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Thursday, January 3, 2008

Guest View: Basic Needs on Lawmaker's Agenda

By Kathy McCoy

    In mid-January, the New Mexico Legislature will begin its 2008 "budget" session. As a member of the Appropriations and Finance Committee, I spend the bulk of the session evaluating the basic needs and wish lists of the state and its residents.
    Because much of the budget is spent on recurring items, balancing revenues and expenditures is always a source of concern as it's impossible to predict future events. The revenue forecast for Fiscal Year '09 is just over $6 billion, which includes $368.9 million in "new money" available for appropriations. This amounts to a modest 1.6 percent growth in revenues from last year.
    New Mexico's lifeblood is the revenue from oil and gas production. Although $100/barrel oil has increased oil revenues, gas revenues have decreased by about the same amount. The loss of significant federal funding, potential problems in the sub-prime housing market, increased costs in health care and the cumulative effect of other state needs will make balancing priorities more critical than ever.
    As always, education tops the priority list. The Legislative Finance Committee's proposed budget includes $2.6 billion for kindergarten through 12th grade— an increase of $124 million. An increase of $36 million is proposed for higher education for a total of $883 million.
    Education receives roughly 60 percent of the state's budget, yet we remain in the bottom quartile of nearly every measuring standard. Through a legislator's eyes, this indicates a need for fundamental change in how we educate our children. This is a decades-long issue— unrelated to No Child Left Behind. It seriously affects not only our students' futures, but also our ability to attract well-paying jobs to the state. Our high school dropout rate is over 50 percent and truancy is at an all-time high, so it takes little imagination to guess about those kids' futures.
    I know that the vast majority of our teachers work incredibly hard and are dedicated to doing their best under the current system. Most would agree that it's a tough job given the diversity and varied backgrounds of their students. Unfortunately, over the years, discipline has all but disappeared in schools; as a result, teachers no longer enjoy the respect from students they once did. So I would argue that less respect equates with less learning. When administered appropriately, discipline can have much to do with kids becoming productive adults. And it goes without saying that parents play an integral role in reinforcing this value.
    Following education, the next largest budget item is Medicaid, at a proposed cost of $790 million, followed by $300 million for the Department of Health and $277 million for the Department of Corrections.
    If you've been reading the papers, you know that $500 million in highway projects has been put on hold indefinitely. One of those projects that affects my district is the widening of Interstate 25 between Tramway and Bernalillo. Additionally, I've been talking to the Department of Transportation in hopes of getting a roundabout at North 14 and Frost Road in the East Mountains, along with some "traffic calming" medians along North 14. These projects hadn't even made a list, so it's hard to say when they might be considered.
    The Department of Transportation has indicated that increased construction costs and cutbacks in federal funding explain the lack of funding, but the cost of the Rail Runner roughly correlates with the highway shortfalls, so it's hard not to factor that in. I happen to believe mass transit is great, and I'm especially partial to trains— but I also think that an efficient, upscale bus system would have had the capability to not only carry more people, but also get them from Point A to Point B, or C, or D— and at significantly less cost.
    According to the Legislative Finance Committee, we will have about $290 million in nonrecurring general fund money for Capital Outlay— that's compared to $771 million in 2007. I know how important capital projects are to those of you who count on them. With counties, municipalities, and other political subdivisions all competing for the same funds, it's probably one of the most stressful decisions we make. Legislators always get requests far in excess of what we could ever hope to fund, so we have to make hard choices.
    Because the main source of those funds is oil and gas revenues and we know those are cyclical businesses, I've generally tried to focus on long-term infrastructure needs rather than "amenities." As much as I'd like to support more museums, memorials and similar projects, most of my district is quasi-rural, so my allocations primarily go to sewers, water systems, libraries and roads.
    Other issues that may be addressed during the January session are health care reform, ethics reform, subprime mortgage lending and new types of funding for transportation projects. These are all complex and often contentious issues, and if this session is anything like the past few years, they will likely accompany a record number of other bills.
    As always, I welcome your insights and concerns— I will always make time to discuss what you have on your mind. If you can find the time, come up to Santa Fe and visit during the session. Watching the process can often be an eye-opening experience.
    Kathy McCoy is an East Mountains resident and the state representative for District 22.