b'2020 State ReportNew Mexico Notes NMWithBesides the budget issues, there were other non-urgent issues New Mexico is like most states in the Southwest.the collapse of the oil and gas industries, the unemployment rateaddressed during the session that could have and, quite honestly, is at a record high. Add to that the COVID-19 pandemic, andshould have waited for the next regular session. Heres a recap of the Governor shutting down most businesses, and it looks likewhat happened:a bleak future for New Mexico. I am hopeful that we can getLegislation Passed in 2020 Special Sessionback to a somewhat normal economic growth for the state. NewHB 1 General Appropriation Act Sanding, Representative Mexico did have to call a special session to deal with a budgetLundstrom: Trimming the state budget for FY 2021 budget that was passed last year before the full impact of this shutdownsavings of $600 million and closing the FY 2020/2021 shortfall. was felt. I have included the results of the Special Session. This plan falls far short of what needed to occur and the heavy The special legislative session, which officially ended Mondaylifting will still need to be done in the 2021 legislative session. To evening, 6/22/20, was called to address significant budget issues asaccomplish what it did, this plan will draw down reserves and use well as some needs by businesses hurt by the economic shutdown. federal funds and other state funds to bridge some of the gaps.Unsustainable budget increases have had a negative impact onGeneral spending cuts included the following General Fund the states budget. With the downturn of the oil and gas industryFY 2021 appropriations of:and the shutdown of the economy due to the novel coronavirus,1% for the State Equalization Guarantee (SEG) forNew Mexico needed to address a budget shortfall of about $374K-12 public school funding; million for the current fiscal year ending on 6/30/20 and almost2% for the Department of Health; $2 billion shortfall for the 2021 fiscal year beginning 7/1/20. That3% for Medicaid; 2021 shortfall is after cuts made in the special session. 4% for all other state entities and departments; and Youll recall that the legislature was asked in both the 2019 and6% for categorical and below the line spending2020 regular legislative sessions to minimize budget expan- items relatedto public schools and higher education.sion due to the oil and gas surplus that was not anticipated to beSelected spending reductions for specific items within state ongoing. Unfortunately, the budget was expanded significantlyagencies and departments, including a $7 million reduction in the in both sessionsat an almost 14% increase, or $872 million.Governors new Opportunity Scholarship programs.Since Governor Lujan Grisham took office, the Legislature has increased total General Fund spending by $3.1 billion (after theSeveral reductions in General Fund appropriations for agencies special session trimming). and departments who received significant funding increases from Due to the ongoing coronavirus limitations, the public was notthe federal CARES Act.allowed to attend the session and had little chance to provideThe budget legislation with spending and cuts became largely comment or testimony. If you werent already connected with keypartisan with Democrats supporting the bill and Republicans vot-legislators, it was almost impossible to know exactly what wasing against it because, they correctly said, it didnt go far enough to going on and when it was going to happen.address the states deficits.Special interest initiatives were fast tracked and, as a result,HB 5: NM Civil Rights Commission, Representative Egolf, legislation was passed without proper committee oversight andBash, Senator Ortiz y Pino: This bill creates the New Mexico vetting, without public input, with limited expert analysis, andCivil Rights Commission, a nine-member body to review and with very little time for legislators to review and process the com- develop policies for the creation of a civil right of action for the plexity of the bills discussed. deprivation of any right secured by the constitution. It also allows The good news is that small businesses from across the state willrights of action as well as monetary damages, including punitive be spared from massive tax increases just as they are starting todamages. It further requires a review of the qualified immunity as get back to work, penalties and interest will be waived, and locala defense to liability by an employee of a public body. governments will have some financing options. While good on the surface, its important to note that in setting The bad news for the special sessionworse than the budgetup the commission, there is a funding requirement, and no ap-issues left unaddressedwas the continuation of highly partisanpropriation was made. In addition, it does away with qualified operations that were also seen in the 2020 regular legislative ses- immunity for law enforcement, which could be a big problem sion. Party politics began with the governor refusing to allow anyfor recruiting law enforcement professionals who have, until bills on her call list unless she or a member of her party originat- now, been protected. Its more complicated than we can get into ed them. The partisanship continued through many of the voteshere, but simplistically speaking, taking away qualified immunity on bills that passed. The minority party went in to work largelymeans that police officers can now be sued personally in civil handicapped with not having seen most of the legislation theycourt (with their own money on the line) for actions they take would be voting on until a few hours AFTER the special sessionwhile on duty. had officially started.44 www.wpma.com / Autumn 2020'