The state Senate on Monday approved significantly pared-down versions of Gov. Bill Richardson's proposals to provide health coverage for more New Mexico children and rebates to taxpayers.

Lawmakers said oil- and gas-dependent state revenues are too uncertain to earmark as much money as the governor sought for the programs.

The rebate plan and the health measure, which passed the Senate overwhelmingly and headed to the House, are among the most important bills legislators are considering in the special session that began Friday.

The rebate bill would return $56 million to low- and middle-income New Mexicans, rather than the $120 million advocated by the governor.

About 80 percent of the state's tax filers would qualify; taxpayers with adjusted gross incomes over $70,000 would not get the checks.

The health measure provides $20 million to expand Medicaid and a related program to an estimated 17,000 more children. Richardson wants the Legislature to spend $58 million to expand those programs, saying that would reach virtually all the estimated 50,000 youngsters without insurance.

The Senate-passed health bill also provides $10 million for services for the developmentally disabled, and $2.5 million for behavioral health services for children.

Left out of the health bill, which passed 38-1, were Richardson's proposals to make health insurance mandatory for children and to require the insurance industry to enact a variety of reforms.

Even the bill's supporters questioned whether the Human Services Department would effectively reach out to locate and sign up the additional 17,000 children, who already qualify for the program.

"If the department isn't going to address their outreach, this $20 million isn't accomplishing anything," said Senate Republican Whip Leonard Lee Rawson of Las Cruces.

The rebate bill, which was approved 36-2, would provide checks based on income and family size.

The largest rebates would go to households earning up to $30,000 a year: $50 for each taxpayer and $50 for each dependent. A family of four in that income range — a married couple with two children — would get a rebate of $200. A family of four earning between $50,000 and $70,000 would receive a $100 rebate.

Senators said the amount of the rebate, although small, would still help needy New Mexicans hit by rising gasoline and food prices.

"Fifty dollars will help a lot of people in my community," said Sen. Mary Jane Garcia, D-Dona Ana. "There are people out there who are so, so needy."

The state is projected to have a $208 million windfall this year because of higher than anticipated revenues from oil and natural gas production. However, falling energy prices threaten to shrink the so-called windfall, according to Sen. John Arthur Smith, a Deming Democrat and chairman of the Senate committee that handles tax and budget issues.

"We would like to give them more, but an argument could be made maybe we've given them too much already," Smith said.

Richardson wants to provide rebates to those earning up to $80,000. The largest rebates would go to households earning up to $60,000 a year: $120 for each taxpayer and $48 for each dependent. A family of four in that income range would get a $336 rebate.

---

-

Associated Press reporter Barry Massey contributed to this report.




© Copyright Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.