Budget Process in House Aims at Friday Completion

House Appropriations and Finance Committee Slated to Complete Work on Next Year’ Budget this Week

 

House Education Committee reported its budget recommendations in House Bill 3, the Education Appropriation Act  to the House Appropriations and Finance Committee earlier this week.  The budget submitted by the Education Committee is essentially a flat budget based on this year’s budget after the cuts contained in the solvency package already approved by the legislature.  One important item missing from the budget is any compensation increase, except for new minimum salary for educational assistants of $13,000, adding some 2.6 million new dollars.  The House Appropriations and Finance Committeewill work behind closed doors today and likely bring House Bill 2, the General Appropriations Act to the floor as early as Friday, February 20.  Our opportunity to affect this first step in the budget process is now.

Follow this link to send an email on school employee health benefits

Also missing is any new funding for increased insurance costs.  Most NEA-NM members get their health insurance benefits through the programs of the New Mexico Public School Insurance Authority (NMSPIA).  As a part of its budget cutting plan the Legislative Finance Committee pressured the NMSPIA Board to draft a benefits plan that contained no premium increase for next year.  This is the funding level currently in House Bill 3, the Education Appropriation Act.  While no premium increase might seem like a good idea at first glance, it requires deep cuts in employee health benefits to achieve.  Some of the cuts include adding a deductible of $300 per person. Office call co-pays will go up $5 or $10.  There will be a $300 deductible or $900 per family plus an additional 20% coinsurance payment, up to a $2800 out of pocket maximum.  Tier 3 drugs will go to a charge of 50% of the discount price; a minimum price will be established. While the NMSPIA board did not officially accept these changes, they will be on the agenda for the group's March 4 and 5 board meeting in Santa Fe.

 

If the legislature refuses to fund the employer share of premium increases through the school funding formula, they have little choice but to instigate the changes. Even thought it means a premium increase, we need to ask the legislature to fund the employer insurance share to avoid these benefit cuts.  As the final budget takes shape, call legislators and the Governor and tell them you do not support this drastic cut of employee health benefits.  

Follow this link to send an email on school employee health benefits.

One increase included is the next installment of the employer’s increased share of retirement, amounting to .75% of salaries.  This was part of the solvency plan for education retirement reached several years ago.  Employees’ contribution increases included as a part of the plan concluded last year.  Employers’ contribution rates are slated to increase by .75% per year until 2012.

 

While the ideas of increased class size and reducing the instructional year by one day are not in the House Education Committee recommendation, that doesn’t mean that these or other cuts might not show up in the final version of school funding produced by the House Appropriations and Finance Committee. The measure cuts categorical spending for public education by some 1.4%, including a $23,000,000 cut in instructional materials, a $2,000,000 cut in professional development funds, a $500,000 cut in support for mentoring, and a $770,000 cut in truancy prevention.  

 

Follow this link to ask the legislature for adequate funding next year.

 

 

Sufficient Funding for Public Schools

 

The Senate Finance Committee turned its Tuesday meeting into a seminar on tax policy in New Mexico.

  This Comm

ittee seems to be inching toward the fact that our state budget cannot be balanced with cuts alone.  We need to continue our message that new revenues must be found to sufficiently fund public schools.  Two bills, one in each legislative body do just that.   House Bill 346, has also been introduced by Representative Stewart in the House.  This bill provides the new funding needed through a combination of repeal or recent high earners tax cuts and a half percent increase in Gross Receipts Tax. Together the two methods will raise some $350 million for the school year beginning in 2010.  Using the revenues form House Bill 346 and the new funding formula laid out in House Bill 331, there is sufficient revenue to meet the constitutional requirement to fund schools sufficiently.

 

House Bill 346 received its first public hearing last week in the House Taxation and Revenue Committee.  Let the entire House Taxation and Revenue Committeeknow that you support raising revenues to sufficiently fund public schools.

 

Senator Cynthia Navahas also introduced a tax bill to provide sufficient funding for public schools.  It is Senate Bill 412.  This measure increases Gross Receipts Tax by .75% and will be heard first in the Senate Education Committee.  Let members of this committee know that you support Senate Bill 412 and sufficient funding for public schools.

 

Bad Idea May be Back on Senate Education Committee Agenda Friday

Senate Bill 355, sponsored by Senator Pete Compos, is a back-door voucher bill that creates a new personal and corporate income tax credit for contributions to scholarship granting organizations called the “Equal Opportunity Scholarship Tax Credit.” This measure may be back on the Senate Education Committee Friday. In NEA-NM's opinion, credit against income tax is considered a tax expenditure in that, while it is not a direct payment from the state to the taxpayer, the taxpayer reduces the amount of tax paid to the state. Thus this measure violates the establishment clause of the US Constitution and several provisions of the New Mexico Constitution.  As an expenditure of tax dollars it is a violation of Article IV, Section 31 of the New Mexico Constitution, which prohibits a direct educational appropriation to any person, corporation, association, institution or community not under the direct control of the state.  Additionally, the measure also violates Article XII, Section 3 of the New Mexico Constitution because it prohibits the use of public money for the support "of any sectarian, denominational or private school…"

 It is always difficult when a negative piece of legislation is introduced by a well-meaning usually pro-education legislator. Senator Composcertainly fits this category. He has a sincere desire to help church-related schools.  In that vein, NEA-New Mexico leaders continue to work with Senator Compos and members Senate Education Committee to find an acceptable compromise that does not violate the constitution.   Senate Bill 355 remains in the Senate Education Committee  awaiting its first hearing.  We continue to advocate leaving the bill on the committee table and replacing it with an acceptable compromise, such as simple tax deductions for a charitable donation.  Until that happens we continue to oppose Senate Bill 355.  Let Senate Education Committee Members  know that you are against this attempt to move public tax dollars to support private religious schools.