Governor vetoes Finance Authority revamp

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Posted: Friday, April 5, 2013 7:00 pm

Among the measures vetoed by Gov. Susana Martinez on Friday was a bill that would have revamped the troubled 11-member governing board of the New Mexico Finance Authority, which was caught in a scandal last year over a fake financial audit.

Lawmakers in Senate Bill 12 proposed eliminating three of the governor’s Cabinet secretaries as board members and having legislative leaders appoint four members. Martinez argued that it’s critical to have state agency secretaries on the board that deal with economic development, the environment and energy.

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Welcome to the discussion.


  • Brian Woods posted at 4:48 am on Mon, Apr 8, 2013.

    Brian Woods Posts: 7

    The Gov vetoes the NMFA changes because she like being abe to keep the movemet of large amounts of money hidden (hundres of millions of dollars), from vacancy rates to reversions-to reserve funds-to tax stailixzations fund-to minisucle tax rebates in time for elections all the while praising the golden paradise of a corporate world that will magically see NM as a tax haven and build the future economy in this poorest, backward, pushover state.

    It is the same failed, cruel policies of the national Republican agenda, Tax Breaks equals growth, and it got buy our head-in-the-sand legislature, "gosh, sounds good to me," finance chair JA Smith. BTW, he too likes to keep information out of the hands of pesky citizens until the deal is done (ever try to figure out what revenues are really like, especially during a session, using the lfc web site, which like the sunshine portal and dfa, lag a quarter behind in timely reporting of information -- why is dfa stuck on 2011 CAFR?).

  • Jennifer Bizzarro posted at 3:48 pm on Sat, Apr 6, 2013.

    Jennifer_Bizzarro Posts: 481

    The veto on the structure of the Finance Authority board is unfortunate. Our state barely averted a fiasco that no state can afford, but poor little New Mexico is barely hanging on as it is. We’re not even close to having a cushion. Whether the governor chooses to take more responsibility for fiscal oversight in these times should not be subject to a red-lining whim; it should be her duty to pull us out of this mess. I don’t know if she was still keeping up with her legal readings when Sarbanes-Oxley passed in 2002 and the whole concept of corporate governance and responsibility became buzz words, but we dodged a very big bullet last year

    Messrs. Keller and Varela and many other New Mexicans must also be wondering why the sudden lack of transparency when it comes to the results of tax breaks, business incentives and jobs created by State of New Mexico makes—why not a report on how the tax incentives are doing? We see reports that grade schools, why not grade our new laws? Put it right up on the “Sunshine Portal.”

    And since when is asking potential government contractors to disclose campaign contributions a bad idea? State employees are required to disclose any board associations or ownership positions they may hold outside of state employment each and every year, sign and attest to its veracity under penalty of immediate dismissal. It’s called “Conflict of Interest” and we cannot afford it.


Key issues facing lawmakers


Backdrop: New Mexico gained only 1,700 jobs during the past year ending in November. That's a growth rate of 0.2 percent and the lowest in the region. New Mexcio's unemployment rate was 6.4 percent in November compared with 6.7 percent a year earlier.

Proposals: Gov. Susana Martinez proposed expanding programs that can help bring nurses, dentists and other medical providers to rural areas. She also wants to provide $7.5 million for an endowment fund to attract top porfessors and researchers at colleges and universities. The governor recommends broadening tax incentivies to encourage startup companies as well as research and development. Democrats are pushing to increase the stat's minimum wage, which has been $7.50 an hour since 2009. Some lawmakers want automatic cost-of-living increases in the wage rate.


Backdrop: The current state budget is $5.9 billion, and revenues are expected to reach nearly $6.2 billion in the fiscal year starting in July. That provides about $239 million in "new money" for lawmakers and the governor for budget increases and to offset tax cuts. The state has cash reserves of more than $500 million, but that could shrink because of accounting discrepancies stretching back more than six years.

Proposals: Martinez has recommended a 3 percent budget increase compared with about 4 percent proposed by the Legislative Finance Committee. Martinez proposes targeted increases for hard-to-fill jobs such as state police. But the legislative panel advocates across-the-board raises for all state agency workers and educators, with higher amounts for those in certain jobs, including judges, state police and social workers.


Backdrop: About $600 million in bond financing is available for capital improvement projects. Some of that goes for specific purposes, including public schools and projects on tribal lands. However, much of the financing will be divvied up for new projects. 

Proposals: Martinez proposes earmarking about $112 million in bond proceeds for water projects across the state. The governor also recommends creatinga  new fund that can provide emergency assistance to communities with drinking water problems. The Legislative Finance Committee has recommended $10 million in bond financing for highway maintenance and $6 million for a road to the state's spaceport.


Backdrop: Public schools, colleges and universities get nearly $3 out of every $5 in the operating budget. The high school graduation rate was 70 percent in the last school year, and nearly half of graduates enrolling in state colleges in 2011 and 2012 required remedial courses.

Proposals: Martinez will renew a proposal to require schools to hold back third-graders who can't read proficiently. Some Democrats and a coalition of social advocacy groups want to earmark part of the yearly payout from a state permanent fund to provide more money for early-childhood education. Lawmakers also will consider ways to shore up a lottery-financed college scholarship program. Some proposals would change the program to make the aid need-based and provide a flat dollar amount for scholarships. 

The Associated Press

Session dates - 2014

• December 16, 2013 - January 17 Legislation may be prefiled

• January 21 Opening day (noon)

• February 5 Deadline for introduction

• February 20 Session ends (noon)

• March 12 Legislation not acted upon by governor is pocket vetoed

• May 21 Effective date of legislation not a general appropriation bill or a bill carrying an emergency clause or other specified date

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