Special session: Drop in windfall trims rebate plan

Governor scales back proposal after projected revenue surplus comes up short

Kate Nash | The New Mexican

8/14/2008 - 8/15/08

Taxpayers fretting over the high cost of food and gas can still expect some relief from state government in the special session that begins today, just not as much as previously suggested.

After new revenue projections this week showed the state would have only about half of what it thought it could spend in the special session, Gov. Bill Richardson has scaled back the size of his proposed rebate checks for taxpayers.

For taxpayers with incomes up to $60,000, for example, the rebate would now be $120, down from $150.

"I fully recognize the need to be fiscally responsible with the money we give back to taxpayers," Richardson said in a statement. "But I also know that New Mexico families are struggling and they deserve relief. We have nearly $208 million in additional money, and I want to give as much as possible back to taxpayers."

That $208 million is a new figure released Thursday — down from $225 million on Tuesday and almost $400 million just months ago. The decline is attributable to lower energy prices, which had been providing New Mexico with a windfall.

The new rebate plan seems to be one of the few certainties going into the session. The governor is set to unveil other parts of his plan today.

One other known proposal is Richardson's health care plan. The governor is proposing a measure to require parents to get health insurance for all children 18 and younger. He would spend $58 million from new money in next year's budget to add more children to Medicaid and the Premium Assistance for Kids, a plan that helps families pay part of their insurance premium.

While he may have legislative support for that idea, the New Mexico Federation of Labor is supporting another plan, saying Richardson's proposal to cover just children in the state doesn't do enough.

"I applaud Governor Richardson's plan to provide health insurance for all children in New Mexico," Christine Trujillo, president of New Mexico Federation of Labor, AFL-CIO, said in a statement. "But that plan does not go far enough."

Her group is supporting the Health Security Act, which she said "will provide all New Mexicans with affordable, accessible health care."

The act, which has been introduced in the past, would create an insurance pool to cover most New Mexicans. The plan would be funded by employer contributions, individual premiums and public money.

Rep. Bobby Gonzales, D-Taos, carried the bill in the regular session earlier this year. He said Thursday he'd like to introduce it again this session but is waiting to see whether it fits with Richardson's call.

The governor's call, or the official agenda for the session, wasn't slated to be released until this morning, leaving many to wonder what would land on lawmakers' desk.

And questions remain about key things like the length of the session.

The sometimes rebellious state Senate was playing it close to the vest as to whether it would stay in session when the gavel falls or adjourn without considering Richardson's proposals, as it has done in the past.

The mystery has left some in the other chamber wondering what to expect. "I would say it could go anywhere from 10 minutes to five days," said House Minority Leader Tom Taylor, R-Farmington.

The longer the session, the more nervous lawmakers say they are about finding affordable accommodations in Santa Fe. Indian Market, which attracts tourists and puts a premium on local hotel rooms, runs Aug. 23-24.

"I am bringing my tent in case we do need to stay over," Taylor said. "There's a nice piece of lawn between the Capitol and the annex."

Contact Kate Nash at 986-3036 or knash@sfnewmexican.com. For updated news from the special session and behind-the-scenes information from the Roundhouse, visit Kate Nash's blog, Green Chile Chatter, at www.santafenewmexican.com.

REBATE CHECKS

Gov. Bill Richardson has revamped his plans to give checks to residents hit hard by rising prices at the pump. Here's a look at the new plan, announced Thursday. Lawmakers are set to begin considering this measure and others at noon today:

• People earning up to $60,000 would get $120, plus $48 for each dependent.

• Taxpayers with incomes between $60,000 and $70,000 would get $80 and $32 for each dependent.

• Those who earn between $70,000 and $80,000 would get $40 rebate and $16 for each dependent.

• People earning more than $80,000 would not get a rebate.