NM governor uses State of the State to push tax cuts

SANTA FE — As the New Mexico Legislature returned to work Tuesday, Republican Gov. Susana Martinez used her State of the State address to press lawmakers to focus on boosting New Mexico's struggling economy.

Martinez spoke to a joint session of the House and Senate after lawmakers convened for a 60-day session, taking the opportunity to say that diversifying New Mexico's economy was needed to protect the state from a federal government that she called "dysfunctional."

Economic and budget issues were possible common ground for the governor and the Democratic-controlled Legislature. The state has lost about 4,800 jobs in the past year — a drop of 0.6 percent — and potential federal budget cuts this year could deliver another blow to New Mexico's economy.

The governor asked the Legislature to approve a reduction in the corporate income tax rate, as well as other economic development incentives to make New Mexico more competitive with neighboring states in recruiting and retaining private businesses.

Martinez and lawmakers agree that New Mexico needs to start diversifying what has long been an economy that heavily depends on government spending, including military installations as well as Los Alamos and Sandia national laboratories.

Martinez is renewing several proposals that Democrats have blocked in the past two years — a measure to stop the state from issuing driver's licenses to illegal immigrants and to hold back third-graders, rather than promoting them to the fourth grade, if they aren't reading proficiently.

The governor also intends to push for merit pay for teachers and school administrators who succeed in boosting student performance.

Nearly a third of House and Senate members are new to their posts. Democrats hold a 38-32 majority in the House and a 27-15 advantage in the Senate.