AFSCME was present in Cloudcroft Monday and Tuesday of this week for the Revenue Stabilization and Tax Interim Committee (RSTC).  We handed out information about revenue alternatives from our coalition, Better Choices New Mexico (BCNM), and also distributed an article about other states' efforts to raise revenue from the Center on Budget Policies and Priorities. 

     We also gave people an overview of the reasons why raising some types of revenue (closing corporate loopholes, repealing part of the massive tax cuts given to millionaires) are far better for economic recovery and for the state of New Mexico that cuts to state and university employees. 

    All three of those documents are attached, and you should share them with everyone--state legislators, newspapers (you can write letters to the editor using information in these three pieces), and co-workers.

     We were able to make the case for increased revenue directly to Speaker Lujan, Rep. Kiki Saavedra, Rep. Ed Sandoval, Rep. Jim Trujillo, Sen. President Pro Tem Tim Jennings, Sen. John Arthur Smith, Sen. Tim Keller, Sen. Peter Wirth, and other key players in the budget battles.

Bad revenue estimates

     As for the RSTC hearing itself, the bad news is that everyone from Legislative Finance Committee staff director David Abbey to Sen. Smith commented that the estimated $450 million deficit for fiscal year '10 (ends June 30, 2010) may actually be low.  There are two major drivers of dropping revenues:  1) natural gas prices are still just under $3.00 per unit, but they've been basing the FY '10 budget on estimates of $4.00 per unit; and 2) gross receipts are down about 10% further than originally thought.

     In other words, there may be $550 million or so that the legislature needs to make up in the special session, not $450 million.

Good responses to revenue ideas

     Despite a very anti-revenue presentation from a group called the Tax Research Institute, a majority of legislators who spoke about how to handle the crisis spoke in favor of looking at a balanced approach to solving the problem, including revenue increases. 

     Most believe that there is no way any agreement will be made for the special session, but everyone who mentioned revenue increases advocated reviewing them in the short session in January, 2010 (rather than waiting for 2011).

     It was also refreshing to hear legislators openly talk about how avoiding layoffs and furloughs is a major priority.  Nobody on the entire task force was openly advocating layoffs and furloughs, although Sen. Jennings' idea of cutting as much as 7.5% of state agency, university, and K-12 budgets would almost certainly have that effect.  Fortunately, for now at least, Sen. Jennings' idea seems out of line with what at least most Democrats are thinking.

Our action

     I've heard from two people so far who receive this email with suggestions about saving money in your agencies (both said stop double dipping, which is an excellent idea!).  Please send me and Josh Anderson your ideas to save money so we can present them to legislators around the state.

BCNM action

     AFSCME is a major player in the BCNM coalition, and is helping to fund a program to get members of the general public to call and email legislators about the importance of raising revenue in lieu of additional cuts.

     One thing you can do is send us examples of the kinds of services to citizens that will be cut if your agency/university.  It'd be great to get some AFSCME examples of how citizens would be hurt by, for example, 5% cuts, so send in your ideas to me and Josh and we'll try to include them in BCNM press releases. 

     Please include:

1. information on the program potentially impacted by cuts
2. any specifics on the proposed cut
3. information on the impact of the cut (i.e. X number of participants will no longer have access to Y service).

Mil gracias!  --Carter

Carter Bundy
Political Action Representative
AFSCME International
1202 Pennsylvania St. NE
Albuquerque, NM 87110

Documents.zip

Revenueideas.pdf

Governingtaxesvscuts.pdf

Goodcompanyotherstates.pdf