Tax reform must be part of budget solution
Legislators are back in Santa Fe for a special session to work on the state’s budget. This year’s unfinished business was prompted by House and Senate Democrats who forced the budget through the Legislature during the regular session with a shortfall of nearly $200 million. Then, they tried to force the governor to plug the hole with stand-alone tax increases that Gov. Susana Martinez had repeatedly promised to veto.
When the governor kept her word and vetoed the tax increases along with portions of the budget to ensure the budget was not out of balance, House and Senate Democrats petitioned the New Mexico Supreme Court for its intervention rather than working with the governor and House Republicans on a compromise.
In their petition, Democrat lawmakers essentially asked the court to sanction an unconstitutional state budget that proposed spending more than the amount of revenue available. They wanted the justices to insert themselves into the legislative process and invalidate the governor’s established constitutional prerogative to veto budget line items.
Their petition also would have eviscerated a minority party’s voice in legislative matters by nullifying the ability of legislators to uphold or override a governor’s veto.
The Supreme Court wisely refused to hear the petition and directed the legislative and executive branches to try harder on resolving the budget situation. House Republicans stand ready to get to work on substantive solutions, but we need willing partners.
In the run-up to the special session, Martinez has again promised to veto any standalone tax increases. However, she has stated her willingness to explore ways to stabilize state government revenues through comprehensive tax reform.
This being the case, the first item of business when we gather Wednesday should be a comprehensive tax reform package that will generate additional revenue to cover our expenses and address the flaws in our current tax code that are stifling job creation.
Only then will we be assured that we have the revenue needed to support state spending priorities and adequately build up our reserves to avoid another downgrade to our bond rating.
If Democrats in the New Mexico House and Senate insist on sending another unbalanced budget to the governor without comprehensive and adequate tax reform, the people of New Mexico would be well served by the governor once again vetoing everything and calling the Legislature back into session. She should repeat the process as many times as necessary to ensure that lawmakers fulfill their constitutional obligation to ensure a balanced state budget with the money we have.
House and Senate Democrats are holding the state’s budget hostage, and they want New Mexico’s families to pay the ransom through higher taxes. New Mexicans are tired of shortsighted policymaking that relies on quick fixes at the expense of long-term growth.
We must work together on fixing New Mexico’s problems, starting with our tax code. Passing comprehensive tax reform is the only way to solve this year’s budget fight as well as stabilizing our long-term funding issues.
House and Senate Democrats are holding the state’s budget hostage, and they want New Mexico’s families to pay the ransom through higher taxes.