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To view a copy of a graph, presented to legislators, that shows how proposed repeal of the state's "Hold Harmless" provision would affect the budgets of city departments, click here.
To visit the New Mexico Legislature website, click here.
LAS CRUCES - State Rep. Andy Nuñez, D-Hatch, didn't mince words or pull any punches in offering his opinion about the upcoming 60-day session of the New Mexico Legislature.
"There's going to be some big changes in Santa Fe," Nuñez said.
Nuñez was alluding to a new governor and possible changes in the leadership of the House. But he was also talking about a massive deficit in the state budget that he and other legislators will have to address.
"I hope you all are going to bear with us because there is going to be some changes," Nuñez vowed.
City officials sat down with six southern New Mexico legislators Monday to present the city's legislative priorities for this year's session, which begins a week from today and continues until March
Most of the hour was spent discussing the city's top priority - preserving the state's "Hold Harmless" provision, which provides most of New Mexico's 104 municipalities with reimbursement payments for gross receipts taxes that are not collected on the sales of groceries and some medical services. Garza told the legislators that if the Hold Harmless provision were to be repealed, it would reduce the city's general fund budget by 9 percent, or almost $7 million.
Showing a graph to the legislators indicating the impact of a 9-percent hit to the city's general fund, Garza said that kind of reduction would be about two-thirds of the current funding level for the Las Cruces Fire Department, half of the city's Facilities Department, and about one-third of what's budgeted for the Police Department. The chart also showed that an almost $7 million reduction would be more than what is budgeted for 13 other departments of city government.
"We're keeping an eye on this from a regional and state perspective," said Garza, of the Legislature's consideration of changes to the Hold Harmless provision. "That is absolutely the number one issue, protecting that revenue source."
Pat Degman, interim city finance director, said repealing the provision would impact the city's bond rating.
"We're reliant on those revenue streams," Degman said. "If we lose those revenues we're affecting our debt services."
The city's message wasn't lost on Nuñez, who also serves as the mayor pro tem of the village of Hatch. According to a chart provided to the legislators by city officials, Hatch could be faced with a 30-percent reduction in its general fund if the provision is repealed.
"I'll have to put my other hat on, as mayor pro tem of Hatch, if it comes to that," said Nuñez, of a potential repeal.
Papen, a member of the Legislative Finance Committee, said legislators will be "looking at everything" that could achieve a balanced state budget. She acknowledged a potential repeal could cause repercussions statewide, but said there might not be any other choice than to enact a repeal.
"We're looking to see where we have to go with the budget," Papen said. "(Repeal of the Hold Harmless provision) is kind of a last resort. But by state Constitution, we have to balance the budget. We'll do everything we can to preserve Hold Harmless, but we can't promise anything."
Fischmann acknowledged a repeal would probably be very unpopular with New Mexicans, because it would likely mean a cut in public services provided by municipal governments.
"I don't think that's anything the taxpayers want us to do," he said.
Cervantes said a long-term plan for repealing the provision may need to be struck.
"There needs to be some long-term planning, you can't be reacting all the time," he said. "I don't think it (consideration to repeal Hold Harmless) is going to go away. But it needs to be considered in terms of three years, five years, not in the next 60 days."
Steve Ramirez can be reached at (575) 541-5452
The Legislature
• City officials outlined priority projects and initiatives Monday to southern New Mexico legislators.
• The Legislature will convene for a 60-day session, from Jan. 18 until March 19, in Santa Fe.
• Las Cruces Day in Santa Fe, where city officials and business leaders go to Santa Fe to lobby legislators for priorities, is Jan. 29-31.
• The state's Hold Harmless provision; funding for a crisis triage center and 911 emergency dispatch call center, support for a proposed flood control authority, and transfer of ownership of the Camunez Building from the state to the city are the city's priorities.
