Budget Cuts Emerge for Education
Red ink continues to flow in Santa Fe, as new revenue estimates indicate a $600,000,000 revenue shortfall for next year. Even with stimulus funds taken into account, the word out of the House Appropriations and Finance Committee is not good.
It appears the committee is trying to make up most of the shortfall with federal stimulus funds and by cutting the half of the budget that is not public education. However, with a shortfall exceeding 10% of the total budget, this has become exceedingly difficult.
The Budget emerging from the House Appropriations and Finance Committee will cut an additional $40,000,000 from public school support by shifting 1.5% of retirement contributions from school districts to employees! The $40,000,000 currently sent to districts for this portion of retirement would be cut from the budget. The argument from the funders is this: the money still belongs to employees by being deposited in the Educational Retirement Fund; any employee who does not intend to retire and draw a retirement benefit can withdraw the funds when they are no longer employed in public education. The House Appropriations and Finance Committeeleadership who met with NEA-NM and AFT NM leaders also made the case that these cuts were in lieu of possible layoffs in school districts.
We have been working with legislative leaders to make those cuts as painless as possible. We still have disagreement on just how deep they need to be, on how to make the best use of federal stimulus funds, and on exactly how the cuts should be made. We continue to argue that rather than drastic cuts, the legislature needs to find some additional revenues. On Monday, we will be meeting with representatives of American Federation of State, County, and Municipal Employees (AFSCME), who represent state employees who will also be subject to the same retirement changes in the Public Employee Retirement Association (PERA). We will be working on creating joint strategies to urge the legislature to raise revenues.
However, any cuts will be painful as the legislature seeks to avoid increases in class size, layoffs of school employees, or reduction in work days for school employees. Everyone knows that we live in serious economic times and that mitigating rather than preventing pain has become the name of the game! As the budget begins to move to the House Floor and the Senate, we will keep working with legislative leaders to "mitigate pain." and keep you informed. For now, just keep urging legislators to protect public school funds and school employee benefits.
Follow this link to send an email on school employee health benefits
Follow this link to ask the legislature for adequate funding next year.
Some Good News
Senator Pete Compos agreed to permanently table Senate Bill 355. The measure was 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.” 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…"
A compromise brokered by NEA-NM was voted on unanimously by the Senate Education Committee, Senate Bill 603, which does not violate our resolutions or the constitution! It is a simple income deduction of up to $500 for tuition paid by a taxpayer for the taxpayer's dependent children to a 501 3(c) charity. This deduction is, like any other tax deduction, deducted from the taxable income of the taxpayer. It cost only about $200,000 annually (compared to $7,000,000 annually for Senate Bill 355).
Bills for Classified Salaries Move from House Education Committee to the House Appropriations and Finance Committee
House Bill 356, introduced by Representative Jack Thomas, appropriates $2,613,000 from the general fund to the Public School Fund for the purpose of paying the cost of implementing a $13,000 minimum salary for educational assistants holding a level one license. The bill also sets increasing minimum salaries for each of the four licensure levels described in the bill. The bill also establishes a four-tier salary structure for Educational Assistants. It sets a minimum salary of $13,000 annually for level one educational assistants in FY10, $15,000 annually for level two educational assistants in FY11, $20,000 annually for level three educational assistants in FY12, and $25,000 annually for level four educational assistants in FY13.
Charles Bowyer of NEA-NM and Kathy Chavez of AFT NM jointly presented the measure to the House Education Committee, working together, as they have since the first minimum salary and licensure system was established for Educational Assistants in 2001. Discussions with the House leadership have indicated that at the least, the minimum salary money for Educational Assistants will likely survive the budget cutting process! The bill itself probably will not because of its increased costs in subsequent years.
House Bill 18, also introduced by Representative Thomas, costs $4,000,000 and has also moved on the House Appropriations and Finance Committee from the House Education Committee. This legislation appropriates four million dollars ($4,000,000) from the general fund to the public education department for the purpose of providing a minimum salary for clerks, secretaries, secretary-bookkeepers and bookkeepers in school districts. The compensation increase is to be effective the first pay period after July 1, 2009.
While we support both these measures, this year’s sea of red ink makes it unlikely that that either will survive the Appropriations committee, other than money for the Educational Assistant minimum salary. Since both measures are awaiting hearing in the House Appropriations and Finance Committee, now is the time to let committee members know that we should recognize the contributions of these vital members of the education family.
One Very Bad Bill Needs to Die in Committee on Thursday
Representative Keith Gardner was introduced House Bill 884. This measure world change how the New Mexico Public Employee Labor Relations Board and Local Labor Relations Boards conduct elections. First, the employer could not, even by the employer’s choice, agree to recognize an exclusive bargaining agent based on a showing of interest, but would have to have a secret ballot election. Secondly, it could disallow the current practice of establishing a majority showing for incumbent bargaining units (what we call presumptive units) by use of cards rather than an election.
It will be heard in the House Labor and Human Resources Committee on Thursday Afternoon (Feb. 25). Let committee members know that we think this is a very bad measure that limits the rights of public employees. The House Labor and Human Resources Committee is a very pro-labor and public employee committee, so assuming all members are present, the measure should be easily defeated.
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