JOHN W. ANDERSON Executive Vice President New Mexico Bankers Association EXECUTIVE VICE PRESIDENT’S MESSAGE I want to acknowledge the effort that was put forward by our bankers before the 2023 Legislature against the State Bank legislation. 2023 LEGISLATIVE WRAP UP The 2023 Legislature adjourned at noon on Saturday, March 18, having considered 550 House bills, 537 Senate bills, 30 Constitutional amendments, and 178 memorials during the 60-day session. The Legislature passed a total of 246 bills, plus memorials and resolutions — a considerably higher number than in the last 60-day session in 2022, but fewer than in most such sessions over the last decade. The governor had until April 7 to either sign or veto the successful bills. Of the 246 bills enacted in this 60-day session, the Governor signed 211 into law and vetoed 35. This session was all about spending. There was $1.2 billion allotted for the state budget, $1.2 billion for capital outlay projects, $100 billion for a General Appropriations Act Junior, $1.1 billion for tax breaks, and $666 million for income tax rebates. Money Bills • HB 2 (State Budget Bill) funds most of the state government. The final budget bill increases the state budget by $1.2 billion over the current year for a new total of $9.575 billion. It provides for a 6% salary increase for state employees and fully funds the Opportunity Scholarship program that provides free tuition at state colleges and universities. Also, it increases the budget for public education by $226 million and Medicaid is increased by $224 million. This was important as New Mexico has one of the highest Medicaid populations in the U.S. • SB 192 (Junior Appropriation Bill) provides additional appropriations, totaling $100 million (non-recurring), that allow each legislator to designate a certain amount of funding to projects of their choice. • SB 505 (Capital Outlay Projects) appropriates $1.2 billion in nonrecurring expenses to the general fund. We are using general funds in lieu of ST bonds. The surplus of non-recurring general fund reviews related to historically high oil and gas productions presents the opportunity to pay cash for 2023 capital projects rather than relying on bonding. Paying cash generates long-term savings by eliminating the cost of interest. There is also a provision (SB 378) that mandates an annual $92 million transfer from the STPF to GF over 10 years, an amount equal to the long-term debt service avoided by not issuing severance tax bonds for capital outlay in 2023. Issue 1 • 2023 7
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