Latest news with #D-Gallup
Yahoo
07-02-2025
- Business
- Yahoo
Latest oil and gas royalty rate increase bill makes it through first committee
Sen. George Muñoz (D-Gallup) introduced the latest oil and gas royalty rate increase bill to lawmakers in the Senate Finance Committee this week. Legislation supported by the State Land Office to increase the royalty rates on New Mexico state lands passed the Senate Conservation Committee this week, the first in its path to the senate floor. Cosponsor Sen. George Muñoz (D-Gallup) presented Senate Bill 23 to committee members on Thursday. It received a do pass by a 5-3 party line vote and heads next to the Senate Finance Committee next, which Muñoz chairs. The bill proposes increasing the top royalty rate from 20% to 25% for new oil and gas development on the 'best state lands.' The state charges companies royalties for the right to extract oil and gas from public land. According to the legislation's fiscal impact report, the increase in royalty rate is expected to produce between $50 and $75 million of revenue for the land grant permanent fund, which provides funding to New Mexico's public schools, universities and specialty schools. Similar bills proposing increases to the royalty rates have been introduced during previous legislative sessions, but have failed to make it to the governor's desk. New Mexico Commissioner of Public Lands Stephanie Garcia Richard voiced her support for the rate increase ahead of the start of the Legislative Session. 'Our friends next door in Texas have recognized that the Permian Basin is the top play for oil and gas in the world and the state's top royalty rate should reflect that,' Garcia Richards said in a statement. 'We can't miss this opportunity to bring in billions more for our public schools and set up future generations of New Mexicans for success.' Trump vows to cut oil and gas rules as New Mexico looks to fight back Republican committee members, all of whom voted against the bill, and attendees opposed to the bill expressed concerns that increasing royalty rates on new oil and gas developments would discourage companies from doing business in New Mexico, particularly smaller businesses. 'For smaller companies who I predominantly represent, they operate on thinner margins. They have less wells. So this kind of raise does disproportionately hurt them,' Jim Winchester, executive director of the Independent Petroleum Association of New Mexico, said during public comment. 'The bottom line here for my membership and really for the state, is that we're losing independence to the consolidation of the industry. The bigs are certainly getting bigger and small operators are getting squeezed out.' The Legislature last updated royalty rates in the 1970s, which bill supporters said was before the state realized the quality of oil and gas products in New Mexico. They also said the increase would bring New Mexico's rate up to the market rate and on par with what Texas requires. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
04-02-2025
- Politics
- Yahoo
AG, lawmakers propose constitutional amendment to tighten higher-ed oversight
Sen. George Muñoz (D-Gallup) is joined by Attorney General Raúl Torrez to introduce a bill to tighten oversight of university boards of regents. Attorney General Raúl Torrez and state lawmakers introduced a proposed constitutional amendment this week designed to create more accountability for university boards of regents and administrators. House Joint Resolution 12, carried by five lawmakers, including Speaker of the House Rep. Javier Martínez (D-Albuquerque), proposes amending the state Constitution to establish the fiduciary duties of members of university boards of regents and governing bodies of special schools in the state, such as the New Mexico School for the Blind and Visually Impaired and the New Mexico Military Institute. Proposed fiduciary duties include undivided loyalty, 'prudent' completion of responsibilities and acting in 'good faith' within state law and university policy. Such fiduciary duties are not currently included in the constitution. Two education bills pass through first committee The amendment also details who has authority to seek the removal of regents. Reasons for removal include 'incompetence, neglect, breaches of fiduciary duties, breaches of other duties or malfeasance,' according to the amendment. The amendment allows the attorney general to file an action in district court for removal of a regent or by a majority of regents on the board or the governor. Currently the New Mexico Supreme Court has jurisdiction over actions to remove regents. 'Our university regents are entrusted with overseeing multimillion dollar institutions that impact thousands of students and employees as well as the communities where these institutions reside,' Martínez said during a press conference Monday. 'When folks who represent these public institutions violate that public trust, they must face real consequences.' Martínez said the amendment's purpose is ultimately to increase oversight of people in power at public universities. He pointed to Western New Mexico University's board of regents, which authorized a $1.9 million payout to the outgoing university president following a report from the Office of the State Auditor detailing the misuse of hundreds of thousands of public funds. Torrez noted during the conference that he finds the WNMU board of regent's decision to award a $1.9 million severance package 'unconscionable' and 'based on our calculations, it's nearly 60 times the total compensation of the lowest paid worker in that institution.' NM AG Torrez seeks to stop WNMU president from spending his $1.9 million payout If passed by the Legislature, HJR 12 would appear on the ballot in the next general election for voters' consideration. Sen. George Muñoz (D-Gallup) joined the Monday press conference to introduce Senate Bill 266, which will require state university administrators or boards of regents to submit agreements or contracts to the State Board of Finance for approval. It also requires annual contract reports be reviewed by the attorney general and gives the attorney general authority to take civil legal action against regents or boards in breach of their fiduciary duties. Muñoz also referenced the recent actions by the WNMU board of regents, particularly their approval of the severance contract for outgoing University President Joseph Shepard which came following their decision to terminate his employment contract. 'Transparency is key as we move through this,' Muñoz said during the press conference, noting that regents will be required to get outside approval before approving large budgetary contract decisions. The legislation introduced Monday has been assigned to the House and Senate Education Committees, but has not yet been assigned a hearing date. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
30-01-2025
- Health
- Yahoo
With New Mexico still awash in cash, new trust fund would help offset Medicaid budget strain
Jan. 29—SANTA FE — With trust fund fever spreading at the Roundhouse, New Mexico's latest new fund could be targeted at the state's growing Medicaid budget. A bill filed by a bipartisan group of senators would earmark $300 million for a new health care trust fund, while additional dollars could be funneled from stalled state capital outlay projects. Backers say the bill, Senate Bill 88, could eventually generate $100 million annually toward the state's Medicaid spending. That could allow for additional reimbursement rate increases for health care providers who treat Medicaid patients. Sen. George Muñoz, D-Gallup, one of the bill's sponsors, pointed out Medicaid has become a major expense for the state, with more than 40% of state residents enrolled in the program. New Mexico's Medicaid budget has more than doubled between the 2019 and 2025 fiscal years, and the state is projected to spend more than $11.6 billion on the program this year. That figure includes both state and federal dollars, as New Mexico receives a roughly 3-to-1 federal match for each dollar it spends on Medicaid. Muñoz said the new trust fund would be modeled after other similar funds, such as an early childhood trust fund created in 2020. That fund has seen its value balloon from $300 million to a projected $9.8 billion at the end of the current budget year due to record-high revenue levels. "This is not going to last forever," Muñoz told the Journal, referring to the state's revenue windfall. "This allows us to save money and invest money." With revenue levels for the coming year projected to exceed current total spending levels by nearly $900 million, lawmakers have proposed the creation of at least three new trust funds during this year's 60-day session — targeted at behavioral health, health care and natural disasters. But the proposed health care fund would be unique in part due to how it would be funded. In addition to the $300 million start-up appropriation, the bill also calls for money to be diverted to the new fund from three other sources until the total value of the fund hits $2 billion. Those sources include any unspent funds from the state's annual budget bill, interest on investments made by the State Treasurer's Office and unspent capital outlay dollars. At the end of the 2024 budget year, there was roughly $5.8 billion in outstanding capital outlay funding spread across about 5,300 projects, according to Legislative Finance Committee data. Under the state's system, which has come under scrutiny in recent years, capital outlay funds revert, or expire, after five years unless the money is reauthorized by the Legislature. Fred Nathan, the executive director of Think New Mexico, a Santa Fe-based think tank behind a package of proposals dealing with a statewide health care provider shortage, said setting aside state dollars for Medicaid is a prudent long-term investment. He also said the creation of a new trust fund could allow the state to continue its efforts to recruit more doctors and nurses, as New Mexico has had an average shortage of 5,000 health care workers over the past several years, according to legislative data. "Increasing Medicaid reimbursement rates will go a long way toward recruiting and retaining more of the doctors that New Mexico urgently needs," Nathan said. The other sponsors of the health care trust fund bill include Senate Minority Leader William Sharer, R-Farmington, and Senate Minority Whip Pat Woods, R-Broadview.
