PRELIMINARY REPORT nd Special Session
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1 PRELIMINARY REPORT nd Special Session October 7, 2016 Prepared by the NMSU Office of Government Relations
2 On September 29, 2016, Governor Martinez issued a proclamation calling the Fifty-Second Legislature into special session at 12 P.M. on Friday, September 30, The purpose of the session was to consider and enact legislation that balanced the budget for FY16 and FY17 and consider and enact legislation related to criminal sentencing. The session lasted a total of 7 days with both houses officially adjourning Sine Die on Thursday, October 6, During the seven-day period a total of 22 bills were introduced. Of those 22 bills, seven bills dealing with the budget passed both houses and will be sent to the Governor (see table below). None of the crime related legislation passed both houses. The Governor has until October 26 th to take action on bills that are submitted to her. Bills that are signed by the Governor and do not have an emergency clause will become effective on January 4, 2017 and bills signed by the Governor that have an emergency clause become effective immediately. Bill No Duplicate Similar Bill Sponsor Bill Title Actions Current Location SB 2 HB 8 TRANSFER & DISTRIBUTE TOBACCO [1] SFC- DP [2] ED/S (41-1) Steven P. Neville SETTLEMENT FUND [1] HAFC [2] DP/a [7] fl/a- ED/H (43-22) [2] s/cncrd SB 4 PUBLIC SCHOOL CTAL OUTLAY FUND CHANGES - DECLARING AN [1] SFC- DP [2] ED/S (39-3) [1] HAFC [2] DP [5] ED/H (61-0) SB 6 SB 7 SB 8 SB 9 Carlos Cisneros Carlos R. Cisneros Steven P. Neville SB 12 HB 1 LEGISLATION OF THE nd SPECIAL SESSION Bills that Passed Both Legislative Houses TAX PACKAGE - DECLARING AN PUBLIC FUND DISTRIBUTION CHANGES - DECLARING AN CTAL OUTLAY PROJECT CHANGES - DECLARING AN REDUCE CERTAIN LEGISLATIVE APPROPRIATIONS FEED BILL - DECLARING AN [1] SFC- DP [2] ED/S (34-8) [1] HWMC [5] DP/a [6] fl/a [7] ED/H (50-17) [2] s/cncrd [1] SFC- DP [2] ED/S (38-4) [1] HWMC [2] DP [3] ED/H (66-1) [1] SFC- DP [2] ED/S (38-3) [1] HWMC/HAFC-HWMC [2] DP- HAFC [5] DP [6] ED/H (50-13) [1] SFC- DP [2] ED/S (42-0) [1] HAFC [5] DP [7] fl/a- ED/H (36-32) [2] s/cncrd [1] tbld/s [2] w/drn - ED/S (42-0) [1] HAFC [2] DP [7] fl/a- ED/H (58-6) [2] s/cncrd Senate Bill 9 (SB9) Reduce Certain Legislative Appropriations The bills included in the table above address the budget issues for FY16 and FY17 and also provide slightly less than 1 percent in reserves according to legislative staff. Senate Bill 9 has the largest impact on higher education by reducing the FY17 state recurring appropriation by 5 percent across the board for all line items. This is in addition to the 2.5 percent reduction that was enacted during the regular session for FY17. The Higher Education Department (HED) budget was also reduced by 5.5 percent. Overall, SB9 reduced appropriations for 4-year institutions, 2-year institutions and special schools by an estimated total of $39.6 million while the HED was reduced by an estimated $2.0 million. SB9 does not have an emergency clause. The table below shows the estimated impact by major function for all institutions and HED. In addition to the reductions, the final legislative version ( Bill) includes an amendment by the House sponsored by Representative Roch that states: The reductions provided for this subsection shall be prioritized to the non-instructional expenditures of the educational institution. Also included in the amendment is one-time Budget Adjustment
3 Authority (BAR). The BAR authorizes transfers of funding from non-instruction and General line items to the Instruction and General (I&G) line item, excluding state agency type line items (i.e. Agricultural Experiment Station, Cooperative Extension Service, New Mexico Department of Agriculture). The BAR, if requested, has to be approved by State and Legislative agencies. SB9 - REDUCE CERTAIN LEGISLATIVE APPROPRIATIONS (SPECIAL SESSION) Estimated Higher Education Reductions Summary by Major Function Agency/Institution/Program FY17 Senate-Passed Final Version Senate vs FY17 Research I&G 330, , ,728.1 (16,512.0) (16,512.0) Comprehensive I&G 82, , ,111.7 (4,111.1) (4,111.1) Branch I&G 71, , ,981.5 (3,578.0) (3,578.0) Independent I&G 116, , ,458.1 (5,813.6) (5,813.6) UNM HSC l&g 60, , ,775.6 (3,040.8) (3,040.8) Special Schools l&g 6, , ,146.6 (323.5) (323.5) Athletics 13, , ,205.3 (695.0) (695.0) Healthcare Workforce Programs 10, , ,815.6 (516.6) (516.6) Nursing 8, , ,777.1 (409.3) (409.3) Dental including Residencies (19.1) (19.1) Medical Residencies 1, , ,675.2 (88.2) (88.2) Educational TV 3, , ,212.6 (169.1) (169.1) All Other RPSPs 96, , ,825.7 (4,832.9) (4,832.9) Higher Education Department 36, , ,606.0 (1,831.0) (2,014.1) Total Recurring 828, , , , ,606.8 Representative Roch made two attempts to increase the reductions to higher education. He first attempted an amendment in House Appropriations and Finance Committee (HAFC) to increase the reductions from 5 percent that was included in the Senate-passed version of the bill to 6 percent for all higher education institutions and 8 percent for the University of New Mexico. He also included language requiring that the cuts be taken in the General portion of the budget which funds items such as police and fire protection, student related services, physical plant, etc. This attempt was strongly opposed by NMSU and the Council of University Presidents and it was withdrawn in committee. If this amendment would have succeeded it would have cost the NMSU system an additional $2.0 million. After the amendment failed in HAFC, Representative Roch presented a floor amendment in the House that would cut all of higher education by 5.5% and modified the language from requiring to shall prioritize reductions in the General portion of I&G. Again with much opposition from higher education and other legislators the recommended 5.5% cut was reduced to 5%. I&G, the largest component of higher education funding is the only part of funding in the state budget that is funded based on a performance based funding formula. SB 9 reduces the NMSU system recurring FY17 appropriation by a total of $10.1 million when compared to the regular session FY17 appropriation and reduced by $14.1 million or 6.8 percent when compared to the FY16 appropriation. The bill reduces the system I&G by $7.7 million when compared to the regular session bill and $10.7 million compared to FY16. The NMSU system impacts are summarized in the table below.
4 New Mexico State University System FY17 Special Session - FY17 Recurring Appropriations Estimated Impact of SB9 (Reduce Certain Legislative Appropriations) Program FY16 FY17 House vs FY17 (Rounded 100) $Change House vs FY16 (Rounded 100) Las Cruces I&G 118,534, ,361, ,543, ,543,710 (5,818,100) (5,818,090) (7,990,590) Athletics 3,377,000 3,314,800 3,149,060 3,149,060 (165,700) (165,740) (227,940) Educational Television 1,090,400 1,070,400 1,016,880 1,016,880 (53,500) (53,520) (73,520) Alamogordo I&G 7,769,900 7,559,000 7,181,050 7,181,050 (378,000) (377,950) (588,850) Carlsbad I&G 4,215,000 4,120,300 3,914,285 3,914,285 (206,000) (206,015) (300,715) Carlsbad Nursing Expansion 118, , , ,010 (5,800) (5,790) (7,990) Carlsbad Mfg. Sector Development 234, , , ,785 (11,500) (11,515) (15,915) Dona Ana I&G 23,216,500 22,762,500 21,624,375 21,624,375 (1,138,100) (1,138,125) (1,592,125) Dona Ana Nursing Expansion 209, , , ,415 (10,300) (10,285) (14,185) Dona Ana Dental Clinic 223, , , ,050 (11,000) (10,950) (15,050) Grants I&G 3,650,100 3,557,700 3,379,815 3,379,815 (177,900) (177,885) (270,285) Department of Agriculture 11,868,400 11,649,600 11,067,120 11,067,120 (582,500) (582,480) (801,280) Agricultural Experiment Station 14,636,100 14,366,800 13,648,460 13,648,460 (718,300) (718,340) (987,640) Cooperative Extension Service 13,531,100 13,281,700 12,617,615 12,617,615 (664,100) (664,085) (913,485) Research and Public Service Projects STEM Alliance for Minority Participation 327, , , ,425 (16,100) (16,075) (22,075) (MSP) College Assistance Migrant Program (MSP) 216, , , ,875 (10,600) (10,625) (14,625) Alliance Teaching and Learning 150, , , ,030 (7,400) (7,370) (10,170) Arrowhead Center for Business Dev. 336, , , ,405 (16,500) (16,495) (22,795) Indian Resources Development 297, , , ,210 (14,600) (14,590) (20,090) Mental Health Nurse Practitioner Program 697, , , ,465 (34,200) (34,235) (47,035) Manufacturing Sector Development Program 548, , , ,005 (26,900) (26,895) (36,995) Nursing Expansion 758, , , ,275 (37,200) (37,225) (51,225) Water Resources Research 615, , , ,990 (30,200) (30,210) (41,610) Economic Development Doctorate 99,100 97,300 92,435 92,435 (4,900) (4,865) (6,665) Clean Drinking Water Technology 99,400 50,300 47,785 47,785 (2,500) (2,515) (51,615) Senate Passed -5% Final Version -5% Senate vs FY17 (Rounded 100) NMSU Total 206,820, ,837, ,695, ,695,530 (10,141,900) (10,141,870) (14,124,470) Total NMSU System I&G 157,385, ,361, ,643, ,643,235 (7,718,100) (7,718,065) (10,742,565) Total NMSU System Non I&G 49,434,200 48,476,100 46,052,295 46,052,295 (2,423,800) (2,423,805) (3,381,905) Other Bills that Directly Impact Higher Education Senate Bill 2 (Transfer and Distribute Tobacco Settlement Fund) and Senate Bill 8 (Capital Outlay Project Changes-Declaring an Emergency) also impact higher education and/or NMSU. Senate Bill 2 does not include the emergency clause therefore would be effective January 4, 2017 if signed by the Governor. Senate Bill 2 includes transfers $5.0 million from the accountability endowment fund to the general fund and; transfers $3.0 million from the postsecondary educational institution fund (private post-secondary institutions). Senate Bill 8 reverts the unencumbered balance of $125,000 for the Caballo Soil and Water Conservation District. The Soil and Water Conservation Districts (SWCD) are administratively attached to the New Mexico Department of Agriculture (NMDA) and the funds are a pass-through from NMDA to the Caballo SWCD. The reverted funds exceed the total amount needed for dam rehabilitation in Dona Ana County.
5 Legislation that Did Not Pass Bill No Duplicate Sponsor Bill Title Actions Current Similar Bill Location HB 1 SB12 Larry A. Larranaga FEED BILL [1] HAFC- DP HB 5 Paul A. Pacheco John L. Zimmerman HB 6 Conrad D. James Sara Maestas Barnes William Rehm HB 7 Monica Youngblood Andy Nunez HB 8 SB 2 Jimmie C. Hall David M. Gallegos William Rehm HB 11 HB 12 HB 14 SB 3 Deborah A. Armstrong NO MEDICAL MARIJUANA PLANT LIMITS HB 15 HCR 1 Rod Montoya David M. Gallegos James Strickler James G. Townsend Gail Chasey Doreen Y. Gallegos Antonio Maestas THREE STRIKES LAW [1] HJC- DP [4] fl/a- ED/H (49-14) INCREASE CERTAIN CHILD ABUSE [1] HJC- DP/a [2] fl/a- ED/H PENALTIES (66-1) REINSTATE DEATH PENALTY [1] HJC/HAFC-HJC- DP-HAFC [7] DP/a - ED/H (36-30) TRANSFER & DISTRIBUTE TOBACCO [1] HAFC [5] DP/a SETTLEMENT FUND CANNABIS TAX ACT [1] not prntd-hrc LIMIT CTAL GAINS DEDUCTIONS [1] HRPAC/HWMC-HRPAC REDUCE FILM PRODUCTION TAX CREDIT CAP CHILD SAFETY & WELL-BEING OVERSIGHT COMMITTEE [1] HRPAC/HWMC-HRPAC [2] HWMC [2] HRC SB 1 Peter Wirth COMBINED TAX REPORTING FOR [1] SFC UNITARY CORPS SB 3 HB 14 Gerald Ortiz y Pino NO MEDICAL MARIJUANA PLANT [1] SFC- DP/a [2] fl/a- ED/S LIMITS (29-13) [1] HRPAC/HWMC-HRPAC SB 5 DELAY TAX CHANGES [1] SFC- DP [2] ED/S (21-20) [1] HWMC SB 10 SCHOOL DISTRICT CASH BALANCES [1] SFC- DP [2] ED/S (38-4) Gay G. Kernan [1] HEC/HAFC-HEC SB 11 Cisco McSorley INDUSTRIAL HEMP RESEARCH [1] SFC [2] DP - ED/S (35-5) [1] HRPAC/HWMC-HRPAC - Action Postponed Indefinitely LEGISLATION OF THE nd SPECIAL SESSION Legislation that Did Not Pass
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