State has backlog on film rebates
SANTA FE — New Mexico had a backlog of about $180 million in film incentives to pay out, as of the last fiscal year, according to recent legislative report. The state has a $50million limit on film payouts each year, but claims have outpaced what’s allowed under the cap, economists who work for the Legislature say in a new report.
“This is a significant state obligation that will likely get worse without adjustments to the film credit payout mechanics in statute,” the economists said in a recent budget forecast.
Democratic Gov.-elect Michelle
Lujan Grisham campaigned on either raising or eliminating the cap as part of a broader economic plan. She said she wants to double film production in the state.
The state now offers a 25 percent tax rebate to film companies for most direct, in-state spending, and long-running television programs are eligible for more.
Outgoing Gov. Susana Martinez, a Republican, signed legislation in 2011 that enacted the $50 million annual limit as a way to protect the state budget.
The $180 million backlog includes all outstanding claims that have been filed, not just approved claims. The backlog figure was current through June 30, the end of the 2018 fiscal year, economists said.
JUVENILE JUSTICE:
The juvenile justice centers operated by the state Children, Youth and Families Department have made progress on a variety of fronts, legislative analysts say.
The use of “room confinement” — or isolation — is down, analysts said, and young people released back into the community are having better outcomes, including fewer probation violations.
But the cost of incarcerating young people has continued to rise and remains above the national average, according to the report.
The analysts suggested closing the Camino Nuevo Youth Center in Albuquerque, among other cost-saving ideas.
RAINY DAY FUND:
New Mexico’s revenue boom is pushing more money into a rainy day fund created in 2017.
The tax stabilization reserve — an idea championed by the late Rep. Larry Larrañaga of Albuquerque — is expected to take in about $123 million this fiscal year and another $147 million next year.
New Mexico’s revenue boom is heavily dependent on the volatile oil industry, so the rainy day reserve is way to ensure the state automatically saves some cash when times are good.