Latest news with #HouseAppropriationsandFinanceCommittee
Yahoo
15-04-2025
- Politics
- Yahoo
NM Gov vetoes bill creating wildfire suppression and post-wildfire fund, perplexing sponsor
Smoke from the South Fork and Salt fires blots out the sun Tuesday along NM Highway 70 outside of Tilley, NM. (Photo by Danielle Prokop / Source NM) Gov. Michelle Lujan Grisham's veto of a bill creating state funds for post-fire recovery and current wildfire suppression 'deeply disappointed' House Bill 191 sponsor Rep. Nathan Small (D-Las Cruces), who is also one of the state budget's main architects. Lujan Grisham said the $12 million the bill authorized didn't provide enough money to even 'put a dent' in post-wildfire recovery. Recovery from South Fork and Salt fires and ensuing floods last year in Ruidoso, for example, will cost more than $200 million, the governor noted in her veto message. Lujan Grisham also wrote that another new fund the bill created, designed to pay for the state's wildfire suppression efforts, had no money in it at all and instead would have relied on federal reimbursements, 'which have only gotten slower in recent months.' Lawmakers approved the HB191 amid concerns about the federal government's capacity to suppress wildfires in New Mexico and elsewhere, thanks to federal funding cuts, and as the state beefs up its own crews of full-time and volunteer wildland firefighters. Also, most of New Mexico is experiencing above-average wildfire potential this month and through the rest of the summer, according to the latest forecasts. 'It's bad': How drought, lack of snowpack and federal cuts could spell wildfire disaster in NM Small, who chairs the House Appropriations and Finance Committee, told Source New Mexico in a statement Monday that the governor's veto was not just disappointing but also surprising given that the governor's office was involved in crafting the legislation. As for her specific objections, Small said the $12 million was a 'starting point' that nonetheless would have 'made a significant difference to New Mexicans who will face the devastating impacts of the next wildfires in our state.' He also noted that while the governor vetoed the bill, she left its accompanying $12 million appropriation intact in the budget. As a result, money will 'now sit unused' instead of helping communities respond and recover from wildfires, he said. 'Unfortunately, New Mexicans will pay the price for the lack of action this year, but my colleagues and I will continue to fight to protect our communities from the catastrophic wildfires that continue to threaten our people, businesses, and lands.' Source has a pending request to the governor's office to respond to Small's comments and will update this story as necessary. State Forester Laura McCarthy, whose agency would have received the post-fire funds defended the concept behind HB191 as a way to budget for wildfire suppression, taking climate change into account and also preserving the governor's ability to issue executive orders to pay for wildfire suppression on a case-by-case basis. But she also agreed with the governor's criticism of the way HB191 created a fire suppression fund without putting any money in it. 'The Governor's veto message made clear that without funding for HB191, creating a wildfire suppression fund that relies on federal reimbursements or payments for state crews when they are on out-of-state assignments, does not set the program up for success,' she said in an emailed statement. NM wildfire outlook above normal for most of state Without the legislation, the state will have to pay for any costs to suppress wildfires this year through the use of executive orders, McCarthy said. The Forestry Division has said that is the wrong way for the state to proactively anticipate and budget for the 'volatile but predictable expense' of wildfire suppression. Executive orders are handled on a case-by-case basis and capped at $750,000 at a time, often requiring multiple orders for the same natural disaster. McCarthy also said recruitment of state wildland firefighters is 'going well,' and the state is anticipating full staffing ahead of increased wildfire activity expected in May and June. Despite the veto, Lujan Grisham noted that she signed Senate Bill 33, which creates guidelines and criteria for a new Wildfire Prepared Program, including grants and certifications for property owners to make structures less prone to wildfire damage. The governor said that bill achieves 'similar objectives' to HB 191. 'I fully support a revamped process to fund both pre- and post-wildfire maintenance,' she said. 'I hope the Legislature will provide a meaningful way to accomplish that goal during the 2026 legislative session.'
Yahoo
15-03-2025
- Business
- Yahoo
House committee ties tax credit for working class to oil tax hike
A House committee has advanced a bill to cut or even eliminate state income taxes for many working New Mexicans — but also added a tax hike for oil producers, stirring opposition from Republicans and the industry. To cap a day of setbacks for oil and gas, another House committee voted later Friday to advance a measure to increase the royalty rate, or a charge oil producers pay based on the value of oil or gas they extract. House Bill 14, which passed the House Taxation and Revenue Committee on a 7-5 vote Friday morning and now heads to the full House, would replace the state's Working Families Tax Credit with an Earned Income Tax Credit, eliminating state income tax liability for single people making less than $25,000 a year and childless married couples making less than $30,000 a year. The thresholds go up with the number of children; married couples with three children would need to make more than $70,000 a year to have any tax liability. The amendment would add an extra 0.28% "oil and gas equalization surtax" when crude prices are $55 a barrel or more, which when added to the existing tax effectively raises the rate to 3.4%, said Rep. Derrick Lente, D-Sandia Pueblo, who chairs the House Taxation and Revenue Committee. This would bring in an extra $130 million a year, he told the committee. It would also cut the rate on natural gas producers by one-tenth of 1% to 3.9%, which would reduce the amount collected from them by $11 million a year. "For several years now, we have cut taxes for working people and made our tax code more reflective of our state's values,' Lente said in a statement Friday. 'Today, we are doubling down on our investments in workers and families, while making sure that the industry profiting from the extraction of our state's natural resources pays its fair share.' The amendment had its origins in House Bill 548, introduced by Rep. Nathan Small D-Las Cruces, chair of the House Appropriations and Finance Committee. As originally written, the measure would have boosted the tax on oil to 4% to make it the same as natural gas. Lente said the amendment was a response to concerns with the original proposal. 'The fact of the matter is, he listens," Lente said. "We listen. We listened.' Supporters of HB 14 said it makes sense to use revenue from a wealthy industry to cut taxes for less-wealthy New Mexicans. Camilla Feibelman, director of the Sierra Club's Rio Grande chapter, said natural resources such as oil and gas belong to the public and are mostly drilled on public lands. "We stand in strong support of ensuring that those natural resources support our families first and foremost," she said. Democrats framed the tax credit as a way to help during a time of economic uncertainty amid rising prices rise and increasing odds of a recession. 'We don't know how unaffordable life will become over the next few years, so New Mexico is stepping up to ensure that you can keep more of your hard-earned money so that you can afford staples from food, medicine, health care ... energy, whatever the case may be, said House Speaker Javier Martínez, D-Albuquerque. Opponents mostly didn't object to the tax credit but to the tax increase on oil producers, which they worried would be passed on to consumers and hurt producers or even drive some out of the state. "We say we love this industry, but at this point, I think there's been over 23 bills that have negatively impacted this industry that have come through this body" this session, said Rep. Jonathan Henry, R-Artesia. 'The more that break-even price goes up, the quicker the industry shuts down,' Henry said. 'When that industry shuts down, what happens to our budget in New Mexico?' Some questioned the wisdom of tying 'an ongoing tax credit to volatile oil and gas revenues,' as Alison Riley, public policy director of the New Mexico Chamber of Commerce, put it. 'The chamber is proud to support working families, but with $3 billion in new revenue, there is plenty to fund priority programs ... without a tax increase,' said Terri Cole, president and CEO of the Greater Albuquerque Chamber of Commerce. In a statement after the vote, the New Mexico Oil and Gas Association said HB 14 was "originally a good bill" that was "hijacked." "Instead of raising taxes, the Legislature should prioritize policies that drive down consumer costs, foster economic growth and diversification, and protect the energy workers that are the backbone of many communities across our state," said Missi Currier, the organization's president and CEO. Senate Bill 23, which the House Appropriations and Finance Committee voted 9-8 to advance Friday evening, increases the maximum royalty rate from 20% of the value of the oil or natural gas to 25% in certain areas. That hike, according to a Legislative Finance Committee analysis, could generate from $50 million to $75 million in additional revenue to the state's land grant permanent fund. A separate State Land Office analysis estimated it could eventually boost additional annual revenues by $50 million to as much as $84 million. State Land Office Deputy Commissioner of Operations Sunalei Stewart said 25% royalty rates are already relatively standard for oil production on private lands, including in New Mexico, and that the agency has a legal obligation to charge oil companies the market rate for public resources. 'This is not anti-oil and gas. This industry contributes a tremendous amount, and we appreciate that — the school kids benefit,' he told lawmakers. 'But it is our job to ensure that we're getting that market rate.' However, industry advocates and Republican lawmakers worried the bill would contribute to driving oil and gas companies away. 'It almost seems punitive to me,' said Rep. Harlan Vincent, R-Glencoe. '... We're not treating oil and gas like we should be treating oil and gas.' Rep. Matthew McQueen, D-Galisteo, said the state's exceptional land parcels for oil production would help keep companies here, noting that even if their expenses were a little higher, their profits would be high too. 'We're talking about the best of the best, which are not only the best in the Permian [Basin], but potentially some of the best in the world,' he said. '... It has never once been suggested that these parcels would not find willing bidders.' New Mexican reporter Esteban Candelaria contributed.
Yahoo
15-03-2025
- Business
- Yahoo
House committee ties tax credit for working class to oil tax hike
A House committee has advanced a bill to cut or even eliminate state income taxes for many working New Mexicans — but also added a tax hike for oil producers, stirring opposition from Republicans and the industry. To cap a day of setbacks for oil and gas, another House committee voted later Friday to advance a measure to increase the royalty rate, or a charge oil producers pay based on the value of oil or gas they extract. House Bill 14, which passed the House Taxation and Revenue Committee on a 7-5 vote Friday morning and now heads to the full House, would replace the state's Working Families Tax Credit with an Earned Income Tax Credit, eliminating state income tax liability for single people making less than $25,000 a year and childless married couples making less than $30,000 a year. The thresholds go up with the number of children; married couples with three children would need to make more than $70,000 a year to have any tax liability. The amendment would add an extra 0.28% "oil and gas equalization surtax" when crude prices are $55 a barrel or more, which when added to the existing tax effectively raises the rate to 3.4%, said Rep. Derrick Lente, D-Sandia Pueblo, who chairs the House Taxation and Revenue Committee. This would bring in an extra $130 million a year, he told the committee. It would also cut the rate on natural gas producers by one-tenth of 1% to 3.9%, which would reduce the amount collected from them by $11 million a year. "For several years now, we have cut taxes for working people and made our tax code more reflective of our state's values,' Lente said in a statement Friday. 'Today, we are doubling down on our investments in workers and families, while making sure that the industry profiting from the extraction of our state's natural resources pays its fair share.' The amendment had its origins in House Bill 548, introduced by Rep. Nathan Small D-Las Cruces, chair of the House Appropriations and Finance Committee. As originally written, the measure would have boosted the tax on oil to 4% to make it the same as natural gas. Lente said the amendment was a response to concerns with the original proposal. 'The fact of the matter is, he listens," Lente said. "We listen. We listened.' Supporters of HB 14 said it makes sense to use revenue from a wealthy industry to cut taxes for less-wealthy New Mexicans. Camilla Feibelman, director of the Sierra Club's Rio Grande chapter, said natural resources such as oil and gas belong to the public and are mostly drilled on public lands. "We stand in strong support of ensuring that those natural resources support our families first and foremost," she said. Democrats framed the tax credit as a way to help during a time of economic uncertainty amid rising prices rise and increasing odds of a recession. 'We don't know how unaffordable life will become over the next few years, so New Mexico is stepping up to ensure that you can keep more of your hard-earned money so that you can afford staples from food, medicine, health care ... energy, whatever the case may be, said House Speaker Javier Martínez, D-Albuquerque. Opponents mostly didn't object to the tax credit but to the tax increase on oil producers, which they worried would be passed on to consumers and hurt producers or even drive some out of the state. "We say we love this industry, but at this point, I think there's been over 23 bills that have negatively impacted this industry that have come through this body" this session, said Rep. Jonathan Henry, R-Artesia. 'The more that break-even price goes up, the quicker the industry shuts down,' Henry said. 'When that industry shuts down, what happens to our budget in New Mexico?' Some questioned the wisdom of tying 'an ongoing tax credit to volatile oil and gas revenues,' as Alison Riley, public policy director of the New Mexico Chamber of Commerce, put it. 'The chamber is proud to support working families, but with $3 billion in new revenue, there is plenty to fund priority programs ... without a tax increase,' said Terri Cole, president and CEO of the Greater Albuquerque Chamber of Commerce. In a statement after the vote, the New Mexico Oil and Gas Association said HB 14 was "originally a good bill" that was "hijacked." "Instead of raising taxes, the Legislature should prioritize policies that drive down consumer costs, foster economic growth and diversification, and protect the energy workers that are the backbone of many communities across our state," said Missi Currier, the organization's president and CEO. Senate Bill 23, which the House Appropriations and Finance Committee voted 9-8 to advance Friday evening, increases the maximum royalty rate from 20% of the value of the oil or natural gas to 25% in certain areas. That hike, according to a Legislative Finance Committee analysis, could generate from $50 million to $75 million in additional revenue to the state's land grant permanent fund. A separate State Land Office analysis estimated it could eventually boost additional annual revenues by $50 million to as much as $84 million. State Land Office Deputy Commissioner of Operations Sunalei Stewart said 25% royalty rates are already relatively standard for oil production on private lands, including in New Mexico, and that the agency has a legal obligation to charge oil companies the market rate for public resources. 'This is not anti-oil and gas. This industry contributes a tremendous amount, and we appreciate that — the school kids benefit,' he told lawmakers. 'But it is our job to ensure that we're getting that market rate.' However, industry advocates and Republican lawmakers worried the bill would contribute to driving oil and gas companies away. 'It almost seems punitive to me,' said Rep. Harlan Vincent, R-Glencoe. '... We're not treating oil and gas like we should be treating oil and gas.' Rep. Matthew McQueen, D-Galisteo, said the state's exceptional land parcels for oil production would help keep companies here, noting that even if their expenses were a little higher, their profits would be high too. 'We're talking about the best of the best, which are not only the best in the Permian [Basin], but potentially some of the best in the world,' he said. '... It has never once been suggested that these parcels would not find willing bidders.' New Mexican reporter Esteban Candelaria contributed.
Yahoo
12-03-2025
- Business
- Yahoo
Lawmakers consider proposal to create new trust fund babies
Karina Burciaga (left) plays with her 2-year-old daughter, Alison Arroyo. (Photo courtesy AP-OD) When Karina Burciaga became a parent, she also took on a lot of worries: what should her daughter be eating, how early should she start reading, what will her future look like and what can she do now to impact that future? Burciaga's daughter Alison Arroyo is only 2 years old, but Burciaga said she wants her daughter to be ready for adulthood. She opened an investment account for Alison at Charles Schwab and adds $75 to $100 to it each month. 'It's not a huge amount, right, but it's adding up,' Burciaga told Source NM. 'It's just interesting to see how…in about 18 years she'll have access to money that can really change her life.' While trust fund babies as a concept usually implies wealthy parents, several states have passed legislation that creates a trust fund for each child born in the state, known as baby bonds. New Mexico lawmakers have proposed a similar funding program this session. House Bill 7, the Children's Future Act and Fund, would establish a trust fund for children born in New Mexico after Jan. 1, 2025. Children would have access to the fund once they turn 18 and graduate from high school or earn a high school equivalency. Trust fund recipients also would have to maintain residency in New Mexico and complete a financial literacy program. The money can be used for education, housing, entrepreneurship or investing. 'Many families across New Mexico may be middle class, but they're still living paycheck to paycheck. And so having an investment for their future is a big piece,' Sponsor Rep. Linda Serrato (D-Santa Fe) told members of the House Appropriations and Finance Committee during the initial hearing on March 3. Speaker of the House Javier Martínez (D-Albuquerque) and Rep. Patricia Roybal Caballero (D-Albuquerque) are also sponsors. The bill also creates a task force that will complete the design of the program and its implementation and report recommendations to the governor and Legislature before the end of the year. The bill does not specify how much money the state would invest for each child, but Serrato explained that based on the advocacy organization's pilot program, approximately $6,000 would be allocated for each child at birth, but the task force would determine the actual amount. By the time the children are 18, the investment will have grown to about $20,000, though the final amount is not a guarantee. Serrato noted the ultimate goal is to help generate some generational wealth among New Mexico families and set more people up for success. The advocacy organization Partnership for Community Action, in collaboration with Prosperity Works and Rio Grande Credit Union, awarded 15 pilot bonds to New Mexico children several years ago. A representative from the organization and parents involved in the pilot program spoke in favor of the bill during an initial hearing before the House Appropriations and Finance Committee on March 3. SUPPORT: YOU MAKE OUR WORK POSSIBLE 'I do not want [Alison] to work two jobs in college and face the same exhaustion and burnout that I faced,' Burciaga told committee members during the hearing. She told Source NM that she earned her bachelor's degree in Journalism and Mass Communication from the University of New Mexico in 2015, but would like to set her daughter up to not have to work so many hours while focusing on her education. 'If she needs these funds to help her get through college, that's great, or I would love her to maybe buy a property whenever she's in college and save that money and not pay rent,' Burciaga said, adding that investing in property could even generate some passive income for her daughter at some point in her life. Leslie Garcia Moreno, another mom who spoke in favor of the bill during the hearing, said the bill would give her children 'a greater chance of achieving a stress-free, debt-free education and life.' 'Our state has the resources to invest in the next generation and doing so will create a ripple effect,' she said. ' This initiative is a direct investment in our economy, ensuring that all families regardless of background, have the opportunity to build generational wealth and thrive.' Several committee members voiced concern that HB7 is not ready to be a bill, but rather a memorial to create a taskforce and research the fund's feasibility. However, the bill passed the House Appropriations and Finance Committee Monday, March 10 and will head to the House floor for a vote. Senate Bill 397, the New Mexico Next Generation Act, is a similar bill proposing baby bond investments and is sponsored by Sens. Antonio Maestas (D-Albuquerque) and Leo Jaramillo (D-Española). The bill is also backed by the New Mexico State Treasurer Laura Montoya. According to the fiscal impact report, SB397 would apply to babies born after July 1, 2025. It would require that the Department of Finance and Administration develop rules for the program and the State Investment Council manage the investments. HB7 proposes splitting the management of the investments between the State Investment Council and the State Treasurer's Office. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
