Santa Fe New Mexican

Special session: Senate plan cuts more from rebate
Competing measure includes three-tiered system for those earning less than $70,000
Kate Nash | The New Mexican

Thought your tax rebate under Gov. Bill Richardson's plan this special session was small?

A competing plan that has the support of key Senate leaders could mean smaller checks for many, and no check for others.

Senate President Pro Tem Tim Jennings is sponsoring the plan, Senate Bill 1.

He says it's a way to give money back to those who need it without breaking the bank.

"The state doesn't have the money. There is a great deal of concern about the revenue estimates we have. There are those of us who are afraid that the state might be short of money," Jennings, D-Roswell, said.

Richardson's plan would give a $120 rebate to everyone earning up to $60,000, plus $48 for each dependent. It includes other smaller rebates for people earning less than $80,000.

Jennings' bill, signed onto by other senators including Senate Majority Leader Michael Sanchez, includes a tiered rebate system for people earning less than $70,000. For example, a single person earning up to $30,000 would get a $50 rebate plus $50 for each dependent. People earning between $30,000 and $50,000 would get $40 back plus $40 for each dependent. Someone making between $50,000 and $70,000 would get $25 and $25 for each dependent. Rebates would only go to people making up to $70,000, under the plan — another difference from Richardson's plan, which gives rebates to people earning up to $80,000.

Gov. Bill Richardson's office declined to comment on Jennings' measure.

The governor's bill (Senate Bill 24) was introduced by Sen. Bernadette Sanchez, D-Albuquerque.

"Higher prices at the gasoline pump and higher food costs at the grocery store are placing a tremendous burden on our single parent and working parent families," she said in a statement.

"There are so many economic demands on our most vulnerable families that, what some might say is small, is significant for those who are living from paycheck to paycheck."

At the heart of one debate this session is how much the state should spend of the projected revenue surplus from oil and gas revenues on rebates for residents dealing with high gas and food prices. That pot of money has slowly been dissipating. Earlier this year, projections showed almost $400 million in surplus revenue was available because of high oil and gas prices. Those prices have slipped, however, and revenue projections at one point this week were at $225 million, then $206.7 million. Some senators are questioning the accuracy of the projections, however.

Richardson's rebate plan is worth about $120 million. Jennings said his bill would cost about $55 million.

Supporters of both bills have said they hope the checks can be cut in the coming months. It costs about $1 million to process the rebate checks.

While many lawmakers agree the state ought to give money back when it can, others in the Senate say they want to be sure they won't regret the spending next year.

"The guarded concern is if we give the rebate, what will happen if the money doesn't develop, which it probably won't. Then we'll cut into the reserves, which in effect will require us to cut our budget next year," said Senate Minority Whip Leonard Lee Rawson, R-Las Cruces.

"The Senate might vote for no rebate; they might go for a modest rebate," he said.

Lawmakers today are expected to return to the Capitol for the third day of the special session.

They are expected to continue considering Richardson's plan to get the 50,000 kids in the state without health insurance covered (Senate Bill 22), his plan to protect the privacy of electronic medical records (House Bill 5) and his proposal to reform the health care system (Senate Bill 19).

Richardson's main health care plan is sponsored by Senate Majority Whip Mary Jane Garcia, D-Doña Ana. It would expand the Medicaid and Premium Assistance for Kids program.

"All of our children need to be covered," Garcia said in a statement. "To fund these initiatives will cost less than a half percent of the General Fund to be appropriated next year to insure our future, the children. We need this legislation to ensure our children have access to healthcare, regardless of where they live in our state," she said.

Eleven senators signed onto the measure of the 42 in the Senate.

Meanwhile, another group came out in favor of a plan that differs dramatically from Richardson's health care plan, the Health Security Act. On Thursday, the New Mexico Federation of Labor said it supports that act.

The act, which has been introduced in the past and might again surface this session, would create an insurance pool to cover most New Mexicans. The plan would be funded by employer contributions, individual premiums and public money.

"Gov. Bill Richardson's health care package does nothing about skyrocketing medical costs," Robby Rodriguez, executive director of the SouthWest Organizing Project, said in a statement.

Contact Kate Nash at 986-3036 or knash@sfnewmexican.com. Read her blog, Green Chile Chatter, at www.santafenewmexican.com.


A LOOK AT THE COMPETING MEASURES

Jennings' tax rebate plan

Single people earning up to $30,000 would get a $50 rebate plus $50 for each dependent.

People earning between $30,000 and $50,000 would get $40 back plus $40 for each dependent.

Someone making between $50,000 and $70,000 would get $25 and $25 for each dependent.

Rebates would not go to anyone earning more than $70,000.



Richardson's tax rebate plan

People earning up to $60,000 would get a $120 rebate, plus $48 for each dependent.

Taxpayers with incomes between $60,000 and $70,000 would get $80 and $32 for each dependent.

Those who earn between $70,00 and $80,000 would get a $40 rebate and $16 for each dependent.

No one earning more than $80,000 would get a rebate.



To look at bills and other Legislative information online, visit the Web site at legis.state.nm.us.