richardson's proclamation raises a constitutional issue of separation of powers. "I am not a lawyer, I am just a legislator who's been here 13 years," she told the committee when presenting a bill that would have closed a gross-receipts tax exemption some insurance companies now enjoy.
"I don't think I've ever seen a proclamation that's been so narrowly drawn and so pre-emptive and prohibitive in its scope. The object of this session and the object of this proclamation ... was to deal with our budget crisis," Feldman said. "However ... in this proclamation there are certain measures that are specifically excluded."
Sen. Peter Wirth, D-Santa Fe, also said he doubts the constitutionality of such restrictions in the proclamation, but admitted it is a "gray area."
Wirth — who was presenting a bill to make out-of-state corporations pay state taxes — had asked the Legislative Council Service to research the constitutionality of the proclamation.
In a memo to Wirth, Doris Faust of the LCS, wrote that "an argument can be made that the level of specificity in the proclamation violates the separation of powers by detailing certain subjects that cannot be considered in the special session." Faust stressed this was her personal opinion and not necessarily that of the LCS.
Faust cited a 1894 Colorado court decision in a similar situation that said, "Too great a level of detail in the governor's proclamation may act to destroy legislative independence and convert members of the two houses into mere instruments to register and ratify the executive will; that is to do the bidding of the governor, or not act at all."
However, those voting against the tax bills said they believe the governor has the power to make such restrictions.
Senate Majority Leader Michael Sanchez. D-Belen, said while he frequently disagrees with Richardson, a fight and possible court battle with the governor wouldn't be productive.
"If doing what's right means the end of my political career, I'll continue doing what's right," he said.
Wirth said the Legislature should pass what it wants and let Richardson veto the bills he doesn't like. If the Legislature would override any of those vetoes — which is rare, at least in recent years — Richardson could ask the state Supreme Court to overturn them.
Some of the harshest words for Richardson came from Sen. Jerry Ortiz y Pino, D-Albuquerque, who said the administration has been aware for months of the revenue crisis.
"Knowing that, the administration has not put the brakes on spending," said Ortiz y Pino, who is running for lieutenant governor. "There is no evidence in my mind that this administration in any way slowed down the spending in state government. Now, I've worked in administrations in the past, and as soon as there was any question that we were going to be in budget trouble, the word was out. Stop hiring, don't fill vacancies, no out-of-state travel, no contracts, no printing. Nothing, nothing, nothing, just make sure we get through this OK. Has this administration done anything remotely like that? They've brought us right up to the cliff and they say, 'You can't put a bridge across that cliff.' "
Asked about Ortiz y Pino's statement, Richardson spokesman Gilbert Gallegos said in an e-mail, "The governor's proclamation speaks for itself."
Lawmakers are trying to trim $650 million from the state's $5.5 billion budget for this fiscal year.
Richardson has proposed a budget that would cut education by 1.5 percent — or about $40 million — and would reduce state agency spending by 3.5 percent. The governor's staff said his proposal to cut public schools and colleges would not affect classrooms.
Contact Steve Terrell at 986-3037 or sterrell@sfnewmexican.com. Read his political blog at roundhouseroundup.com.