Lull in Legislative Action for the Weekend
The Legislature takes what will probably the last weekend off for this
session. Although some committees will meet, the real work of
crafting a budget will start in earnest next week.
Income Tax Surcharge On Taxation and Revenue Committee Agenda For Monday
Originally scheduled for Friday, Another important revenue enhancement bill
was postponed until Monday in the Taxation and Revenue Committee this afternoon. House Bill 9, sponsored by committee chair Representative Ed
Sandoval, is slated for a hearing at the committee's scheduled
Monday, 1:30 PM meeting. Under the proposed legislation, personal income tax
rates would be increased by 1 percent on taxable income in excess of
$200,000 (married joint and head of household filers), $133,000
(single) and $100,000 (married separate). The increase would apply
only in tax years 2010 through 2012. It would provide some $44 million
to the general fund next year. Taken with the two bills passed out of
the House Business and Industry Committee last night, approximately
$300 million in new revenues would be added to the general fund to
prevent further cuts to education and prevent salary cuts to all
public employees. Use time this weekend to tell your legislator and members of the Taxation and Revenue Committee to support House Bill 9 and House bills 119 and 120 (see below). These three bills are the House leadership
revenue package and must pass to support the budget, with no
additional cuts to education.
Tax Bills Get Do-Pass Recommendation from House Business and Industry Committee
Late Thursday, the House Business and Industry Committee gave a thumbs up to two
important tax increase measures. These bills are a part of the House
leadership package of revenue enhancements. These increases are
vital to preventing further cuts to public education funding.
House Bill 119, TEMPORARY GROSS RECEIPTS INCREASE, sponsored by Speaker
Ben Lujan received a do-pass recommendations from the House Business and Industry Committee. House Bill
119 temporarily increases the state gross receipts and
compensating tax to 5.5 percent in FY11, 5.375 percent in FY12, 5.25
percent in FY13, 5.125 in FY14 and returning the tax to the current 5
percent rate in FY15 and beyond. The measure raises $238 million
next year and $189 million the year after that. This goes
a long way toward raising the funds needed for public education.
The votes for passage in committee were on a near party line vote,
with all Republicans present and Democrat Donna Irwin voting no;
all other Democrats voted yes.
This measure moves on to the Taxation and Revenue Committee. Contact committee members
and urge them to support House Bill 119.
House Bill 120, TAX WITHHOLDING CHANGES,
also sponsored by Speaker Lujan received a do-pass recommendation from the House Business and Industry Committee. 'This bill would raise some
$16 million by requiring out of state residents to pay taxes owed on
mineral royalties earned in New Mexico by forcing the pass-through
entities that collect the royalties to withhold the taxes; the measure
imposes no new taxes and forces compliance with existing law.
Again the vote was near party-line, with Democrat Sandra Jeff voting
and all present Republicans voting no. All other Democrats voted yes.
This measure moves on to the Taxation and Revenue Committee. Contact committee members
and urge them to support House Bill 120.
Tax Measures Necessary to Fund Education Budget
Proposal
Without these or similar tax increases, the school
budget described below cannot be funded. Urge committee members
to support all revenue increases!
The House
Education Committee presented its school funding recommendations to
the House Appropriations and Finance Committee late Wednesday.
While continuing the cuts instituted this year, the recommendation
seeks to prevent any additional cuts for next year, basically a flat
budget. The recommendation included $2.5 billion in state and
federal aid for public education next year. That's an increase of
about one-half percent over this year's total spending on schools, the
Public Education Department and other education programs.
It is clear that these budget recommendations will depend on lawmakers
raising taxes.
New Mexico has been relying on federal economic stimulus money to
avoid deeply cutting public schools during the recession. About $210
million in federal aid will go to schools this year, replacing state
tax money that otherwise would be needed for education. However, the
federal money is going away. Schools would get about $24 million
in federal stimulus aid next year (all that's left after this year's
funding). An increase of $165 million in state aid fills the gap
left by federal funding available this year, but not next year.
Education Partners' Poll on school funding and revenues |
