Pub. 17 2020 Issue 4

8 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S attributed to transportation, second only to the oil and gas industry’s emissions. A Clean Fuel Standard re- duces the emission profile that includes its production, shipping and use. A Clean Fuel Standard would apply to those who refine, blend, make shipping and use. A Clean Fuel Standard would apply to those who refine, blend, make or import fuel-not fuel retailers. With a Clean Fuel Standard, transportation emissions will be reduced by 230,000 metric tons of CO2 equivalents annually, as the clean fuel standard requires a reduction of 10% by 2030 and 20% by 2040. Promoting and Maintaining the Clean Environ- ment New Mexicans Deserve: Creating a Clean Fuel Standard: • Reducing emissions from the transportation sector. In 2018, 15% of New Mexico’s greenhouse emissions were attributed to transportation, second only to the oil and gas industry’s emissions. A Clean Fuel Standard re- duces the emission profile that includes its production, shipping and use. A Clean Fuel Standard would apply to those who refine, blend, make shipping and use. A Clean Fuel Standard would apply to those who refine, blend, make or import fuel-not fuel retailers. With a Clean Fuel Standard, transportation emissions will be reduced by 230,000 metric tons of CO2 equivalents annually, as the clean fuel standard requires a reduction of 10% by 2030 and 20% by 2040. Budget The Governor’s budget raises annual state spending to $7.3 billion, an increase of about 3.3%. It includes a $128 million increase in ongoing spending on public education but does not include across-the-board salary increases for teachers or state employees. The Governor proposes $600 million in one-time spending, including $475 million for COVID relief efforts, bringing reserves at the end of the year down to $1.8 billion or 25% of annual spending. The budget recommended by the interim Legislative Finance Committee calls for an even higher level of annual spending: $7.38 billion (a 4% increase). The LFC increase for public schools, at $113 million, is significant but not as high as the Governor’s proposal. The LFC budget provides for 1.5% salary increases for teachers and state em- ployees. One-time spending proposals include $300 million to boost the state unemployment fund, $75 million for economic recovery efforts, $250 million for highway projects and $185 million for education programs. That would take reserves at the end of the year down to a level equal to 22% of state spending. Legislative Make-Up: The 112-member Legislature has 70 members in the House of Representatives and 42 members in the Senate. Democrats outnumber Republicans 45-25 in the House, and the Demo - crats hold a 27-15 advantage in the Senate. We anticipate that there will be less than 800 bills introduced during the 2021 Legislature-as compared to 1,500 plus during the 2019 regular 60-day session. House leadership has requested that legislators limit their bill introduction to 5 bills. Some of the bills that the NMBA are following due to their potential direct or indirect impact on the banking industry include: SB 2: Small Business Recovery Act (Candelaria). The bill revises the Small Business Recovery Act of 2020, which the 2020 Legislature approved during its June 2020 Special Session. The bill broadens the definitions of quali - fying small business and nonprofit corporations. It extends the deadline for a small business to apply for a loan. The bill delays the reversion of the small business recovery loan fund to Dec. 31, 2024. It also changes the small business recovery loan terms and increases the maximum loan amount from $75,000 to $150,000. The bill increases the severance tax per - manent fund invested in the Small Business Loan Recovery Act from $400 million to $500 million. n EXECUTIVE VICE PRESIDENT’S MESSAGE continued from page 7 The Governor’s budget raises annual state spending to $7.3 billion, an increase of about 3.3%. It includes a $128 million increase in ongoing spending on public education but does not include across-the-board salary increases for teachers or state employees. The Governor proposes $600 million in one-time spending, including $475 million for COVID relief efforts, bringing reserves at the end of the year down to $1.8 billion or 25% of annual spending.