August 15, 2008
Albuquerque Journal
Rebates Less Under New Proposal
By Dan Boyd, Journal Staff WriterSANTA FE — Most New Mexicans will get smaller rebates under Gov. Bill Richardson's downsized $120 million rebate package, which will be pitched during a special session of the Legislature that convenes today.
And many won't get any rebates at all.
The rebates would be available to families earning less than $80,000 annually. A family of four earning up to $45,000 could get a $336 rebate check under the governor's plan, still to be approved by lawmakers.
Richardson called the state's 112 part-time legislators back to Santa Fe for a special session of undetermined length to consider tax rebates because of rising consumer costs, health care reforms and highway financing.
Richardson had to whittle down his rebate and health care proposals with lawmakers wary of spending much money when falling oil and gas prices are darkening state revenue projections. He had previously proposed a rebate plan totalling $163 million.
A previous rebate plan had called for New Mexico adults to receive between $75 and $150. The new version would top out at $120 per adult and big earners would no longer qualify.
The rebates for children of lower-income families, however, would increase from $40 to $48.
"I full recognize the need to be fiscally responsible with the money we give back to taxpayers," Richardson said in a statement. "But I also know that New Mexico families are struggling and they deserve relief."
Richardson has been more optimistic than legislators about New Mexico economic conditions, which ride heavily on the state's substantial oil and gas production.
Some lawmakers have said that the Senate — so wary of approving major spending for rebates, roads and health care in a time of uncertain state income — could vote to adjourn their session today without considering Richardson's proposals.
But some lawmakers said they would be glad to meet if they bring home money for their districts.
Rural drivers could see 117 miles of their highways and three bridges improved as part of an ongoing, and costly, effort to overhaul state roads.
In addition, residents of the flood-ravaged Ruidoso area could be in line to receive a helping hand.
Richardson has proposed a $3.6 million package to fix a handful of bridges and road crossings damaged in the July 27 torrent.
"The one good reason I have for meeting is to get appropriations for Lincoln County," said Sen. Rod Adair, R-Roswell.
In one month's time, state economists lowered a projected windfall for the current budget year from $392 million to about $208 million — a number agreed upon Thursday by state economists.
But the volatility remains disconcerting to some veteran legislators, such as Senate Minority Whip Leonard Lee Rawson, R-Las Cruces.
"If we can't count on it, we can't spend it," Rawson told the Journal.
If tax rebates are given out and the revenue estimates don't hold true, Rawson said the state could find itself in the uncomfortable position of having to cut government services or raise taxes.
Rep. Luciano "Lucky" Varela, D-Santa Fe, vice chairman of the Legislative Finance Committee, pointed out that falling oil and gas prices, and declining revenue projections, have a silver lining.
The fact that fuel prices are decreasing is "good for the general public," Varela said. "It brings a little bit of relief."
The special legislative session is expected to cost about $46,000 per day, and Richardson has pledged he won't leave Santa Fe to attend the Democratic National Convention, which begins Aug. 25 in Denver, if the session is still going.