The special session is moving quickly. I'm trying to not over-do updates, but they're cramming a lot of budget issues into only a few days of sessions and we want legislators to know that we've had enough cuts and need revenues.
After yesterday's setbacks, today went better for revenues. In the House, after a partial earmark for education, the Tax and Rev Committee reversed yesterday's decision and passed a 75-cent-a-pack cigarette tax. The revised legislation has a 4 year sunset, which hopefully will be stripped out at a later stage in the process.
This legislation will generate about $30 million/year, which saves state, university, and educational employees about 1% of salary--which is where money will almost certainly come from if we don't have revenue enhancements.
One possible revenue source that is gaining momentum is called the Personal Income Tax add-back ("PIT add-back"). New Mexico is one of only 6 states that allows tax return itemizers to get a bonus from the state for simply having filed their taxes in the previous year. Only 25% of New Mexicans itemize, and the bonus goes mostly to people who make over $100,000/year.
PIT add-back would generate about $90 million/year without raising tax rates--it just closes a rare and bizarre loophole. The Senate Finance Committee just passed PIT add-back on a party-line vote. This could be the bill that saves vital services for Fiscal Year '11. DON'T STOP NOW!
As with many revenue bills, we are finding out that the leadership isn't necessarily holding all the cards--other legislators have a lot of clout right now, so we need to reach out to them, too. Please call and email this list of legislators and ask them to support PIT add-back.
House Dems
Andrew Barreras (Tome--Valencia County) 986-4243
Jose Campos (Santa Rosa--DeBaca, Curry, Guadalupe, & Roosevelt Counties) 986-4341 josephs@plateautel.net
Joe Cervantes (Las Cruces--Dona Ana County) 986-4249 cervanteslaw@zianet.com
Thomas Garcia (Ocate--Colfax, Guadalupe, Mora, San Miguel & Taos Counties) 986-4242 ocate@hotmail.com
Mary Helen Garcia (Las Cruces--Dona Ana County) 986-4435 maryhelen.garcia@nmlegis.gov
Andy Nunez (Hatch--Dona Ana County) 986-4423 annunez@zianet.com
Debbie Rodella (Espanola--Rio Arriba, Sandoval & Taos Counties) 986-4329 debbie.rodella@nmlegis.gov
Senate Dems
Phil Griego (San Jose--Los Alamos, Mora, Sandoval, San Miguel, Santa Fe & Taos Counties) 986-4861 senatorgriego@yahoo.com
Tim Jennings (Roswell--Chaves, Eddy, Lincoln & Otero Counties) 986-4733 timothy.jennings@nmlegis.gov
Howie Morales (Silver City--Catron, Grant & Socorro Counties) 986-4863 howiemorales@yahoo.com
John Sapien (Corrales--Bernalillo & Sandoval Counties) 986-4371 john.sapien@nmlegis.gov
Bernadette Sanchez (Albuquerque--Bernalillo County) 986-4267 senb26@yahoo.com
