Lawmakers talk 2017 state budget forecast

TUCUMCARI — Area legislators discussed the forecast of the 2017 budget, capital outlay and business regulations Tuesday night during a legislative forum at Mesalands Dinosaur Museum and Natural Science Laboratory.

Sen. Pat Woods, R-Broadview, and Rep. Dennis Roch, R-Logan, spoke with residents at the forum organized by the Eastern Plains Council of Governments.

Woods represents District 7 (Curry, Quay and Union counties) while Roch represents District 67 (Quay, Harding, Union, Curry, Roosevelt, San Miguel and Colfax counties).

One issue centered around the possibility of base realignment and closures of military bases and national laboratories under Donald Trump’s presidency.

Woods said for one, Cannon Air Force Base in Clovis, is operating in the best position it could in the entire U.S.

Roch said not only does Cannon have such a specialized mission, but Holloman Air Force Base recently had two additional F-16 training squadrons relocated there. The two squadrons will be used in the new Formal Training Unit. The Air Force will move the F-16s from Hill Air Force Base in Utah, Roch added.

“Trump is a business man, and America is a trade powerhouse,” Roch said. “You are only as strong economically as you are militarily, because you cannot negotiate from a position of weakness.”

Roch said in Trump’s campaign trail, he wanted to restore the American military to a position of greatness, because it helps economically, socially and culturally.

“I do not know that President-elect Trump would support BRAC closures,” Roch said. “It would undercut his desire to put us in an economic position to make better deals.”

Ray Mondragon, EPCOG’s economic development / government affairs director, asked Roch and Woods, “With the budget shortfall, at what point do you as a legislator or the Legislature look at tapping into the Land Grant Permanent Fund?”

Roch said he does not like the premise of the question, suggesting that the Land Grant Permanent Fund is a rainy day fund. He said upon being added to the union, each state set land aside. The taxes generated by that land are collected and will be used once the state’s natural resources are consumed, Roch added.

“When the natural resources are gone the LGPF is a permanent safety net to fund education, health care and essential services,” Roch said. “If we treat it like a rainy day fund, once it starts really raining, we are going to be in real trouble.”

Woods said he’s against tapping into the permanent fund. He said there are other options that need to be explored, including seeking federal funding for programs and attracting businesses to the state.

“Another approach to reversing the state’s revenue downturn that legislators need to avoid is raising taxes,” Roch said. “I’m not alone in the thought that we already pay plenty in taxes.”

Roch said New Mexico needs to stay economically competitive with its neighbors in an effort to draw businesses into the state. He said the last thing the state needs to do is raise taxes and make the economic climate less viable for businesses to thrive.

“There will be a push in the senate to pass legislation to raise taxes, but that is not the answer,” Woods said.

Woods said legislators have to work together for the good of the entire state to get the budget in order. He said instead of raising taxes, there needs to be a push to draw in new businesses to diversify the revenue generated by the state.

Woods said there are so many possibilities with New Mexico’s natural resources that warrant exploration. He said with oil and gas, New Mexico could make plastics.

Woods said New Mexico must remain competitive and offer incentives for businesses to come into the state.

Roch said when revenues get short, whether at the state, business or in a family, you make a decision about how to spend money.

“This is exactly how it felt when I first entered the Legislature eight years ago,” Roch said. “Revenues were down, and we had to make decisions on what departments and programs would have its funding cut.”

Roch said first you must focus on essential services, and pause before spending on things you’d like to have.

“As state legislators, we must decide what they are going to spend their restricted budget on,” Roch said. “Things like education, public safety and ensure that we take care of the children and our most vulnerable citizens.”

Woods said a vital area the state needs to look at in the education field is the employment of teachers for K-12 schools. He said these are some of the most important jobs in the state, and teachers have high expectations, he was troubled the state can’t pay them what it should.

“These are the people who will teach our children,” Woods said. “We need the best and brightest to help mold our future.”

Roch said there will be a shortage in capital outlay distributions, which are received when natural resources, such as oil, gas or copper, are extracted from the ground, he added.

Roch said even though there will be severance taxes brought in this year, the Legislature will in hard times swap those funds to avoid spending money from the general fund. He said while this prevents cuts for a moment, it reduces the severance tax pool money to help fund the projects needed by communities.

“I do not think there will be any capital outlay funds available,” Woods said. “Not to put an even grimmer outlook on things, but the funds won’t be available.”